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Wednesday, December 16, 2009

Bank employees to go for strike today

Bank employees are planning to go on strike on December 16 during the Parliament Session against banking sector reforms such as privatisation of public sector banks (PSBs) and closure and merger of associate banks/other PSBs with State Bank of India.

It is not for the first time that bank employees are going for such a move in the country, they have always opposed privatization and the government has heeded their demands and has always gone slow in the privatization efforts.

All India Bank Employees Association and the All India Bank Officers Association, which called for the strike, said bank employees and officers in public sector banks, private banks and foreign banks will observe an all-India strike on December 16

Friday, December 11, 2009

Return of Medals by Ex-servicemen and officers

Retired soldiers and officers have returned their medals during last few years. Nine cardboard boxes full of medals have been received. In protest against non-acceptance of their demands of ‘One Rank, One Pension’. Although the ‘One Rank One Pension’ demand has not been accepted, keeping in view the spirit of the matter, the committee constituted has recommended substantial improvement in pension of pre Jan 01, 2006 PBOR pensioners and bring pre October 10, 1997 pensioners on par with post October 10, 1997 pensioners
This information was given by Minister of State for Defence Shri MM Pallam Raju in written reply to Shri Shivanand Tiwari and Shri Ravi Shankar Prasad in Rajya Sabha today.

Monday, December 7, 2009

8% DA Hike from January 2010

The information given below is only openion. Please dont take it for authenticated one.

As per the figures available from Labour Bureau, Government of India (http://labourbureau.nic.in/indtab.html) it can be assumed that minimum of 8% DA hike can be assumed from January 2010, totaling 35% from current 27%. This is calculated assuming that the All India Consumer Price Index (AICPI) remains unchanged for November and December, which are yet to be announced. These figures for November and December 2009 will be announced on 31 Dec 2009 and 29 Jan 2010 respectively.

Month

Year

Base Year
2001=100

Total

Average

App. DA

DA

May

2008

139

1613

June

2008

140

1623

135.25

16.84

16

July

2008

143

1634

August

2008

143

1634

Sep

2008

146

1659

Oct

2008

148

1673

Nov

2008

148

1687

Dec

2008

147

1700

141.67

22.38

22

Jan

2009

148

1714

Feb

2009

149

1728

Mar

2009

148

1739

Apr

2009

150

1751

May

2009

151

1763

June

2009

153

1776

148

27.85

27

July

2009

160 1793

August

2009

162 1812

Sep

2009

163 1829

Oct

2009

165 1846

Nov

2009

165 1863

Dec

2009

165 1881 153.75 35.40 35

Thursday, December 3, 2009

Bank wage arrears to be paid by Feb. 2010

The bank employees and officers will get a bonanza from the wage settlement arrived at on Friday between the bank unions and Indian Banks' Association (IBA). The Income Tax Department will also collect some amount as tax deducted at source (TDS) from the near Rs. 10,000 crore of wage arrears that are likely to be distributed in cash sometime in February next year, sources said.

"It will take three months for us to finalize the settlement and implement it. The arrears for two years and three months (since November 2007) are likely to be disbursed in cash at one go," C.H.Venkatachalam, Convenor, United Forum of Bank Unions (UFBU), told Business Line. He also said that the annual average per capita increase for public sector bank officers would be Rs. 91,800 and in the case of workmen employees it would be Rs. 56,200.
Just as the Sixth Pay Commission award for government employees had a positive impact on the economy and increased demand, the payment of arrears in cash to bank employees is also likely to give a boost to the growth impulses. This is even as the quantum of arrear payout under the ninth bipartite settlement being substantially lower than the arrear payment under the Sixth Pay Commission award.
Under the settlement, public sector banks have agreed to an aggregate annual wage increase of Rs. 4,816 crore (17.5 percent increase over wage bill of Rs. 27,520 crore as on end-March 2007). This amount of Rs. 4,816 crore pertains to only public sector banks and there will be a similar 17.5 percent wage hike for employees and officers in old generation private banks and a few foreign banks, Venkatachalam said.

Saturday, November 28, 2009

SBI union rejects new wage pact, demand separate revision

The All-India State Bank Officers Federation (AISBOF) today rejected the proposed 17.5 per cent wage hike and pension benefits and demanded a separate wage revision for them.

"We do not agree with the proposed salary hike for bank employees. The SBI employees demand that the increase should be at par with the salary of the Central government employees," AISBOF vice-president SK Haldar said here.

The Indian Banks Association (IBA) and United Federation of Banking Unions (UFBU) representing nine bank employee associations had agreed to the wage hike and pension benefits after a prolonged discussion in Mumbai yesterday.

Haldar, who was here to attend the zonal conference of the SBI Officers Association, said AISBOF will decide its future course of action on Tuesday.

The three lakh SBI employees are ready for an indefinite strike to demand a separate wage revision at par with Central government employees, he added.

