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.