Tamil Nadu government staff losing money under new tax regime: Forum

Although the employees had the option to choose between the old and new pension schemes, they were asked to opt for the new regime for income tax deduction, the statement said.
Under the old regime, employees could get exemptions under the heads of individual insurance, postal savings scheme, home loan interest etc., whereas the new regime has no such concessions.
Under the old regime, employees could get exemptions under the heads of individual insurance, postal savings scheme, home loan interest etc., whereas the new regime has no such concessions.

MADURAI: The Tamil Nadu Government Employees' Association has urged the state government to resolve issues pertaining to income tax deductions via the Integrated Financial and Human Resource Management System (IFHRMS) — a financial management portal. Association State president M Anbarasu and General Secretary A  Selvam have submitted a joint petition to Chief Secretary Shiv Das Meena regarding the same.

In the petition, they said that from 2020, the state government has been disbursing salaries of government employees through the IFHRMS, which came under the human resource department. The platform was revamped and named 'Kalanjiyam'. This portal came under the finance department's commissioner of treasuries.

Although the employees had the option to choose between the old and new pension schemes, they were asked to opt for the new regime for income tax deduction, the statement said, and added that employees are facing difficulties under this method. Against their wish, huge amounts of money have been deducted.

Many retired employees have also been facing similar problems, the note said.

"Under the old regime, employees could get exemptions under the heads of individual insurance, postal savings scheme, home loan interest etc., whereas the new regime has no such concessions. Hence, more amount has been deducted. Once the amount is deducted, it is very difficult to recover it from the government, not to mention the challenges faced in running their families due to heavy financial losses," they pointed out, and urged the state government to disburse salaries for the month of April in line with the earlier method.

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