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TDS on 40% of arrears this fiscal
October, 01st 2008

 Income-tax at source would be deducted only on 40% of salary arrears to central government employees this fiscal on implementation of Sixth Pay panel recommendations.

The government has decided to pay 40% of arrears to its employees this fiscal and 60% next fiscal.

Income-tax at source would be deducted only from the arrears of salary actually paid during 2008-09. On the balance, tax would be deducted during the financial year in which these pay arrears are paid, a CBDT statement said.

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