Wednesday, November 25, 2009

Encashment of earned leave alongwith LTC -Clarification

 

NO. 1402812/2009-Estt.(L)
GOVERNMENT OF INDIA
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

2nd Floor, Loknayak Bhavan, Khan Market
New Delhi, the 24th November, 2009

OFFICE MEMORANDUM

Subject:- Encashment of earned leave alongwith LTC -Clarification

The undersigned is directed to refer to DOP&T 0.M.No.310111412008-Estt.(A), dated 23rd September, 2008 allowing encashment of earned leave alongwith LTC and to say that various references are being received from MinistriesIDepartments with regard to the applicability of Rule 38-A of the CCS (Leave) Rules, 1972 to the Central Govt. employees. In this regard it is clarified that

(1) Central Govt. employees governed by CCS (Leave) Rules, 1972 who are entitled to LTC but opt for the facility of LTC provided to their spouses employed in PSUslCorporationlAutonomous Bodies etc. and

(2) Central Govt. employees governed by CCS (Leave) Rules, 1972 who are otherwise not entitled to LTC, on account of their spouse being employed in Indian Railways/National Airlines who are entitled to privilege passeslconcessional tickets
are entitled to leave encashment while availing the LTC facility of their spouselprivilege passes/concessional tickets of their spouse on fulfillment of all the conditions as stipulated in Rule 38-A of the CCS (Leave) Rules, 1972 twice in a four years block of LTC.

Tuesday, November 24, 2009

Pre-97 RBI staffers may get less pension from next yr

For the 4,000-odd people who retired from the Reserve Bank of India (RBI) before 1997 and are now in their 70s, the new year will not start on a happy note as they will see their pensions reduced from January.

This is because of a government order that RBI has no power to update pension of its employees. This has been a bone of contention between the government and the central bank for the past one year. In 2003, RBI increased the pension of those who retired before 1997 by an administrative circular. The revision was based on pay drawn in 10 months prior to the retirement on a notional basis.

However, in October last year, in an internal circular, the central bank said, “as advised by government of India,” the updated pension scheme is withdrawn with immediate effect.

Protesting the move, the pensioners moved the Bombay High Court, which said they could represent to the government, which could dispose of the representation by a speaking order. The court said if the government order went against the petitioners, RBI would not reduce the pension for eight weeks from the time the speaking order was communicated to the petitioners. The government order, which went against the pensioners, was issued and communicated in the last week of October.

The decision will result in a loss of Rs 1,000-5,600 a month for these former RBI staffers, who are mostly septuagenarians. RBI would have incurred an additional cost of merely Rs 10 crore on updation. The government order said RBI did not have the power to update its pension scheme.

“As per RBI Pension Regulations, 1990, pension is to be calculated on the basis of the average of last 10 months pay drawn and not on the basis of notional pay. Further, there is no provision in the RBI Pension Regulations, 1990, to update pension,” said the finance ministry, adding, “RBI employees have an edge over central government employees on entitlement of gratuity, pay structure, revision of salary. If each service is allowed cherry picking of the best of other services, it will lead to an anarchical situation.”

The finance ministry said RBI’s pay structure was not comparable with that of central government employees for the reason that pay scales of RBI employees were revised after every five years, while for central government employees, the revision happenned after 10 years.

“There are no perquisites for central government employees while RBI employees are entitled to a host of perquisites,” the order said. It added that those who retired from RBI were much better placed than those who had worked for public sector banks as the central bank’s salary structure was much better.

The law ministry, which was consulted by the government, said pension regulations could not be amended through an administrative order but added that the employees of RBI, a statutory body, could not be equated with other central government employees as their pension was governed by regulations under the RBI Act.

The Indian Banks’ Association (IBA), which was consulted, also opposed the hike in pension saying a similar demand could be made on public sector banks. “Updation of pension may involve approximately an amount of Rs 1,042 crore (annually) for public sector banks, excluding the State Bank of India,” the government order said, quoting the IBA.

Sunday, November 22, 2009

Pay fixation on grant of non-functional scale to section officers of CSS

Regarding introuduction of Non Functional scale of RS 8000-275-13500 to section officers of central Secratariate Service (CSS) and to say that the matter relating to pay fixation on grant of non-functional scale to Section Officers of CSS subsequent to implementation of CCS (Revised Pay) Ruls, 2008 has been considered in the Departmental of Personnel and Training in consultation with the Department of Expenditure.
It has been clarified by Estt.(Pay) Division vide their U.O. No. 5/2/09- Estt.( Pay-I) dated 17/09/09 that at the time of grant of non-functional upgradation to Section Officers belonging to CSS, their pay fixation may be done under Rule 13 of CCs (Revised Pay) Rules, 2008 ie, they should be granted one increment @ 3% of their basic pay and to the figure so arrived at, the difference in grade pay [Rs. 5400 - Rs 4800 = Rs. 600] should be added. Further this dispensation may be implemented w.e.f 1-1-2006.

http://persmin.nic.in/writedata/CircularNotification/ScanDocument/CSWing/no.6-3-2009-cs.1%28s%29191109.pdf

Pay scale of Pharmacists - Recommendation of the Fast Track Committee

While approving the Report of the Sixth Central Pay Commission, the Government referred the matter related to the demandsmade in regard to pay scales of certain common category posts of Pharmacists was one of the items referred to the Committee. The recommendation of the Fast Track Committee regarding the pay scales of the common category posts of Pharmacists has sincebeen reveived. The Committee has recommended that the entry grade of Pharmacists in Central Government should remain at grade pay of Rs.2800 in the pay band PB-1. However, on completion of 2 years service in the entry grade, all the incumbents should be granted non-functional upgradation to the next higher grade having grade pay of Rs.4200 in the pay band PB-1

