8th Pay Commission: When any pay commission is implemented, it affects only government employees and pensioners. But, when the government changes the tax slab, it affects the entire public of the country.
Impact of New Tax Slab on 8th Pay Commission: While presenting the budget on 1 February 2025, the Finance Minister of the country, Nirmala Sitharaman announced the new tax slab. According to which, now not a single rupee tax will have to be paid on annual income up to Rs 12 lakh.
Apart from this, recently Prime Minister Narendra Modi’s government has approved the 8th Pay Commission, due to which a big increase in the salary of government employees and pensioners is expected. Now the question arises whether the new tax slab announced in the budget will also affect the 8th Pay Commission. If yes, then what kind of impact will it have. Let us know about it in detail in this news.
First understand the impact of the 8th Pay Commission
With the implementation of the 8th Pay Commission, the salary of government employees is likely to increase by up to 108 percent, which will benefit about 1.10 crore central employees and pensioners. According to reports, if the fitment factor is increased from 1.92 to 2.08, then the minimum basic salary can increase from 18,000 to 37,440. On the other hand, if the fitment factor increases to 2.86, then this amount can go up to 51,480.
The burden on the government treasury will increase
If reports are to be believed, the way direct tax has been exempted during the budget and there has been talk of not imposing any tax on annual income up to 12 lakhs, this will put a burden of about one lakh crore rupees on the government treasury. Apart from this, the announcement of the 8th Pay Commission will also put an additional burden of about 2 lakh crores on the government treasury.
Impact of new tax slab on 8th Pay Commission
When any pay commission is implemented, it affects only government employees and pensioners. But, when the government changes the tax slab, it affects the entire public of the country, whether he is doing a government job or a private or doing any business. That is, if it is said in the new tax slab that there will be no tax on income up to Rs 12 lakh, then it will be applicable to all.
Now let’s come to its impact on the 8th Pay Commission. Let us tell you, the 8th Pay Commission will increase the salary and allowances of government employees and if their increased salary goes up to 12 lakhs, then they will not have to pay any tax. But, if their salary goes above 12 lakhs, then according to the new tax slab, they will have to pay tax.
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