You are eligible for the benefit as salary income is bot included
Clarification of para 9 and 10 in 36033/5/2004 - OBC non-creamy layer
Ref: OM No. 36012/22/93 & 36033/5/2004 Dear Sir/Madam, I am a private sector employee. My income from salary is more than 8 lac. My income from others (Excluding salary) is less than 8 Lac. Can you please clarify below points? 1) Do I fall under Category VI - Income/Wealth TAX? will it be VI(a) or VI(b) (ref: OM No. 36012/22/93) 2) What is difference between clause 9 and 10? (ref: 36033/5/2004) 3) Do I fall under clause 9 or 10? (ref: 36033/5/2004) 4) Is my son eligible for OBC-NCL certificate?
Asked 10 months ago in Labour
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7 Answers
Your son is not eligible for OBC NL certificate as your income from salary is more than Rs 8 lakhs
2) The para 9 & 10 states as follow:
9. Creamy layer status of sons and daughters of persons employed in organizations where equivalence or comparability of posts vis-a-vis posts in Government has not• been evaluated is determined as follows:
Income of the parents from the salaries and from the other sources [ other than salaries and agricultural land] is determined separately. If either the income of the parents from the salaries or the income of the parents from other sources __ [ other than salari"es and agricultural land] exceeds the limit of Rs.8 lakh per annum for a period of three consecutive years, the •sons and daughters of such persons shall be treated to fall in creamy layer. But the sons and daughters of parents whose• income from salaries is less than Rs. 8 lakh per annum and income from other sources is also Jess than Rs.8 lakh per annum will not be treated as falling in creamy lay r even if the sum of the income from salaries and the income from the other sources is more than Rs.8 lakh per annum for a period of three consecutive years. It may be noted that income from agricultural land is not taken into account while applying the Test.
Since you are an employee of private sector, your income out of salary will also be taken into consideration for computing annual income along with the income from all other sources.
Therefore your child will not be eligible for reservation under OBC NCL category quota.
Received three response and responses are contradictory. As per my understanding, from OM 36033/5/2004 Para 9 Says: - It is applicable to "Persons employed in organizations where equivalence or comparability of posts vis-a-vis post in government has not be evaluated." - Income from the salaries and from the other sources is determined separately. - Income from agricultural land is not taken into account while applying the test. - If income from salary is less than 2.5 Lac (Which should be 8 Lac now) AND ALSO income from others is less than 2.5 Lac than he is eligible for NCL though combine income is more than 2.5 Lac. - Period of three consecutive years is checked. Para 10 Says: - Para 10 does not clearly says who falls under para 10. - It says, "While applying the income/Wealth test to determine CL status of any candidate as given in "Category-VI". - In this para "income from the salaries and income from agricultural land shall not be taken into account." - If income from salary is more than 2.5 Lac or income from agricultural is more than 2.5 Lac but income from others is less than 2.5 Lac than candidate is eligible for NCL. Considering that, I understand that two lawyer are referring to para 9 and other is referring to para 10. Further in same OM 36033/5/2004: - Para 3 says that "The creamy layer status of the sons and daughter of employee or organizations where evaluation of the posts on equivalent or comparable basis has not been made is determined on the basis of "Income/Wealth Test" given in the schedule. - Which is "Category-VI". - For which para 10 should be applicable. But again para 9 is mentioned specifically for " Persons employed in organizations where equivalence or comparability of posts vis-a-vis post in government has not be evaluated." So, that was my original query: What is difference between clause 9 and 10? - When I say, "What is difference between clause 9 and 10?", I intended to ask is that "who falls under para
Asked 10 months ago
1) according to Par 9 Creamy layer status of sons and daughters of persons employed in organizations where equivalence or comparability of posts vis-a-vis posts in Government has not• been evaluated is determined as follows:
ncome of the parents from the salaries and from the other sources [ other than salaries and agricultural land] is determined separately. If either the income of the parents from the salaries or the income of the parents from other sources __ [ other than salari"es and agricultural land] exceeds the limit of Rs.8 lakh per annum for a period of three consecutive years, the •sons and daughters of such persons shall be treated to fall in creamy layer. But the sons and daughters of parents whose• income from salaries is less than Rs. 8 lakh per annum and income from other sources is also Jess than Rs.8 lakh per annum will not be treated as falling in creamy lay r even if the sum of the income from salaries and the income from the other sources is more than Rs.8 lakh per annum for a period of three consecutive years. It may be noted that income from agricultural land is not taken into account while applying the Test.
2) According to Para 10 of No. 36033/5/2004 - Estt. (Res.) which is a clarification issues to all state chief secretaries regarding clarification on OBC Creamy layer, income from Salaries and Agriculture should not be considered for calculating the gross income. Only the income apart from salaries and agriculture are to be considered.
It means that if income from salaries of the parents of any candidate is more than Rs. '8 lakh per annum, income from agricultural land is more than Rs. 8 Jakh per annum> but income from other sources is less than Rs. 8 lakh per annum> the candidate shall not be treated to be falling in creamy layer on the basis of Income/Wealth Test provided his parent(s) do not possess wealth above the exemption limit as prescribed in the Wealth Tax Act for a period of three consecutive years.
Dear Client,
The layer is divided into Creamy and Non-Creamy depending on the parent's income. The individual will fall into the Creamy Layer if their income exceeds 8 lakh. The individual will be classified as Non-Creamy Layer if their income is less than 8 lakhs
You are referring to old circulars in this regard.
These circulars were superseded by latest circulars and the latest exemption of income is upto 8 lakhs annual income for the last three consecutive years.
For computation of annual income the rule of exempting the salary income of the government employees and that of the employees of public sector including bank, insurance and other government public sector organisations have been exempted for clubbing the income. The income from agriculture has already been exempted.
However this privilege has not been exempted to the employees of private sector yet.
The annual income from all the sources excluding agricultural income should not exceed Rs. 8 Lakhs for the last three years, in case the income of private employees including the salary income exceeds Rs. 8 lakhs, then the children of such employees will fall under the creamy layer category.
In so far as wealth tax is concerned, as per the Finance Act, 2015, the filing of the Wealth Tax returns have been exempted with effect from 1st April, 2016.
Whatever, you being an employee from private sector and your salary income and income from other sources, if any exceed Rs. 8 lakhs for the last three consecutive three years, then yor children will not come eligible for the privileges under OBC NCL category.
For your information, A committee was formed by NCBC in the year to lok into the reforms in this connection and the committee in its report has recommended to raise the ceiling limit of Rs. 8 Lakhs to 15 lakhs or above at least to the employees of private sector among other recommendations which includes the exemption to the former and current MPs and MLAs of the country to get the benefits under this category, whereas the recommendations and the report has still not been considered by central government and no changes are made yet to the existing law on this.
As per your case you will be eligible for non creamy layer