Grant of the revised pay structure of grade pay of 4600 IN THE PAY BAND PB-2

GOVERNMENTOF INDIA





MINISTRYOF RAILWAYS



(Railway Board)



*****



S.No. PC-VI/173



No.PC-VI/2009/I/RSRP/8



The GMs/CAOs(R),



All Indian Railways & Production Units



(As per mailing list)



RBE No.226/2009



New Delhi, dated 22.12.2009



Subject: Grant of the revised pay structure of grade pay of



Rs.4600 in the pay band PB-2 to posts that existed



in the pre-revised scale of Rs.6500-10500 as on



01.01.2006 and which were granted the normal



replacement pay structure of grade pay of Rs.4200



in the pay band PB-2.



Attention is invited to Railway Service (Revised Pay) Rules, 2008



notified vide Notification GSR 643(E) dated 04.09.2008 and Schedules



circulated vide this Ministry's letter No.PC-VII2008/IIRSRP/1 dated



11.09.2008 (S.No.PC-VI/2).



2. Sixth Pay Commission recommended merger of the three pre-revised



scales of Rs.5000-8000, RS.5500-9000 and Rs.6500-10500 and replaced



them by the revised pay structure of grade pay of Rs.4200 in the pay band



PB-2. Vide Para 2.2.21(v) of its Report, the Commission recommended



that on account of the merger of these 3 scales, some posts which



constituted feeder and promotion grades would come to lie in an identical



grade. The Commission gave specific recommendations in its Report



granting higher grade pay of Rs.4600 to some categories of these posts.



As regards the other posts, the Commission recommended that it should



first be seen if the posts in these 3 scales can be merged without any



functional disturbance and if possible, the same should be done. Further,



the Commission recommended that in case it is not feasible to merge the



posts in these pay scales on functional consideration, the posts in the scale



of RS.5000-8000 and RS.5500-9000 should be merged with the posts in the



scale of RS.6500-10500 being upgraded to the next higher grade in the pay



band PB-2 with grade pay of Rs.4600 corresponding to the pre-revised



scale of Rs.7450-11500. In case a post already exists in the scale of



Rs.7450-11500, the post being upgraded from the scale of Rs.6500-10500



should be merged with the post in the scale of RS.7450-11500.



3. This Ministry has received a large number of references from



various Railways/Production units and other institutes/departments



proposing upgradation of the posts which were in the pre-revised scale



of RS.6500-10500 as on 01.01.2006 by granting them grade pay of



.... 2/-



Rs.4600 in the pay band PB-2. Consequent upon decision taken by



Ministry of Finance, it has now been decided that the posts which were



in the pre-revised scale of RS.6500-10500 as on 01.01.2006 and which



were granted the normal replacement pay structure of grade pay of



Rs.4200 in the pay band PB-2, will be granted grade pay of RS.4600 in



the pay band PB-2 corresponding to the pre-revised scale of Rs.7450-



11500 w.e.f. 01.01.2006. Further, as already stipulated in note 2 under



schedule circulated vide Annexure 'B' of Board's letter No.PC-VII



200811/RSRP/1dated 11.09.2008 in case a post already existed in the



pre-revised scale of Rs.7450-11500, the posts being upgraded from the



scale of RS.6500-10500 should be merged with the post in the scale of



Rs.7450-11500.



4. Accordingly, in terms of Rules 6 of RS (RP) Rules, 2008, revised pay



of Railway servants in the pre-revised scale of RS.6500-10500 who were



earlier granted grade pay of Rs.4200 and who have already exercised their



option for drawal of pay in the revised pay structure in the format



prescribed in the Second Schedule to the Rules, will be fixed again in



accordance with illustration 4-A Annexed to RS (RP) Rules, 2008.



5. In case of all su~h Railway servants in the pre-revised scale of



Rs.6500-10500 who were earlier granted grade pay of Rs.4200 and who



had opted to have their pay fixed under RS (RP) Rules, 2008, action as



prescribed in this Ministry's letter No.PC-VI/200811/RSRP/1 dated



11.09.2008 will be taken. In case a Railway servant desires to revise his



earlier option for coming over to the revised pay structure, he may be



permitted to do so without making any reference to Board.



6. On account of pay fixation in the revised pay structure of grade pay



of Rs.4600 in the pay band PB-2, arrears of pay will be recalculated and



difference of arrears in respect of the entire amount will be paid



immediately. The' manner of drawal of arrears has already been



indicated in this Ministry's letter NO.PC-VI/200811/RSRP/1 dated



11.09.2008.



7. This has the sanction of the President and issues with the



concurrence of the Finance Directorate of the Ministry of Railways.



l t-'JCN?~ ~I)



~ "'-'"~ )..-1-'~



(Hari Krishan)



Director, Pay Commission-II



Railway Board.



NO.PC-VII2009/IIRSRP/8 New Delhi, dated 22.12.2009



Copy (with 40 spares» forwarded to ADAI(Railways), SOURCE;IR

Grant of the revised pay structure of grade pay of 4600 IN THE PAY BAND PB-2

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Filed Under: RAILWAYS

Taxable Income---FAQ

Taxable IncomeTaxable Income













What does the Income Tax Department consider as income?



The word Income has a very broad and inclusive meaning. In case of a salaried person, all that is received from an employer in cash, kind or as a facility is considered as income. For a businessman, his net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, and Commission etc. Infect the Income Tax Act does not differentiate between legal and illegal income for purpose of taxation. Under the Act, all incomes earned by persons are classified into 5 different heads, such as:







Income from Salary



Income from House property



Income from Business or Profession



Income from capital gains



Income from other sources











Are all receipts considered as income?



No.







Receipts can be classified into two kinds. A) Revenue receipt B) Capital receipt.







The general rule under the Income tax Act is that, all revenue receipt are taxable unless a receipt is specifically exempted and all capital receipts are exempt from taxation unless there is a provision to tax it. Gifts and loans etc are in the nature of capital receipts not attracting tax.















What are revenue and capital receipts?



In a simple language, all that one derives from a source is called revenue receipt. For ex. Salary from employment, Rent from property, Interest or Divided from Investments, Profits from business. When an income is earned on account of transacting the source itself, it is called Capital receipt. For ex. Sale of land and building, business, investment etc.















Is income tax levied on gifts received by a person?



Gift exceeding Rs 25,000 is taxable unless it is received from







7 any person who is a relative or







7 on occasion of marriage or







7 under will or by inheritance or







in contemplation of death of the payer















16. I own shares of various Indian companies and receive dividends. Is it taxable?







No. The dividend declared by Indian companies is not taxable in the hands of the share holders because tax on distributed profits have already been borne by the company.















17. I am a religious preacher and earn money from preaching. Do I have to pay tax and file return?







Yes.















Can I claim deduction for my personal and household expenditure in calculating my income or profit?



No.















19. Most of my income is given away in charity and I am left with just enough to meet my personal requirement. What will be considered as my income?







What is done after the income is earned does not determine its taxation. However charitable contribution to approved institutions will give you the benefit of certain deductions from taxable income.















20. My daughter stays in USA. She owns a house in India and has let it out. She has asked tenants to pay rent to me so that I can a lead decent life. She has not received any rent. Is she still liable to tax? What if she transfers the house to me?







Your daughter is the owner of the house and therefore she is liable to pay tax even though you receive the rent. If the house is transferred, then you would become the owner and you will have to pay tax on the rental income.











21. My children living abroad send me Rs.20000/- per month for my maintenance. Would this be considered as my income?







No.















Is there any limit of income below which I need not pay taxes?



At the moment individual, HUF, AOP, and BOI having income below rupees one lakh need not pay any income tax. For other categories [persons] such as co-operatives societies, firms, companies and local authorities no such exempted limits exists, so they have to pay taxes on their entire income. In cases of senior citizens aged above 65 years and women the exempted limit for the financial year 2007-08 are rupees one lakh ninety thousand and one lakh forty thousand respectively.















I am an agriculturist. Is my income taxable?



Your agricultural income is not taxable per se. However, if you have any other source of income like income from investments, property etc, while calculating tax on them, your agricultural income will be taken into account, so that you pay tax at a higher rate on that other income.















24. What is agricultural income?







To consider an activity as agriculture the basic operation such as tilling, sowing, irrigating & harvesting should have been carried out. Thereafter what is sold in the market should be the primary product harvested. Receipt from such sale is considered as agricultural receipt. If however some further processing or modification were done to the harvested product to enhance its marketable value then such enhanced value would be considered as business income.















Is income from animal husbandry considered as agricultural income?



No.















Do I have to maintain any records or proof of earnings?



For every source of income you have to maintain proof of earning and the records specified under the IT Act. In case, no such records have been laid down, you should maintain reasonable level of records with which you can support the claim of income.















As an agriculturist, am I required to maintain any proof of earning and expenditure incurred?



Even if you have only agricultural income you are advised to maintain some proof of your agricultural earnings.







I win a lottery or prize money in a competition. Am I required to pay taxes on it?



Yes







What does the Income Tax Department consider as income?



