Grant of advance increments to Stenographers

No. 18/44/88-Estt.(Pay) I





Departpent of Personnel & Training



Estt.(Pay I) Section



***

New Delhi, 7th Dec., 2009





OFFICE MEMORANDUM





SUBJECT: Grant of advance increments to Stenographers in Subordinate Offices for acquiring higher speed in short-hand – Acceptance of Award of BOA – regarding.





In accordance with the provisions contained in the Ministry of Finance



(Department of Expenditure) O.M.No.7(31)E-III(A)/75, dated 4.10.1975 and this, Department’s 0.M of even number dated 14.8.1969, Stenographers (Ordinary Grade) in Subordinate Offices in the pay scale of Rs.1200-2040 (pre-revised) were granted one or two advance increments respectively on qualifying shorthand speed test at 100 or 120 wpm, both at recruitment stage and while in service. It was clarified vide OM dated 14.8.1989 that these advance increments will not count as pay for allowances and as emoluments for pension/gratuity.



2. A demand was raised by the Staff Side in the National Council (JCM) that



the OM dated 14.8.1989 may be withdrawn and the advance increments granted to Stenographers (Ordinary Grade) in Subordinate Offices be treated as pay for all purposes. The demand of the Staff Side was referred to the Board of Arbitration in CA Ref. No.5 of 2004 which gave the following Award on 16,92005:



“The advance increment sanctioned to the Stenographers in the



Subordinate Offices as an incentive for passing the speed test of 100



w.p.m and 120 w.p.m. should be treated as pay for all purposes.”





3. The question of implementation of the above Award has been considered in consultation with the Ministry of Finance and the President is pleased to accept the Award in CA Reference No.5 of 2004. Accordingly, it has been decided that the advance increments granted to the Stenographers (Ordinary Grade) in Subordinate Offices in terms of the provisions contained in Ministry of Finance’s OM dated 4.10.1975 shall be treated as pay for all purposes. Past cases decided otherwise may be regulated accordingly. This Department’s OMs dated 14.8.1989 and 30.1.2001 shall be treated as amended to thls extent.





4. In so far as the persons sewing in the Indian Audit and Accounts



Department are concerned, these orders issue after consultation with the Comptroller and Auditor General of India.





5. Ministry of Finance etc, are advised to bring the above decision to the notice of all concerned under them for their proper action/guidance.





6 Hindi Version will follow.







(B.K. MUKHOPADHYAY)



DIRECTOR (PAY)



SOURCE;CGSN

Grant of advance increments to Stenographers

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Filed Under: STENOGRAPERS

INCOME-TAX (FIRST AMENDMENT) RULES, 2009 – Insertion OF RULE 40E

INCOME-TAX (FIRST AMENDMENT) RULES, 2009 – Insertion OF RULE 40E





NOTIFICATION NO. 1/2009, DATED 5-1-2009







In exercise of the powers conferred by section 295 read with sub-clause (iii) of clause (B) of sub-section (2) of section 115WB of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely :







1. (i) These rules may be called the Income-tax (First Amendment) Rules, 2009.







(ii) They shall come into force with effect from the 1st day of April, 2009.







2. In the Income-tax Rules, 1962, in Part VIIC, after rule 40D, the following rule shall be inserted, namely:







“Prescribed conditions for the purposes of sub-clause (iii) of clause (B) of sub-section (2) of section 115WB.







40E. For the purposes of sub-clause (iii) of clause (B) of sub-section (2) of section 115WB, the non-transferable pre-paid electronic meal card (hereinafter called the “card”) shall fulfil the following conditions, namely:







(i) The card shall be granted by the employer to its employees under a scheme framed by the employer specifying therein the circumstances under which the meal card can be used by the employee.







(ii) The card under clause (i) shall be issued by the issuing bank.







(iii) An employee shall not be issued more than one card.







(iv) The card shall bear the name of the employer along with the name, photograph and signature of the employee to whom the card is issued.







(v) The card shall be used only by the employee to whom the card is issued.







(vi) The card shall be used by the employee only for the purpose of purchasing ready to eat food or non-alcoholic beverage from a member establishment.







(vii) The aggregate amount of ready to eat food or non-alcoholic beverage purchased during a day by an employee shall not exceed one hundred rupees.







(viii) The details of each transaction of purchases made by the employee against the card shall be maintained by the employer and the member establishment in such manner and for such period as is required under the Act for any other similar transaction.



Explanation.- For the purposes of this rule,







(i) banking company” shall have the same meaning as assigned to in clause (viii) of sub-section (1) of section 36 of the Act;







(ii) “issuing bank” means a banking company -







(a) which issues the card to the employees of an employer in pursuance to an agreement entered into with the employer; and







(b) which has entered into a contract with the member establishment authorizing him to allow purchases against the card, issued by it in accordance with the conditions stipulated in sub-clause (iii) of clause (B) of sub-section (2) of section 115WB and this rule; and







(iii) “member establishment” shall mean a restaurant, hotel, canteen or an outlet which sells ready to eat food or non-alcoholic beverage, but shall not include a restaurant, hotel, canteen or an outlet selling alcoholic beverage.



SOURCE;CGSN

INCOME-TAX (FIRST AMENDMENT) RULES, 2009 – Insertion OF RULE 40E

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Filed Under: INCOMETAX

Dearness Allowance increasing 8% as per AICPIN – Dec.2009

All India Consumer Price Index Numbers for Industrial Workers on base 2001=100 for the month of December, 2009







All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of December, 2009 increased by 1 point and stood at 169 (one hundred and sixtynine).



During December, 2009, the index recorded a maximum increase of 5 points each in Yamunanagar, Mundakkayam and Puducherry centres, 4 points each in Madurai, Goa and Guntur centres, 3 points in 7 centres, 2 points in 9 centres and 1 point in 19 centres. The index decreased by 1 point in 8 centres, 2 points in 6 centres and 3 points in 7 centres, while in the remaining 16 centres the index remained stationary.



The maximum increase of 5 points in Yamunanagar centre is mainly on account of increase in the prices of Wheat, Wheat Atta, Fresh Milk, Sugar, Firewood, etc., in Mundakayam centre due to Rice, Onion, Firewood, etc. and in Puducherry centre due to Rice, Poultry, Fish Fresh, Onion, Snack Saltish, Tea (Readymade), etc. The increase of 4 points each in Madurai, Goa and Guntur centres is mainly due to increase in the prices of Bread, Urd Dal, Eggs (Hen), Fish Fresh, Onion, Barber Charges, etc. However, the decrease of 3 points each in Tripura, Firidabad, Rangapara Tezpur, Bokaro, Siliguri, Lucknow and Agra centres is due to decrease in the prices of Rice, Wheat Atta, Onion, Vegetable items, etc.





The indices in respect of the six major centres are as follows :



1. Ahmedabad – 162

2. Bangalore – 176

3. Chennai – 159



4. Delhi – 156





5. Kolkata – 166





6. Mumbai – 171







The point to point rate of inflation for the month of December, 2009 is 14.97% as compared to 13.51% in November, 2009



source;cgsn

Dearness Allowance increasing 8% as per AICPIN – Dec.2009

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Filed Under: DA

VERY IMPORTANT QUESTION AND ANSWERS REGARDING INCOME TAX

Some Questions and Answers regarding Income Tax



1.WHAT CONSTITUTES SALARY INCOME?





“Salary” is the remuneration received by or accruing periodically to an individual for service rendered as a result of expressed or implied contract.





Compensation or remuneration even in the following circumstances is chargeable to Income-tax under the head ‘Salaries’: -





a) When due from the former employer or present employer in the previous year, whether paid or not.





b) When paid or allowed in the previous year, by or on behalf of a former employer or present employer, though not due or before it becomes due.





c) When arrears of salary are paid in the previous year by or on behalf of a former employer or present employer, if not charged to tax in the period to which it relates.





It is, therefore, clear that apart from current years salary, even advance salary and/or arrears of salary may be taxed in the year of receipt. More specifically and elaborately, the Income-tax Act has stipulated that salary includes :-





a) Salary, including advance/arrears of salary;





b) Wages;

c) Fees;

d) Commission;

e) Pension;

f) Annuity;

g) Perquisite;

Receipts from Provident Fund chargeable to tax; Profit in lieu of or in addition to salary or wages; Gratuity;

Contribution of employer to Recognised Provident Fund in excess of prescribed limit; Interest on credit balance of Recognised Provident Fund in excess of notified rates;

i) Encashment of leave



definition of ’salary’ is inclusive and not exclusive.



2.IS RELATIONSHIP OF EMPLOYER AND EMPLOYEE NECESSARY ?



No, payment can be taxed under this section unless the relationship of employer and employee exists between the payer and payee. The employer and employee relationship is the relationship of a master and servant, and it distinctly differs from that existing between a principal and agent. Primarily, the degree of control of the employer over the employee would be a deciding factor, as the agent is generally not under the complete Control and supervision of his principal.

That is why even the emoluments received by an Member if Parliament/ M.L.A. are not taxable under the head “Salary” because of the absence of employer and employee relationship

3.EXEMPTIONS OF INCOME



RELEVANT FOR THE HEAD “SALARIES”

It is not true that every income received by an employee from his employer is taxable. Any income falling within any of the following paragraphs shall not be included in computing the income from salaries: -

(1) The value of any travel concession or assistance received by or due to an employee from his employer or former employer for himself and his family, in connection with his proceeding

(a) on leave to any place in India or

(b) on retirement from service, or, after termination of service to any place in India is exempt under clause (5) of Section 10 subject, however, to the conditions prescribed in rule 2B of the I.T. Rules, 1962.

(2) Death-cum-retirement gratuity or any other gratuity which is exempt to the extent specified from inclusion in computing the total income.

(3) Any payment in commutation of pension received under the Civil Pension (Commutation) Rules of the Central Government or under any similar scheme applicable to the members of the Civil/Defense services under the Union/State/Local Authority or a Corporation established by a Central, State or Provincial Act. Payments in commutation of pension received under any scheme of any other employer, exemption will be governed by the provisions of Section 10(10A) (ii).

(4) Any payment received by an employee of the Central /State Government, as cash-equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement on superannuation or otherwise, is exempt. In the case of other employees it is subject to a maximum of ten month’s leave. This exemption has an overall max. limit of Rs. 2,40,000 [S.0.1015 (E) dated 27.11.97).

(5) Under Section 10(10B), the retrenchment compensation received by a workman is exempt from income-tax subject to certain limits.

(6) Under Section 10(10C), any payment received by an employee of the notified bodies at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempted to the extent that such amount does not exceed five lakh rupees

(7) Any sum received under a Life Insurance Policy, including the sum allotted by way of bonus on such policy other than any sum received under sub-section (3) of Section 80DDA.





(8) Any payment from a Provident Fund to which the Provident Funds Act, 1925 (19 of 1925), applies.





(9) Under Section 10(13AJ of the Income-tax Act, 1961, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed.





(10) Under section 10(14) exemption of notified allowances is provided. The CBDT has prescribed guidelines for the purpose of classes (i) and (ii) of Section 10(14) vide Notification No.SO617(E) dated 7th July/ 1995 (F.No.l42/9/95TPL)which has been amended vide Notification SO No.403(E) dated 24.4.2000 (F,No.l42/34/99-TPL).





11) Under Section 10(15)(iv)(i) of the Income-tax Act, interest payable by the Government on deposits made by an employee of the Central Government or a State Government or a public sector company from out of his retirement benefits, in a notified scheme, is exempt.





(12) Income by way of pension received by an individual or family pension received by any member of the family of an individual who has been in the service of the Central Government or State Government and has been awarded 'Param Vir Chakra" or "Maha Vir Chakra" or "Vir Chakra" or such notified gallantry award, is exempt.





(13) Under Section 17 of the Act, exemption from tax will also be available, under prescribed conditions, in respect of any medical treatment provided to an employee or any member of his family or premium paid by the employer in respect of approved medical insurance taken for his employees or reimbursement of insurance premium to the employees for such medical insurance for the employee or his family members.





