Definition of Central Government employer , State Govt Employer & Other


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This discussion clarifies the definitions of Central Government employer, State Government employer, and 'other' employers concerning tax deductions under Section 80CCD(2) of the Income Tax Act. It explains that departments like Zilla Parishad, PWD, Nagar Panchyat, Grampanchyat, and Nagar Palika are considered State Government employers. The key criterion for identifying a government salary is whether it is paid from the government treasury, even if managed through a DDO (Drawing and Disbursing Officer).

13 April 2022 Sir
As per new budget 2022 , deduction U/s 80CCD(2) should not exceed 14% of the salary ( if employer is Central Govt or State Govt ) and 10 % of the salary ( if any other employer ).

Sir I have to ask what is definition of Central Government employer , State Govt Employer & Other ?

Any department like Zilla Parishad , PWD , Nagar Panchyat , Grampanchyat , Nagar Palika etc will be covered under State Govt employer ?

sir please reply



13 April 2022 Yes, they're state government employees.

13 April 2022 Thanks Sir
Sir , where i can see definition of above ?
Any rule or section , please ?

13 April 2022 sir please reply.
Your response is very important for us

13 April 2022 Respected sir
please reply

13 April 2022 Check the salary is paid from government treasury for those employees.

14 April 2022 Sir
For some department (like Dist Health Office ) salary paid from government treasury . But some department salary paid from there own DDO.
Sir any definition is available under income tax law which can easily classify definition of Central Government employer , State Govt Employer & Other




14 April 2022 Payment from DDO is only government salary.

Government servant means any person serving in connection with the affairs of the Government, whether remunerated by salary or not, and includes every person who is authorised to receive, keep, carry or spend moneys on behalf of Government.


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