The word Income has a very broad and inclusive meaning. In case of a salaried person, all that is received from an employer in cash, kind or as a facility is considered as income. For a businessman, his net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, and Commission etc. Infect the Income Tax Act does not differentiate between legal and illegal income for purpose of taxation. Under the Act, all incomes earned by persons are classified into 5 different heads, such as:



Income from Salary



Income from House property



Income from Business or Profession



Income from capital gains



Income from other sources





Are all receipts considered as income?



No.

Receipts can be classified into two kinds. A) Revenue receipt B) Capital receipt.





The general rule under the Income tax Act is that, all revenue receipt are taxable unless a receipt is specifically exempted and all capital receipts are exempt from taxation unless there is a provision to tax it. Gifts and loans etc are in the nature of capital receipts not attracting tax.





What are revenue and capital receipts?



In a simple language, all that one derives from a source is called revenue receipt. For ex. Salary from employment, Rent from property, Interest or Divided from Investments, Profits from business. When an income is earned on account of transacting the source itself, it is called Capital receipt. For ex. Sale of land and building, business, investment etc.





Is income tax levied on gifts received by a person?



Gift exceeding Rs 25,000 is taxable unless it is received from





7 any person who is a relative or





7 on occasion of marriage or







7 under will or by inheritance or







in contemplation of death of the payer





16. I own shares of various Indian companies and receive dividends. Is it taxable?

No. The dividend declared by Indian companies is not taxable in the hands of the share holders because tax on distributed profits have already been borne by the company.



17. I am a religious preacher and earn money from preaching. Do I have to pay tax and file return?

Yes.



Can I claim deduction for my personal and household expenditure in calculating my income or profit?



No.



19. Most of my income is given away in charity and I am left with just enough to meet my personal requirement. What will be considered as my income?

What is done after the income is earned does not determine its taxation. However charitable contribution to approved institutions will give you the benefit of certain deductions from taxable income.



20. My daughter stays in USA. She owns a house in India and has let it out. She has asked tenants to pay rent to me so that I can a lead decent life. She has not received any rent. Is she still liable to tax? What if she transfers the house to me?

Your daughter is the owner of the house and therefore she is liable to pay tax even though you receive the rent. If the house is transferred, then you would become the owner and you will have to pay tax on the rental income.



21. My children living abroad send me Rs.20000/- per month for my maintenance. Would this be considered as my income?

No.



Is there any limit of income below which I need not pay taxes?



At the moment individual, HUF, AOP, and BOI having income below rupees one lakh need not pay any income tax. For other categories [persons] such as co-operatives societies, firms, companies and local authorities no such exempted limits exists, so they have to pay taxes on their entire income. In cases of senior citizens aged above 65 years and women the exempted limit for the financial year 2007-08 are rupees one lakh ninety thousand and one lakh forty thousand respectively.

I am an agriculturist. Is my income taxable?



Your agricultural income is not taxable per se. However, if you have any other source of income like income from investments, property etc, while calculating tax on them, your agricultural income will be taken into account, so that you pay tax at a higher rate on that other income.



24. What is agricultural income?

To consider an activity as agriculture the basic operation such as tilling, sowing, irrigating & harvesting should have been carried out. Thereafter what is sold in the market should be the primary product harvested. Receipt from such sale is considered as agricultural receipt. If however some further processing or modification were done to the harvested product to enhance its marketable value then such enhanced value would be considered as business income.





Is income from animal husbandry considered as agricultural income?



No.

Do I have to maintain any records or proof of earnings?



For every source of income you have to maintain proof of earning and the records specified under the IT Act. In case, no such records have been laid down, you should maintain reasonable level of records with which you can support the claim of income

As an agriculturist, am I required to maintain any proof of earning and expenditure incurred?



Even if you have only agricultural income you are advised to maintain some proof of your agricultural earnings.



I win a lottery or prize money in a competition. Am I required to pay taxes on it?



Yes.

SOURCE;IT

Taxable Income---FAQ

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Filed Under: INCOMETAX

INCOME TAX ---IMPORTANT FAQ

A. General



What is Income Tax?



It is a tax imposed by the Government of India on any body who earns income in India. This tax is levied on the strength of an Act called Income tax Act which was passed by the Parliament of India.





What do you mean by income earned in India?



Income earned in India is not limited to income earned within the geographical limits or boundaries of the country. Certain incomes are also deemed to have been earned in India although they may have been earned outside the country.





Who administers the Income-Tax Act?



The job of monitoring the Income-tax collection by the government is entrusted to a Department called Income-Tax. This department functions under the Department of Revenue, Ministry of Finance, Government of India



What is the period for which a persons income is taken into account for purpose of Income tax?



Income earned in the twelve months contained in the period from 1st April to 31st March (commonly called Financial Year [FY]) is taken into account for purposes of calculating Income Tax. Under the income tax Act this period is called a Previous year.







What is an Assessment Year?



It is the twelve-month period 1st April to 31st March immediately following the previous year [refer answer-4]. In the Assessment year a person files his return for the income earned in the previous year. For example for FY:2006-07 the AY is 2007-08.







Who is supposed to pay Income Tax?



Any Individual or group of Individual or artificial bodies who/which have earned income during the previous years are required to pay Income tax on it. The IT Act recognizes the earners of income under seven [7] categories. Each category is called a Status. These are Individuals, Hindu Undivided Family [HUF], Association of Persons [AOP], Body of individuals [BOI], Firms, Companies, Local authority, Artificial juridical person.







When Companies pay taxes under the Income tax Act it is called Corporate tax.







7. Is Income tax Act applicable only to residents?





No, The Income tax Act applies to all persons who earn income in India. Whether they are resident or non-resident.





8. Who is a resident?

If an individual stays in India for 182 days or more in a year, he is treated as resident in that year regardless of his citizenship. If the stay is less than 182 days he is a non-resident.





9. How can I know whether a company is resident or non-resident?





A company is considered as resident if it is incorporated under the Indian Companies Act. A foreign company can also become a resident if the control and management of its affairs is done entirely in India during the previous year.





10. How is resident/ non-resident status relevant for levy of income tax?





In case of resident individuals and companies, their global income is taxable in India. However non-residents have to pay tax only on the income earned in India or from a source/activity in India.

                                                                                                                                                                      

11    I am an Indian scientist, who had gone abroad on a government project. Should my return of income include income earned/received abroad?



It depends on your residential status. If you are a resident all incomes earned globally are taxable. Therefore the same needs to be included in the return. However if any tax is paid on that income in the foreign country, you will get credit for the same



SOURCE;IT D

INCOME TAX ---IMPORTANT FAQ

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Indian Forest Service Examination, 2009 written part result announced

On the basis of the result of the written part of the Indian Forest Service Examination, 2009 held by Union Service Public Commission in July 2009, 231 candidates have qualified for Interview/Personality TEST

The candidature of all these candidates is provisional subject to their being found eligible in all respects. In accordance with the condition(s) of their admission to the examination, the candidates should keep original certificates in support of their age, educational qualification, claim to belong to the scheduled caste/scheduled tribe/OBC etc. in readiness for submission at the time of their interview.

The qualified candidates will be sent a detailed application form, which should be returned to the Commission within the closing date indicated in the forwarding letter. In case any of these candidates does not receive a communication in this regard within two weeks of the publication of this result, he/she should immediately contact the Commission, giving his/her particulars i.e. roll number, full name, date of birth, address etc. The result is available on the UPSC website http://www.upsc.gov.in and also on PIB website www.pib.nic.in .

Union Public Service Commission have a facilitation counter at its campus. Candidate may obtain any information/clarification regarding their examination/result on working days between 10.00 A.M to 5.00 P.M in person or over telephone Nos. (011)-23385271/23381125/23098543 from this counter.



SOURCE;PIB

Indian Forest Service Examination, 2009 written part result announced

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Filed Under: UPSC

Result for CDS Exam ( II ) -2009 announced

The Union Service Public Commission has announced the results of the Combined Defence Services Examination (II)-2009 held in September, 2009. 8591 candidates have qualified for being interviewed by the Service Selection Board of the Ministry of Defence, for admission to (i) Indian Militry Academy, Dehradun 129th Course commencing in July, 2010 (ii) Naval Academy, Ezhimala, Kerala Course commencing in July, 2010 (iii) Air Force Academy, Hyderabad (Pre-Flying) Training Course for 188th F(P) Course commencing in July, 2010 (iv) Officers’ Training Academy, Chennai 92nd SSC Course (for Men) commencing in October, 2010 and (v) Officers’ Training Academy, Chennai, 6th SSC (Women Non-Technical) Course commencing in October, 2010.





The candidature of all the candidates is provisional. In accordance with the conditions of the admission to the examination, they are required to submit the original certificates in support of age, educational qualification, NCC (C) etc. claimed by them to Army Headquarters in case of IMA/SSC as their first choice and to Naval Headquarters “DMPR” (OI & R Section), in case of Naval first choice; and to PO3 (A) Air Headquarters in case of Air Force first choice. The original Certificates are to be submitted within two weeks of completion of the SSB Interview and not later than May 13, 2010 (Ist August, 2010 in case of SSC only).