The recommendation of the Fast Track Committee regarding the pay scale of Pharmacists has been considered by the Government and it has benn decided to accept the same. Accordingly, the following pay structure is approved for the common category posts of Pharmacists cadre w.e.f. 1.1.2006 :-
Pharmacist (Entry Grade) 4500-7000 Grade Pay of 2800 in PB-1 Entry grade for Pharmacist Cadre: Essential minimum educational qualifications of 10+2 plus 2 years Diploma in Pharmacy and Registration with State Pharmacy Council.
Pharmacist II 5000-8000 Grade Pay of 4200 in PB-2 Pharmacist Gr.II and I will be merged and designated as Pharmacist (Non-Functional Grade.) This grade to be granted to Pharmacist (Entry Grade) on non-functional basis after 2 years of service in the grade pay of Rs.2800
Pharmacist I 5000-8000 Grade Pay of 4200 in PB-2 Pharmacist Gr.II and I will be merged and designated as Pharmacist (Non-Functional Grade.) This grade to be granted to Pharmacist (Entry Grade) on non-functional basis after 2 years of service in the grade pay of Rs.2800
Consequent upon the implementation of the above pay structure, promotion from Pharmacists (Entry Grade) to the next higher grade of Pharmacist (Non-Functional Grade) having grade pay of Rs.4200 will be delinked from vacancies and will become non-functional and time-bound. In the case of Organizations like the Ordnance Factory Board, where all the Pharmacists posts are presently in the grade pay of Rs.2800 in the pay band PB-1, the implementation of the above pay sturcture will result in the introduction of the new Non-Functional Grade having grade pay of Rs.4200 in the pay band PB-2

Wednesday, November 18, 2009

Token strike by Navodaya Vidyalaya staff

For the first time in the 23- year history of Navodaya Vidyalayas, over 20,000 employees of 576 Vidyalayas spread across the country resorted to a nation-wide token strike on Monday in protest against the Central Government’s alleged reluctance in implementing pension scheme. All the employees, including the principals of the Vidyalayas, particiapted in the day-long strike.

Raising the demand for a pension scheme, they launched an agitation on November 2. Over 6,000 employees took part in a Parliament march taken out on November 9. But following the government’s alleged neglect of their demand, the employees under the banner of the Joint Action Committee of Navodaya Vidyalaya Samithi Employees Association has decided to resort to a token strike.

Central steering committee member T.P.Mani and other office-bearers of the action committee, Mary P.Mani, Muralidharan Nair and K.N.Shaji, said that they had intimated the government of their decision to launch an indefinite strike from December 1, in the event of no favourable action from the government.

They said the Y.N.Chathruvedi Commission had recommended the government to implement pension scheme for the Jawahar Navodaya Vidyalaya employees in 1998. The various standing committees of Parliament also had recommended pension equivalent to the Kendriya Vidyalaya employees.

Thursday, November 12, 2009

GOWO (Government Officials’ Welfare Organisation) to provide affordable housing.

GOWO (Government Officials’ Welfare Organisation) is to provide low cost, mass & affordable housing measures to serving and retired government employees.

Affordable Housing are available at:-
Gurgaon - 29.9 Lakhs All inclusive
Manali - 15 Lakhs
Ranikhet - Plots 5 Lakhs, bungalows - 9.9 lakhs onwards
Greater Noida - No Vacancy

More at http://www.gowo.co.in/projects.html

Wednesday, November 11, 2009

New PSU bank staff to get NPS (New Pension Scheme)

All persons who join public sector banks on or after April 1, 2010 would come under the government’s new pension system (NPS).

Public sector banks are set to hire 30,000-40,000 employees in the next two years, with about 35 per cent of the total staff set to retire by 2011.

“All new recruits would come under the NPS, the move would also give a push to the new system,” a senior finance ministry official said on the condition of anonymity.

Despite several incentives that were announced by Finance Minister Pranab Mukherjee in the Union Budget, there have been few takers for the NPS.

Trade unions have opposed the move to bring new employees under the NPS. “We are trying to find a solution,” CH Venkatachalam, general secretary, All India Bank Employees’ Association, told Hindustan Times. “We are holding talks with the government and the bank managements… to ensure that their rights are fully protected.”

The Pension Fund Regulatory and Development Authority Bill needs to be reintroduced in Parliament, as it had lapsed with the dissolution of the Lok Sabha before the general elections.

The government had made it mandatory for all central government employees who joined on or after January 1, 2004 to be brought under the NPS. Several public sector undertakings have also switched to the NPS for their employees.

Government officials say the bill is likely to be taken up in the forthcoming Parliament session, and that even though financial sector reforms are critical, the government would go ahead with them only when there is consensus among all coalition partners.

Sunday, November 8, 2009

No voluntary retirement can be allowed in absence of VRS: CAT

The Central Administrative Tribunal (CAT) has held that a government employee cannot be granted voluntary retirement unless a scheme exists for the purpose.
"In the absence of any VRS, neither any request for voluntary retirement can be made by an employee nor any such request can be given effect to by any employer," the tribunal said.
The CAT, comprising members D P Sharma and N D Dayal, passed the order on the plea of M L Jain, Vice-President of Indian Tourism Development Corporation (ITDC) here, challenging the government's order to relieve him from service.
In its ruling, the tribunal ordered reinstatement of the officer and directed the government to give all his benefits, including arrears and salary.
Earlier, the government had transferred Jain to another city but he requested deferment of the order till the time of his daughter's marriage, a request which was pending.
Jain then opted for voluntary retirement scheme (VRS) but later withdrew the same after his request for deferment of his transfer was granted.
Later, the government did not consider Jain's withdrawal of the VRS application and relieved him from the service.
The tribunal said the order of the government in 2005 of relieving him from service was "vitiated" as no VRS was in operation at that time.

