House Building Advance was considered as one of the most favoured privilege for the Central Government Employees for build their own houses. It is unfortunate that the VI CPC has recommended not to continue the privilege which is very much disappointed and highly regrettable.
Before 2004, House Building Advance was calculated as 50 times of the basic pay. After the implementation of Dearness Allowance pay, it was reduced to 30 times including Dearness Pay. The amount which is given as loan is divided into equal number of monthly instalments for certain years was the main highlight of this privilege. The interest for the amount was too calculated after the completion of the loan and it is also divided into equal number of instalments for a maximum of 60 months. By abolishing this privilege Central Government Employees are dissatisfy with the VI CPC.
Each and every central government employee wants to get House Building Advance through their respective departments only because of the relief on the Income Tax for the amount and are the one who pays the Income Tax correctly throughout their service. The VI CPC had forgotten this and ignored the privilege for the central government employees.