4.WHAT ARE PERQUISITES?



A 'perquisite' is defined in the Oxford as 'any casual emolument, or profit attached to an office or position in addition to the salaries or wages'. In sunlit words, perquisites are the benefits in addition to normal salary to which the employee has a right to by virtue his employment. In simple language, 'perquisites 1 are benefits or amenities provided in kind by the employer free of cost or at a concessional rate. Their value, to the extent these go to reduce expenditure that the employee normally would have otherwise incurred in obtaining these benefits and amenities, is regarded as part of taxable salary. As a golden rule, the taxable value of perquisites in the hands of the employee, is its cost to the employer.





However, there are specific rules for valuation of certain perquisites.

5.WHAT IS FAIR RENT?

'Fair rent' is the rent which a similar accommodation is able to get in the same locality or the Municipal value of the accommodation, whichever is higher.





Where the accommodation is hired by the employer, it is the actual rent paid for the accommodation.





Where it is owned by the employer, maintenance expenses of garden and salary of the gardener, if borne by the employer, are also to be taken into account.





6.IS THERE A RELIEF AGAINST HIGHER TAX RATES WHEN SALARY IS PAID IN ARREARS OR IN ADVANCE?





Yes. If because of Payment of salary in arrears or in advance, or payment of compensation or provident Fund or gratuity etc., an assessee's income becomes assessable at a higher, rate in a particular year than at which it would otherwise have been assessed, the Assessing Officer is bound by Section 89(1) to grant relief as prescribed. This enables the assessee to pay the tax at lower rates.





7.WHO WOULD GRANT RELIEF TO PENSIONERS U/S. 16, 88, 88B AND 88C?





The deductions from the amount of pension of standard deduction under section 16 and the tax rebate U/S 88B will be allowed by the DDO/Bank, before making payment to pensioner. For rebate under section 88 on account of contribution to Life Insurance, Provident Fund, NSC etc., if the pensioner furnishes the relevant details to the banks, the tax rebate will also be allowed. Necessary instructions were issued by the Reserve Bank of India to the Banks vide RBFs Pension Circular (Central Series) No. 7/C. D. R./ 1992 (Ref. Co. DGBA: GA (NBS) No. 60/GA. 64 (11 CVL)-91/92) dated the 27th April, 1992, and, they must be followed by all the Banks, which have been entrusted with the task of payment of pensions.



8.WHICH FORM IS SPECIFIED FOR CLAIMING RELIEF u/s 89 (1)?





Yes, it is Form No. 10E



9.WHICH RULE IS RELEVANT FOR DETERMINATION OF RELIEF U/S 89(1)?



The relevant rule for determination of relief u/s 89(1) is Rule 21A of the I.T. Rules 1962

HOW IS THE RELIEF U/S 89(1) COMPUTED?



It is computed as per following steps; -



1. Salary of current year it arrears + advances A

2. Tax on (A) at current rates B



3. Current Salary (i.e) Others excluded C



4. Tax on (C) at current rates D



5. Deduct: [D (-) B] E



6. Add arrears to total income of year to which it relates F



7. Tax on (F) at rates of that year G



8. Total income of that year (-) arrears H



9. Tax on (H) at rates of that year



10.Extra tax for that year : [G (-) I}



11.Relief: {E (-) J}



12.Tax payable for the current year {B (-) Relief}

10.ENTERTAINMENT ALLOWANCE





Upto A.Y. 2001-02 Entertainment allowance is first , included in the employee's salary and then exemption is allowed as given here-in-below:-





(a) In the case of Government employee the least of





(i) Rs.5000 or,





(ii) 20% of salary (exclusive of any other allowance), is allowable as a deduction.



(b) In the case of non-Government employees least of the



following : -





(i) Entertainment allowance regularly received from his present employer from a date prior to 1.4.1955 or,





(ii) A sum equal to 1/5th of salary (exclusive of any other allowance, benefit or perquisite) or,





(iii) Rs.7,500, is allowed as a deduction.





11.IS STANDARD DEDUCTION ALLOWABLE TO PENSIONERS?



Yes. The standard deduction is also allowable to pensioners.



12.DEDUCTION FOR PROFESSIONAL OR EMPLOYMENT TAX





Professional tax or employment tax, levied by a State Government is eligible as a deduction. The amount so paid can be deducted from the taxable salary.



13.STANDARD DEDUCTION





For A.Y. 1998-99, Standard deduction of a sum equal to 33-1/3% of the salary or Rs.20,000 whichever is less, was allowed to an individual having income from salary.



Then w.e.f. 1-4-99 this limit of Standard deduction for assessees having salary income upto Rs. 1,00,000 was increased from Rs.20,000 to Rs.25,000, However, the benefit of standard deduction to assessees having salary income of more than Rs. 5,00,000 was withdrawn. This implies that an assessee earning salary income between Rs. 1 lac and Rs.5 lacs will only be entitled to a Standard deduction of a sum equal to 33-1/3% of the salary or Rs.20,000 whichever is less.



14.THE DEDUCTIONS FROM SALARY INCOME UNDER SECTION 16

The following deductions are available from salary income:-

Standard deduction.



Deduction for professional or employment tax



Deduction of entertainment allowance.



15.HAS THERE BEEN A CHANGE IN RATE OF EMPLOYEE'S CONTRIBUTION TO HIS PROVIDENT FUND?



Yes. After 22nd September 1997 it has been raised upto 12% (previously 10%) by the Employee's Provident Fund 85 Misc. Provisions [Amendment Ordinance, 1997 (17 of 1997)].



16.EMPLOYER’S CONTRIBUTION TO SUPERANNUATION FUND





HAS THERE BEEN A CHANGE IN RATE OF DEDUCTION ALLOWED ON ACCOUNT OF INITIAL CONTRIBUTION THAT AN EMPLOYER MAY MAKE FOR PAST SERVICES OF EMPLOYEE ?

Yes. Upto 21st Sept. 1997 the tax deductible contribution by an employer was upto 25% of the annual salary of the employees. Now this limit has been increased to 27% of the employee’s salary for each year. [I.T. (Second Amendment) Rules 1998, G.O.I. Gazette Notification No. S.O. 50(E) dt. 16th Jan. 1998; CBDT F.No. 142/79/97-IPL No. 105071.



17.EMPLOYER'S CONTRIBUTION TO PROVIDENT FUND

The annual contribution of employer to the balance in a employees' account in a recognised fund is exempt to the extent it does not exceed the limit as given below: ~

(i) The employer's contribution should not exceed 12% of the employee's salary (excluding allowance and perquisites but including D.A if it forms the part of salary as per terms of/employment). If it exceeds, the excess over 12% is taxed.

(ii) Interest on the accumulated balances should not be paid at a rate higher than 12% per annum. Such interest in excess of this exempted limit forms part of the employee's salary, and the deduction under section 80-L is also not allowable in respect of such interest.



18.IF GRATUITY IS RECEIVED FROM MORE THAN ONE EMPLOYER IN THE SAME YEAR, WHAT WILL BE THE CEILING?

The Ceiling of Rs.3,50,000 would apply to aggregate of gratuity from one or more employers in the same year in case of retirement or death etc. occurring after 24.9.97 Prior to that date, ceiling was Rs.2,50,000.

19.IF THE GRATUITY IS RECEIVED FROM DIFFERENT EMPLOYERS IN DIFFERENT YEARS WILL THE CEILING BE DIFFERENT?

No. The ceiling will still be Rs,3.5 lakhs or Rs.2.5 lakhs as specified in the preceding paragraph.



20.WHAT IS THE AMOUNT OF EXEMPTION OF GRATUITY RECEIVED AT THE TIME OF RETIREMENT?





Gratuity is a payment in return of service and it is taxable as contractual salary. However, the I. T. Act exempts gratuity from Income-tax, subject to limits.





In case of Government employees, the whole of the death-cum-retirement gratuity is exempt from tax.



In the case of Industrial Workers, any gratuity received by an employee drawing monthly salary (not exceeding Rs.2,500) only the feast is exempt:-





(a) 5 days salary (7 days in the case of seasonal employment) for each completed year of service or in excess of 6 months.





(b) Rs. 50,000 .





(c) The amount of gratuity actually received.





In other cases, the exemption is available in respect of amount of gratuity actually received.





21.IS ENCASHMENT OF LEAVE DURING THE EMPLOYMENT ALSO EXEMPT?





No. Encashment of leave at any time during the employment is taxable in full.





TAXATION OF COMMUTATION OF PENSION





22.WHAT IS THE AMOUNT OF EXEMPTION OF COMMUTATION OF PENSION?





In the case of Government employees the entire amount is exempt from tax. However, in the case of non-Government employees the maximum amount exempt from tax is restricted to the commuted value of I/3rd of pension where the employee also received gratuity. Commuted value of 50% of pension is, however, exempt.



23.IS ENCASHMENT OF EARNED LEAVE EXEMPT AT THE TIME OF RETIREMENT?





Yes, subject to certain limits, if it relates to a Government employee his retirement from service on superannuation or otherwise, it is fully exempt.





In the case of other employees, the exemption from Income-tax is in respect of encashment of upto the maximum of 8 months earned leave calculated at the average of Jast 10 month's salary. There is also maximum monetary limit which is Rs. 1,35,360 for a person retiring on or after 1.7.95.





This limit is applied on the aggregate amount of such payments received from, two or more employers, whether received in the same year or in different years.



24.ENCASHMENT OP EARNED LEAVE

As the name suggests, it is the amount received by the employee for the leave period not availed by him.



25.HOW MANY TIMES CAN EXEMPTION BE CLAIMED ?





The assessee can claim exemption in respect of two such journey(s) in a block of 4 years. For this purpose, the first block of 4 years was calendar year 1986-89. For a block of 4 years, the journey performed in the first year following that block year is also eligible for exemption. Also, such journey will not be taken into account for determining the tax exemption for the succeeding block.





26.LEAVE TRAVEL CONCESSION





WHAT ARE THE LIMITS OF EXEMPTION IN L.T.C. is granted to an employee in connection with the journey on leave by him or his family. It is exempt from income tax within certain limits as under : -





(a) Where journey is performed by rail; railway-fare in Second AC class by shortest route to destination.





(b) Where places of origin and destination are connected by rail but the journey is performed by any other mode then Second AC class fare by shortest route to the place of destination.





(c) Where place of origin of journey and destination, or part thereof, are not connected by rail and journey is performed by any other transport; then





(i) If a recognised public transport system exists between such places the first class or deluxe class fare of such transport by shortest route, or,





(ii) If in other case, Second AC class fare for the distance of the journey by the shortest route, as if the journey has been performed by rail.





Exemption will, in no case exceed actual expenditure incurred in the performance of journey.





Leave Travel Concession Rules have been amended on the recommendation of the Fifth Pay Commission to extend the facility of travel by air economy Y- Class to certain categories of employees of the Central Government with effect from 1st October, 1997.



Consequently, where the journey is performed on or after 1st October, 1997 by air, an amount not exceeding the air economy fare of the National Carrier by the shortest route to the place of destination.





Also, where the entitlement was previously for air-conditioned Second Class Rail fare, it has been upgraded to air-conditioned First Class Rail fare. [l.T. (First Amendment) Rules 1998, O.O.I. Gazette Notification No. S.O. 34(E) dt.





12th Jan. 1998; CBDTF.No. 142/85/97-TPL No. 105021].





27.HOUSE RENT ALLOWANCE





The exemption from tax with regard to HRA is restricted to the least of the following amounts:-





(i) Actual amount of H.R.A.



The amount by which actual rent paid by the employee exceeds 10% of his salary; and





ii) 50% of salary if the rented house is situated at Delhi, Bombay, Kolkata or Chennai, or 40% of the salary in the case of other cities.





In simpler terms, the whole of H.R.A. is exempt from tax only if it is not in excess of 50% in the 4 metropolitan cities, and 40% in the case of other cities, and further if the rent paid is more than the total of H.R.A and 10% of the “salary. Otherwise, the excess has to be added to the taxable income.





