Punjab Chief Minister Bhagwant Singh Mann on Wednesday announced the hike of interest rate on the due amount of Dearness Allowance of government employees. Bhagwant Singh Mann in a tweet said that the government has released an installment of Dearness Allowance arrears for government employees.
In a tweet, Punjab CM said, "A big gift for government employees. Today we have released an installment of Dearness Allowance arrears of government employees...The due amount of Dearness Allowance arrears increased at the rate of 6% from 1st July 2015 to 31st December 2015 has been approved to Rs.356 Crores.. . We do what we say..."
The due amount of dearness allowance arrears has been increased at the rate of 6 per cent from July 1, 2015, to December 31, 2015, and for this Rs 356 crore has been approved, CM Mann said.
Earlier on March 24, the central government hiked the dearness allowance for its employees and pensioners from 38 per cent to 42 per cent. After this, now the government of Uttar Pradesh is also going to increase the dearness allowance for its pensioners and employees by 4 percent, which will benefit lakhs of employees.
Also Read: 7th Pay Commission: Centre Clears 4% Hike In Dearness Allowance For Government Employees
Calculation of dearness allowance The amount of dearness allowance is calculated on the basis of multiplying the current rate of DA and basic salary. Suppose your basic salary is Rs 29,000 and DA is 42 per cent, then your DA formula will be (42x 29200)/100. Similarly, dearness relief is also calculated for pensioners.
According to the rules of the Income Tax Department, tax has to be paid on the dearness allowance. While filing ITR, people have to give complete information after dearness allowance.