The Forum for Good Governance (FGG) has raised concerns over the way salaries and allowances are structured for legislators and other public representatives in Telangana, alleging that the arrangement enables some of them to significantly reduce their income-tax liability.
According to the FGG, several legislators receive monthly payments substantially higher than the salary amount declared for tax purposes. The forum claimed that some legislators report a salary of only ₹20,000, despite receiving monthly payments estimated at between ₹2.5 lakh and ₹3 lakh, with a large portion classified as allowances.
The organisation has questioned why such a significant share of payments to elected representatives continues to be treated as tax-free allowances.
FGG Questions Ministerial Rank and Whip Allowances
The FGG has also raised concerns over the recent appointment of six whips, three of whom were reportedly granted ministerial rank.
According to the forum, these individuals receive monthly payments approaching ₹4 lakh, while only ₹20,000 is shown as salary. The FGG argues that the structure warrants greater transparency regarding how salaries and allowances are classified for taxation.
The forum has also highlighted the case of the Chairman of the Telangana Legislative Council, stating that the monthly take-home amount was around ₹4.11 lakh, while only ₹41,000 was reportedly recorded as salary and the remainder treated as allowances.
Questions Over Income-Tax Liability
The FGG referred to sub-section (4) of Section 3 of the Payment of Salaries Act, 1953, which provides for the state government to bear the tax liability of the Chief Minister, Deputy Chief Minister and other ministers.
The organisation has argued that continuing such a provision raises questions under Article 14 of the Constitution, and noted that several states have discontinued similar arrangements.
The FGG has described the existing structure as an avenue for avoiding income-tax and called for changes to the system.
Forum Seeks Changes to Telangana’s Salary System
The organisation has demanded that the Telangana government repeal sub-section (4) of Section 3 of the Payment of Salaries Act and reconsider the practice of providing ministerial rank to multiple whips.
It has also called for greater clarity and streamlining of government accounting heads so that legislators are treated as regular income-tax payers on their actual taxable income.
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Conclusion
The FGG’s concerns have brought renewed attention to the taxation and allowance structure applicable to Telangana’s elected representatives. Its demands focus on greater transparency, clearer accounting practices and ensuring that legislators meet appropriate income-tax obligations.
Any changes to the existing system would ultimately require consideration by the Telangana government and, where applicable, legislative or legal action.