Employee Provident Fund Organisation proposes salary cap rise to Rs 10,000

The Employee Provident Fund Organisation (EPFO) has sent a proposal to the labour ministry to increase the salary limit for paying employee provident fund (EPF) to Rs 10,000 from the current Rs 6,500.

It has also proposed covering companies with a minimum of 10 employees under the Employee Provident Fund and Miscellaneous Provisions Act (EPF & MP Act), 1952, against the present norm of a minimum of 20 employees.

A source close to the development said: “The current norms in EPF & MP Act, 1952, results in millions of workers being left out of the EPFO regulations. Therefore, we have proposed to the government to raise the salary cap and to lower the limit on the worker count in an establishment to be covered by EPFO.”

WIDER UMBRELLA

* Current norms in EPF & MP Act, 1952, results in millions of workers being left out of the EPFO regulations

* The organised labour sector comprises 300 million workers, of which only 40 million are covered under EPFO regulations

* If the proposal is approved by Parliament, the EPFO is likely to cover 50% of the organised labour market

* At present, employers have to contribute a minimum of 12 per cent towards EPF on less than or up to Rs 6,500 (basic + dearness allowance)

* This move will especially help contractual workers. They are the biggest concerns because they are often illiterate

The organised labour sector comprises 300 million workers, of which only 40 million are covered under EPFO regulations. Sources said if the proposal were approved by Parliament, the EPFO was likely to cover 150 million workers in the organised sector, which would be 50 per cent of the organised labour market. The proposal is awaiting the ministry’s approval.

Manish Sabharwal, co-founder and chairman, TeamLease Services, however, said a chunk of these 300 million workers are state- and central-government employees. “The EPFO should first concentrate on covering the private and public sectors in totality before expanding its base any further.” He felt that matters would become more complicated for the organisation if the base were expanded.

At present, employers have to contribute a minimum of 12 per cent towards EPF on less than or up to Rs 6,500 (basic + dearness allowance).

This move will especially help contractual workers. Many smaller firms, which work as contractors to bigger firms, are not obliged to honour the EPF Act. “But in the case of contractual workers, their supervisor pays a lump sum without segregation, due to which their basic-plus-DA earning exceeds the limit of Rs 6,500, so that they need not be registered under the Act,” said the source.

The source added that contractual workers were the biggest concerns because they were often illiterate. Since their employers paid them more than the government prescribed cap, the EPFO could not penalise them. If the government approved the EPFO proposals, these people stood to benefit.

The change in the limit, if approved, could be an important move because of rising salaries over the years. But smaller industries, like the beedi industry, which pay a lower rate of 10 per cent, because of lower turnover, would see a higher outgo if this regulation is implemented.

Friday, November 6, 2009

14 tax-free incomes for FY 2009-10

In a few months' time the taxman will coming knocking on your door. However, he cannot tax you on the following 14 important items of income and receipts, as they are fully exempt from income tax and which a resident individual Indian assessee can use with profit for the purpose of tax planning.

1. Agricultural income

Under the provisions of Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income tax.

However, for individuals or HUFs when agricultural income is in excess of Rs 5,000, it is aggregated with the total income for the purposes of computing tax on the total income in a manner which results into "no" tax on agricultural income but an increased income tax on the other income.

2. Receipts from Hindu undivided family (HUF)

Any sum received by an individual as a member of a Hindu undivided family, where the said sum has been paid out of the income of the family, or, in the case of an impartible estate, where such sum has been paid out of the income of the estate belonging to the family, is completely exempt from income tax in the hands of an individual member of the family under Section 10(2).

3. Allowance for foreign service

Any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India, rendering service outside India, are completely exempt from tax under Section 10(7).

This provision can be taken advantage of by the citizens of India who are in government service so that they can accumulate tax-free perquisites and allowances received outside India.

4. Gratuities

Under the provisions of Section 10(10) of the IT Act, any death-cum-retirement gratuity of a government servant is completely exempt from income tax.

In respect of private sector employees, however, gratuity received on retirement or on becoming incapacitated or on termination or any gratuity received by his widow, children or dependants on his death is exempt subject to certain conditions.

The maximum amount of exemption is Rs 3,50,000. Of course, this is further subject to certain other limits like the one half-month's salary for each year of completed service, calculated on the basis of average salary for the 10 months immediately preceding the year in which the gratuity is paid or 20 months' salary as calculated. Thus, the least of these items is exempt from income tax under Section 10(10).

5. Commutation of pension

The entire amount of any payment in commutation of pension by a government servant or any payment in commutation of pension from LIC pension fund is exempt from income tax under Section 10(10A) of IT Act.

However, in respect of private sector employees, only the following amount of commuted pension is exempt, namely:

(a) Where the employee received any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive; and

(b) In any other case, the commuted value of half of such pension.

It may be noted here that the monthly pension receivable by a pensioner is liable to full income tax like any other item of salary or income and no standard deduction is now available in respect of pension received by a tax payer.

6. Leave salary of central government employees

Under Section 10(10AA) the maximum amount receivable by the employees of central government as cash equivalent to the leave salary in respect of earned leave at their credit upto 10 months' leave at the time of their retirement, whether on superannuation or otherwise, would be Rs 300,000.

