Kindly call for this office letter of even number dated 11th March, 2020 on the aforementioned subject matter…….
No.AIRF/55 Dated: May 20, 2020
The Financial Commissioner(Railways),
Sub: Payment of arrears of KMA and ALK to Loco & Traffic Running Staff – Computation of Income Tax thereon
Kindly call for this office letter of even number dated 11th March, 2020 on the aforementioned subject matter.
As already explained, Loco and Traffic Running Staff have been paid arrears of difference of KMA and ALK, effective from 01.07.2017, in October/November, 2019 in one go. This arrear pertains to Financial Years 2017-18, 2018-19 and 2019-20, however, the entire amount of the arrears, paid to Loco and Traffic Running Staff, is being computed for calculation of Income Tax in the Financial Year 2019-20, due to entire payment having been done during this Financial Year. In this connection, your kind attention is invited towards the provision of the Income Tax Act, Section 89(1), under which, the entire income should have been splitted out in the above-mentioned three Financial Years for computing deduction of Income Tax thereon. For this purpose Form 10-E is required to be submitted by the Running Staff, under Income Tax Act, Section 89(1), seeking relief under this provision, for the payment of arrears.
Although, a considerable time has elapsed, nothing has been heard till date on this issue. It is, therefore, again reiterated that the Managing Director, CRIS, Chanakya Puri, New Delhi, should be directed to affect necessary amendments in their Software and Programming accordingly, to extend the benefit of Income Tax deduction, as per Income Tax Act, Section 89(1), splitting payment of arrears in the aforementioned three Financial Years, i.e. 2017-18, 2018-19 and 2019-20.
It is further requested that, necessary steps should be taken in this regard, keeping in view serious discontentment prevailing among Loco and Traffic Running Staff on this account.
An early action in the matter is solicited.
√Copy to: General Secretaries, all affiliated zonal unions – for information