Government

Yes, the President of India pay Income tax, but not more than 50% of his salary

Written by Abdul M

President Ram Nath Kovind was on a three-day visit to his home state Uttar Pradesh. On June 26, while addressing a gathering in his hometown, Jhinjhak, he urged people to pay tax and consider it as a duty to the nation.

He also claimed,  “Mere salary ka 50% se jyada toh Tax cut jata hai”. (More than 50% of my salary goes into tax.)

The video of the President went viral and many social media users raised questions over his claim of a 50% cut in his salary as a tax. Citing President’s (Emoluments and) Pensions Act, 1951  users claimed President’s salary is tax-free. (Archive)

 

More such claims by multiple users can be found here, here, here, and here,

FactO Check:

Part 1: Does the President of India Pay Income Tax?

According to the President’s emoluments and pension act, 1951, the President of India is paid  Rs. 5 lakh per month. There is no clause in the Act that states that the salary of the President of India is tax-free.

We spoke to a senior Chartered Accountant, who confirmed us nobody is exempted from paying income tax. Everyone is required to file Income Tax Return (ITR) even if the income is under the tax slab.

We spoke to a senior journalist,  who also confirmed to us that the President does pay tax. There is no evidence that says the President of India is exempted from paying Income tax.  Akhilesh Sharma, the Executive Editor of NDTV, tweeted: “Yes. The President of India pays Income Tax. It is deducted at the source. Do not get mislead by contrary reports in a section of media.”

We also found another tweet from Siddharth Sharma, a former financial advisor to both Presidents Pranab Mukherjee and Ramnath Kovind. he assured that the President’s salary is fully subject to tax.

Part 2: Does the President of India pay more than 50% of his income as Taxes?

According to an article published in The Hindu on May 19, 2020, President had decided to forego his salary by 30% to aid the COVID-19 fight for a year. As mentioned above, the President is paid Rs. 5,00,000 a month, so overall he is paid Rs. 60,00,000 per annum. After a 30% cut, his salary gets reduced to Rs. 40,00,000 per annum.

We used the Income-tax calculator website to calculate the total tax he would be paying. According to the website, the total payable tax is Rs. 9,75,000. Whereas he claimed he pays Rs. 2,75,000 as tax in the above video.

Tax Payable Per month  (9,75,000/12) = Rs. 81,250

After 30% cut in salary (20,00,00/12) =  Rs. 1,66,666

Total Deduction from his regular salary = Rs. 2,47,916

As we explained above, there is a deduction of Rs. 1,66,666 per month due to his voluntary deduction of 30% from his salary.

Even if he didn’t give up  30% of his salary for the cause of the COVID-19 pandemic, the total payable tax amount is Rs. 18,44,000 which will be around Rs. 1,53,666 per month as a deduction. So the claim that he pays tax more than 50% of his income is found to be false as per our analysis.

 

Conclusion: The President pays income tax. However, there is a discrepancy in the President’s claim that more than 50% of his salary goes into tax.

(Note: FactO News has reached out to the President’s office for clarification on his statement. This article will be updated once we receive a clarification).

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About the author

Abdul M

Fact-Checker @Facto_News, Political Analyst, Social Media Expert

1 Comment

  • What he said was not definite and accurate and might have said casually to inspire people to pay taxes properly. It should not be taken in letter and spirit. Moreover his salary is credited to his account and I do not know he signs bills as there are accounts officers as disbursing officers and they remit the salaries to the individual accounts. Better it is not made a point of discussion on any ground.

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