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of <h1>Central Government mandates tax deductions from additional pay and allowances for employees as per 5th Pay Commission u/s 192.</h1> The Central Government has issued a circular regarding the deduction of income tax from additional pay, allowances, and arrears for Central Government employees, following the 5th Pay Commission's recommendations. The new pay scales may result in many employees entering the tax bracket or moving to higher tax brackets. According to Section 192 of the Income-tax Act, 1961, those responsible for salary payments must deduct tax at the average rate based on the estimated income for the financial year. All Drawing and Disbursing Officers (DDOs) are instructed to ensure proper tax deductions from these payments.
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