GBT News: The central government may raise the Other backward classes (OBC) creamy layer income limit of the country to 12 lakhs. It is currently eight lakhs. The National Commission for Backward Classes had earlier recommended that it be raised to 12 lakhs. The proposal was made in view of the depreciation of the rupee and the rise in the price index.
The governments of Bihar, where elections are being held this year, and BJP-ruled Odisha are on the stand that the income limit should be raised to Rs 15 lakh.The Bihar government, which is ruled by the BJP-JDU alliance, is putting a lot of pressure. The Bihar government is expecting a political decision before the assembly elections in October. If the income limit is not raised along with the increase in the salaries of employees, a large section of the lower class will not get the benefit. The process of forming a commission for salary revision of central employees has been initiated.
The country will have to wait at least a year for the salary hike to be implemented as per the new recommendation. Those earning up to Rs 12 lakh per year have been exempted from income tax in the new budget of the central government. Although not directly related to this, the government has noticed the inappropriateness of continuing the creamy layer income limit at Rs 8 lakh for the backward classes who get exemptions.
7 years since raising the income limit
The high-powered committee chaired by Justice RN Prasad had recommended in its first report submitted on September 9, 1993 that the creamy layer income limit should be revised every three years. It also recommended that it could be revised earlier as per the value of the rupee. However, the income limit was raised from Rs 1 lakh to Rs 2.5 Lakh only after 11 years.
2004-2.5 lakh; 2008-4.5 lakh; 2013-6 lakh; 2017-8 lakh.
 creamy layer income limit of the country to 12 lakhs. It is currently eight lakhs. T){kind=link}