7. Voluntary retirement or separation payment

Under the provisions of Section 10(10C), any amount received by an employee of a public sector company or of any other company or of a local authority or a statutory authority or a cooperative society or university or IIT or IIM at the time of his voluntary retirement (VR) or voluntary separation in accordance with any scheme or schemes of VR as per Rule 2BA, is completely exempt from tax.

The maximum amount of money received at such VR which is so exempt is Rs 500,000. As per Finance (No. 2) Act, 2009 an assessee cannot enjoy both the exemption in respect of VRS upto Rs 500,000 and also a deduction under Section 89.

8. Life insurance receipts

Under Section 10(10D), any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy, other than u/s 80DDA or under a Keyman Insurance Policy, or under an insurance policy issued on or after 1.4.2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured, is fully exempt from tax.

However, all moneys received on death of the insured are fully exempt from tax Thus, generally moneys received from life insurance policies whether from the Life Insurance Corporation or any other private insurance company would be exempt from income tax.

9. Payment received from provident funds

Under the provisions of Sections 10(11), (12) and (13) any payment from a government or recognised provident fund (PF) or approved superannuation fund, or PPF is exempt from income tax.

10. Certain types of interest payment

There are certain types of interest payments which are fully exempt from income tax u/s 10(15). These are described below:

(i) Income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notification in the Official Gazette, specify in this behalf.

(iia) In the case of an individual or a Hindu Undivided Family, interest on such capital investment bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf (i.e. 7% Capital Investment Bonds);

(iib) In the case of an individual or a Hindu Undivided Family, interest on such Relief Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf (i.e., 9% or 8.5% or 8% or 7% Relief Bonds); (iid) Interest on NRI bonds;

(iiia) Interest on securities held by the issue department of the Central Bank of Ceylon constituted under the Ceylon Monetary Law Act, 1949;

(iiib) Interest payable to any bank incorporated in a country outside India and authorised to perform central banking functions in that country on any deposits made by it, with the approval of the Reserve Bank of India or with any scheduled bank;

(iv) Certain interest payable by Government or a local authority on moneys borrowed by it, including hedging charges on currency fluctuation (from the AY 2000-2001), etc.;

(v) Interest on Gold Deposit Bonds;

(vi) Interest on certain deposits are: Bhopal Gas victims;

(vii) Interest on bonds of local authorities as notified, and

(viii) Interest on 6.5% Savings Bonds [Exempt] issued by RBI

(ix) Stipulated new tax free bonds to be notified from time to time.

11. Dividends on shares and units - Section 10(34) & (35)

With effect from the Assessment Year 2004-05, the dividend income and income of units of mutual funds received by the assessee completely exempt from income tax.

12. Long-term capital gains of transfer of securities - Section 10(38)

With effect from FY 2004-05, any income arising to a taxpayer on account of sale of long-term capital asset being securities is completely outside the purview of tax liability especially when the transaction has been subjected to Securities Transaction Tax.

Thus, if the shares of any company listed in the stock exchange are sold after holding it for a minimum period of one year then there will be no liability to payment of capital gains.

This provision would even apply for the old shares which are held by an assessee and are sold after the Finance (No.2) Act, 2004 came into force.

13. Amount received by way of gift, etc - Section 10(39)

As per the Finance (No.2) Act, 2004, gift, etc. received after 1-9-2004 by individual or HUF in cash or by way of credit, etc. is being subjected to tax if the same is not received from relative, etc. However, Section 56(2) provides that the amount received to the extent of Rs 50,000 will, however, be exempt from the purview of income tax.

Similarly, amount received on the occasion of marriage from a non-relative, etc. would also be exempted. It may be noted that the gift from relatives. as mentioned in the Section can be received without any upper limit.

14. Tax exemption regarding reverse mortgage scheme - sections 2(47) and 47(x)

Any transfer of a capital asset in a transaction of reverse mortgage for senior citizens under a scheme made and notified by the Central Government would not be regarded as a transfer and therefore would not attract capital gains tax. The loan amount would also be exempt from tax.

These amendments by the Finance Act, 2008 apply from FY 2007-08 onwards.

Thursday, November 5, 2009

Govt staff to shed grey, tired look for chic

There is a silent transformation in government offices these days. The faded and often wrinkled work uniforms worn by some government

employees are now being replaced by classier corporate workwear, thanks to new cloth sourcing norms by the government’s purchase departments.

The Central Vigilance Commission office, a central regulatory authority, which decides on the rules and regulations for the government’s tendering process, has asked all public sector units, armed forces and state-governed bodies to insist on “composite mills” in their tenders for procuring any kind of textiles. Simply put, only composite mills — a textile facility where weaving, spinning and processing is integrated and done under a single roof — can bid for textile-related tenders.

The advantage of such mills is that since the three crucial stages of making textiles happens under single roof, quality is consistent even in large-scale production. Whereas, in the case of power looms the production capacities are not as big as composite ones, due to which one has to often compromise on colour or quality. Additionally, with composite mills, the customer can be supplied with cloth as per his specifications while a powerloom-made cloth cannot by uniform in its specifications. Till now, unorganised players or commission agents used to walk away with such tenders after quoting the lowest price. The cheap quotations ensured that these agents delivered inferior quality cloth often procured from individual powerlooms.

Apart from the general public and employees who will welcome the sartorial change, organised textile players are also cheering, especially as these firms had been hit by the slowdown in textiles. The CVC diktat has provided a good business opportunity for such textile mills as the size of a typical government textile tender is estimated to be over Rs 2,000 crore a year.

