Tuesday, June 29, 2010
Due date for filling of return of Income Tax
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 31st May, 2010.
Order under Section 119(1) of the Income Tax Act, 1961
The due date for filling of return of income within the meaning of Explanation 2(c) to Section 139(1) of the Income Tax Act, 1961 is 31st July, 2010. The income tax authorities are hereby directed to make arrangements for accepting the returns of income on 31st July, 2010 (being Saturday). This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961.
Special arrangements may also be made by way of opening additional receipt counters, wherever required, from 28th July to 31st July, 2010 to facilitate the taxpayers to file their returns.
Thursday, June 24, 2010
Government of India
Ministry of Personnel, P.G. and Pensions
( of Personnel & )
The undersigned is directed to say that this Department has been receiving various references from Ministries/ Departments regarding regularization of unauthorized absence for long periods. The references are made basically because the Ministries/Departments do not follow the prescribed procedure for dealing with such unauthorized absence.
Guidelines/instructions exist for handling such situations.
2. As per Rule 25 of the CCS (Leave) Rules 1972.
(1).Unless the authority competent to grant leave extends the leave, a Government servant who remains absent after the end of leave is entitled to no leave salary for the period of such absence and that period shall be debited against his leave account as though it were half pay leave. to the extent such leave i s due, the period in excess of such leave due being treated as extraordinary leave.
(2) Willful absence from duty after the expiry of leave renders a Government servant liable to disciplinary action. Government of India decisions also exist; than a Government Servant who remains absent without any authority should be proceeded against immediately and this should not be put off till the absence exceeds the limit prescribed in Rule 32(2) (a) of the CCS (Leave) Rules, 1972.
3. It is once again stressed that a Govt. servant who remains absent without any authority shout d be proceeded against immediately. All Ministries/Departments are requested to ensure that in all cases of unauthorized absence by a Government Servant, he should be informed of the consequences of such absence and be directed to rejoin duty immediately / within a specified date, say within three days, failing which he would be liable for disciplinary action under CCS(CCA) Rules 1965. If the Government Servant does duty by the stipulated date the Disciplinary Authority should initiate disciplinary action against him and the disciplinary case should be conducted and concluded as quickly as possible,
4. It is only due to apathy of the Disciplinary Authorities that the situation arises where long pending unauthorized absence leads to delay in other service matters of Government Servants, including promotions. To avoid such situations all Ministries / Departments should advise Disciplinary Authorities to ensure that prompt action is taken against Government Servants who absent themselves with out permission and that Charge-Sheets are issued without delay.
5. The consequences and procedure to be followed in respect of an officer who is absent from duty without any authority has been brought out under FR 17(1) and 17-A. As per FR 17-A(iii) without prejudice to the provisions of Rule 27 of the Central Civil Services (Pension) Rules. 1972, remaining absent without any authority or deserting the post, shall be deemed to cause an interruption or break in the service of the employee, unless otherwise decided by the competent authority for the purpose of leave travel concession, quasi-permanency and eligibility for appearing in departmentexaminations, for which a minimum period of continuous service is required.
6. Comptroller and Auditor General have issued orders that the period of absence not covered by grant of leave shall have to be treated as “dies non” for all purpose,;, viz., increment, leave and pension. Such absence without leave when it stands singly and not in continuation of any authorized leave of absence will constitute an interruption of service for the purpose of pension and unless the pension sanctioning authority exercises its powers under Article 421, Civil Service Regulations [now Rule 27 of the CCS (pension) Rules] to treat the period as leave without allowance, the entire past service will stand forfeited.
Directorate has issued letter No F.No.76-01/2010-SB dtd 25.5.10 and as per the letter, Sanchay Post software will not be purchased and CBS software will be installed. The letter is reproduced below for information.