UPSC has a “Facilitation Counter” in its campus where Candidates can obtain any information / clarification regarding their examinations / recruitments during working hours in person or over telephone Nos. 23385271 / 23381125 / 23098543. Result is available on PIB website i.e www.pib.nic.in and also on the U.P.S.C. website i.e. www.upsc.gov.in.





The marks-sheet of candidates who have not qualified shall be available on the Commission’s website within 30 days from declaration/publication of the result.

SOURCE;PIB

Result for CDS Exam ( II ) -2009 announced

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Filed Under: CDSE

465 JAO's promoted to AAOs

Tuesday, December 22, 2009

The Govt.of India,Minstry of Communications &IT, Steering Group Sanchar Bhawan, vide its order No. 27-7/2009-SEA II dated 21.12.2009 had issued orders promoting 465 JAOs of Postal and Telecom wing as AAO's with effect from 30-12-2009 orthe date of assumption of charge whichever is later. The JAOs qualified in the years from 1988 to 1997 are now promoted.





We congratulate all of them. The detailed order can be downloaded from www.dot.gov.in/SEA/sea1_21.12.2009.pdf                SOURCE;FNPO

465 JAO's promoted to AAOs

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Filed Under: post offices

New Guidelines for giving concessions and facilities to women employees in the Government during 2009

Clarification regarding the file Notings under the Right to Information Act, revised instructions for making the procedure of reporting of ACRs more transparent, successful completion of the 3rd Round of Mandatory Mid-Career Training for IAS Officers and new guidelines for giving concessions and facilities to women employees in the Government marked the main activities of the Department of Personnel & Training under the Ministry of Personnel, Public Grievances & Pensions during the year 2009.

The major initiatives taken during the year 2009 are as under

Supply of file notings under Right to Information Act, 2005





The Department has clarified that file noting can be disclosed under Right to Information Act, 2005 except file noting containing information exempt from disclosure under section 8 of the Act.

Revised instructions for making the procedure of reporting ACRs more transparent.

With a view to avoid procedural discrepancies of disclosure of the Performance Appraisal Reports (PAR) to the officer reported upon and to follow the time-schedule of PAR process, as envisaged in the Rules, instructions have been issued that a certificate about disclosure of PAR to the officer reported upon should be enclosed with every PAR while sending the final PAR to this Department for record.

Mandatory Mid-Career Training for IAS Officers

The 3rd round of the Trainig Programme was successfully completed at Lal Bahadur Shastri National Administrative Academy, Mussoorie in June this year. It may be recalled that the Government had introduced in 2007 a mandatory Mid Career Training Programme (MCTP) for IAS officers, in three different phases of 8 weeks duration. Two rounds of all the three phases were completed in the years 2007-2008.



Provision of concessions and facilities to women

New guidelines have been issued for the representation of Women Members on the various Committees/Boards concerned with selection to Group C&D posts in Central Government which make it mandatory to have one woman member in the selection Boards/Committees where lady candidates are expected to be available for service posts and also dissemination of information about vacancies for recruitment, their basic eligibility conditions through schools and colleges in that area, in additional to normal channels.

Orders were also issued by DOPT in July this year exempting women from payment of fees for competitive examinations/ direct recruitment by interview conducted by UPSC/SSC.

As part of 100 days action Plan for increasing representation of women in Central Government jobs, Ministry of Road Transport and Highways as well as Ministry of Urban Development were requested during the year to make provision of transport facilities to working women for major work places.

The Child Adoption Leave has been enhanced from 135 days to 180 days and Paternity Leave to adoptive fathers increased to 15 days.

In view of the utmost importance attached to the enhancement of women’s status in all walks of life and to enable them to lead a normal family life as also to ensure the education and welfare of the children, guidelines were issued to all Ministries and Departments to the effect that when both spouse are in same Central Service or working in same Department and if posts are available, they may mandatorily be posted at the same station. Ministries have been advised to follow these in letter and spirit

New Pension Scheme for members of All India Service

The Pension of the members of the All India Services appointed on or after 1.1.2004 is regulated by the new Defined Contribution Pension Scheme (known as the New Pension Scheme) notified by the Ministry of Finance (Department of Economic Affairs on 22-12-2003. Benefit Pension Scheme and of GPF are now not available to the members of the service appointed on or after 1.1.2004.

LTC journey for physically handicapped/disabled Government Servants or their dependent family members.

The Department of Personnel & Training has now allowed LTC journey by own car/ private taxi for physically handicapped/ disabled Government Servants or dependant family members.

All India Conference of Central Administrative Tribunal

An all India conference of Central Administrative Tribunal was held in November this year which was attended by the Chief Justice of India, Shri Justice K.G.Balakrishnan, Dr. M.Veerappa Moily, Minister of Law and Justice, Shri Pritihviraj Chavan, Minister of State for Personnel, Public Grievances and Pensions and Dr.Justice Mukundakam Sharma, Judge of the Supreme Court besides the Chairman, Vice Chairmen and Members of all the Benches of the CAT. The in house deliberations held at the conference included the ways for improving the efficiency of various Benches of the Central Administrative Tribunal  SOURCE;CGEN

New Guidelines for giving concessions and facilities to women employees in the Government during 2009

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Filed Under: WOMEN EMPLOYEES

Grant of the pay structure of grade pay of Rs.4600 in the pay band PB-2 to Assistants of Central Secretairiat Service

GOVERNMENT OF INDIA



Ministry of Personnel, Public Grievances & Pensions



Department of Personnel & Training





2nd Floor, Loknayak Bhavan, Khan Market



New Delhi, the 21st December, 2009





OFFICE MEMORANDUM





Subject:- Grant of the pay structure of grade pay of Rs.4600 in the pay band PB-2 to Assistants of Central Secretairiat Service.

A large number of references were received from the service Associations and individual officials of the Central Secretariat Service for upgradation of the grade pay of Assistants in the Central Secretariat. The matter after examination in the Department of Personnel and Training was referred to the Department of Expenditure for their consideration.





2. The undersigned is directed to forward herewith a copy of Department of Expenditure O.M.No.1/1/2008-IC dated 16.11.2009 extending the pay structure of grade pay of Rs.4600 in the pay band PB-2 to Assistants belonging to Central Service with effect from 1.1.2006 for information and compliance of all the Cadre Units of CSS.





A reply is requested by 10.11.2009.







(K. Suresh Kumar)



Under Secretary to the Govt. of India





source;cgen

Grant of the pay structure of grade pay of Rs.4600 in the pay band PB-2 to Assistants of Central Secretairiat Service

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Filed Under: cpc

Governmentt widens tax net for perks, replaces FBT rule

Employees will now have to pay taxes on perquisites given to them by their employers as the Central Board of Direct Taxes has notified the much-awaited rules for valuation of the benefits. With these rules, the fringe benefit tax (FBT) being paid by employers for giving non-cash benefits, including cars and employee stock options (ESOPs), to employees will be abolished and replaced with a regime that will tax the perquisites in the hands of the employees. It could mean less take-home pay for employees.



Previously, under the controversial fringe-benefit tax (FBT) regime, these perks were taxed at the hands of the employer. However, as exclusively reported by FE earlier, the new norms are almost a replica of the erstwhile Rule 3 of the Income-Tax Rules, which was largely rolled back in 2005 with the introduction of FBT.



The sources further said the Government may come out with a method for computing the levy on the perks given by employers, including government.





Other perks like traveling, free-food and non-alcoholic beverages provided by the employer, any gift or vouchers received by employees on ceremonial occasions, reimbursements for membership of a club tour and allowances would also come under the purview of this new tax plan.



While government employees will be taxed after the deduction of licence fee from the valuation arrived according to the city of accommodation, in the case of government employees on deputation to public sector companies and private sector employees, the tax will be on entire valuation.



SOURCE;CGEN

Governmentt widens tax net for perks, replaces FBT rule

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Filed Under: DIRECT TAX

Change in Railway recruitment examination process

Saturday, December 19, 2009

In order to make the recruitment process more transparent and fair, it has been decided to hold the examination for a particular category on the same date simultaneously by all the Railway Recruitment Boards (RRBs). A nodal RRB has been nominated for each category. The nodal Railway Recruitment Board will issue Centralized Employment Notice on behalf of all concerned RRBs alongwith other details. Individual RRB will also issue indicative Employment Notice(s). The candidates can submit the application to any RRB but will be able to appear in the examination only at one place.





A well laid down system/procedure is already in existence for conducing recruitment to various posts in Indian Railways. Whenever any case of irregularity or complaint is received, the matter is duly investigated and based on the investigation, deterrent/preventive action is taken



SOURCE;CGEN

Change in Railway recruitment examination process

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Filed Under: RAILWAYS

Grant of House Rent Allowance to Railway employees

Saturday, December 19, 2009





Grant of House Rent Allowance to Railway employees

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

(RAILWAY BOARD)

RBE No.218



New Delhi,dated 10.12.2009

No.E(P&A)II-98/HRA-6



The General Managers/CAOs,



All Indian Railways and Production Units.