28.IN THE CASE OF EMPLOYEE RESIDING IN HIS OWN HOUSE, IS THE H.R.A EXEMPT FROM TAX ?





No. As he is not paying any rent, so exemption from tax with regard to H.R.A. is restricted to ‘Nil’.



29.IF AN EMPLOYEE IS RESIDING ALONG WITH HIS PARENTS IN A HOUSE FOR WHICH NO RENT IS PAID BY HIM, WILL H.R.A. RECEIVED BY HIM BE TAXABLE?





Yes. The entire H.R.A. would be taxable f6r the same reason as given above. FOR THIS PURPOSE WHAT DOES “SALARY” MEAN?





“Salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.





30.IS RENT RECEIPT COMPULSORILY GIVEN TO DDO?





No. It has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3,000 pm will be exempted from giving rent receipt to DDO. But in the regular assessment of the employee, the Assessing Officer is free to make enquiry or request proof of payment of rent by assessee.





31.ARE THERE ANY OTHER ALLOWANCES WHICH GET SPECIAL TREATMENT UNDER THE I.T. ACT ?





Yes. There are other payments e.g. leave travel concession etc., made by the employer which get special tax treatment.





32..WHAT ARE ALLOWANCES?





An allowance is defined as a fixed amount of money given periodically in addition to the salary for the purpose of meeting some specific requirements connected with the service rendered by the employee or by way of compensation for some unusual conditions of employment. It is taxable on due/accrued basis whether it is paid in addition to the salary or in lieu thereon.





The basic golden rule is that all such allowances are taxable as these are paid because of direct relationship between an employer and employee. However, there are exceptions to this rule. Some of them are given below :-

Clause (14) of Section 10 provides for exemption of the following allowances: -

(a) Any special allowances or benefit granted to an employee to meet the expenses incurred in the performance of his duties.





(b) Any allowance granted to an assessee either to meet his personal expenses at the place of his posting or at the place he ordinarily resides or to compensate him for the increased cost of living.





However, the allowance referred to in (b) above should not be in the nature of a personal allowance granted to the assessee to remunerate or relating to his office or employment unless such allowance is related to his place of posting or residence.

Earlier the exempt allowances were being specified through notifications issued by the Central Government. With effect from 1.7.95, the details of allowances exempt is given in the Income Tax Rules.





The following allowances are exempt to the extent and subject to the conditions indicated in the Rules :-





a) Any allowance for meeting the cost of travel on tour or on transfer.

b) Any allowance, whether granted on tour or for the period of journey in connection with transfer (including any sum paid in connection with transfer, packing and transportation of personal effects on such transfer).





c) Any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office/employment of profit. Provided free conveyance is not provided by the employer.





d) Any allowance granted to meet the expenditure incurred on a helper where he is engaged for the performance of duties of any Office/employment of profit.





Any allowance granted for encouraging academic research in educational and research institutions.





Any allowance for Purchase or maintenance of uniform for wear during the performance of duties of an office/employment of profit.

33.ARE THE ABOVE ALLOWANCES TO BE ACTUALLY SPENT TO AVAIL OF THE EXEMPTION?





Yes, certainly. Any allowance (mentioned above) received but not actually spent will be taxable.





If ARE THERE ANY ALLOWANCES, WHICH ARE ONLY : exempt when received at a particular place(s) ;pr area(s)? and do they have any upper ceilings : for exemption?





For the new amended Rules contain other allowances also .which are exempt (subject to ceilings) in particular area(s) only. These special allowances are :-





i) Any special Compensatory Allowance, in the nature of Composite Hill Compensatory allowance or High Altitude, Allowance or Uncongenial Climate Allowance or Snow Bound Area Allowance or Avalanche Allowance;





ii) Any special Compensatory Allowance given which is in the nature of border area allowance or remote area allowance or difficult area allowance or disturbed area allowance;





ii) Tribal Area Allowance;





iii) Allowance granted to an employee working in any transport system to meet his personal expenditure during his duty performed in the course of running of such transport from one place to another place, provided that such employee is not in receipt of daily allowance;





iv) Children Education Allowance;

v) Any allowance granted to an employee to meet the hostel expenditure of his child;

vi) Compensatory Field Area Allowance;

vii) Compensatory Modified Field Area Allowance;





viii) Any Special allowance, in the nature of counter insurgency allowance granted to the members of armed forces operating in areas from their permanent locations for a period of more than 30 days.





It may be noted that the Dearness Allowance and City Compensatory Allowance granted to an employee are not covered by the Amended Rules. So, these allowances will clearly be part of income and will have to be taken into account in the computation of income for the purposes of deduction of tax at source.





The reimbursement of tuition fee is also not exempt.The transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of duty is exempt to the extent of Rs. 800 per month vide Notification S.O.No. 395(E) dated 13.5.98.





34.WHAT ARE THE CONDITIONS FOR MEDICAL FACILITIES TO QUALIFY AS TAX FREE PERQUISITES?

Section 17 of the IT Act, exempts from tax :-





(a) The value of any medical treatment provided to an employee or any member of his family, in any hospital maintained by the employer;

(b) Any sum paid by the employer in respect of any expenditure actually incurred by employee on his medical treatment or of any member of his family:

(i) In ally hospital the Government or of any local Authority or any other hospital approved for the purposes of medical treatment of its employees;

(ii) In respect of the prescribed diseases or ailments, in any hospital approved by the Chief Commissioner :

Provided that, in a case failing in sub-clause (ii), the employee shall attach with his return of income a hospital certificate specifying the disease 85 hospital Receipt for amount paid.

(c) Premium paid by the employer in respect of approved medical insurance taken for his employees or reimbursement of insurance premium to employees for medical insurance for themselves/family members.





(d) Reimbursement by the employer, of the amount spent by an employee in obtaining medical treatment for himself or any member of his family from any doctor, max. aggregate Rs. 15,000 in an year.

(e) As regards medical treatment abroad, the actual expenditure on stay and treatment abroad of the employee or any member of his family, or, on stay abroad of one attendant who accompanies the patient, in connection with such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. As regards the expenditure incurred on travel abroad by the patient/attendant, it shall be excluded from perquisites only if the employee’s gross total income, as computed before including the said expenditure, does not exceed Rs.2 lakhs.



35.IS THE PERQUISITE AVAILING OF INTEREST FREE OR CONCESSIONAL LOANS EXEMPT IN ANY CASE?

Yes, small loans upto Rs.20,000 in the aggregate are exempt. Loans for medical treatment specified in Rule 3A are also exempt, provided the amount of loan for medical reimbursement is not reimbursed under any medical insurance scheme. Where any medical insurance reimbursement is received, the perquisite value at normal rates shall be charged from the date of reimbursement on the amount reimbursed, but not repaid against the outstanding loan taken specifically for this purpose.



36.IS IT NECESSARY THAT DEDUCTIONS AND REBATES CLAIMED SHOULD HAVE BEEN MADE OUT OF INCOME CHARGEABLE TO TAX?





Yes. Absolutely. It is to be strictly noted that deductions rebates under Chapter VI-A of the IT Act, 1961 are allowed only if the investments/payments are made out of the income chargeable to tax of the financial year relevant to the assessment year under consideration.

37.IF THE TAX PAYER ALSO ENJOYS INCOME UNDER OTHER HEADS OF INCOMES / SOURCES, SHOULD THE EMPLOYER DEDUCT TDS ON SUCH OTHER INCOME(S)?

Not necessarily. An option to be is given U/S 192(2B) which enables a tax payer to furnish details of income under any head other than Salaries and to get TDS thereon.

The employer shall take such other income and tax, if any, deducted at source from such income, into account for the purpose of computing tax deductible under section 192 of the Income-tax Act. From 1.8.98 the DDO’s have been empowered to take into account the loss if any under the head “Income from House Property” for making deduction of Income-Tax U/S 192(1).



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VERY IMPORTANT QUESTION AND ANSWERS REGARDING INCOME TAX

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Filed Under: INCOMETAX

Maintenance of records in consonance with Section 4 of the RTI Act

N0.12/192/2009-1R





Government of lndia



Ministry of Personnel, Public Grievances and Pensions



(Department of Personnel & Training)





North Block, New Delhi



Dated the 20th January 2010





OFFICE MEMORANDUM





Subject: Maintenance of records in consonance with Section 4 of the RTI Act





The Central lnformation Commission in a case has highlighted that the



systematic failure in maintenance of records is resulting in supply of incomplete and misleading information and that such failure is due to the fact that the public authorities do not adhere to the mandate of Section 4(l)(a) of the RTI Act, which requires every public authority to maintain all its records duly catalogued and indexed in a manner and form which would facilitate the right to information. The Commission also pointed out that such a default could qualtfy for payment of



compensation to the complainant. Section 19(8)(b) of the Act gives power to the Commission to require the concerned public authority to compensate the complainant for any loss or other detriment suffered.







2. Proper maintenance of records is vital for the success of the Right to lnformation Act but many public authorities have not paid due attention to the issue despite instructions issued by this Department. The undersigned is directed to request all the MinistrieslDepartments etc. to ensure that requirements of Section 4 of the Act in general and clause (a) of sub-section (1) thereof in particular are met by all the public authorities under them without any further delay.







(K.G. Verrna)



Director



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Maintenance of records in consonance with Section 4 of the RTI Act

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Filed Under: RTI

Classification Posts in Railways

Advance correction slip to Inidan Railway Establishment Code Vol.I(Fifth Edition-1985) Second reprint edition – 2003.







Advance Correction Slip No.110





Rule 107 of Inidan Railway Establishment Code Vol.I(Fifth Edition-1985) should be submitted as under:-





107. (I) With effect from 08.01.2010 subject to exceptions made in the footnotes below and also subject to such exceptions as Ministry of Railways may, by any general or special orders make from time to time, Railway



Service posts shall be classified as follows:-





S.No. Description of Posts Classification of Posts



1     a     and    b       Advance correction slip to Inidan Railway Establishment Code Vol.I(Fifth Edition-1985) Second reprint edition – 2003.

Advance Correction Slip No.110





Rule 107 of Inidan Railway Establishment Code Vol.I(Fifth Edition-1985) should be submitted as under:-







107. (I) With effect from 08.01.2010 subject to exceptions made in the footnotes below and also subject to such exceptions as Ministry of Railways may, by any general or special orders make from time to time, Railway



Service posts shall be classified as follows:-

S.No. Description of Posts Classification of Posts



        1 ( a ) ( b)  A Railway Service post in Apex Scale (Rs.80000-fixed), Higher Administrative Grade plus scale (Rs.75500-80000)



and HAG Scale (Rs.67000-79000); and



A Railway Service post carrying Grade Pay Rs.10000, Rs.8900 and Rs.8700 in the Pay Band PB-4 (Rs.37400-67000)Grade Pay Rs.7600, Rs.6600 and Rs.5400 in Pay Band PB-3(Rs.15600-39100) but excluding the posts falling in S.No.(2)&(3)



below.



Group A (Gaz.)



2 A Railway Service post carrying Grade Pay Rs.5400 and Rs.4800 in Pay Band PB-2(Rs.9300-34800)



but excluding the posts falling in S.No.(#) below;



The posts of Assistant Nursing Officers carrying Grade Pay Rs.5400, Prinicipal/Head Master/Head Mistress (Secondary/Higher School & equivalent) (Basic Grade & Sr.Grade) carrying Grade Pay Rs.5400 / 6600 in Pay Band PB-3(Rs.15600-39100) and Non-functional Grade of Group ‘B’ Gaz. posts of various organized Railway services & RBSS/RBSSS carrying Grade Pay Rs.5400 in Pay Band PB-3 (Rs.15600-39100) will continue to be classified as Group ‘B’ (Gaz.)



Group B (Gaz.)



