​Govt proposes to define ‘creamy layer’ on net taxable income and increase ceiling

To the radical change in the concept of “ creamy layer” proposed by the Ministry of Social Justice and Empowerment, the National Commission for Backward Classes (NCBC) was likely to drop its veto power. The ministry would, in return, consider increasing the income slab to redefine the creamy layer from Rs. 8 lakh to Rs. 12 Lakh. The Ministry of Social Justice had earlier proposed to include “ salary'” in determining the creamy layer. Since the creamy layer is viewed as the advanced section of the society, it is not eligible for 27% jobs and education reservation. According to the Department of Personnel and training memorandum in 1993, income was the basis to decide the creamy layer which excluded “ salary” or “ agricultural income” . The government had initially faced opposition by certain sections who thought that the said step would dilute the interest of backward communities and would hurt their feelings. However, this time the proposal of the Ministry of Social Justice and Empowerment to increase the “ creamy layer” ceiling from Rs. 8 Lakhs to Rs. 12 Lakhs is likely to address some of the objections raised by the NCBC earlier. The Supreme Court in its 2019 judgment had ruled that the creamy layer principle that is used to exclude the affluent among the Other Backward Classes (OBCs) from enjoying the benefits of reservation can also be made applicable to deny the quota benefits in promotion to those who are affluent among the Scheduled Castes and Scheduled Tribes.