Nitin S Kasliwal, CEO and MD of S Kumars Nationwide said: “This move will help in checking the activities of small and medium level players who are awarded tenders due to the cost advantage. However, such players are unable to deliver on time and compromise on quality as they depend on smaller manufacturers to fulfil the order.”

SKNL is supplier to ONGC, Air India, BPCL and Indian Army. “State-owned mills will benefit since now they will have better quality textiles, but they should be more specific while floating tenders,” says RK Dalmiya, president of the Mumbai-based Century Textiles. “Often tenders are not clear about particular needs which confuse participants. This will make the process more transparent as the tender also insists on prior experience and ISO certifications,” he added.

Raghunath MB, a director with Mafatlal Fabrics says the step will help both textile mills and the government. “As all processes are done in a single location, it ensures consistent quality which is not possible otherwise. Also, such a large order scale for organised players has come at the right time.”

The Mafatlal group supplies cloth to state-owned firms such as Hindustan Aeronautics, ONGC, BPCL and Airports Authority of India.

Tuesday, November 3, 2009

No Leave Travel Allowance For Employees Using Car For Transportation

Government has disclosed that it will not be sanctioning the Leave Travel Allowance for employees using cars, personal or taxi for transportation purposes. But there is an exemption for disabled employees or if any of the family members is disabled, who is the dependent of the employee.

The central government employees can now avail LTA only by using Indian Railways or Air India and state transport corporation buses.

According to the order from Department of Personnel, LTA will be sanctioned only for those journeys made in vehicles "operated by the government or any corporation in the public sector run by the Central government, state government or a local body".

Even though the disabled have been exempted, medical certificate from the an experienced authority should be produced, along with the proof that the concerned person cannot use the mode specified by the government for travelling and the same can be only covered in car.

Besides, such claim should not be more than the journey performed by the entitled class by rail or air

Friday, October 30, 2009

AI to pay salaries by Oct 31 after pilots warn of stir

With an impending stir threat by its pilots, Air India is likely to pay the September salaries of its employees in two days and incentives and allowances by November 10, airline sources said today. Talks were held with banks and financial institutions for working capital loans to arrange the amount for payment of salaries, productivity-linked incentives (PLIs) and flying allowances to the employees including pilots, they said. Sources also said the management of the cash-strapped airline was making all efforts to pay the dues of the employees very soon, including the salaries by October 31 and PLI and allowances by November 10. Talks with the banks were initiated after negotiations between executive pilots and their other colleagues in Mumbai over the past few days.

Monday, October 26, 2009

Questions & Answers: Related to the New Pension Scheme (NPS)

1. 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.
2. 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.
3. 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.
4. 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.
5. 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
6. Who will calculate the interest PAO or Central Pension Accounting office(CPAO)?
The PAO should calculate the interest.
7. 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.
8. 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-Practising Allowance shall countas ‘pay’ for all service benefits. Therefore, this will be taken into account for working out the contribution towards the New Pension Scheme.
9. 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.
10.Procedure for allotment of Permanent Retirement Account Number (PRAN):-
Immediately on joining Govt. service, the Govt. servant will be required to provide particulars such as his name, designation, scale of pay, date of birth, nominee(s) for the fund, relationship of the nominee etc. in the prescribed for (Annexure I).
The DDO concerned will be responsible for obtaining this information from all Govt. servants covered under the New Pension Scheme.
The PAO concerned will allot a unique 16 digit Permanent Retirement Account Number (PRAN). The first four digits of this number will indicate the calendar year of joining Govt. service, the next digit indicates whether it is a Civil or a Non-civil Ministry, the next six digits would represent the PAO Code (which is used for the purpose of compiling monthly accounts), the last five digits will be the running serial number of the individual govt.
servant which will be allotted by the PAO concerned. PAO will allot the serial number pertaining to individual Govt. servants from 00001 running from January to December of a calendar year. A register will be maintained for allotment of PRAN to ensure that PRAN are allotted in sequence and there is no duplication of PRAN.
For the flow of information from Non Civil Ministries/Departments to the CPAO, each of them will nominate a Nodal Office, which will be responsible for forwarding the consolidated information/particulars in respect of their Ministry/Departments and for correspondence with CPAO.
The particulars of the Govt. servants received from the various DDOs will be consolidated by the Nodal Office identified in each Ministry/Department/Office and sent to the CPAO. The CPAO will keep this information in their computer database.
The accounting heads involved in the operation of the new pension scheme will be intimated in due course.
The first salary bill of the new entrant will be passed after ensuring that the Annexure-I is received.
Tier1 amount equal to 10% of the (basic+da+npa) will be deducted from the payBill and a matching contribution will also be credited to the individuals credit.
Separate paybill should be prepared for the individuals who are covered under this scheme. The schedule information is to be captured in the Annexure-II, which should be carefully checked. The data file of annexure-I and annexure-II will be created and forwarded to CPAO on monthly basis. CPAO on receipt of this information will update its database and generate exception reports for missing credits, mismatches etc.
No withdrawal of any amount will be allowed during the interim arrangements.
At the end of each financial year the CPAO will prepare annual accounts statements for each employee showing opening balance, details of monthly deduction and Govt.’s matching contribution, interest earned, if any, and the closing balance. CPAO will send these statements to Nodal Office concerned.
After the close of each financial year, CPAO will have to report the details of the balances (PAO-wise) to each PAO for the purpose of reconciliation. The PAO will reconcile the figures of contributions with figures as per the books of CPAO.

