Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
New Delhi, Dated the 9th March,2004
Subject: Revision of Income criteria to exclude socially advanced persons/sections (Creamy Layer) from the purview of reservation for Other Backward Classes (OBCs).
The undersigned is directed to invite attention to this Department’s O.M.No.36012/22/93-Estt(SCT) dated 8th September,1993 which inter alia provides that sons and daughters of persons having gross annual income of Rs.1 lakh or above for a period of three consecutive years fall within the creamy layer and are not entitled to get the benefit of reservation available to the Other Backward Classes. It has been decided to raise the income limit from Rs.1 lakh to Rs.2.5 lakh for determining the creamy layer amongst the OBCs. Accordingly the following entry is hereby substituted for the existing entry against Category VI in the Schedule to the above referred O.M.
Category Description of Category To whom the rule of exclusion will apply
VI INCOME/WEALTH TEST Son(s) and daughter(s) of
(a)Persons having gross annual Income of Rs.2.5 lakh or above or possessing wealth above the exemption limit as prescribed in the Wealth Tax Act for a period of three consecutive years.
(b)Persons in Categories I, II,III and V A who are not disentitled to the benefit of reservation but have income from other sources or wealth which will bring them within the income/wealth criteria mentioned in (a) above.
Income from salaries or agricultural land shall not be clubbed.
2. The provisions of this Office Memorandum take effect from the 4th February, 2004.
3. All the Ministries/Departments are requested to bring the contents of this Office Memorandum to the notice of all concerned.
Deputy Secretary to the Government of India