Pay TDS on 40% arrear this yr, on rest next yr: CBDT

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New Delhi, Sept 30 (UNI) The Central Board of Direct Taxes (CBDT) today clarified that in 2008-09, tax will be deducted at source (TDS) on the 40 per cent of the arrears to be paid to central government employees following the Sixth Pay Commission's recommendations, while on the rest of the amount, tax will be deducted in 2009-10.

Following the Sixth Pay Commission's recommendation, the Centre has revised the pay scales of its employees from January 1, 2006.

Forty per cent of the arrears for the period January 1, 2006 to August 31, 2008 will be paid in 2008-09 and the rest in 2009-10.

The CBDT has received a number of representations, seeking clarification as to whether TDS need to be deducted on 40 per cent of arrear to be paid during 2008-09 or on the entire arrear payable, an official release said.

UNI SG AK KN1842

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