caalley logo

Welcome to the alley for Indian Chartered Accountants and other finance professionals

Central Government EWS income certificate: Provident Fund, Gratuity, Pension to be counted in Family Income

September 22, 2022

EWS income certificate: Money received through Provident Fund (PF), Gratuity or other pensionary benefits in a particular financial year at the time of retirement would be counted as family income.

For direct recruitment in civil posts and services in the Central Government, there is a provision of 10% reservation for economically weaker sections (EWSs), who are not covered under the reservation scheme for SCs/STs/OBCs.

Following the direction of the Central Information Commission (CIC), the Department of Personnel and Training (DoPT) has come out with a set of FAQs that may be of use while issuing Income & Asset Certificates to candidates by the concerned authorities.

As per the FAQs, money received through Provident Fund (PF), Gratuity or other pensionary benefits in a particular financial year at the time of retirement would be counted as family income for income and asset certificate. In fact, income from all sources has to be counted and EWS benefit is available only when the gross annual income is below Rs 8 lakh.

“As per Para 4.1 of DoPT O.M. No. 36039/1/2019-Estt.(Res.), dated 31.01.2019, apart from asset holding test, persons whose family has gross annual income below Rs 8.00 Iakh (Rupees eight lakh only) are to be identified as EWSs for benefit of reservation. Income for the purpose shall include income from all sources i.e. salary, agriculture, business, profession, etc. for the financial year prior to the year of application. The income for this purpose will be. gross income taken into account for the purpose of Income Tax,” the DoPT’s FAQs said.

Monthly pension/family pension will also be counted under family income for the EWS quota. The FAQs make it clear that gross salary or gross income will be counted for consideration under the EWS quota.

For example, if the gross salary is Rs 10 lakh as per income tax return but total income comes out to be just Rs 6 lakh In this case, gross income will be counted and the candidate would not be eligible for the EWS quota.

[The Financial Express]

join min