The undersigned is directed to say that on the recommendations of a committee constituted to review utility and capabillity of Sanchay post software in the light of proposed CBS, Accrual Base Accounting and compliance of prevention of Money Laundering (PML)/combating of Financing Terrorism (CFT) norms, the competent authority has taken the following decisions:-
1.There will be no further expansion of Sanchay post software. The post offices for which legal copies of the sanchay post CDs have not yet been purchased will continue to work on manual system.
2.No further CD of Sanchaya Post system will be purchased from Datanet System.
3.Software Development Centre Chennai operating from O/O CPMG, T.N.circle will maintain the software at its present level and no further modifications or enhancements will be carried out in the software.
4.SDC, Chennai will help the probable system integrator in data migration to proposed CBS software.
5.After implementaion of CBS in 4000 major post offies, the remaining departmental offices will be shifted to a lower version of CBS with centralized database system.
This issues with the approval of DDG (FS)
Wednesday, June 16, 2010
The NPS is a new contributory pension scheme introduced by the Central Government for employees joined in Government Service on or after 1.1.2004. During the year 2009, the NPS was kept open for public.
2. Who is covered by the NPS?
a. Employees who have joined central government service on or after 01 January 2004 including Railways, Posts, Telecommunication or Armed Forces (Civil), Autonomous Body, Grant-in-Aid Institution, Union Territory or any other undertaking whose employees were eligible to a pension from the Consolidated Fund of India., earlier.
b. This contribution pension scheme is also open to any Indian citizen between the age of 18 and 55.
3. I am covered by the NPS. Can I contribute to the GPF?
No. The General Provident Fund ( Central Service) Rules, 1960 is not applicable for employees covered by NPS.
4. I Am covered by the NPS. Am I eligible to Gratuity?
No. You will not be eligible to Gratuity.
5. How does the NPS work ?
When you join Government service, you will be allotted a unique Personal Pension Account Number (PPAN). This unique account number will remain the same for the rest of your life. You will be able to use this account from any location and also if you change your job. The PPAN will provide you with two personal accounts:
1. A mandatory Tier-I pension account, and
2. A voluntary Tier-II savings account.
6. What is the difference between Tier-I and Tier-II accounts?
1. Tier-I account: You will have to contribute 10% of your pay in pay band + grade pay + DA into your Tier-I (pension) account on a mandatory basis every month. You will not be allowed to withdraw your savings from this account till you retire at age 60. Your monthly contributions and your savings in this account, subject to a ceiling to be decided by the government, will be exempt from income tax. These savings will only be taxed when you withdraw them at retirement.
2. Tier-II account: This is simply a voluntary savings facility for you. Your contributions and savings in this account will not enjoy any tax advantages. But you will be free to withdraw your savings from this account whenever you wish.
7. How will I contribute to my Tier-I (pension) account?
Every month, the government will deduct 10% of your salary (10% of pay in pay band + grade pay + DA) and automatically transfer this amount to your Tier-I account in your name.
8. Will the Government contribute anything to my Tier-I (pension) account?
Yes. As your employer, the Government will match your contribution (10% of pay in pay band + grade pay + DA) and transfer this amount also to your Tier-I account in your name.
9. Can I contribute more than 10% into my Tier-I account?
Yes. You will be permitted to contribute more than the mandated 10% of pay in pay band + grade pay + DA into your Tier-I account – subject to any ceiling that may be decided by the Government.
10. Will the Government also contribute more than 10% into my Tier-I account?
No. The contribution of the Government will be limited to 10% of your pay in pay band + grade pay + DA.
11. What will happen if I am transferred to another city?
The PPAN number will stay the same and you will be able to use the same account.
12. If I leave Government service before I retire will the Government continue to contribute to my Tier-I account?
No. The 10% contribution by the Government will stop when you leave Government service. However, your savings in your Tier-I and Tier-II accounts will stay in your name and you will be able to continue using these accounts to save for your retirement.
