Dear Veterans
- Yesterday, 06 Mar 2023, I worked out my income tax assuming I will not get arrears by 31 Mar 2023 due to Min of Def (ESW) approaching Hon’ble Supreme Court and possibly requesting disbursement of arrears by another three months as Govt of India does not have funds at the end of financial year 2023 – 24. In that case, on 13 Mar 2023, when the case is to be heard and the Hon’ble Supreme Court accedes to request of Govt of India we can forget about receipt of arrears in one instalment or in one go till next extension of time for disbursement is over.
- In case the Hon’ble Supreme Court does not accept the plea of Min of Def and gives a judgment which could be (a) all arrears to be paid in one go by 31 Mar 2023 or (b) to pay first instalment by 15 Mar 2023 and balance to be paid in full with 8% interest. We really do not know how the judgment is going to be. We have to wait and watch for the judgment on 13 Mar 2023.
- Suppose Hon’ble Supreme Court accedes to the request of Govt of India to pay in four instalments due to financial constraints, then I re-worked out my own Income Tax in the financial year 2023 – 24 when I will get first instalment in Mar 2023 which is accounted for my income in Fin yr 2022-23, second half year instalment in Sep 2023 and third instalment in Mar 2024. Fourth instalment paid in Sep 2024 is accounted for in Fin Yr 2024-25.
- I find New Tax Regime is more beneficial for most of us both in Fin Yr 2022-23 and 2023-24. I find we have to pay almost 30% of our arrears if we get it in one by 31 Mar 2023 as our income will go very high in fin yr 2022-23.
- If you find any mistakes in my calculations do kindly point them out so that I can make immediate correction. I will work out for all officers from Lt to Lt Gen the way I worked out my rank of Brigadier and my QS of 32 years. But it will take more time as I am not a software engineer and do not have any such software with me.
- My worksheet made in MS Excel is attached.
warm regards,
Brig CS Vidyasagar (Retd)