Tuesday, August 25, 2009

Government to release pay commission arrears

The government has decided to pay the second instalment of the Sixth Pay Commission arrears.

"As in the case of the first instalment of the arrears, government servants would be permitted to deposit their arrears in their GPF (general provident fund) accounts," an internal finance ministry memorandum said.

The first instalment of 40 percent was paid last fiscal.

The finance ministry has not given any deadline for the payment of the second tranche, but sources said it would probably be paid around Diwali.

According to official estimates, the arrears will cost the government Rs.29,373 crore.

There are about 3.8 million central government pensioners (excluding armed forces) as estimated by the All India Central Government Pensioners Association (AICGPA).

The revised pension scheme was implemented with retrospective effect from Jan 1, 2006.

Sunday, August 23, 2009

Govt to review IIT faculty pay

With faculty from across the Indian Institutes of Technology (IIT) calling off lectures and threatening dire consequences like mass resignation, the Centre has sat up and promised to revisit the pay structure it formulated for IIT teachers.
On Friday, HRD minister Kapil Sibal said his officials would take a look at the salary offered to faculty and rework the pay structure if need be.
Sibal said the problem was that though at the entry level, IIT teachers get more salary, selection for the next promotion, unlike the UGC system where it is automatic, results in disparity. “We will look into it,” he said.
On their part, IIT professors continued their protest.
At IITMadras, faculty stayed away from classes on Friday and IIT-Bombay teachers refused to conduct lectures on Monday. The Union government recently announced pay scales for faculty at centrally-funded technical institutes but declared a salary structure lower than what was recommended by the Govardhan Mehta Committee, set up to decide pay scales for staff at central institutes.
“The pay scales are almost as much as the UGC scales. For us, equal measure is laid on our academic duties and research work. The government has not taken the hard work we put in into consideration,” said Soumyo Mukherji, secretary of the faculty forum at IIT-B.
For instance, whether a professor is employed in a state university or at the IITs, he/she is place in pay band 4, which ranges from Rs 37,400 to Rs 67,000, the only difference being that of the academic grade pay (AGP), on lines with grade pay for government employees.
While AGP for state university professors recommended by the UGC stands at Rs 10,000, the same is Rs 10,500 for those in IIT. “We are competing against American universities to attract talent. With such pay scales, we cannot expect any top rate teacher to join the IITs,” said S Bhat, president of the faculty forum.
The IITs had demanded that faculty members be given an incentive for research as well as for upgrading their professional skills, but the final announcement omitted all these recommendations.

Friday, August 21, 2009

ORDNANCE MCM WILL GET RS.4200 GRADE PAY AT PAR WITH RAILWAYS MCM

The problem which started with 5th CPC has been settled with the emergence of 6th CPC. Ordnance-MCM who had been availing payment equivalent to Railway-MCM till 4th CPC, after the establishment of 5th CPC ceased to receive so. After 5th CPC, Ordnance-MCM received pay range as Rs.4500-7000 , whereas Railways received pay range of Rs.5000-8000.

The demand which started at that time has been rendered to action by the government at last.

A Fast Track Committee was put into formation to solve the problem that arose for Railways MCM. Ordnance and Postal departments too joined the committee. The committee disscussed various issues at various time period.

A condition was put forth that for the implementation of Rs.5000-8000 to Ordnance-MCM they have to accept the proposal of dividing Highly Skilled Grade into two segments. Having accepted the proposal the Ordnance MCM was granted their plea by the Government.

As a goodwill of this, 50 percent of the Highly Skilled Grade (Rs.2400 Grade Pay) will rise to Rs.2800 Grade Pay.

Along with this, all the MCM will receive Rs.4200 Grade Pay. This has been regarded as a historical achievement.

Along with the change in grade pay for promotion, 3 percent hike in increment has now been known. Accordingly, 50 percent of Highly Skilled Grade will receive Rs.400 plus one increment.

For MCM as a whole they would receive Rs.1400 plus one increment. Also there is chance for increase in basic pay.

Along side, to having changed to Rs.4200 Grade Pay there are privileges of availing II nd tier A/C and Airway travel resulting in abundance of joy as a whole, and they are not failing to thank all the Unions and Federations for their great effort.

It is not exaggeration to say that the Ordnance employees are in sheer joy and excitement to having achieved for what they have been toiling for over ten years.

Sunday, August 16, 2009

Railways to pay 75 days Productivity-linked bonus

Railways to pay 75 days Productivity-linked bonus
The Railways have decided to pay its employees 75 days productivity-linked bonus for this year, according to railway ministry sources.
The bonus has been cleared by Railway minister Mamata Banerjee, the sources told newspersons in Kolkata today. The Railways had paid 73 days productivity-linked bonus last year.

Friday, August 14, 2009

Big tax cut coming your way

Finance minister Pranab Mukherjee unveiled a roadmap for reforms in direct taxes that promises to drastically cut the tax liability of most individuals by considerably raising tax slabs. The new direct taxes code, proposed to be implemented from April 2011, aims to moderate effective tax rates in the hope that this will encourage more people to pay up.

