Budget 2013: Exempt DA from income tax, says National Mazdoor Conference

JAMMU: National Mazdoor Conference ( NMC) is seeking exemption of Dearness Allowance from the ambit of income tax as DA is directly linked with the price index.

"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," NMC president Subash Shastri said here today.

"There is no justification of imposing income tax on DA," Shastri said while addressing a rally of NMC workers.

The NMC president also asked Union Finance Minister P Chidambaram to reconsider the practice.

He also said that income tax exemption limit should be raised to Rs five lakh from existing Rs two lakh.

Shastri, meanwhile, added that provision with regard to 20 per cent interim relief to the central and state government employees and pensioners, merger of 50 per cent of DA into basic pay/pension and enhancement of monthly wages of dailywagers to Rs 10,000 should be made during the current Budget session.