Don’t impose income tax on DA, Merge 50% of DA into Basic Pay/Pension: NMC

National Mazdoor Conference (NMC) president Subash Shastri has sought total exemption of Dearness Allowance (DA) from the ambit of income tax as DA is directly linked with the price index.

Addressing a workers’ rally, Shastri said the price escalation is directly linked with the DA of the salaried class and pensioners but it was strange that the income tax is also imposed on the increase of the salaries because of the DA. There is no justification of imposing income tax on DA, he added.

The NMC chief also asked union finance minister P Chidambaram to reconsider the practice. 

Shastri, meanwhile, added that provision with regard to 20% interim relief to the central and state government employees and pensioners, merger of 50% of DA into basic pay/pension and enhancement of monthly wages of daily wagers to R10,000 should be made in the ensuing monsoon session of Parliament.

Pleading the cause of daily wagers working in the various government departments, Shastri also appealed to the chief minister, finance minister and chief secretary to amend SRO 64 and formulate a comprehensive policy for regularisation of all daily wagers/casual and seasonal workers engaged in PWD, irrigation, floriculture, PDD and other departments of the state government after March 1994.

Shastri added that such an amendment in the SRO should be effected before July 31, 2013.