1 day ago
Telangana Legislators Face Tax Evasion Criticism Over Allowances
Some lawmakers in Telangana receive much more money than the salary they officially report.
Most of their payments are described as allowances, which are treated differently for taxes.
The Forum for Good Governance says this helps them avoid income tax.
It also questioned ministerial benefits given to three recently appointed whips.
The forum said the Legislative Council Chairman receives more than Rs 4 lakh each month but reports only Rs 41,000 as salary.
A law allows the state government to pay the tax for some ministers.
The forum says this rule is unfair and should be removed.
It wants lawmakers' payments to be recorded more clearly so they pay income tax.
The Forum for Good Governance said Telangana legislators report only Rs 20,000 as salary despite receiving Rs 2.5 lakh to Rs 3 lakh monthly.
The forum questioned tax-free allowances that allow public representatives to avoid paying income tax on much of their compensation.
Three of six recently appointed whips were given ministerial rank and reportedly receive nearly Rs 4 lakh monthly while declaring Rs 20,000 as salary.
The Legislative Council Chairman reportedly takes home Rs 4,11,000 monthly but pays no income tax because only Rs 41,000 is classified as salary.
The forum demanded repeal of Section 3(4) of the Payment of Salaries Act, 1953, fewer whips, and revised accounting rules.
- Who
- The Forum for Good Governance, Telangana legislators, three recently appointed whips, and the Legislative Council Chairman.
- What
- The forum criticized the reporting of lawmakers' compensation as mostly tax-free allowances and demanded changes to the relevant law and payment practices.
- Where
- Telangana, with the report filed from Hyderabad.
- When
- Why
- The forum said the arrangement enables income-tax avoidance and argued that the tax provision violates Article 14 of the Constitution.
Key facts
- Legislators' reported salary
- Rs 20,000 per month
- Legislators' monthly payments
- Between Rs 2.5 lakh and Rs 3 lakh
- Whips receiving minister rank
- Three of six recently appointed whips
- Whips' reported salary
- Rs 20,000 per month
- Whips' reported monthly compensation
- Close to Rs 4 lakh
- Legislative Council Chairman's take-home pay
- Rs 4,11,000 per month
- Chairman's reported salary
- Rs 41,000 per month
- Law cited
- Sub-section (4) of Section 3 of the Payment of Salaries Act, 1953
Quotes
Forum for Good Governance
A civic forum that criticized Telangana’s salary and tax arrangements for legislators and ministers
“This type of arrangement is only for evading income-tax”
deccanchronicle.com
Sources
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