Increase in Bonds !

7CPC – 50% of Salary Increase could be by way of Bonds.

Govt is considering a proposal under which 50% of of higher income staff under the 7CPC will be compulsorily invested in bank bonds. The proceeds will be used to recapitalise banks without additional pressure on the fiscal.

While this will result in less cash in the hands of higher-income employees, as a sweetener they will get income tax rebate on the amount invested. 

Increase in wages and pension expenditure on account of 7CPC recommendations is not fully provided for in the Budget.

Is 50% of pension increase too by way of Bonds ?