13. What if I die or become permanently disabled during my service?
Additional Relief on death/disability of Government servants covered by the NPS(NewPension Scheme) recruited on or after 1.1.2004 has been discussed in this Office Memorandum No.38/41/06/P&PW(A) Dated 5th May, 2009
14. How will the money be invested?
The money you invest in NPS will be managed by professional fund managers. Currently, you have the choice of picking up one of the following six fund managers: ICICI Prudential Pension Management, IDFC Pension Fund Management, Kotak Mahindra Pension Fund, Reliance Capital Pension Fund, SBI Pension Funds, and UTI Retirement Solutions. In addition to this there are three schemes for which you have to opt.
Scheme A This scheme will invest mainly in Government bonds
Scheme B This scheme will invest mainly in corporate bonds and partly in equity and government bonds
Scheme C This scheme will invest mainly in equity and partly in government bonds and corporate bonds.
15. Can I switch fund managers if I am not happy with my current fund manager?
Yes, you can switch fund managers. PFRDA, the pension fund regulator, will declare the value of your investment every year in April. At that point of time, if you are not satisfied with the performance of your fund manager, you can switch to another fund manager between May 1 and May 15.
16. What are the charges?
This is where NPS wins hands down against all other modes of creating a corpus to generate income after retirement. The fund management charge of NPS is 0.0009% of the value of theinvestment, every year. In comparison, pension plans of insurance companies charge 0.75-1.75% as fund management charge, which is 800-2000 times higher. The other expenses charged are also very reasonable.
17. I am covered by the NPS. Do the old Pension Rules apply to me?
No. The Central Civil Service Pension Rules (1972) will not be applicable to you.
18. Who will be responsible for the NPS and for protecting my interests?
The Government has set up a new dedicated regulatory authority known as Pension Fund Regulatory and Development Authority (PFRDA). The PFRDA will be responsible for the NPS and for protecting your interests in the NPS in consultation with Ministry of Finance.
19. Who in the Government will issue me a PPAN account and be responsible for the deductions?
When you join Government service, your Drawing and Disbursement Officer (DDO) will instruct you to fill out a NPS form. You will be required to provide your full professional and personal details including details of your nominee in this form. The DDO will issue you the PPAN number(PRAN) and will also be responsible for all administrative matters related to your NPS accounts including deduction of your contributions, transferring your contributions and the matching contribution of the Government to your Tier-I pension account.
20. What will happen to my contributions to my Tier-I account?
Your monthly contributions, and the matching contributions by the Government into your Tier-I account, will be transferred by the Government in your name to a Pension Fund Manager (PFM). The PFM will invest your contributions on your behalf. In this way, your savings will appreciate and grow over time.
21. Will I be permitted to select more than one Pension Fund Manager to manage my savings?
Yes. If you wish, you will be able to spread your savings across multiple PFMs – where a part of your savings are managed by 2 or more PFMs.
22. Am I guaranteed a certain rate of return?
No return is guaranteed as it is in case of EPF and PPF. The amount of money you make is dependant on how well the fund managers chosen by you perform. But, the extremely low charges in NPS sure give it an edge over the the pension plans of insurance companies.
23. 11. Can I contribute more than 10 into my Tier-I account?
Yes. You will be permitted to contribute more than the mandated 10% of Basic+DA+DP into your Tier-I account – subject to any ceiling that may be decided by the Government.
24. Can I withdraw money from the account?
The NPS offers two accounts: tier I and tier II. Currently only tier I account is available. This is a non-withdrawable account and investments in this keep accumulating till you turn 60. Withdrawal is allowed only in case of death, critical illness or if you are building or buying your first house. In case of death the nominee can get 100% of NPS wealth in a lump sum. He can however continue with the NPS in case he wishes to.
25. What will happen to my savings in the Tier-I account when I retire?
You will be able to withdraw 60% of your savings as a lump sum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.
26. Can I use more than 40% of my savings to purchase the annuity?
Yes. You can use more than 40% of your savings to purchase annuity.
27. What will happen to my savings if I decide to retire before age 60?
You will be required to use 80% of your savings in your Tier-I account to purchase the annuity. You will be able to withdraw the balance 20% of your savings as a lumpsum. The other option is , you can continue to invest in NPS on monthly basis and then purchase annuity using 40% of your savings at the age of 60.