3 A Railway Service post carrying Grade Pay Rs.4600, Rs.4200 in Pay Band PB-2(Rs.9300-34800), Grade Pay Rs.2800, Rs.2400, Rs.2000 and Rs.1900 and Rs.1800 in Pay Band PB-1(Rs.5200-20200) but excluding the posts falling in S.No.(#) below;







The posts of S.O.(Acs)/Sr.SO(Acs), TIA/Sr.TIA and ISA/Sr.ISA (Merged grades) carrying Grade Pay Rs.4800, Band PB-2(Rs.9300-34800), Nursing Sister carrying Grade Pay Rs.4800 in Pay Band PB-2(Rs.9300-34800), Matron/Chief Matron (Merged Grade) carrying Grade Pay Rs.5400 in Pay Band PB-3 (Rs.15600-39100), Primary School Teacher / Trained Graduate Teachers/Post Graduate Teacher and equivalent (Basic/Science/Selection Grade) carrying Grade Pay Rs.4800 / 5400 / 6600 in Pay Band PB-2/PB-3 (Rs.9300-34800 / 15600-39100) will continue to be classified as Group ‘C’



Group C



4 A Railway Service post carrying Grade Pay Rs.1650, Rs.1600, Rs.1400, Rs.1300 in Pay Band IS(Rs.4440-7440) Group D

(till the posts are upgraded)





Note:



(a) A person placed in higher Grade Pay/Pay Band under In-situ promotion scheme / ACP or MACP Scheme will continue to retain the classification of his Basci Post.





(b) The classification of Non-Functional posts, Sr. & Selection Grade posts of Teaching / School staff will continue to remain the same as applicable to Basci Grade post.





(c) The Assistants of Railway Board Sectt. Service & Personal Assistants of Railway Board Sectt. Stenographers Service will continue to be classified as Group ‘B’ (Non-Gazatted) as laid down in respective service rules.

(d) If higher classification than that indicated above is presently prescribed for any specific post in the respective service rules, the same continue till further orders.





2. Posts created subsequent to date of effect of these orders as specific additions to existing cadres shall the same calssification as posts in the cadre to which they are added.





3. For above prupose Pay Band, in relation to a post, means the running Pay Bands specified in Part A, Section I,column 5 of the First Schdule to the Railway Services (Revised Pay) Rules, 2008 & Board’s letter No.PC VI/2008/I/RSRP/Idated 11.09.2010.



(Authority Ministry of Railway’s letter No. PC VI/2009/I/RSRP/4 dated 08.01.2010)



   ( b)A Railway Service post in Apex Scale (Rs.80000-fixed), Higher Administrative Grade plus scale (Rs.75500-80000)



and HAG Scale (Rs.67000-79000); and



A Railway Service post carrying Grade Pay Rs.10000, Rs.8900 and Rs.8700 in the Pay Band PB-4 (Rs.37400-67000)Grade Pay Rs.7600, Rs.6600 and Rs.5400 in Pay Band PB-3(Rs.15600-39100) but excluding the posts falling in S.No.(2)&(3)



below.



Group A (Gaz.)



2 A Railway Service post carrying Grade Pay Rs.5400 and Rs.4800 in Pay Band PB-2(Rs.9300-34800)



but excluding the posts falling in S.No.(#) below;



The posts of Assistant Nursing Officers carrying Grade Pay Rs.5400, Prinicipal/Head Master/Head Mistress (Secondary/Higher School & equivalent) (Basic Grade & Sr.Grade) carrying Grade Pay Rs.5400 / 6600 in Pay Band PB-3(Rs.15600-39100) and Non-functional Grade of Group ‘B’ Gaz. posts of various organized Railway services & RBSS/RBSSS carrying Grade Pay Rs.5400 in Pay Band PB-3 (Rs.15600-39100) will continue to be classified as Group ‘B’ (Gaz.)



Group B (Gaz.)



3 A Railway Service post carrying Grade Pay Rs.4600, Rs.4200 in Pay Band PB-2(Rs.9300-34800), Grade Pay Rs.2800, Rs.2400, Rs.2000 and Rs.1900 and Rs.1800 in Pay Band PB-1(Rs.5200-20200) but excluding the posts falling in S.No.(#) below;







The posts of S.O.(Acs)/Sr.SO(Acs), TIA/Sr.TIA and ISA/Sr.ISA (Merged grades) carrying Grade Pay Rs.4800, Band PB-2(Rs.9300-34800), Nursing Sister carrying Grade Pay Rs.4800 in Pay Band PB-2(Rs.9300-34800), Matron/Chief Matron (Merged Grade) carrying Grade Pay Rs.5400 in Pay Band PB-3 (Rs.15600-39100), Primary School Teacher / Trained Graduate Teachers/Post Graduate Teacher and equivalent (Basic/Science/Selection Grade) carrying Grade Pay Rs.4800 / 5400 / 6600 in Pay Band PB-2/PB-3 (Rs.9300-34800 / 15600-39100) will continue to be classified as Group ‘C’



Group C



4 A Railway Service post carrying Grade Pay Rs.1650, Rs.1600, Rs.1400, Rs.1300 in Pay Band IS(Rs.4440-7440) Group D







(till the posts are upgraded)

Note:



(a) A person placed in higher Grade Pay/Pay Band under In-situ promotion scheme / ACP or MACP Scheme will continue to retain the classification of his Basci Post.





(b) The classification of Non-Functional posts, Sr. & Selection Grade posts of Teaching / School staff will continue to remain the same as applicable to Basci Grade post.





(c) The Assistants of Railway Board Sectt. Service & Personal Assistants of Railway Board Sectt. Stenographers Service will continue to be classified as Group ‘B’ (Non-Gazatted) as laid down in respective service rules.





(d) If higher classification than that indicated above is presently prescribed for any specific post in the respective service rules, the same continue till further orders.

2. Posts created subsequent to date of effect of these orders as specific additions to existing cadres shall the same calssification as posts in the cadre to which they are added.





3. For above prupose Pay Band, in relation to a post, means the running Pay Bands specified in Part A, Section I,column 5 of the First Schdule to the Railway Services (Revised Pay) Rules, 2008 & Board’s letter No.PC VI/2008/I/RSRP/Idated 11.09.2010.



(Authority Ministry of Railway’s letter No. PC VI/2009/I/RSRP/4 dated 08.01.2010)



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Classification Posts in Railways

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Posting of husband and wife at the same station – DoP&T

Posting of husband and wife at the same station – DoP&T



F.NO.28034/9/2009-Estt.(A)

Government of India

Ministry of Personnel, Public Grievances and Pensions

(Department of Personnel and Training)

North Block, New Delhi,





Dated the 30th September, 2009.





OFFICE MEMORANDUM

Subject: Posting of husband and wife at the same station.





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 by DOP&T in O.M No. 28034/7/86-Estt.(A) dated 3.4.86 and No.28034/2/97-Estt.(A) dated 12.6.97 for posting of husband and wife who are in Government service, at the same station. Department had on 23.8.2004 issued instructions to all Mins.lDeptts. to follow the above guidelines in letter and spirit.

2. In the context of the need to make concerted efforts to increase representation of women in Central Government jobs, these guidelines have

been reviewed to see whether the instructions could be made mandatory. It has been decided that when both spouses are in same Central Service or working in same Deptt. and if posts are available, they may mandatorily be posted at the same station. It is also necessary to make the provisions at Paras 3(iv) and (vi) of the a.M. dated 3.4.86 stronger as it is not always necessary that the service to which the spouse with longer service belongs has adequate number of posts and posting to the nearest station by either of the Department may become necessary.

3. On the basis of the 6





th CPC Report, Govt. servants have already been allowed the facility of Child Care Leave which is admissible till the children attain 18 years of age. On similar lines, provisions of a.M. dated 12.6.97 have been amended.



4. The onsolidated guidelines will now be as follows:

(i) Where the spouses belong to the same All India Service or two of the All India Services, namely lAS, IPS and Indian Forest Service (Group ‘A’);

The spouse may be transferred to the same cadre by providing for a cadre transfer of one spouse to the Cadre of the other

spouse, on the request of the member of service subject to the member of service not being posted under this process to

his/her home cadre. Postings within the Cadre will, of course, fall within the purview of the State Govt.





(ii) Where one spouse belongs to one of the All India Services and the other spouse belongs’ to one of the Central Services:-





The cadre controlling authority of the Central Service may post the officer to the station or if there is no post in that station, to the State where the other spouse belonging to the All India service is posted.





(iii) Where the spouses belong to the same Central Service:





The Cadre controlling authority may post the spouses to the same station.





(iv) Where the spouse belongs to one Central Service and the other spouse belongs to another Central Service:-





The spouse with the longer service at a station may apply to his/her appropriate cadre controlling authority and the said



authority may post the said officer to the station or if there is no post in that station to the nearest station where the post exists. In case that authority, after consideration of the request, is not in a position to accede to the request, on the basis of non-availability of vacant post, the spouse with lesser service may apply to the appropriate cadre authority accordingly, and that authority will consider such requests for posting the said officer to the station or if there is no post in that station to the nearest station where the post exists.





(v) Where one spouse belongs to an All India Service and the other spouse belongs to a Public Sector Undertaking:

The spouse employed under the Public Sector Undertaking may apply to the competent authority and said authority may

post the said officer to the station, or if there is no post under the PSU in that station, to the State where the other spouse is posted.

(vi) Where one spouse belongs to a Central Service and the other spouse belongs to a PSU:-

The spouse employed under the PSU ‘may apply to the competent authority and the said authority may post the officer to the station or if there is no post under the PSU in that station, to the station nearest to the station where the other spouse is posted. If, however, the request cannot be granted because the PSU has no post in the said station, then the spouse belonging to the Central Service may apply to the appropriate cadre controlling authority and the said authority may post the said officer to the station or if there is no post in that station, to the station nearest to the station where the spouse employed under PSU is posted.





(vii) Where one spouse is employed under the Central Govt. and the other spouse is employed under the state Govt.:-

The spouse employed under the Central Govt. may apply to the competent authority and the competent authority may post the said officer to the station or if there is no post in that station to the State where the other spouse is posted.





(viii) “The husband

& wife, if working in the same Department and if the required level of post is available, should invariably be posted together in order to enable them to lead a normal family life and look after the welfare of their children especially till the children attain 18 years of age. This will not apply on appointment under the central Staffing Scheme. Where only wife is a Govt. servant, the above concessions would be applicable to the Govt. servant.





5. Complaints are sometimes received that even if posts are available in the station of posting of the spouse, the administrative authorities do not accommodate the employees citing administrative reasons. In all such cases, the cadre controlling authority should strive to post the employee at the station of the spouse and in case of inability to do so, specific reasons, therefor, may be communicated to the employee.





6. Although, normal channels of representations/complaints redressal mechanism exist in the Min.lDeptts., added safeguards to prevent noncompliance may be provided by ensuring that the complaints against nonadherence to the instructions are be decided by the authorities at least one level above the authorities which took the original decision when they are below the level of secretary to the Govt. of India/Head of the PSU concerned and all such representations are considered and disposed off in time bound manner

7. Hindi version will follow.





(C.B.Paliwal)





Joint Secretary to the Govt. of India



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Posting of husband and wife at the same station – DoP&T

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WITHDRAWAL FROM GPF --SOME CLARIFICATION

GOVERNMENT OF INDIA’S DECISIONS UNDER RULE 12





(THE ALL INDIA SERVICES (PROVIDENT FUND) RULES, 1955)



1. Withdrawal for purchase a site may be allowed subject to the condition that construction of house should commence within six months and completed within a year of commencement of construction: – A question arose whether withdrawal could be permitted purely for the purchase of a site. The Government of India have decided that it could be, provided that the conditions in the other rules, especially the one in rule 15, that construction of the house should commence within six months of the



withdrawal of money and should be completed within a year from the date of



commencement of constructions, are satisfied.



[G.I. M.H.A. U.O. No. 263/557—AIS(III), dated 29th January, 1957.]







2. Withdrawal for pilgrimage to Haj not allowed: – A member of the Service wanted to withdraw money from the fund for meeting expenses in connection with his pilgrimage to Haj. As pilgrimage to Haj is not obligatory, the withdrawal was not sanctioned.



[G.I., M.H.A. letter No. 8/5/57—AIS (II), dated 7th March, 1957.]







