Port Blair, Feb 01: Andaman Nicobar Rajya Karmachari Mahasangh (ANRKM) has wholeheartedly welcomed the budget which given special emphasis on Middle Class and working class of organized and unorganized sector.
In a press release the ANRKM today said that the Central Government has notified the increase in its contribution to central government employees NPS accounts from 10% to 14% with effect from April 1, 2019.
The notification was issued on 31.1.2019. As per the notification, “The monthly contribution would be 10 percent of the Basic Pay plus Dearness Allowance (DA) to be paid by the employee and 14 percent of the Basic Pay plus DA by the Central Government”. Secondly, the pension has been increased from Rs 3,500 to Rs 7,000.
Thirdly, the Gratuity payment limit has been increased from Rs 10 lakh to 20 lakh. Increase in gratuity limit is quite encouraging and provides a relief to salaried class. It will result in tax saving up to 300,000 at the time of retirement. Gratuity payment threshold limit raised to Rs 20 lakh from existing 10 lakh. This would ensure commitment to an employees to stay connected with a single employer for a longer term.
Fourthly, Individual taxpayers having taxable annual income upto Rs. 5.00 lakh will get full tax rebate and the person earning upto Rs. 6.50 lakh may not be required to pay any income tax, if they investments in provident funds, specified savings, insurance etc. The additional deductions such as interest on home loan upto Rs. 2.00 lakhs, interest on education loans, National Pension Scheme contributions, medical insurance, medical expenditure on senior citizens etc. persons having even higher income will not have to pay any Income tax.
Andaman Nicobar Rajya Karmachari Mahasangh has expressed gratitude to Mr. Narendra Modi and Finance Minister Mr. Piyush Ghoyal for addressing the middle class and working class, said S. Biju Pillai, General Secretary, ANRKM in a press release.