Subject:Grant of House Rent Allowance to Railway employees posted to new zones/new Divisions - Regarding.

Attention is invited to the instructions contained in Board's letters of even unmber dated 9.3.2004, 9.8.2006, 12.12.2007 and 24.10.2008 on the above subject. As per letter dt.24.10.2008 only railway staff posted to East-Cental Railway were allowed house rent allowance at the rates admissible at their last place of posting upto 31.8.2009.





2. The matter has been considered by the Board subsequent to issue of letter No.E(G)2008 QR1-1 dated 22.5.2009 and it has been decided that railway employees posted to all new zones/divisions, in a uniform manner, may be allowed house rent allowance upto 31.8.2009 on the same terms and conditions laid down in the letter dated 09.03.2004 ibid and as amended/ clarified from to time.





3. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.





(Salim Md.Ahmed)



Deputy Director, Estt.(P&A)III



Railway Board



SOURCE;CGEN

Grant of House Rent Allowance to Railway employees

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Filed Under: RAILWAYS

Use smart tax-saving tools to maximise returns

An individual can claim a deduction up to Rs 1 lakh U/S 80C of the Income-Tax Act, 1961 (‘Act’) by incurring a certain expenditure or making specified investments. Few of the popular schemes which are generally availed of by the individuals, inter-alia, include the following:









Expenditure-related deductions







Broadly, the expenditure-related deductions include tuition fees and home loan payments. Tuition fees for full-time education in any Indian university, college, school, educational institution, for any two children is eligible for deduction. However, development fees or donations are not considered.







The principal amount re-paid against a home loan to banks or certain category of employers is also eligible for deduction. Stamp duty, registration fees and other expenses incurred for the purpose of acquisition of such a house property are also eligible for deduction. It should, however, be noted that the cost of renovation/house repairs after the completion certificate is issued or after the house is occupied, is not eligible for deductionEquity Instruments







The most popular one here is the equity-linked savings schemes (ELSS) offered by mutual funds. These have a three-year lock-in period. and individuals who have a risk appetite may consider this option.







Provident Fund (PF)/Public Provident Fund (PPF)







In India, there is no comprehensive social security scheme; therefore, individuals have to rely primarily on their own savings/retirement funds. In this context, PF and PPF are two of the most popular and effective tools to create a pool of funds to meet long-term financial requirement.







Employees contribution towards PF is eligible for deduction. In case of self-employed individuals, in the absence of a PF, a contribution could be made to the PPF. It is important to note that in case of PPF, the maximum amount of contribution is restricted to Rs 70,000 per annum under the PPF rules. Life Insurance Policies (LIP)







There are different kinds of life insurance policies, which include term insurance, money-back, endowment, etc. Term insurance is particularly advisable, wherein by paying a small sum of premium, a large sum could be assured by an individual.







Post Office Schemes







Investment avenues under the post office schemes include National Savings Certificate (NSC), Senior Citizen Savings Scheme (SCSS) and the Post Office five-year time deposits. Post offices in India have a good coverage and the interest rates do not vary frequently in comparison with banks/other deposits schemes. Therefore, these schemes are also quite popular amongst individual tax payers.







Term deposit with a scheduled bank for a period of five years or more is also eligible for deduction. Fixed deposits with banks have been quite popular, especially in the last year due to substantial increase in term deposit interest rates. Similarly, investments made in bonds issued by the National Bank for Agriculture and Rural Development (Nabard) and debentures issued by specified companies are also eligible for deduction.







To sum-up







Every individual tax payer should consider the various expenditure/investment deductions available under the Act and also have a good mix of various schemes to ensure good reasonable returns and accumulation of funds over a period of time to meet his mid/long-term financial requirements.







After all, our age-old mantra of ‘regular savings’ irrespective of income/expenditure levels helped India and Indians sail through the global economic turmoil. SOURCE;ET

Use smart tax-saving tools to maximise returns

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Filed Under: DIRECT TAX

Review of Scheme for Compassionate Appointment in the light of the 6th Pay Commission recommendations

Thursday, December 17, 2009





Review of Scheme for Compassionate Appointment in the light of the 6th Pay Commission recommendations





GOVERNMENT OF INDIA





Ministry of Personnel, Public Grievances & Pensions

Department of Personnel & Training





New Delhi, dated the 11th December, 2009





Subject:- Review of Scheme for Compassionate Appointment in the light of the 6th Pay Commission recommendations



The modification of the existing Scheme for Compassionate Appointment has been considered in the light of the recommendation of the 6th CPC as contained in para 2.2.9 and 2.2.10 of its Report. Accordingly, in partial modification of the Scheme for Compassionate Appointment issued by this Department vide O.M.No.14014/6/94- Estt.(D) dated gth October, 1998, as amended from time to time, it has been decided in consultation with the Department of Expenditure that for appointment on compassionate arounds, in exceptional circumstat6es Government may consider- recruiting persons not immediatelv meeting the minimum educational standards. Government may engage them as trainees who will be given the regular pay bands and grade pay only on acquiring the minimum qualification prescribed under the recruitment rules. The emoluments of these trainees, during the period of their training and before they are absorbed in the Government as employees, will be governed by the minimum of the - IS pay band of Rs. 4440-7440 without any grade pay. In addition, they will be granted all applicable Allowances, like Dearness Allowances, House Rent Allowance and Transport Allowance at the admissible rates. The same shall be calculated on the minimum of - IS pay band without any grade pay. The period spent in the -IS pay band by the future recruits will not be counted as service for any purpose as their regular service will start only after they are placed in the pay band PB-1 of Rs.5200- 20200 along with grade pay of Rs.1800.







2. The above decision may be brought to the notice of all concerned for information, guidance and necessary action.







3. Hindi version will follow.



SOURCE;CGEN

Review of Scheme for Compassionate Appointment in the light of the 6th Pay Commission recommendations

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Filed Under: PENSION

CLASSES OF PENSION

Superannuation





A superannuation pension shall be granted to a Government servant who is retired on his attaining the age of 60 years.







Retiring Pension:







A retiring pension shall be granted to a Government servant who retires, or is retired before attaining the age of Superannuation or to a Government servant who, on being declared surplus opts, for voluntary retirement.







Voluntary Retirement:







Any Government servant can apply for voluntary retirement, three months in advance, only after the completion of twenty years of his qualifying service, provided there is no vigilance or Departmental Enquiry pending /initiated against him/her.







Invalid Pension:







Invalid Pension may be granted if a Government servant applies for retirement from the service on account of any bodily or mental infirmity which permanently incapacitates him/her for the service. The request for invalid pension has to be supported by medical report from the competent medical board.







Compensation Pension:







If a Government servant is selected for discharge owing to the abolition of a permanent post, he shall, unless he is appointed to another post the conditions of which are deemed by the authority competent to discharge him/her to be at least equal to those of his own, have the option –







(a) of taking compensation pension to which he may be entitled for the service he had rendered, or







(b) of accepting another appointment on such pay as may be offered and continuing to count his previous service for pension.







Compulsory Retirement Pension:







A Government servant compulsorily retired from service as a penalty may be granted, by the authority competent to impose such penalty, pension or gratuity, or both at a rate not less than two-thirds and not more than full compensation pension or gratuity, or both admissible to him on the date of his compulsory retirement. The pension granted or allowed shall not be less than Rs. 3500/- p.m.







Compassionate Allowance:







(i) A Government servant who is dismissed or removed from service shall forfeit his pension and gratuity:







Provided that the authority competent to dismiss or remove him from service may, if the case is deserving of special consideration, sanction a compassionate allowance not exceeding two-thirds of pension or gratuity or both which would have been admissible to him if he had retired on compensation pension.







(ii) A compassionate allowance sanctioned under the proviso to sub-rule (i) shall not be less than the amount of Rupees one thousand nine hundred and thirteen per mensem.







Extraordinary Pension:







Extraordinary Pension in the form of Disability pension/extraordinary family pension may be paid to the Government servant/his family if disablement/death (or the aggravation of disablement/death)of the Government servant, during his service, are attributed to the Government service. For the award of extraordinary pension, there should thus be a casual connection between disablement and Government service; and death and Government service, for attributability or aggravation to be conceded. The quantum of the pension, however,depends upon the category of the disablement/death.







Government servants appointed on or after 1.1.2004 are not covered by the CCS(Extraordinary Pension) Rules.







Family Pension:







Family pension is granted to the widow / widower and where there is no widow / widower to the children of a Government servant who entered in service in a pensionable establishment on or after 01/01/1964 but on or before 31.12.2003 or having entered service prior to that date came to be governed by the provisions of the Family Pension Scheme for Central Government Employees, 1964 if such a Government servant-







(i) dies while in service on or after 01/01/1964 or







(ii) retired/died before 31.12.1963 or







(iii) retires on or after 01/01/1964







and at the time of his death was in receipt of pension.







Family pension is payable to the children up to 25 years of their age, or marriage or till they start earning a monthly income exceeding Rs.3,500/- + DA admissible from time to time p.m. whichever is earlier.