3. Withdrawal applied for after the marriage is over should not be entertained: – A question was raised whether final withdrawal could be permitted for meeting the expenditure on a marriage, which had already taken place.







Marriage is a foreseeable event and ordinarily it should not be difficult for the member concerned to make up his mind beforehand whether he would be able to meet the entire expenditure thereon from his private resources or whether he would have to resort to a final withdrawal from his provident fund account for this purpose, and, if the latter, to apply for the final withdrawal sufficiently in advance of the date of marriage. Where,



however, an officer applies for the withdrawal well before the date of marriage, but the application is sanctioned after the aforesaid date or, if sanctioned before that date, the case is received in audit office for the issue of authority for payment after that date, there will be no objection to the payment of the amount being made after the date of marriage. The certificate in terms of sub-rule (4) should be furnished in such cases to the



sanctioning authority within a month of the actual drawal of the amount for the fund. Cases in which withdrawal is applied for after the marriage is over should not ordinarily be entertained.



[G.I. M.H.A. letter No. 8/41/57—AIS(II), dated 20-11-1957.]







4. Previous services rendered by the moS before inducting to AIS shall be



counted in computing minimum service for advance/withdrawal: – A question has been raised whether the previous service rendered under the State or Central Government by a subscriber to the All India Service Provident Fund, prior to his becoming a member of an All India Service, shall count for the purpose of computing the minimum service prescribed under sub-rule(1), (1A) and (2) of the All India Services (Provident Fund) Rules, 1955. It is clarified, having regard to the provisions of rule 3 of



the All India Services (PF) Rule, 1955, according to which the credit in and liabilities to any provident Fund (only the subscriber’s contribution and interest thereon in respect of a Contributory Provident Fund) to which a member of the All India Service was subscribing Prior to his joining the All India Service, shall be transferred to the All India Service Provident Fund, that the previous service rendered under the State or Central



Government by a member of the Service during which such member was subscribing to any Contributory or Non—Contributory Provident Fund, shall be counted in computing the minimum service prescribed under sub-rule (1), (1A) and (2) of Rule 12 of the All India Services (PF) rules, 1955.



[G.I., D.P. & A.R. letter No. 11026/32/82—AIS(III), dated 23-4-1983.]



5. There is no objection to allowing part final withdrawal from the Provident Fund for the same child in instalments once in 6 months instead of there being a single withdrawal till the relevant rules are amended: – I am directed to say that in terms of clause (a) of sub-rule (1—A) of rule 12 and Note 5 below rule 12 of the All India Services (Provident Fund) Rules, 1955 for the purpose of higher education of a child, only one withdrawal shall be allowed but education of different children on different occasions shall not be treated as the same purpose. However, sub-rule (2) of rule 14 of the said



Rules provides that withdrawal, by a subscriber under clause (a) of sub-rule (1A) of rule 12, from the amount standing to his credit in the fund, shall be permitted once in every six months.







The provisions of Rule 12 and Rule 14 referred to above appear to be contradicting each other. The intention of the Government of India is that as higher education is spread over a period of 3 to 5 years and fees and other expenses are payable in instalments the amount of the withdrawal sanctioned under Clause (a) of sub-rule 1(A) of Rule 12 for meeting the cost of higher education of a child may be drawn in instalments once in every 6 months. It is proposed to make this intention clear through suitable



amendments in the AIS (PF) Rules, 1955. Till such time this is done, there is no objection to allowing part final withdrawal from the Provident Fund for the same child in instalments once in 6 months instead of there being a single withdrawal.



[G.I., DP & AR letter No. 11026/12/79—AIS(III) dated 8.10.80]



6. Previous services rendered by the moS before inducting to AIS shall be



counted for computing minimum service for advance/withdrawal: – I am directed to say that under sub-rule (1) of Rule 12 of the All India Services (PF) Rules, 1955, a subscriber to the All India Service Provident Fund, after 15 years of service (including broken period of service, if any) is eligible to seek final withdrawal from the amount standing to his credit in the fund for acquiring a house/house sit in accordance with the provisions of the rules; and under sub-rule (1A) of Rule 12, a subscriber on completion



of 20 years of service (including broken period of service, if any), is eligible to seek final withdrawal for one or more of the purpose mentioned therein. Under sub-rule (2) of Rule 12, a withdrawal for purchasing a motor car can be sought by a subscriber on completing 25 years of service, including broken periods of service.







A question has been raised whether the previous service rendered under the State or Central Government by a subscriber to the All India Services Provident Fund, prior to his becoming a member of a All India Service, shall count for the purpose of computing the minimum service, shall count for the purpose of computing the minimum service prescribed under sub-rule (1), (1A) and (2) of Rule 12 of the All India Services (Provident Fund) Rules, 1955. It is clarified, having regard to the provision of Rule 3 of the All India



Services (PF) Rules, 1955, according to which the credit in and liabilities to any Provident Fund (only the subscriber’s contribution and interest thereon in respect of a Contributory Provident Fund) to which a member of the All India Service was subscribing prior to his joining the All India Service shall be transferred to the All India Service Provident Fund, that the previous service rendered under the State or Central Government by a member of the Service during which such member of the Service during which such member was subscribing to any Contributory or Non-Contributory



Provident Fund, shall be counted in computing the minimum service prescribed under sub-rule (1), (1A) and (2) of Rule 12 of the All India Services (PF) Rules, 1955.



[Copy of G.I., MHA, DT & AR letter No. 11026/32/82—AIS—III date 23.4.83]



7. Procedure to be followed for granting advance/withdrawal of AIS officers during their service with the Central Government: – It has been decided in consultation with the Ministry of Finance that the following procedure may be followed for granting advances/final withdrawals to officers of the All India Services, including members of a former Secretary of States Service, under the various Provident Fund Rules, during the period of their service in connection with the affairs of the Central Government.







b)All cases of advances/final withdrawals which are fully covered by the existing rules may be sanctioned by the administrative Ministries themselves. The Ministries of the Government of India shall exercise all the power of the “sanctioning authority” in all such cases.







c)[Deleted vide G.I. MHA letter No. 11026/12/84—AIS—III dated 4.10.1985]







d)All cases of advances/final withdrawals which involve relaxation of the rules should be sanctioned by the administrative Ministries after obtaining the concurrence of both the Department of Personnel and A.R and the Ministry of Finance (Establishment Division)







e)Before an officer’s request for advance/final withdrawal is referred to the Ministry of Finance or both to the Department of Personnel and A.R. and Ministry of Finance, the administrative ministries are requested to examine the cases carefully and specify the special reasons or grounds why the rule(s) should be relaxed in favour of the officer.



[G.I., M.H.A. O.M. No. F.5/13/64—AIS(II), dated 20-5-1964.]







10. Advance from the Fund.—







(1) The Government (or an officer not below the rank of the subscriber and specified in this behalf by the Government) may sanction the payment to a subscriber of a temporary advance from the amount standing to his credit in the Fund, subject to the following conditions:—



10(1)(a) No advance shall be granted unless the sanctioning authority is satisfied that subscriber’s pecuniary circumstances justify it and that it will be expended on any of the following objects namely:—







(i) to pay expenses incurred in connection with the serious or prolonged illness of the subscriber or any person actually dependent on him;







(ii) to pay for the overseas passage for reasons of health or education of the subscriber or any person actually dependent on him and also to meet the cost of education of the subscriber or of any person actually dependent on him outside India, whether for an academic, technical, professional or vocational course; or in India for medical, engineering or other technical or specialised courses beyond the high school stage, provided that the course of study is not less than 3 years;







(iii) to pay obligatory expenses on a scale appropriate to the subscriber’s status which by customary usage the subscriber has to incur in connection with marriages, funerals or other ceremonies;







(iv) to meet the cost of legal proceedings instituted by or against the subscriber, any member of his family or any person actually dependent upon him, the advance in this case being available in addition to any advance admissible for the same purpose from any other Government source;







(v) to meet the cost of subscriber’s defence where he engages a legal practitioner to defend himself in an inquiry in respect of any alleged official misconduct on his part.











(vi) to meet the cost of plot or construction of a house or flat for his residence or to make any payment towards the allotment of plot or flat by any Urban Development Authority or a State Housing Board or a House Building Co-operative Society;







(vii) to purchase consumer durables such as television, video cassette recorder, video cassette player, washing machine, cooking range, geysers, computers.







Provided that in special circumstances, the Government at its discretion or where the sanctioning authority is other than the Government, such authority with previous approval of the Government, may sanction an advance if it is satisfied that the subscriber concerned requires the advance for reasons other than those mentioned above:







Provided that the advance under sub-clause (iv) or sub-clause (v) shall not be admissible to a subscriber who institutes legal proceedings in any court either in respect of any matter unconnected with his official duty or against Government in respect of any condition of service or penalty imposed on him.



10(1)(b) The sanctioning authority shall record in writing its reasons for granting the advance.



10(1)(c) An advance shall not, except for special reasons—







(i) exceed three month’s pay or half the amount standing at the credit of the subscriber in the Fund, whichever is less, or







(ii) unless the amount already advanced does not exceed two—thirds of the amount admissible under sub-clause (I) above, be granted until at least a period of twelve months has lapsed after the final repayment of all previous advances







Provided that if any such reason is of a confidential nature it may be communicated to the Account Officer personally or confidentially;







Provided further that where the sanctioning authority is other than the Government no such advance shall be sanctioned except with the previous approval of the Government.



10(2) In fixing the amount of an advance, the sanctioning authority shall pay due regard to the amount standing at the credit of the subscriber in the



Fund.







10(3) When an advance is sanctioned under clause (c) of sub-rule (1) before repayment of the last instalment of any previous advance is completed, the balance of any previous advance not recovered shall be added to the advance so sanctioned and instalments for recovery shall be fixed with reference to the consolidated amount.







(4) After sanctioning the advance, the amount shall be drawn on an



authorisation from the Accounts Officer in cases where the application for final payment had been forwarded to the Accounts Officer under clause (ii) of sub-rule (3) of rule 31



SOURCE;;CGSN

WITHDRAWAL FROM GPF --SOME CLARIFICATION

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Agenda Points for 46th Meeting of National Council (JCM) from BPMS

Agenda Points for 46th Meeting of National Council (JCM) from BPMS Member, National Council (JCM) Mr.M.P.SINGH









Anomaly committee Discussions and Decisions







Kindly refer your D.O. No. 3/2/2009-JCA Dated 30th Nov, 2009 whereby it has been intimated that the 46th meeting of the National council (JCM) is scheduled to be held on 16th January, 2010 under the Chairmanship of Hon`ble Cabinet Secretary.







In this meeting, I would like to submit following points on behalf of my federation BPMS, which needs the attention of the meeting for the welfare of the employees.







1. DISPARITY IN THE FORMATION OF PAY BAND / SCALES







Central Govt. Employees as well as Federations were confident that a similar Pattern would be adopted by the 6th CPC and Review Committee, in the formation, of Pay Scales, irrespective of the Cadre of workers and Officers. After thorough study of the Pay Structure, it is observed that the structure of Pay bands of PB-1 to PB-4 has been formulated with multiplying factor. But it is found that this factor has not been applied in all the Pay bands uniformly.







The Multiplying factor from PB- 1 to PB- 3 is found to be 1.86 (Approx) and for PB-4 it comes to 2.61 (Approx). This disparity has increased the Min. & Max Ration in the Pay Scales of the lowest employees and the highest, officer. This has created great resentment among the workers. It is a great un-justification with the Central Govt. employees.







This Federation strongly demands that this disparity should be removed to console the Central Govt. employees and a multiplying factor of 2.61(Approx) should also be applied for Pay Band PB- 1, PB-2 & PB-3.







