In a BIG shift, govt mulls defining 'creamy layer' on net taxable income and increasing ceiling - watsupptoday.com
In a BIG shift, govt mulls defining 'creamy layer' on net taxable income and increasing ceiling
Posted 24 Jul 2020 11:24 AM

Source: TOI

Sources on Friday reported that the National Commission for Backward Classes (NCBC) was likely to drop its veto to the radical change in the concept of "creamy layer" proposed by the Ministry of Social Justice and Empowerment. In return, the ministry would consider increasing Rs 8 lakh ceiling to Rs 12 lakh to redefine the creamy layer.

The creamy layer is viewed as advanced and is not eligible for 27% job and education reservation.

Earlier, the Social Justice Ministry had proposed to 'salary' to be included in determining the creamy layer.

As per DoPT's official memorandum in 1993, the creamy layer was decided on the basis of income from other sources which excluded "salary" and "agricultural income".

However, government proposal had initially met opposition in certain sections who thought it will dilute the interests of backward communities and hurt them.

But this time the social justice and empowerment ministry proposal to increase the "creamy layer" ceiling to Rs 12 lakh might just address some of the objections raised by the NCBC.

In 2019, the Supreme Court had ruled that the "creamy layer" principle, used to exclude the affluent among other backward classes (OBCs) from enjoying the fruits of reservation, can be made applicable to deny quota benefits in promotion to those affluent among the Scheduled Castes and Schedules Tribes.

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