Widow daughter / divorced daughter/ unmarried daughter of deceased Government servant is also entitled for the family pension till her remarriage or up to life time or starts earning a monthly income exceeding Rs.3,500/- + DA admissible from time to time p.m. whichever is earlier.







Family pension is also payable to the dependent parents of deceased Government servants w.e.f. 01/01/98, where there is no claimant i.e. spouse or child for family pension, alive.







If the son or daughter, of a Government servant is suffering from any disorder or disability of mind or is physically crippled or disabled so as to render him or her unable to earn a living even after attaining the age of 25 years, the family pension can continue to be paid for life time subject to conditions.

CLASSES OF PENSION

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Filed Under: PENSION

National Anomaly Committee meeting and decisions

The first meeting of the National Anomaly Committee was held on 12th December, 2009. Secretary (Personnel) chaired the meeting. In the opening remark, Com. Umraomal Purohit drew the attention of the Chairman of the non-functioning of the Departmental Councils in various departments and the consequent non setting up of Departmental Anomaly Committees. He also raised the issue of the order of the DOPT defining the term Anomaly, which was at variance with the one given in 1997. He recalled the discussion he had with the official side in the matter when it was agreed that the definition of the term would be the same as was in the order of 1997. Responding to the remarks made by the Staff Side Secretary, the Chairman said that his office would take steps to ensure the functioning of the JCM at all levels and informed the meeting that the National Council of the JCM would meet on 16th January, 2009 and the notice therefore has already been issued. On the question of anomaly, it was informed by the Chairman, that all efforts would be taken to address all questions of anomaly and resolve them. The official side clarified that all questions of disparity in relativities would also be addressed except on those on which the 6th CPC has gone into and taken decision enumerating reasons. The Chairman asked the staff Side to bring to the notice of the DOPT/DOE of all those items which stand rejected by the concerned Departmental Anomaly Committees taking shelter under the extant definition.







The following items were discussed :



Fixation of Pay in Revised Pay Scale





The VI CPC in para 2.2.19 (vii) has indicated that where prerevised pay scales have been merged it has been done by extending the existing minimum prescribed for the highest pay scale with which the other scales are being merged. Accordingly it has also been stipulated in 7(1) (A) of the CCS (Revised Pay) Rules, 2008 that if the minimum of the Revised Pay Band / Pay Scale is more that what is determined by multiplying the existing basic pay as on 1.1.2006 by a factor of 1.86 and rounding of the resultant figure to the next multiple of 10, the pay shall be fixed at the minimum of the revised Pay Band / Pay Scale. Note 2B below Rule 7, ibid and illustration 4B given in the Explanatory Memorandum to the Revised Pay Rule apply to cases of merger of Pay Scales. Note 2 B states that pay in the revised Pay Bands will be fixed in the manner prescribed in accordance with Clause (A) (i) And clause (A) (ii) of Rule 7. In illustration 4B a case of an employee in the pre revised pay scale Rs.5000-8000 drawing Rs.5600 as on 1.1.2006 in the pay scale of 6500-10500 has been indicated with which the pay scale of Rs.5000-8000 stands merged.







Taking these into account the pay in the Pay Band in the case of all employees in the Pay Scales of Rs.5000-8000 and Rs.5500-9000 has to be fixed at Rs. 6500 multiplied by 1.86 i.e. Rs.12090. The fixation tables for pay scales 5000-8000 and 5500-9000may therefore be modified fixing the pay in the pay band at Rs.12090 wherever it is less than that amount.







Illustration 4B in the explanatory memorandum to the Revised Pay Rules 2008 may be modified as under:-







Existing Scale of Pay 5000-8000



Pay Band PB-2 9300-34800



Merged with Pay Scale 6500-10500



Existing Basic Pay as on 1.1.06 Rs.5600



Pay in the PB-2 Rs.5600 X 1.86 = 10420 As per Clause (A) (i) of Rule 7(i) of Revised Pay rules 2008



Pay in the PB-2 Rs.6500- X 1.86 = 12090 As per Clause (A) (ii) of Rule 7 (i) of Revised Pay Rules 2008



Grade Pay Rs.4200



Revised Basic Pay Rs.16290







Decision:



The Staff Side pointed out that what has been recommended by the 6th CPC in Para 2.2.19(vii_ in respect of fixation of minimum pay in the Pay band for merged pay scales had not been taken into account while computing the pay band and the table. After some discussion, the official side stated to have a re-look into the matter.







Item No. 5(i)



On Revised Pay Rules. 2008



(i).Option







It has been mentioned under sub rule 4 thereof that the option once exercised shall be final and should be exercised within three months from the date of notification of the rule vide Sub rule I thereof. Since it is very difficult to comprehend and assess the implication of such option, we propose that the first option exercised within three months may not be treated as final and the employees be permitted to revise the option within six month of the date of exercising the first option.







Decision.







The official side has agreed to allow another option. The Side Side also pointed out during the discussion that the option exercised by the officials under F.R. 22(I)(A(1) on promotion has been restricted to only first promotion, which appears to be unreasonable. The official side has agreed to examine whether the above option can be allowed to cover all promotions.







Item No. 5(ii)







(ii). Special allowance and qualification pay which are taken for fixation purposes on promotion should be doubled with effect from 1.1.2006 and not from 1.9.2008 as it cannot be construed to be an allowance. If this is not done, senior employees will suffer loss in emoluments, in case of persons who are promoted during the period between 1.1.2006 and 1.9.2008.







It was pointed out that the item relating to 5th CPC is still pending at the Standing Committee. The Official Side stated that the item would be covered when a decision is taken on the item relating to 5th CPC.











Item No. 5(vi)







(vi) Rule 9. Date of next increment







It is seen after going through the stipulation in the above rules that a person whose increment falls on 1.1.2006 will get the increment on 1.1.2006 in the pre revised pay scale and will get the next increment in the revised pay structure on 1.7.2006 i.e. on expiry of six months. Similarly those, whose next increment is between 1st July, 2006 and 1st December, 2006 would also be granted next increment in the revised pay structure on 1.7.2006. On the other hand, the persons whose increment dates are between 1st Feb. 2006 and 1st June 2006 have to wait for more than 12 months to get the next increment on 1.7.2006. This is quite anomalous. In the case of those who retire during the period between 1st Feb. and 30th June, they will suffer a loss of one increment perpetually thus affecting their pension. It is, therefore proposed that the persons whose increment falls between 1st February and 1st June, 2006 may be given one increment on 1.1.2006 as a one time measure.







The official side agreed to issue orders to cover those in service between 1.1.2006 and 1.7.2006 as a one time measure. The Staff Side however, pointed out that they have made the suggestion for a one time measure on the specific understanding that Rule 9 of the Revised Pay Rules 2008 has no applicable in the fixation of increment date in future as in those cases, the Fundamental Rules will have the application. The Official side was of the opinion that the Revised Pay Rules will override the provisions of the Fundamental Rules. The Staff Side then contended that the increment of an official cannot be postponed except on award of a penalty after initiation of the disciplinary proceedings. The official side after some discussion agreed to reconsider the issue in the light of the contention made by the Staff Side.







Item No. 5(vii).







(vii). Tax deduction from salary:







Spread over of the arrears of salary is permissible under section 89 (a) of the I.T. Act. No tax will thus become payable by Group D employees on account of receipt of arrears eventually. Therefore, executive instructions may be issued not to deduct any tax from the arrears payment pertaining to the Group D employees. In respect of others, they may be allowed to exercise option to tax the arrears either on receipt basis or accrual basis.







Decision .



Since the arrears have all been paid after deduction of tax, this item was not pressed.



Item No. 5(vii)Temporary Status Casual Labourers







As per existing scheme the employees who are afforded temporary status are paid the wages computed with reference to the minimum of the corresponding scale of pay of regular employees. In the case of Group D temporary status employees, it will become necessary that they are afforded the requisite training if they are non- matriculates.







Decision.







Orders would be issued in the case of temporary status employees. In the case of those who died /retired between 1.1.06 and 1.9.2008 grant of grade pay of Rs. 1800 without training was raised by the Staff Side. It was agreed that the Govt. would take a decision in their case favorably.







Item No. 6. Benefit on promotion.







It is an accepted proposition that an employee when promoted to a higher post involving higher responsibility should get a suitable raise in his salary. It was on this consideration that FR 22-C was framed whereby the promotee was first granted an increment in the lower Pay Scale and then fixed at the appropriate (next) stage in the higher grade.







At the time of V CPC it was agreed that minimum increase in salary on promotion shall not be less then Rs.100/- There are certain grades in which, on promotion, a hike of Rs.650/- is being allowed with reference to pre-revised pay scale.







In these circumstances grant of only one increment in the lower Pay Band / Pay scale and difference in grade pay, if there be any, being granted on promotion is certainly inadequate. We therefore propose that minimum benefit on promotion should not be less than 10% of the Pay+Grade Pay of the feeder post.







Decision:







The official side stated that the above item was not covered under the definition of anomaly. However, after some discussion, it was agreed that the official side would further discuss the issue outside the forum of the Anomaly Committee.