2. ASSURED CAREER PROGRESSION (ACP) SCHEME







It is submitted that the Govt. of India has introduced the ACP scheme vide OM. No.35034/1/97- Estt (D) Dated 09.08.1999 on the recommendation of Fifth Central Pay commission to provide ‘Safety Net’ to deal with the problem of genuine stagnation and hardship faced by the employees duet to lack of adequate promotional avenues. As per instructions, the Government employees are granted financial upgradations after completion of 12 & 24 years of regular service and the mobility under acpS are to be allowed in the ‘existing hierarchy’. Since the benefits of upgradation under ACPS are to be allowed in the existing hierarchy, the mobility under ACPS shall be in the hierarchy existing after merger of pay scales by ignoring promotions. For granting financial upgradation, if such cadre/hierarchy exists in the Ministry/Department concerned, the upgradation







maybe allowed in keeping with the pay scale of an analogous grade of a cadre/post in the same Ministry/Department. However, if no such grade exists in the Ministry/Department concerned, comparison may be made with an analogous available in other Ministries / Departments.







Further your kind attention is invited to the Resolution published in Gazette of India on 29th August 2008 which also deals with recommendations of Sixth Central Pay Commission on Assured Career Progression Scheme and the para 1. says that the Government employee will be granted 03 financial upgradations after completion of 10, 20 & 30 years of service and para. (iii) accepted by Govt. of India reads as under:-







“(iii) The grade pay shall change at the time of financial upgradation under this scheme (MACPS). The grade pay given at the time of financial upgradaion under MACPS will be the immediate next higher grade pay in the hierarchy of revised pay bands and grade pay being recommend. Thus, grade pay at the time of financial upgradation under ACPS can, in certain cases where regular promotion is not between two successive grades, be different than what is available at the time of regular promotion. In such case, the higher grade pay attached to the next promotion post in the hierarchy of the concerned cadre/organixation will be given only at the time of regular promotion.”







In such circumstances, the wish of the Govt. of India to grant 03 financial upgradation for betterment of its employees in thirty years service span will not be culminated through MACP Scheme as it is disadvantageous in comparison to erstwhile ACP Scheme particularly for the employees in Pay Band -1 as the MACPS will grant different Grade Pay to the employees of same cadre and post.







Therefore you are kindly requested to issue necessary instructions whereby the granting of benefits of ACP in vogue may be continued with modification that 03 financial upgradation will be granted on completion of 10, 20 & 30 years in the such cadre/hierarchy exists in the Ministry/Department and if no such grade exists in the Ministry/Department concerned, comparison may be made with an analogous grade available in other Ministries/Departments.







3. PROMOTIONAL BENEFITS







It is observed that there will be a very small / meager financial benefit to a Group ‘C’ Employees on his promotion. Group ‘C’ employees in the Pay Band of Rs.5200 – 20200 when promoted after a service of five years then at the time of his promotion his basis pay would be Rs.6040 (Approx). On his promotion he will get a benefit of one increment of 3% i.e. Rs.180 and additional Grade Pay of Rs.100 only, thus total financial benefit comes to Rs.280, which is a very meager amount when compared with the employees of PB-2 & PB-3 Pay Band.







It is worth to mention here that two additional increments to be granted at the time of promotion to officers of Indian Administrative Services as per Resolution issued by MoF on 29th August, 2008.







Considering the above this federation demands that two increments or a minimum of Rs.1000, whichever will be higher, should be enhanced in the Basic Pay of the Minimum paid employee.







4. INCREMENTAL BENEFIT







Your attention is invited to the para 2 (iii) of the letter No. G.O.I. MF., DoE, (Implementation Cell), F.No.1/1/2008-IC Dt. 30.08.2008 on the subject matter, which deals with granting the next increment in the revised pay structure is as under:-







“In terms of the CCS(RP)Rules, 2008, there shall be uniform date of increment i.e.1st July of the year after implementation of the revised pay structure. Consequently, will be drawn in the pre-revised scale and pay fixed in accordance with the tables after including this increment. The next increment in the revised pay structure in such cases will be drawn on 1st July, 2006.”







Further Rule 10 of CCS (RP) Rules, 2008 is an under:-







“….. Employees completing 06 months and above in the revised pay structure as on 1st July will be eligible to be granted the next increment. The first increment after fixation of pay on 01.01.2006 in the revised pay structure will be granted on 1.7.2006 for those employees for whom the date of next increment was between 1st July, 2006 to 1st January, 2007.”







The above is creating dilemma whether the employees whose date of next increment falls between 01st Feb, 2006 and 01stJune, 2006 will also be eligible to be granted their next increment on 01st Jan, 2006. If not, they will be eligible to be granted their next increment on 01st July, 2006 and this will violate the provisions of F.R.26 which confers the right to be granted next increment on completion of 12 months and as per FR 24 as increment shall ordinarily be drawn as a matter of course unless it is withheld.







Therefore you are kindly requested to remove the anomaly so that the employee may be granted the next increment on 1st January to whom those were drawing their increment between July to December of the year.







5. MERGER OF PAY SCALE OF Rs.3050 – 4590 with Rs.3200 – 4900 and Rs.4000 – 6000 with Rs.4500 – 7000







The industrial workers are being recruited in the Semi-Skilled grade against the sanctioned post of Skilled grade in the pay scale of Rs.3050-4590. Such employees have the educational qualification of Matriculation with Science & Mathematics plus they have to undergo training for 03 or 04 years as per Trade Apprentice Act. It seems injustice to grant the pay scale of Rs. 3050 – 4590 to the Skilled employees as they have to perform the highly sensitive operations on the CNC machines, metallurgical operation, work on optical and electronics equipments, chemical process with hazardous operation.







The pay scale of Ministerial Category i.e. Clerks and Store Keepers should be revised. At present the Pay Scale of LDC (Lower Divisional Clerk) & Store Keepers have been equated with cooks, L.H.Fireman and Drivers, causing thereby demoralization in this category. This category is performing sophisticated, Tedious & highly complicated and sensitive jobs i.e. Recruitments, Posting / Transfers, DPC, Defending Court Cases. Parliament Questions, Welfare, Labour Relation Work, Financial Implications viz. GPF A/c’s maintaining records of Advances, Pension / Retirement Terminal Benefits, Facing Audit Objections, Procurements , Preservations, Control on Material Movement, keep safe the inventories etc. etc. On the same analogy, the incumbents like Highly Skilled trades man, UDC, Supervisors (Non – Tech.) & equivalent are also eligible to be granted the higher pay scale of Rs. 4500 – 7000 from Rs.4000 – 6000 due to their job responsibilities.







It is urged to merge the pay scale of Rs. 3050 – 4590 with Rs.3200 – 4900 and the pay scale of Rs. 4000 – 6000 with Rs.4500 – 7000 in the pre-revised with grade pay of Rs.2000 & Rs.2800 respectively.







6. UPGRADATION FROM PROPECTIVE DATE







After perusal of the Gazette Notification it is found that under Part B section sub para it is very clearly mentioned that the pre-revised pay scales of Rs.5000 – 8000, Rs.5500 – 9000 and Rs.6500 – 10500 which presently constitute feeder and promotion Grades will come to lie in an identical grade. With the provision given in the Gazette, the posts in the scale of Rs.5000 – 8000 and Rs.5500 – 9000 should be merged, with the post in the of Rs.6500 – 10500, being upgraded to the next higher grade in pay band-2 i.e. to the grade pay of Rs.4600 corresponding to the pre-revised pay scale of Rs.7450 – 11500, the post upgraded from the scale of Rs.6500 – 10500 should be merged with the post in the pay scale of Rs.7450 – 11500.







Further it is mentioned under sub-para-(iii) of section I that ‘posts in the scale of Rs.6500-10500 Carrying minimum qualification of either Degree n Engineering or a Degree in Law should also be upgraded in the pays scale of Rs.7450 – 11500 corresponding to the revised pay band of Rs.9300-34800 along with grade pay of Rs.4600. It has very specifically been mentioned that ‘post of scientific staff in the scale of Rs.6500-10500 Carrying minimum qualification of Engineering Degree or a post Graduate Degree should also be upgraded and placed in the pay scale of Rs.7450-11500 corresponding to the revised pay band PB-2 of Rs.9300-34800 along with grade pay of Rs.4600. The Gazette Notification has ordered the effectiveness of the revised pay scales along with financial benefits w.e.f.1.1.2006, but lately on the contrary MoD vide its I.D. No.11(1)/2008-D(Civ.l) dated 10th Sept. under Para 2. has ordered that such upgraded Scales will be effective from a Prospective date.







It is submitted that when all the recommendations of the CPC has been agreed from 1.1.2006 then why a small group of employees should be deviated from this advantage. As such this federation demands that the upgraded scales should also be affective from 1.1.2006. This will give benefits to the employees of EME & DGOS.







7. MERGER OF PAY SCALE OF 7450-11500 & 7500-12000 OF GROUP ‘B’ GAZETTED







it is submitted that the nature of work and responsibilities of JTO (S) and JSO in DGOA & in other Defence Departments is almost same and similar. The pay scale of JTO (S) is Rs.7450-11500 and of JSO is Rs.7500-12000. (Both Group-B Officers), the difference in their pay scale is marginally of Rs.50only. It takes more than four years for JTO (S) to get promotion to JSO, which gives negligible financial gain. Further the grade pay of JTO (S) with pay scale of Rs.7500-12000 is Rs.4600 & Rs.4800 respectively. Both are Group B Gazetted Officer and doing the same nature of work. As per the recommendations of 6th, JSO with grade pay of Rs.4800 get into the grade pay of Rs.5400 after completion of four years of service in that post (refer para 3.1.14 of the report) whereas an other officer doing the same nature of work with similar responsibility has to wait for eight years to get into Rs.5400 pay band. It is a great anomaly and may be sorted out to remove resentment in the affected officers.







This Federation demands that the Cadres of JTO(S) & similar cadre should be merged into JSO cadre in the pre-revised pay scale of Rs.7500 – 12000 and both of them should be given the same grade pay of Rs.4800 and promotional benefit after completing their four years of service in this cadre.







It is observed that in different Organizations / Departments the revised pay scales of the staff & officers working in the pay scale of Rs.6500 – 10500 has been upgraded to the Pre-revised pay scale of Rs.7500-12000 having less qualification & responsibility than the Scientific / Technical staff of DGQA, working in the pay scale of Rs.6500-10500.







For example:







a) The employee in the pre-revised pay scale of Rs.6500-10500 carrying minimum qualification of engineering degree has been upgraded to the Pre-revised pay scale of Rs.7450-11500 with grade pay of Rs.4600 whereas a Section Officer / PS / Equivalent in the revised pay scale of Rs.6500-10500 has been upgraded to the pay scale of Rs.7500-1200 with grade pay of Rs.4800. The section officer / PS of secretariat will get the next higher grade pay of Rs.5400 after four years of service in that grade (Refer para 3.8.12) whereas the officer of other organization will have to wait minimum for eight years to get that grade pay. First minimum four years to get promotion for grade pay of Rs.4800 then after four years to gain grade pay of Rs.5400.







b) Asst. Nursing Superintendent in the revised pay scale of Rs.6500-10500 has been upgraded to the pay scale of Rs.8000-13500 (Refer para 3.8.15) is still bearing less qualification & responsibilities of Graduate Engineer working in work shops / Quality Assurance / Research work in defence organizations.







c) The Primary School Teachers / Trained Graduate Teachers / Post graduate teachers in the pay scale of Rs.6500-10500 has been upgraded to the pre-revised pay scale of Rs.7500-12000 with grade pay of Rs.4800 whereas they have minimum responsibility, less working hours and more leaves in a year.







d) Removal of anomaly in the pay scale of Junior Work Manager in OFB







Junior Works Managers are the main pillars of this organization still they are deprived of their legitimate rights. Considering their responsibilities and duties, the pay scale of JWM may be upgraded to the pre-revised pay scale of Rs.7500-12000 to the revised pay band -2 (Rs.9300-34800) with grade pay of Rs.4800 and after completion of four years of service in the grade, they will be placed in the PB-3 (15600-39100) with the grade pay of Rs.5400 as it is stipulated in para. 1(x(a) to (e) of resolution, bearing No.1/1/2008-I.C. dated 29.08.2008 of Ministry of Finance (Department of Expenditure) for group ‘B’ cadres of DANICS, CSS, CSSS, IA & AD and group ‘B’ officers of Ministry of Railways and Departments of Posts, Revenue etc.