28. Will the annuity also provide a family (survivor) pension?
Yes. You will have an option of selecting an annuity which will pay a survivor pension to your spouse.
29. What will happen to my savings in the Tier-I account when I retire?
You will be able to withdraw 60% of your savings as a lumpsum when you retire. You will be required to use the balance 40% of your savings to purchase an annuity scheme from a life insurance company of your choice. The life insurance company will pay you a monthly pension for the rest of your life.
30. What happens at retirement?
NPS by default sets the retirement age at 60. Once you attain that age, you can use themoney that has accumulated to generate a regular pension for yourself. In order to do this, you have to compulsorily buy immediate annuity from a life insurance company with 40% of the money that has accumulated. As explained at the beginning, buying an immediate annuity will assure a regular payment for you. Since a minimum of 40% needs to be used to buy an immediate annuity, a maximum of 60% of the money accumulated can be withdrawn. However, unlike other tax-saving instruments like Public Provident Fund (PPF) and Employees’ Provident Fund (EPF), wherein the amount at maturity is tax-free, in case of NPS this amount is taxable.
31. Whether a retiring Government servant is entitled for leave encashment after retirement under the NPS?
The benefit of encashment of leave salary is not a part of the retirement benefits admissible under Central Civil Services (Pension) Rules, 1972. It is payable in terms of CCS (Leave) Rules which will continue to be applicable to the government servants who join the government service on after 1-1-2004. Therefore, the benefit of encashment of leave salary payable to the governments/to their families on account of retirement/death will be admissible.
32. Why is it mandatory to use 40% of pension wealth to purchase the annuity at the time of the exit (i.e. after the age of 60 years) from NPS?
This provision has been made in the New Pension Scheme with an intention that the retired government servants should get regular monthly income during their retired life.
33. Whether any minimum age or minimum service is required to quit from Tier-I?
Exit from Tier-I can only take place when an individual leaves Government service.
34. Whether Dearness Pay is counted as basic pay for recovery of 10% for Tier-I?
As per the New Pension Scheme, the total Dearness Allowance is to be taken into account for working out the contributions to Tier-I. Subsequently, a part of the “Dearness Allowance” has been treated as Dearness Pay. Therefore, this should also be reckoned for the purpose of contributions.
35. Whether contribution towards Tier-I from arrears of DA is to be deducted?
Yes. Since the contribution is to be worked out at 10% of (Pay+ DP+DA), it needs to be revised whenever there is any change in these elements.
36. Who will calculate the interest PAO or CPAO?
The PAO should calculate the interest.
37. What happens if an employee gets transferred during the month? Which office will make deduction of Contribution?
As in the case of other recoveries, the recovery of contributions towards New Pension Scheme for the full month (both individual and government) will be made by the office who will draw salary for the maximum period.
38. Whether NPA payable to medical officers will count towards ‘Pay’ for the purpose of working out contributions to NPS?
Yes. Ministry of Health & Family Welfare has clarified vide their O.M. no. A45012/11/97-CHS.V dated 7-4-98 that the Non-Practicing Allowance shall count as ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.
39. Whether a government servant who was already in service prior to 1.1.2004, if appointed in a different post under the Government of India, will be governed by the CCS (Pension) Rules or NPS?
In cases where Government servants apply for posts in the same or other departments and on selection they are asked to render technical resignation, the past services are counted towards pension under CCS (Pension) Rules, 1972. Since the Government servant had originally joined government service prior to 1-1-2004, he should be covered under the CCS (Pension) Rules, 1972.
40. Will I get a tax deduction for the investment?
Yes, under Section 80CCD of the Income Tax Act investments of up to Rs 1 lakh in the NPS can be claimed as tax deductions. Readers should remember that this Rs 1 lakh limit is not over and above the Rs 1 lakh limit available under Section 80C. In fact, the combined limit of investments made under Section 80C, 80CCD and section 80CCC (for investments made into pension plans of insurance companies) is Rs 1 lakh.