Item No. 7. Fixation of pay on promotion.







The minimum Entry pay with Grade Pay in the revised pay structure for direct recruits appointed on or after 1.1.2006 has been specific vide first Schedule, Part –A, Section II of the Gazette Notification of the Govt. of India, Ministry of Finance No. G.S.R. 622 (E) dated 29.8.2008.







On promotion, the pay of the promotees should not be less than the direct recruits.







In VI CPC structure there is no pay scale and new concept of grade pay has been inducted, which should determine the status. As such the following provisions need to be inserted below clarification 2. 'The method of Fixation of Pay on promotion on or after 1.1.2006.







"on promotion to the higher grade pay of an employee should be fixed appropriately and in any case it should not be less than the entry Pay in the revised pay structure for direct recruits appointed on of after 1.1.2006 for the post." further, on promotion to the next higher grade pay an employee should be fixed by adding 10% of pay, plus the grade pay as demanded by NC/JCM in its memorandum submitted to the Chairman, NC/JCM/Cabinet secretary on 8.4.2008.







Decision.



The Official Side agreed to issue enabling orders in the matter.



Item No. 8. Refixation of pension/family pension.



Para 9 of the Ministry of Personnel, Public Grievances and Pension's O.M. No. F.No. 38/37/08-P&PW (A) dated 1.9.2008 states as under:-



"The consolidated pension / family pension as worked out in accordance with provisions of para 4.1 above shall be treated as final basic pension with effect from 1.1.2006 and shall qualify for grant of Dearness Relief sanctioned thereafter.".



This has left uncovered the provision made in para 4.2 of the same OM, which lays down as under:-







The fixation of pension will be subject to the provision that the revised pension in no case, shall be lower than fifty present of the minimum of the pay in the pay band plus the grade pay corresponding to the pre-revised pay scale from which the pensioner had retired. In the case of HAG + and above scales, this will be fifty percent of the minimum of the revised pay scale."







Since refixation of pension has been allowed both under paras 4.1 and 4.2, they should both he covered in para 9 of the OM. It is requested that para 9 of the said OM may be revised including both paras 4.1 and 4.2 thereof.











Decision.



Orders have been issued vide O.M.dated 12th and 14th September, 2009



Item. No. 9. Anomaly in pension for Government Servants who retired/Died in harness between 1.1.2006 and 1.9. 2006



The Sixth Central Pay Commission lays down inter-alia that once an employee renders the minimum pensionable service of 20 years, pension should be paid at 50% of the average emoluments received during the past 10 months or the pay last down, whichever is more beneficial to the retiring employee.







As per the Ministry of Personnel, Public Grievances and Pension O.M. F.No. 38/37/08-P&P(W)(A) dated 2nd September 2008, these orders shall come into force with effect from the date of issue of this OM, namely 2nd September 2008 and shall be, applicable to all Government Servants becoming entitled to pension after rendering the minimum qualifying service of 20 years or on completion of 10 years qualifying service in accordance with rule 49(2) of the CCS (Pension) Rules, 1972.







However, the Govt. servants who have retired on or after 1.1.2006 but before the date of issue of this OM (2.9.2008) have been debarred from this benefit. They will be governed by the rules/ orders which were in force immediately before coming into effect of these orders. In other words their pension will be calculated on average emoluments received during the last 10 months and not on the actual pay last drawn. It is requested that this discrimination should be removed.







Decision.



Orders are under issue. The Staff Side raised the inordinate delay in fixing the revised pension and disbursement of arrears to pensioners. The official side assured to monitor the payment of arrears to pensioners. The refusal on the part of many banks to issue the due and drawn statement even on requisition was also brought to the notice of the Chairman. The Director (Pension) assured that suitable instructions would be issued in this regard to all Banks.







Item No.10. Commutation of pension.







The minimum period of service for eligibility for pension is 10 years. For appointment to Government Service the minimum age is 18 years. In view of this, if a person is appointed at the age of 18 years he cannot become eligible for pension unless he has served for a period of at least 10 years and attained the age of 28 years i.e. when his birthday falls in the 29th years.







The table adopted as per the Ministry of Personnel, Public Grievances and Pension's OM No. 38/37/08-P&PW (A) dated 2.9.2008 shows the minimum age of next birthday after retirement as 20 which is not understood. It is requested that suitable amendment to the table referred to may be notified.







The item was withdrawn by the Staff Side.







Item No.11 to 14. These items were deferred for discussion at the next meeting.







Item No.15.



Parity in pension of all pre 1996 retirees with those who retired on Or after 1.1.2006







The Government have already accepted in principle that there shall be parity in pension amongst pensioners irrespective of the date from which they had retired.







Accordingly pension of all pre 1986 retirees was revised with effect from 1.1.96 by first determining the notional pay which would have been fixed as on 1.1.86 (treating as if the employees were in service on that date) and then the Notional Pension was updated by applying the same fitment formula which was applied to serving employees.







We, therefore demanded that the notional pay of all pre 1996 retirees may be fixed as on 1.1.96 in terms of Revised Pay Rules, 1996 and the notional pension as on 1.1.96 may be revised w.e.f. 1.1.06 by applying the same fitment formula which is applied in the case of serving employees i.e. by multiplying the notional pension as on 1.1.96 by 1.86 + the Grade Pay of the Pay Scale (V CPC) from which they would have retired.







The revision of pension has been done by applying the formula of Basic Pension as on 1.1.96 + Dearness Pension (50% of Basic Pension) + Dearness Relief on Basic Pension + Dearness Pension+40% of Basic Pension.







This is not the same that has been granted to serving employees. In whose case the Grade Pay which is the fitment benefit is 40% of the maximum of the Pre-revised Pay Scale.







As such the Pensioners should also be granted 50% the of Grade Pay of the Pay Scale from which they had retired by way of fitment benefit and not 40% of Basic Pension.







Decision.







The Staff Side pointed out that the 6th CPC in order to maintain the existing modified parity between the present and future retirees had indicated that it would be necessary to allow the same fitment benefit as is being recommended for the existing Government employees vide para 5.1.47 in page 338. However, the Commission recommended that all past pensioners should be allowed fitment benefit equal to 40% of the basic pension. The statement and the recommendation made to give effect to the statement was at variance giving rise to anomaly and disparity in pension entitlement between the past pensioners and the future pensioners. After detailed discussion, the official side agreed to consider the issue once again.







At the conclusion of the meeting, the Staff Side took up the matter concerning non representation of Postal Federations in the National Council as some members of a Federation which could not muster even 5% membership had been approaching one court or the other in a bid to delay the verification process and consequent recognition of the Associations and Federations in the Postal Department. As it would be a never ending process, the denial for the unions who had mustered more than 75% of the membership representation in the National Council would be a miscarriage of justice, the Staff Side added.. The Director (SR) of the Postal Department, who had represented the Postal Department in the official side agreed with the contention of the Staff Side and reported to the Chairman, that they had granted adhoc recognition to the Unions who had mustered the requisite membership and the Department Council had also been convened and met on adhoc basic. The question of granting of representation to the representatives of the Staff in the National Council had been referred to the Department of Personnel and their advice in the matter was being solicited. The Chairman assured the Staff Side to look into the matter and take appropriate decision soon.







The denial of revised higher Grade Pay to Master Craftsmen of Workshops in MMS in the Postal Department, while affording the same to those in Railways and Defence was also raised by the Staff Side. The Department of Expenditure pointed out that they had not received any reference from the Postal Department in this matter, whereas the official side representative of the Postal Department stated that they had referred this matter to them earlier. After some discussion, it was agreed that the Department of Expenditure and the Postal Department would sort out this matter expeditiously.





SOURCE;CGEN

National Anomaly Committee meeting and decisions

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Filed Under: NAC

Sixth Central Pay Commission's recommendations amendment of Service Rules - regarding

Subject:-Sixth Central Pay Commission's recommendations - amendment of Service Rules - regarding





This Department in OM No.AB1401716112008-Estt(RR) dated 24.3.2009 issued the guidelines for amendment of Service RuleslRecruitment Rules for incorporating the changes arising out of 6th CPC recommendations.





2. The 6th CPC have also recommended for bringing uniformity in eligibility criteria across various organized Group A Services for promotions. The issue has been examined and in the light of these, it has been decided that the following steps to amend the existing Service Rules shall be undertaken on priority basis:







(i) For promotion to SAG level, the eligibility requirement shall be " Officers in the JAG with 8 years' regular service in the grade including NFSG OR Officers with 17 years' regular service in Group 'A' posts in the service out of which atleast 4 years' regular service should be in the JAG (including service rendered in the NFSG of the JAG."







(ii) For promotion to HAG level, the eligibility requirement shall be " Officers in the SAG with 3 years' regular service in the grade OR Officers with 25 years' regular service in Group 'A' posts in the service out of which atleast 1 year' regular service should be in the SAG."







3. The cadre controlling authorities of the various Organized Group A Services may initiate action for appropriate amendments in the Service Rules.