Similar self explanatory examples are elaborated in Para 7.6.18; 7.8.10; 7.10.26; 7.19.51 & 7.19.68 etc. of the Gazette Notifications / CPC Report.







This Federation strongly demands that this disparity should be removed and similar advantage should be extended to all deserving employees of Departments of MOD viz. DGQA, DGAQA, DRDO, Naval etc. considering their qualification, Responsibility and nature of duties.







DISPARITY IN THE PAY OF DIRECT RECRUITEE & PROMOTEE SHOULD BE REMOVED







It is observed that a promotee with a bundle of Departmental experience gets less enumeration than a recruit appointed on direct recruitment in different cadres. Kindly refer section II of para –A of the Notification where entry pay in the revised pay structure for direct recruits appointed on or after 1.1.2006 is mentioned.







To illustrate, if an employee drawing basic pay Rs.3200 in the pre-revised pay scale of Rs.3050-4590 is fixed on the basic pay of Rs.6060+1900 = 7960 in the revised pay scale of PB-1(5200-20200) on 1.1.2006. Later, if he is promoted to the pre-revised pay scale of Rs.4000-6000 his pay will be fixed at Rs.6300+2400 = 8700 as per para 13 of the CSS (Revised Pay) Rules,2008.







On the same day, if another employee is directly recruited in the pay scale of Rs.4000-6000 (pre-revised), his pay will be Rs.7510+2400=9910 in the revised pay scale of PB-1 Rs.5200-20200 as per section II of part A of the first schedule of these rules. Thus, directly recruited employee will get Rs.1210 (i.e. 9910 – 8700 = 1210) more in comparison to the promoted employee. It is great anomaly and may be removed to avoid disappointment among the staff.







This federation demands that necessary amendments may pleas be carried out, so that the pay of the promoted employee may be fixed higher than the entry pay for the direct recruits appointed on after 1.1.2006.







9. RISK ALLOWANCE, HOSPITAL PATIENT CARE ALLOWANCE SHOULD BE CONTINUED







The risk allowance is paid to all those engaged in duties involving greater hazards or whose health is liable to be adversely affected progressively over a long period of time because of the particular avocation. The second pay commission recommended that certain unskilled staff employed in the Ministry of Defence and Railways, whose work was exceptionally heavy or whose normal duties involved special risk such as those of chemical process was also extended to sweepers working in underground sewers and in infectious hospitals in the name of Patient Care Allowance and or Hospital Patient Care Allowance. On the recommendation of 3rd CPC, a committee was constituted to examine the facilities of rationalizing nature, which classified the beneficiaries of Risk Allowance into four categories namely: Semi Skilled, Skilled Workers, Supervisors and certain Gazetted and non Gazetted officers. The 4th CPC recommended a hundred per cent increase in the cover in cases where employees like custom inspectors, Railway Drivers, Guards, Income Tax officers and staff carrying out raids, are exposed to risks. The 5th CPC concluded that risk and continuous risks. Contingent risks relate to one time events where event is uncertain and that may be considered for insurance cover or ex-gratia payment. Continuous in the occupation itself with adverse effect on the health and the employee will be paid the risk allowance with the revised rates.







The 6th CPC was also partially agreed that Risk Allowance is only justified for jobs which are inherently risky with adverse effect on health but recommended that the Government should insure that latest technology and greatest level of care is observed in these jobs so that the element of risk involved therein minimized. In this context, it should be kept in views that technological upgradation cannot zero the continuous risk but in can minimize the risk only due to nature of specific job or process. Hence, the risk insurance scheme cannot provide any relief in case of continuous risk.







Therefore, this Federation demands that the Risk Allowance, Patient Care Allowance, Hospital Patient Care Allowance should be continued and even the amount of the risk allowance should be doubled as the 6th CPC has doubled all the allowance payable to Government employees.







This Federation does appreciate the provision for free medical and insurance for those employees, but it should be in addition to Risk Allowance.







10. CHILD CARE LEAVE







6th CPC has recommended Child Care Leave for women employees having minor children for a maximum period of two years 730 days during their entire service for taking care of up to two children. This leave s admissible up to the age of 18 years of her child. This Federation welcomes this scheme, it will help the mothers to built better career of their child.







This Federation submits that there may be a case/instance when the wife of the Central govt. employee expires at the time of delivery or at time when her child is less than 18 years of age. In that case the father of the child should be entitled for all that child care leave benefits for which a Central govt. women employee is entitled. Such cases happen very rare, but there must be a similar provision for Central Govt. male employees so that a proper care could be given to their child.







Further, child care leave and enhanced maternity leave should be granted to Industrial Employees as it is being to the female employees governed by the existing provisions of the Central Civil Services (Leave) Rules,1972.







11. NIGHT DUTY ALLOWANCE (NDA)







6th CPC vide their Sub para 4.2.81 has recommended to double the allowances including Night Duty Allowance, which is not as per rules of Night Duty Allowance (NDA). NDA has ever been calculated with a given formula. This Federation demands that for the calculation of NDA the same formula should be adopted with inclusion of Transport Allowance in place of CCA.







Formula:-







Basic Pay + DA + TA







Night Duty Allowance = ————————







195 x 6







12. RECRUITMENT OF TRADE APPRENTICES







The grade of unskilled and semi-skilled has been merged as per recommendation of 6th CPC 3.8.27. In such circumstances, ex-trade apprentices (NCVT / ITI passed) should be directly recruited in the grade of skilled in the pay scale of Rs.5200-20200 + Grade Pay of Rs.1900) instead of Semi-Skilled grade.







13. PAY SCALE OF Sr. DATA ENTRY OPREATOR







Head clerk / Assistants / Steno Gr.II / Equivalent in the pay scale of Rs.4500-7000 and Rs.5000-8000 are upgraded to the revised pay scale of Rs.6500-10500 in the PB-II with a grade pay of Rs.4200. Accordingly Sr.Data Entry Operator who are in the existing pay scale of Rs.4500-7000 should be covered by such upgradation.







It is learnt that the same benefit has been granted in DRDO vide their letter No. DHRD/16342/VI CPC/1/C/M/01 dated 7.10.2008.







14. DISPARITY IN LEAVE TRAVEL CONCESSION







Prior to implementation of 6th CPC the benefit of availing LTC was uniform among the employees, but the anomaly has been created by implementing the 6th CPC and some segment (newly recruited) of employees will enjoy the benefits of LTC every year, but others shall loose the same benefits.







It is therefore submitting that suitable provisions in the rules may be obtained to clear this disparity by providing LTC to the employees every year as every employee and his family desires to visit at his Home Town yearly.







15. DATE OF NEXT INCREMENT IN EXTRA ORDINARY LEAVE CASES







Your attention is invited to DOP&T U.O No. 13/1/2009-pay I dated 20/02/2009 on the subject matter wherein it is stipulated “…. Qualifying service of less than 06 months rendered between 1st January and 30th June of any year on account of EOL will have the effect of postponing one’s increment to1st July of next year ,if all other conditions are met.”, whereas the Rule 10 of the Civilians in Defence Services [Revised Pay] Rules,2008 issued by MOD F>No.11[1]/2008/D[Civ-I] dated 09th Sep,2008 says that the employees completing 6 months and above in the revised pay structure as on1st July will be eligible to be granted the increment.







It is crystal clear from Rule 10 above that if an employee completes 06 months or more between 01st July,2006 to 30th June,2007 and he takes EOL of 02 months for personal affairs [without medical certificate] between 01.01.2007 to30.06.2007, he will be granted his next increment on 1.7.2007 (not on 1.7.2008). Such types of examples are published in the Swamysnews.







Therefore you are kindly requested to amend the DOP&T letter dated 20.2.2009 and issue clarification so that the employees may be granted their next increment on their legitimate due date.







16. ENHANCEMENT OF BENEFITS OF CENTRAL GOVERNMENT EMPLOYEES GROUP INSURANCE SHCEME







The Central Government Employees Group Insurance Scheme was introduced in Jan 1982 to provide insurance cover to the employees so as to enable their families to get a lump sum amount in the event of employees death. The scheme also envisages a lump sum payment on cessation of employment. The scheme is wholly contributed and is run on self different groups. Subscription under the scheme is appointed between the insurance fund and the saving fund in the ratio of 30:70. The rates of monthly subscription as well as the insurance cover are supposed to be revised periodically.







The present rates of subscription and insurance cover for the different categories of employees are Rs.15 and Rs.15000 respectively for the lowest category of government employees since Jan. 1990 (i.e. due to implementation of 4th CPC recommendations).







Thereafter, the 5th CPC, taking in account the erosion in the real value of rupee recommending daubing of the rates of monthly subscription, as well as the insurance cover available under the scheme has become totally inadequate and an amount of Rs.15000 cannot provide financial support to the family of a diseased group ‘D’ employees. When the rates of subscription and the insurance cover under this scheme were last revised in 1990, the pay scales recommended by 4th CPC were in vogue and the minimum salary was Rs.750.







Now the minimum salary of Government employees is Rs.7000 as recommended by 6th CPC. The increase in the minimum salary between 1.1.1990 and the date of implementation i.e. 1.1.2006, of the pay scales works out to be more than nine times. However, the 6th CPC has recommended that monthly subscription should be Rs.180 and the amount of insurance will be Rs.180000







To restore the actual value of insurance cover provided under the scheme, this federation demands that the present amount for various categories should be enhanced to rupees two lakh as a minimum payment to the lowest cadre.







17. DEFINE THE MEANING OF “ORDINARY RATE OF WAGES” UNDER THE FACTORIES ACT, 1948







This reflects the concern of the employees working in Indian Ordnance Factories under Ministry of Defence, over the interpretation of ‘Ordinary rate of wages’ under Rule 59 of the Factories Act, 1948 issued by Ministry of Labour and Employment vide their O.M. No. Z 16025/81/2007 – ISH – II dated 27.05.2009 wherein it has opined that the allowance of compensatory nature (HRA / Transport Allowance / Small Allowance etc.,) may be excluded for the purpose of computing Overtime Allowance under the Factories Act, 1948. Earlier, Ministry of Labour and Employment vide their O.M. No. Z – 16025/81/2007 – ISH – II dated 19.11.2007 has compensatory allowance which is reimbursed and hence may not be taken into account calculating OTA under the Factories Act, 1948.







The above interpretation of the Ministry of Labour is contrary to the provisions of Factories Act, 1948. As per section 59 of Factories Act, a worker shall be entitled to wages at the rate of twice of his ordinary rate of wages, in respect of Overtime work as per Sub Section (2) of section 59 the ‘Ordinary rate of wages’ means the basic wages plus such allowances. Including the cash equivalent of the advantage accruing through the concessional rate to workers of food grains and other articles, as the worker is for the time being entitled to but does not include a bonus and wages for overtime work.







Presently Dearness Allowance, House Rent Allowance, City Compensatory Allowance and Transport Allowance are included for the purpose of calculating Overtime Allowance under Factories Act, 1948 and the employees are being paid accordingly.







“Dearness Allowance” which is being paid at present is in the nature of a compensatory payment to employees for erosion in the real value of their salaries resulting from price rise. (Para 13.1; Page 216 of 4th CPC Report)







“City Compensatory Allowance” is granted to Central Government employees to enable them to meet the high cost of living in certain specially costly cities.







(Para 106.2; Page 1579 of 5th CPC Report)







“House Rent Allowance” is paid to Central Government employees to compensate them partly for the specially high rents which they have to pay for hired residential accommodation. (Para 14.21; Page 225 of 4th CPC Report)







“Transport Allowance” has been granted to Central Government employees to suitably compensate them for the cost incurred on account of commuting between the place of residence and the place of duty.







(G.I. M.F., O.M. No.21(1)97/E-II (B), dated 03.10.1997)







From above it is abundantly clear that allowances like DA, CCA, HRA and TA being paid to Central Government employees are compensatory in nature and there is no justification in discriminating among the above allowances.







