I think it will be very difficult for the govt to increase the salaries of its employees ,the divide between pvt and public sector is too large and govt does not have resources to fullfill the aspirations of its 33 lakh workforce even if it wants to and it does not make economic sense also. But there is an option. Can anybody tell me what is the rationale behind extracting income tax from govt employees.? who gains by this exercise? Is it not ridiculous to take out money from one pocket and put it in other pocket and that too at the expense of public money. Income tax on govt servants is not justified and should be challenged and opposed because of following 1 : salary is not an income it is a remuneration/wage therefore legally it is out of the ambit of the Income tax act 2:collection from salaried class constitute only 2.8% of total collection 3:More than 50% of the strength of Income tax deptt is engaged in collecting this 2.8%; which is very poor ABC analysis 4: Most of the neighbouring countries like pakistan srilanka have already exempted govt servant salaries from tax.
In view of above i feel it will be a win win situation for govt to exempt govt servants from Itax instead of increasing the pay scales.I think majority of govt servants will accept this option gladly. I appeal to all associations and bodies who are sending their suggestions and demands to the commission to unequivocally and vehemently ask for the above and also create a strong public opinion on this issue.