SOURCE;CGEN

Sixth Central Pay Commission's recommendations amendment of Service Rules - regarding

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Filed Under: cpc

Department of posts to distribute new pension system

The Department of Posts, Government of India, has been enlisted as a Point of Presence (PoP) for distribution of the New Pension System (NPS) by Pension Fund Regulatory & Development Authority (PFRDA). The Department of Posts (DOP) would, to start with, make the NPS available at over 800 of its branches all over the country, and expand the distribution network to more branches in a phased manner in its endeavour to make NPS available to all citizens in all parts of the country. Both PFRDA and the Department of Posts see significant potential and synergy in this partnership for the development of the NPS and believe that it will significantly further and promote the Government’s initiative to provide old age income security to all citizens of India.





NPS is currently being distributed by 21 entities through nearly 800 branches spread all over the country. PFRDA is working with these institutions to bring all their branches under NPS in a time-bound manner. NPS will now be sold through over 1600 outlets of DOP and other entities.





PFRDA is also considering proposals from other entities seeking authorization to act as a PoP. PFRDA has accorded over-riding priority to expansion of NPS distribution network in its effort to make NPS available within the easy reach of all citizens.



SOPURCE;PIB

Department of posts to distribute new pension system

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Filed Under: NEW PENSION SCHEME

BSNL loses market share by nearly half in three years

One of the reasons for this is that the PSU has followed all norms to award contract for expansion of services. It had floated a tender for adding 93 million GSM lines in mid-2008





Defending BSNL's massive loss in market share to just 16.71 per cent now from over 31 per cent in 2006-07, the government on Monday said it was mainly due to fierce competition and not due to managerial reasons.





"BSNL, being a Central Public Sector Undertaking, has to follow established institutional procedures in its various functions, which is not required in a private company," Telecom Minister A Raja said in a written reply in Lok Sabha.





BSNL has lost market share both in the mobile as well as in wire line telephony.





One of the reasons for this is that the PSU has followed all norms to award contract for expansion of services. It had floated a tender for adding 93 million GSM lines in mid-2008 but till now it has not been able to place the orders.



This is even when its existing capacity is almost exhausted in most of the circles.





Meanwhile, the minister said, BSNL has undertaken organisational restructuring with a view to provide end-to-end focus on different businesses. Under this, separate business units have been created to improve performance.





He said BSNL's market share in wire line telephony has come down to 76.03 per cent in 2009-10 (till 31.10.2009) while in case of mobile service the share has fallen to 12.18 per cent from 18.66 per cent.





SOURCE;THE HINDU

BSNL loses market share by nearly half in three years

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Filed Under: BSNL

Tax deduction on HRA

Employees generally receive a house rent allowance (HRA) from their employers. This is a part of the salary package. HRA is given to meet the cost of a rented house taken by the employee for his or her stay.

The Income Tax Act allows for deduction in respect of the HRA paid to employees . It is to be noted that the entire HRA is not deductible. HRA is an allowance and is subject to income tax. An employee can claim exemption on his HRA under the Income Tax Act if he stays in a rented house.



In order to claim the deduction, the rented premises must not be owned by the employee. In case one stays in an own house, the entire amount of HRA received is subject to tax. According to the Income Tax Act, the amount of HRA exempt is the least of:





The actual amount of allowance received by the assessee in the relevant period during which the rented accommodation is occupied by him.





The amount by which the rent expenditure actually incurred by the assessee exceeds one-tenth of the amount of salary due to the assessee in the relevant period. 40% of the salary due to the assessee in the period.Here is an illustration for the year 2009-10 . Assume an assessee gets a salary of Rs 5 lakhs as basic salary and Rs 2.5 lakhs as HRA.





He pays an actual rent of Rs 1.5 lakhs. In such a case, the amount of HRA exempt would be calculated as:





Actual HRA received — Rs 2.5 lakhs





Excess of rent paid over 10% of salary i.e., Rs 1.5 lakhs less Rs 50,000 (10% of salary) = Rs 1 lakh



40% of salary (40% of Rs 5 lakhs) = Rs 2 lakhs



As out of these Rs 1 lakh is the least, it will be allowable as a deduction from salary for the year.





The balance HRA of Rs 1.5 lakhs will be subject to tax      SOURCE;ET

Tax deduction on HRA

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Filed Under: HRA

http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/Pension/FullPension_11122009.pdf

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Want to quit AIIMS for private job? Ask for 2 years' leave

Want to quit AIIMS for private job? Ask for 2 years' leave

 Doctors who want to quit the All India Institute for Medical Sciences (AIIMS) need to seek leave for a period of two years and vacate their plush quarters, the Valiathan Committee has recommended



                                           

The committee, set up to look for better management and functioning processes for the top medical institute of the country, however, recommended that a doctor needs to work for at least five years before asking for such a release.





"For additional professors/professors who wish to serve in the private sector in India or abroad after 5 years of service, leave for 2 years should be considered favourably when they would not be entitled to receive pay or allowances or retention of quarters," according to the committee report, tabled in the Lok Sabha Friday.





Over the last few years, several senior doctors have left the AIIMS for greener pastures. While some left for lucrative private hospital jobs, some left the country for new jobs or further studies.





The committee has recommended that "at additional professor/professor level, if any individual with proven contributions to science wishes to switch to a purely research career that should be permitted".





The committee said that the post of the head of the department needs to be rotated among senior faculty members every five years.





It has also suggested that like the IITs and IIMs, faculties and departments must be allowed to do consultancy services along with their regular jobs.





About the promotion of the faculty members, it has said that "the qualifying service required to become eligible for time-bound promotion from assistant professor to associate professor should remain four years."





"The eligibility period for promotion from associate to additional professor should be reduced to three years, provided the candidate has published at least three papers in journals with an impact factor of not less than two. This is a reasonable requirement for anyone who wishes to occupy a senior faculty position of additional professor," the committee has recommended.





It has also said that all top AIIMS like institutes need to form a joint council and the health minister should head this council in stead of heading each of the institution.





"The majority of the recommendations have been accepted in principle and are at various stages of implementation," Health Minister Ghulam Nabi Azad told the Lok Sabha



SOURCE;ET

Want to quit AIIMS for private job? Ask for 2 years' leave

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Filed Under: AIIMS

BHEL to recruit about 4,000 persons annually for 3 yrs

BHEL to recruit about 4,000 persons annually for 3 yrs



As part of expansion plans and embarking on certain new joint ventures, public sector BHEL is to recruit about 4,000 persons including executive engineers annually, at least for the next three years, a top company official said today.







At present,there are 45,000 plus headcount in various BHEL units and the company plans to enhance it to 52,000-55,000 by the end of 2012, B Prasada Rao, Chairman and Managing director of the unit told reporters here last night.







The company had also plans to start industrial training institutes as a solution to overcome the diffculty in getting artisans to BHEL's sub-contractors, he said.







The PSU had forwarded a proposal to the Railway Ministry, enabling them to be a partner with Indian Railways to install a manufacturing unit at the campus of Railway Workshop in Kalcharapar in West Bengal.







The proposed Joint Venture would enable BHEL produce self propulsion vehicles along with delicate components for the Railways on an assured off-take.







He said they have received a fresh order worth about Rs 990 crore from Railways to supply about 150 electric locomotives. BHEL unit at Jhansi would manufacture and supply the engines.







He said works on the joint venture projects for additional power generation of 2x800 MW and 3x800 MWs each in Tamil Nadu and Karnataka respectively was expected to be completed within the next two months.



source;TOI

BHEL to recruit about 4,000 persons annually for 3 yrs

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Filed Under: BHEL

Banks to pay compensation for wrong payment: SC

 The Supreme Court has held that banks are liable to compensate a customer whose money is wrongly paid to another person without verifying the original signature of the account-holder as it amounted to deficiency of service.





A bench of Justices D K Jain and T S Thakur said the bank was guilty of honouring the cheque presented by the fraudster by releasing an amount over and above the amount in the account even though the customer Gurnam Singh had no overdraft facility.





"On a query by the Court how in the absence of any overdraft facility being enjoyed by the complainant, a cheque for the amount which was in excess of the balance amount in the account of the complainant could be honoured, learned counsel is unable to furnish any satisfactory explanation

SOURCE;PTI

Banks to pay compensation for wrong payment: SC

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Filed Under: BANKS

Understanding mutual fund investments

I wish to invest in an MF scheme to avail of tax benefits and good returns. My investment horizon is five years. Shailesh Rakhonde







Investments in tax-saving mutual funds (referred to as equity-linked savings schemes – ELSS) are eligible for tax benefits under Section 80C of the I-T Act. Investments of up to Rs 1 lakh in each financial year are eligible for tax benefits. These investments are subject to a 3-year lock-in.







While it is good to see that you have an investment horizon of 5 years, you must also note that investments in tax-saving funds entail taking risk on account of their market-linked nature. In terms of funds — HDFC TaxSaver, Franklin India Taxshield, Sundaram BNP Paribas Tax Saver, Magnum TaxGain and ICICI Prudential Tax Plan are some of the funds from the ELSS category that have impressive long-term track records.







