Government servants do not have to pay income tax on the retirement allowance.
Taxation on retirement allowance was imposed on 1 July 2015. Now it has been decided to take it up. The government's decision will come into effect from 1 July.On Thursday, a circular has been issued from the Income Tax Department of the Ministry of Internal Resources, Ministry of Finance. It has already been sent to the various ministries and departments of the government.According to the declaration, income tax imposed on various types of allowance (Lamp Grants) on retirement has been withdrawn. However, the government employees will have to pay income on the main salary, festival allowances and bonuses. No tax will be paid against the income that is available outside of it.According to sources, the allowances earned by the government servants during retirement are reduced due to their income. In this regard, many public servants apply to the Public Administration Ministry. In view of this, tax has been withdrawn from it.