It is worth to mention here that the Ministry of Labour is a custodian of rights conference by the Parliament of India to the employees under various Labour Laws but now it has wrongly interpreted the meaning of the ordinary rate of wages means the basic wages plus such allowance such the worker is for the time being entitled. Due to this the employees are deprived of the extra wages for overtime, which they are getting for more than last 50 years.







Therefore you are requested to take appropriate action so that the provision of payment of Overtime may be continued in letter and spirit of Factories Act, 1948 and the House Rent Allowance, Transport Allowance should not be excluded for the purpose of calculating extra wages for overtime under the Factories Act, 1948.







18. COMPASSIONATE APPOINTMENTS IN FATAL ACCIDENT CASE







Your attention is invited to the situation where a Government servant who is the sole breadwinner of a family unfortunately dies in harness leaving his family in immediate need of assistance in such cases, Ministries / Departments have been delegated the power to appoint n relaxation of procedure of recruitment to a dependent member of the family of the deceased, in the event of there being no other earning member in the family.







For this purpose, Ordnance Factory Board has forwarded the MOD, D(Lab) instruction vide OFY letter No. 039/(6)/A/A/(Vol-III) dated 18.1.2006, whereby directives have been issued ofr making relative merit points scale to various parameters like Family Pension, Terminal Benefits, Monthly income of earning members and income from property, Movable/immovable property. No.of Dependents, No.of unmarried daughters, No. of minor children and left over service. The weightage fixed above is to be strictly followed.







Sir, very painfully it is brought to your kind notice that no weightage has been given to the death in fatal accident in the process of performing his duty. We have experienced that a number of Ordnance Factories are engaged in manufacturing, filling ;process of Highly Explosives and during the above process some major fatal accidents occurred causing loss of several employees like Ordnance Factory Bhandara, Itarasi and Khamaria where employees have succumbed to the accidents but their dependents are waiting for extra weightage to the Department/Ministry/Nation which needs to be considered while assessing the wieghtage for compassionate appointments. In spite of that MOD has clarified vide its I.D dated 4.8.2008 as under:







“Since the financial impact of the family due to demise of the Government servant for whatever cause (accident or otherwise) is similar, the cases of accident victims cannot be taken on a different footing and may be regulated under the scheme for compassionate appointment as circulated vied this Department’s O.M. dated 9th Oct, 1998.







In the above circumstances, you are requested to intervene into the matter and kindly issue necessary directions so that top priority may be given to the next of kin to the deceased employees for granting him immediate compassionate appointment without considering the weightage whereby it may be proved that MOD, GOI as always caring the family of the employee who have sacrificed his life of the Government.







19. HALF DAYS’ CASUAL LEAVE TO INDUSTRIAL EMPLOYEES AT PAR WITH THE OTHER CENTRAL GOVT. EMPLOYEES







The Government of India has kindly pleased to grant Half Day Causal Leave to the employees for various reasons mentioned in the G.I., M.H.A., O.M. No. 60/17/64-Esst. (A) dated 4.8.1965. It is worth to mention here that the above does not discriminate among the Industrial Employees and Non-Industrial Employees but the rule is published only in the Appendix –III under Central Civil Services (Leave) Rules, 1972.







Therefore you are requested to issue necessary instructions so that half days causal leave to the Industrial employees may be granted at par with the other CG employees, and present system of short leave of 2 hours on 2 occasions in a month may be continued but without pay.







20. REMOVAL OF LEAVE DISPARITY AMONG THE FACTORIES ACT, 1948 AND DEPARTEMNTAL RULES







It is apprised that the ‘Principal Controller of Accounts (Factories), Kolkata vide its letter No. pay/Tech – II/ 1058 dated 27.3.2007 has instructed to all Branch Accounts Officers of Ordnance & Ord. Equipment Factories that the Industrial employees who has opted to be governed by CDS(IEs) Leave Rules, 1954 is entitled to 30 days Earned Leave and those who have opted for Factories Act are entitled to one EL for every 20 days of work in the preceding year.







Kindly refer to GOI, DoP&T O.M. No. 12012/1/97-Esst (Leave) dated 20 July, 1998 wherein it is stipulated that as per agreement with the Staff Side of the National Council (JCM) singed on 11.9.1997, the Govt. has decided that henceforth the Industrial employees in CG Departments other than Railways shall be entitled year of service irrespective of service holidays shall also count towards such leave.







Chapter – VIII of the Factories Act, 1948 deals with Annual Leave with wages and Section 78 of the Act reads as under:







(i) The provision of this chapter shall not operate to the prejudice of any right to which a worker may be entitled under any other law or under the terms of any award, agreement (including settlement) or contract of service: Provided that if such award, agreement (including settlement) or contract of service provides for a longer Annual Leave with Wages than provided in this chapter, the quantum of leave, which the worker shall be entitled to, shall be in accordance with such award, agreement or contract of service, but in relation to matters not provided for a in such award, agreement or contrast of service or matters not provided for less favorably therein, the provisions of Section 79 to 82, so for as may be, shall apply.







From above it may be deduced that the Industrial employees who have opted for Earned Leave under Factories Act, are entitled for 30 days in a year and the matter to remove disparity of leave among Factory Rules and Department Rules for industrial employees is pending for very long period.







21. CHILDREN EDUCATION ALLOWANCE







DOP&T has issued clarification vide OM No. 1201111612009 – (Allowance) dated 13th Nov. 2009 that CEA is admissible for the two eldest surviving children only, expect when the number of children exceeds two due to second child birth resulting in multiple births.







It is worth to mention here that neither 6th CPC has restricted that the only first 02 eldest surviving children’s education allowance will be reimbursed not DOP&T has restricted vide instruction OM NO. 12011/03/2008 – Estt.(Allowance) dated 2nd Oct. 2008.







In such circumstances, kindly issue necessary instructions for granting the CEA to the employees for his/her 3rd or 4th son/daughter if he has not claimed the Tuition Fee reimbursement for his son/daughter on any earlier occasions.







22. REMOVAL OF ANOMALY IN THE PAY SCALE OF LAB.TECHNICIANS SERVING IN ORDNANCE FACTORIES HOSPITALS IN PB-2 WITH GRADE PAY OF Rs.4200 LIKE OTHER CENTRAL GOVT. DEPTT. i.e. RAILWAY RECRUITMENT BOARD INSTEAD OF PB-1 (Rs.5200-20200) WITH GRADE PAY OF Rs.2800.







Lab Technicians serving in Ordnance Factory Hospitals under Min. of Defence have been ordered to be placed in PB-1 (Rs.5200-20200) with Grade Pay of Rs.2800 due to their corresponding 5th CPC scales of Rs.4500-7000.







Organisation/Post Pay Scale(Pre-revised) Qualification Nature of Work



Ordnance Factory Hospitals Lab.Technician Rs.4500-125-7000 (i) BSc with Bio-Chemistry/Micro Biology







(ii) Diploma in MLT







(iii) 01 year experience



Routine Blodd Test of Pathology, Micro-Biology, Bio-Chemistry etc.



Regional Institute of Health & Medical Science Shilong Sr.Lab.Technician Rs.5500-175-9000 (i) BSc with Medical Lab.Technology or







(ii) BSc with Phy/Chem/Zool/Bot from a recognised university with Diploma in MLT of 1 year duration.



Routine Blodd Test of Pathology, Micro-Biology, Bio-Chemistry etc.



Bhabha Automic Research Centre. Scientific Asst.B(Pathology) Rs.5500-175-9000 BSc + 01 year Diploma in MLT with 50% in BSc and 60% in DMLT Routine Blodd Test of Pathology, Micro-Biology, Bio-Chemistry etc.



J.N.Medical College, AMU Sr.Tehcnical Asst. Rs.5500-175-9000 (i)BSc







(ii)Diploma in MLT







(iii)02 years experience



Routine Blodd Test of Pathology, Micro-Biology, Bio-Chemistry etc.



Railway Recruitment Board Lab.Superintendent Gr-III Rs.5000-150-9000 (i)BSc with Bio-Chemistry/Micro-Biology







(ii)Diploma in MLT



Routine Blodd Test of Pathology, Micro-Biology, Bio-Chemistry etc.



Rastriya Sanchari Rogsansthan Technician Rs.5500-150-8000 BSc with Bio-Chemistry/Micro-Biology Routine Blodd Test of Pathology, Micro-Biology, Bio-Chemistry etc.







As per description given Lab Technician (designated as Lab. Superintendent Gr-III in the other central government department exists in the pay scale of Rs.5000-8000, Rs.5500-9000 and Rs.6500-10500. It means that Lab Technician (Lab. Superintendent) should be in the scale of Pay of Rs.5000-8000 minimum. The below scale of Rs.4500-7000 was meant for Lab. Asst. and not for Lab. Technician. This anomaly should have been set right prior to 6th CPC, but it is painful that nothing was done in this regard.











Following list of other CG Departments clearly exhibit that Lab. Technician with entry qualification B.Sc + Diploma are getting the 5th CPC scale of Rs.5000-8000 whereas in Ordnance Factory Board organization. Lab. Technician inspite of having the same entry qualification B.Sc + Diploma are getting 5th CPC scale of Rs.4500-7000.











3.OFB while issuing SRO – 88 (Recruitment Rules) as on 3rd August 2005 revised the entry qualifications of Lab. Technician B.Sc + Diploma (DMLT) + 01 year experience bringing it at par other Lab. Technician serving in other CG Departments, but did not revised the 5th CPC scale of pay from Rs.4500-7000 to Rs.5000-8000. In spite of the facts that many of Lab. Technician of other deptt. are already getting the 5th CPC pay scale of Rs.5000-8000.







In view of the above, kindly initiate necessary action for placing Lab.Technician of Ordnance Factories under Ministry of Defecne, appropriately in PB-2 with Rs.4200 Grade Pay so that the norms / logic of giving 5th CPC scale of pay Rs.5000-8000 Lab.Technician, which of course could not be done for any reason, is set right at this stage with the placement of the scales in the 6th CPC.







22. ENCASHMENT OF FIXED MEDICAL ALLOWANCE FOR PENSIONERS/FAMILY PERNSIONERS







On the recommendation of 5th CPC Govt. of India has issued instruction vide DOP&PW. OM NO. 45/57/97-P 7 PW. Dated 19.12.1997 to the grant of fixed medical allowance @ Rs.100 p.m. to the CG pensioners / Family pensioners residing in the areas not covered by CGHS administered by Min. of Health & Family Welfare and corresponding Health Scheme administered by other Ministries/Departments for their retired employees for meeting expenditure on day to day medical expenses that do not require hospitalization. The amount of Rs.100 was recommended by the 5th CPC and has remained unchanged since then.







6th CPC has recommended in para, 4.11.3 that the Government should consider enhancing the medical allowance for pensioners living in non-CGHS areas appropriately.







Therefore all pensioners and family pensioners living in non-CGHS areas should be granted Rs.100 p.m. Fixed Medical Allowance and the rate of this allowance should be enhanced by 25% automatically each time the dearness allowance payable on the revised pay band goes up by 50%.







23. REDUCTION IN MINIMUM QUALIFYING SERVICE FOR PROMOTION FROM ONE GRADE PAY TO NEXT GRADE PAY.







DOP&T has issued instructions vide OM No. AB 14017/61/2006-Esst. (RR) dated 24th March, 2009 on Sixth CPC recommendations – revision of pay scales – amendment of service rules / Recruitment Rules and instructed to modify the heading of column No. 4 of the schedule on Recruitment Rules and the minimum eligibility service as per the revised guidelines as enclosed in annexure reveals that the minimum qualifying service for promotion from one grade to next or higher grade pay has been enhanced in comparison to existing SROs. This causes discontentment among the employees.







Therefore you are requested to issue necessary instructions for revision of Service Rules/Recruitment Rules without adversely affecting the promotional aspects agenda points in the meeting.







Thanking you in anticipation.

Agenda Points for 46th Meeting of National Council (JCM) from BPMS

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Filed Under: cpc