I have SIPs in the following mutual funds — HDFC Top 200, Birla Sunlife Frontline Equity, Reliance Regular Savings and UTI Opportunities, Canara Rebeco Equity Tax Saver, Sundaram Tax Saver and SBI Tax Advantage. I plan to stay invested for at least five years. I wish to invest Rs 4,000 more through the SIP route. Please advise. Dheeraj Lath







Your portfolio is skewed towards the large-cap segment. Also, you already have a number of funds in your portfolio. If you can take on the risk associated with a mid-cap fund, there might be a case for exiting from one of your existing investments and replacing it with a well-managed mid-cap fund.







Reliance Growth and Sundaram BNP Paribas Select Midcap are some that enjoy a 5-star rating from Morningstar (over a five-year period), indicating a superior risk-adjusted return delivered vis-à-vis peers.







Could you give your views on Sundaram BNP Paribas-PSU Opportunities Fund? Also, I wish to know whether Benchmark Nifty Bees is good bet for the long term. Can I hold it for at least 10 years? Dheeraj Lath







Thematic funds offer a high risk — high return investment proposition. This is on account of their homogeneous investments that deprive investors of benefits of diversification. Sundaram BNP Paribas-Select Thematic Funds PSU Opportunities with its predominant investments in stocks and fixed income securities from PSUs, is likely to offer a similar investment proposition. SOURCE;ET

Understanding mutual fund investments

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Filed Under: FINANCE

Moderisation of Employment Exchanges

National e-Governance Plan has identified modernization and upgradation of Employment Exchanges as one of the Mission Mode Projects (MMP). Implementation of this Project will help job-seekers to register on-line from anywhere and approach any Employment Exchange for employment assistance. Under the Project, a national web portal with common software is proposed to be developed. This will contain all the data regarding availability of skilled persons on the one hand and requirements of skilled persons by the industry on the other. It will help youth get placed and enable industry to procure required skills on real time basis. The project will be implemented all over the country.







National Institute for Smart Government (NISG), the Principal Consultant has submitted the Detailed Project Report (DPR) which covers the Public-Private-Partnership details. The proposed PPP aims to act as a service support to the existing Employment Exchanges for providing the following services, wherever required:





i. Registration Services



ii. Employment Market Information (EMI)



iii. Vocational Guidance & Counseling / Talent Assessment Services



iv. Placement Services.





Since the Employment Exchanges in the country function under the administrative control of the State Government / UT Administrations, the regulation and co-ordination of the activities of the private placement agencies has to be decided by them as per the guidelines issued by the Ministry of Labour & Employment.



This information was given by the Minister of State in the Ministry of Labour & Employment Shri Harish Rawat in a written reply in the Rajya Sabha today.



SOURCE;PIB

Moderisation of Employment Exchanges

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Filed Under: EMPLOYMENT

Bihar government ordered to appoint 35,540 trained teachers

 The Supreme Court today ordered the Bihar government to appoint 35,540 primary school teachers as per their seniority based on the year they secured their Bachelor of Education or Bachelor in Teaching degrees.





A bench of Justice Altmas Kabir and Justice H.L. Dattu gave the order on a joint lawsuit by thousands of professionally qualified teachers of Bihar, who sought contempt to court proceedings against the state government for not keeping its word given to the apex court in 2007 for appointing them.



The bench asked the government to appoint all the teachers on the basis of their seniority and without taking any examination.





The legal tangle of trained teachers' appointment dates back to December 2003, when Bihar's erstwhile Rabri Devi government had advertised vacancies of 35,540 primary teachers in government schools and had proceeded to appoint people who had passed matriculation or higher examinations.





This was challenged by the professionally qualified teachers of Bihar before the Patna High Court. They contended the move would curtail their right to be appointed as primary teachers. They also contended it would violate an earlier apex court ruling, which held that only professioanlly qualified teachers could be given the teaching job.





Acting on the lawsuit by Nand Kishore Singh and other trained teachers, the high court asked the state government to appoint only professionally qualified teachers in primary schools either on the basis of competitive examination or otherwise.





The high court in its ruling in 2005 came down heavily on Bihar's educational system and its politicians, and observed that "the state, which has not been appointing any primary teacher since 1990, has generated generations of illiterates in the last twenty years".





The then Rabri Devi government, however, moved the apex court contending that matriculates are able to impart primary education and should not be barred from appointment.





Later in 2007, the Nitish Kumar government withdrew the lawsuit filed by its predecessor, and promised the apex court that it would appoint all 35,540 teachers in primary schools as in any case vacancies existed for almost double that number for primary teachers.





But later the Nitish Kumar government began appointing all trained teachers on a consolidated salary of Rs.5,000 and matriculates on a salary of Rs.4,000.





It was this act that prompted the teachers to move the apex court again, this time for contempt to court proceedings against state government officials for not keeping the promise made to the apex court.





Appearing for qualified teachers, advocate Rakesh Upadhyaya told the court that the Bihar government was appointing teachers on an ad-hoc basis utilising the money given to it by the central government under the Sarva Siksha Abhiyan, which is being funded by United Nations.





He pointed out that though the present government action may benefit over 200,000 people in the state who might get at least a temporary source of living, it will not create a proper infrastructure for education.





Though the government would earn political dividends, it would not create a permanent pool of teachers for the state, said Upadhyaya.





The bench, however, refraining from launch of contempt to court proceedings, ordered the state government to appoint all the trained teachers on the basis of their seniority without taking any examinations as the state had already told the court that more vacancies existed than the number of qualified teachers.





The court, however, did not interfere with the state government's act of appointing matriculates as teachers as per the Sarva Siksha Abhiyan. (IANS



SOURCE;HEAD LINES INDIA

Bihar government ordered to appoint 35,540 trained teachers

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Filed Under: EDUCATION

CEE TO ALLOT 1525 MBBS SEATS

CEE to allot 1525 MBBS seats, 19,470 engineering seats









The Hindu A scene from Kerala Medical/Engineering entrance centre in Thiruvananthapuram. File Photo: C. Ratheesh Kumar



Allotments by the Commissioner for Entrance Examinations (CEE) to engineering and medical courses in Kerala state would begin during the first week of June 2010. This time only half a mark would be deducted for wrong answers in the entrance examinations.







The candidature of students who mark options during the last round of allotment and subsequently ‘waste’ government seats by not taking admission would be cancelled and liquidated damages would be charged from them, the CEE, B.S. Mavoji said here on Sunday.







He was speaking at a press conference where the prospectus for engineering / medical entrance examinations 2010 was released by the Education Minister M. A. Baby who handed over the first copy to the Health Minister P. K. Sreemathy.







Till last year one mark used to be deducted for a wrong answer. This resulted in 30 to 35 per cent of candidates getting disqualified for the engineering entrance and around 15 per cent candidates getting disqualified for the medical entrance. The reduction in negative marking has been done to enable more candidates to find a place in the rank lists. A correct answer would continue to fetch four marks, he said.







Often students who scored very high marks in the qualifying examinations did not make it to the rank list because marked wrong answers to some questions. The half a mark reduction being planned now was a symbolic move designed to dissuade candidates from indulging in large scale guess-work while marking answers, Mr. Mavoji explained.







In reply to a question Mr. Baby said government has already sought the opinion of student organisations on issues relating to reforms in the entrance examinations. Once this is received, the cabinet sub-committee and then the cabinet would give a final shape to the reforms, he said.







The government has already held one round of discussions with managements of private –self-financing engineering colleges on the question of the fee to be charged in the government seats in those colleges. Talks would soon be held with managements of self-financing colleges in the medical stream.





The fee for all courses would be decided in time for the allotments to begin as scheduled in June, he added.





Allotment for MBBS and engineering seats





In 2010 there would be 2,000 seats for the MBBS course in various categories of colleges in the State.







There would be 1070 seats for the BDS course; 740 seats for BAMS; 25, for BHMS; 50 seats for BSMS; 147 seats for the B.Sc Agriculture course; 120 seats for the B.VSc and AH course; 50 seats for the B.FSc course and 22, for the B.Sc Forestry course.







In the engineering stream there would be 30,443 seats in 2010. As many as 140 seats would be available for the architecture course. While there would be 46 seats for the B.Tech Agricultural Engineering course, there would be 23 seats for the B.Tech Dairy Science and Technology course.







Of these the CEE would make allotments for 1525 MBBS seats of which 850, would be in government colleges and 475, in private self-financing colleges. As many as 630 BDS seats, 495 BAMS seats, 250 BHMS seats and 25 BSMS seats, would be available for allotment, by the Commissioner.







In the engineering stream the CEE would make allotments to 19,470 seats. This includes 4271 seats in government and aided engineering colleges, 5436 seats in government-controlled self-financing colleges and 9694 seats in private self-financing colleges. For the architecture course 110 seats would be available for allotment.







A note circulated at the press conference said the CEE expects to receive 1,30,000 applications for the entrance examinations in 2010. Last year there were 1,18,000 applicants.







The prospectus can be accessed at the web site www.cee-kerala.org



SOURCE;THE HINDU

CEE TO ALLOT 1525 MBBS SEATS

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Filed Under: HIGHER EDUCATION