Monday, June 14, 2010
Income Tax exemption limit for gratuity enhanced to Rs.10 lakh - Central Board of Direct Taxes approved.
The government enhanced the income tax exemption limit for gratuity from Rs.3.5 lakh to Rs.10 lakh w.e.f. May 24, 2010.
The Central Board of Direct Taxes has approved notification of ten lakh rupees as the maximum amount of gratuity entitled to exemption under sub-clause (iii) of clause (10) of section 10 of the Income Tax Act 1961.
The notification will be applicable to employees who retire, or become incapacitated before retirement, or expire, or whose services are terminated, on or after the 24th May 2010.
Thursday, June 10, 2010
Government of India
Ministry of Communication & IT
Department of Posts
Dak Bhavan Sansad Marg
‘ Newdelhi -110016
Dated June 2010
Subject: Payment of Second installment of 60 % Arrears Shri R S on account of implementation of Shri Nataraja Murti Committee recommendations on revision of wage structure of GDS
1. I am directed to refer this office memorandum of even no dated 09.10.2009 wherein approval was communicated for implementation of recommendations of one man committee on revision of time related community and other allowance. In para 11 of said office memorandum it was stated that, 2nd installment of 60 % of arrears will be paid only after issue of specific instructions in this regard by the Directorate.
2. It has now been decided to pay the second installment of 60 % arrears of revision of Time related continuity allowance to the eligible Gramin Dak Sevaks .
3. The circle Postal account offices were required to carry out cent percent verification of TRCA consequent of revision of TRCA. The entire process of verification was to be completed by 31.March 2010. A report on the cent percent verification of TRCA should be sent to the Directorate immediately for record
4 The excess payment pointed out by the circle verification squad of DAP should be adjusted while effecting the payment of second installment arrears.
5 Before releasing the second installment of 60 percent arrears it may be ensured that requisite funds are available under the relevant head of accounts.
6 An undertaking of prescribed format should be obtained from each Gramin Dak Sevak to the effect that, he will refund any excess payments that may be found to have been made or decided subsequently and kept on record before the disbursement of second instalment. The process of payment of second installment may be completed by 15.07 2010.
Monday, June 7, 2010
Honourable MOC & IT
Government of India
New Delhi – 110001
POSTAL EMPLOYEES REQUEST YOUR KIND INTERVENTION TO DIRECT THE POSTAL BOARD TO DISCUSS THE CHARTER OF DEMANDS OF POSTAL JOINT COUNCIL OF ACTION FOR REACHING SETTLEMENT OF OUR JUSTIFIED ISSUES.
THANKING YOU SIR,
Charter of Demands is now with 18 Points - The demand for Enhancement of OTA [Over Time Allowance] and OSA [Out Station Allowance] has been included before serving Strike Notice as the 18th Point.
Comrades - Sink all differences and commence all preparations for a successful Programme of Action - Form Active Joint Council of Action platform at all levels - Observe the Programme of Action with all seriousness.
No Periodical Meeting by Department for years!
No holding of Departmental Council Meeting!
No Revival of GDS Committee Meeting!
All action of Department is unilateral!
No action for restructuring of cadres comprehensively even after one year but arbitrary piece meal cadre restructuring of Postmasters Cadre by Postal Board!
Arbitrary decision to close down all urban based 'C' Class Offices!
Retrograde decisions to downgrade ED SOs!
Inhuman torture in the name of 100% Delivery under Project Arrow! No Working Hours!
Outsourcing of Speed Post Processing - Mail Conveyances - Opening up of more Franchisees - Outsourcing of Data Entry Work - How long this outsourcing is going to be tolerated?
Staff shortage is still haunting us despite abolition of Screening Committee - Calculation of PA/SA vacancies not done properly in Circles.
The Indefinite Strike by Postal JCA is only to end this suffocation and suffereings. Get United - Get into Action!