NE NEWS SERVICE
NEW DELHI, FEB 21
Proposing a major change in the concept of “creamy layer” for OBCs, the government may rule that salary be considered a part of gross income to decide if a backward class individual is eligible to avail Mandal reservations in public employment and education.
Top sources in the ministry of social justice and empowerment said the inclusion of salary was decided as per the recommendations of an expert committee. A proposal to this effect is likely to be moved for the government’s consideration.
If the move goes through, it will significantly raise the bar to qualify for the 27% quota benefits as more are likely to be excluded as “creamy layer” — the cutoff that rules an OBC as affluent.
As per the guiding 1993 office memorandum on the creamy layer, salary and agricultural income are not included in gross income, which only comprises income from other sources. In contrast, factoring in salary would make it much easier to qualify an OBC as affluent. Observers believe the decision will be controversial with the backward castes.
An expert committee was appointed in March 2019 to resolve the situation. As reported by TOI, the panel suggested that the Income Tax Act be made the benchmark to calculate the creamy layer cutoff for all OBCs across the board. The I-T Act includes “salary” and “other sources” but leaves out “Agri income”.
According to sources, the social justice ministry has also decided to review the income ceiling for the creamy layer, as is mandatorily done every three years and was last effected in 2017.
The expert panel is learned to have recommended that the income ceiling should be “indexed” to a fixed parameter to decide the quantum of raise, as against the subjective revision done till now.
While a final decision has not yet been taken, sources said the income ceiling could be increased from the present Rs 8 lakh per annum to above Rs 11 lakh.
If the move to include salary in the gross income goes through, it will raise the bar to qualify for the 27% quota benefits as more are likely to be excluded as ‘creamy layer’