Proposed Income Tax Rates for Individuals

Up to Rs.1,60,000

Nil

From Rs.1,61,000 to Rs.10,00,000

10 Per cent (Income exceeds Rs.1,60,000)

From Rs.10,01,000 to 25,00,000

20 Per cent (Rs.84,000 + Income exceeds Rs.10,00,000)

Above Rs.25,00,000

30 Per cent (Rs.3,84,000 + Income exceeds Rs.25,00,000)

Proposed Income Tax Rates for Women-below 65 years

Up to Rs.1,90,000

Nil

From Rs.1,91,000 to Rs.10,00,000

10 Per cent (Income exceeds Rs.1,90,000)

From Rs.10,01,000 to 25,00,000

20 Per cent (Rs.81,000 + Income exceeds Rs.10,00,000)

Above Rs.25,00,000

30 Per cent (Rs.3,81,000 + Income exceeds Rs.25,00,000)

Proposed Income Tax Rates for Senior Citizens

Up to Rs.2,40,000

Nil

From Rs.2,41,000 to Rs.10,00,000

10 Per cent (Income exceeds Rs.2,40,000)

From Rs.10,01,000 to 25,00,000

20 Per cent (Rs.76,000 + Income exceeds Rs.10,00,000)

Above Rs.25,00,000

30 Per cent (Rs.3,76,000 + Income exceeds Rs.25,00,000)

Thursday, August 13, 2009

Govt. considering raising retirement age to 62

The government is actively considering raising the retirement age of all central government employees, including those in the armed forces, from the present 60 to 62 years.

Finance Minister Pranab Mukherjee has submitted a report to the prime minister outlining all the pros and cons of the move, including the “cascading effects” on government employment and the huge savings, at least for two years, on account of retirement payouts.

If the Department of Personnel and Training (DoPT) and the prime minister find the arguments forwarded by the finance ministry credible and convincing, the announcement may come as early as August 15, as part of Manmohan Singh’s Independence Day speech.

The Cabinet may discuss the matter tomorrow.

Although the finance ministry is making a strong case for the move, the DoPT is taking time to make up its mind, possibly out of consideration for the 1979 batch of the Indian Administrative Service (IAS) and other central services. Officers of the 1979 batch have been empanelled for promotion to the ranks of additional secretary and secretary but can take up their posts only after the present incumbents retire. If an announcement extending the retirement age comes before November, a batch of empanelled joint secretaries stand to lose their future ranks. In turn, this will also affect those who joined the central administrative services in 1980. The DoPT also says that the age profile of Indian bureaucrats, instead of becoming younger, will become older, out of tune with the rest of the world.

For the finance ministry, the gains from the move are clear. The pension payout of all armed forces personnel of the rank of Lieutenant General and equivalent who were to retire this year will be postponed by 24 months; the government will also defer by two years the liability of paying pension to more than 100,000 employees. While salaries will have to continue to be paid, this will be cheaper than paying upfront benefits like gratuity.

This is all the more important given the government’s other financial liabilities on account of stimulus spending and one drought, though the effects of the latter will kick in only in the next fiscal year. The fiscal deficit is 6.8 per cent of gross domestic product this year and a two-year lag in paying pensions will help in bridging this.

In 1998, the National Democratic Alliance government had raised the retirement age from 58 to 60, a move that benefitted 90,000 government servants and 50,000 defence personnel. At the time, the logic was: the retirement of 140,000 employees would have cost Rs 5,200 crore whereas paying salaries cost only Rs 1,493 crore.

That move came in the wake of the 5th Pay Commission report which had just been implemented by the then United Front government. In 2003, the government also right-sized the central government employee workforce by 30 per cent.

Every time the Centre announces an increase or concession on pay packages, both public-sector units and state governments follow suit. If the prime minister does decide to raise the retirement age, state governments and Public Sector Units (PSUs) will mirror this action. This has its own implications for many cash-strapped states like Punjab.

If the decision is finally taken, it will only be the third time the government will have raised the retirement age. Jawaharlal Nehru was the first prime minister to have increased the age of superannuation from 55 to 58 following the 1962 war with China. The Atal Bihari Vajpayee government did it a second time in 1998.

Monday, August 10, 2009

Govt can terminate temporary staff without assigning reason: CAT

The central government can terminate the services of its temporary employee without assigning any reason, the Central Administrative Tribunal (CAT) said.
The tribunal passed the order on a petition filed by an ex-technician Avinash challenging his termination by the Safdarjung Hospital after his services were not found satisfactory during the probation period.
"Offer of appointment specifically provide that the services of an applicant can be terminated at any time without assigning any reason. There is no mandatory provision to assign any reason thereof," the CAT, comprising members Dharam Paul Sharma and N D Dayal, said.
Rejecting the contentions of Avinash, the Tribunal said it is a case of "termination simpliciter in legitimate exercise of power under the Central Civil Services (Temporary Services) rules."
Avinash cited a number of cases which had been decided on similar lines in the apex court and said his termination was an example of violation of "principles of natural justice."

Staff Corner discussion forum is back.

Our discussion forum is back.
We had been receiving lot of requests to enable the discussion board and lot of queries on why we have closed the board. Well, we have not closed the forum, we have been clearing the irrelevant posts from the board.  Those who had visited recently must have seen that the board was full of spam. We are trying to clean all of them. We have also taken stricter measures to fight spam. From now, the registrations will be manually approved by the moderator. Also the initial postings by a members will have to be manually approved by the administrator. This may take some time for your postings to get displayed for others. We regret any inconvenience caused due to this measures, but this is required to keep the board clean and useful.

We request you to use this forum to discuss all your issues, make announcements, clarify the queries raised by other members etc.

Visit @ http://staffcorner.com/talk/

Sunday, August 9, 2009

Admissibllity / entitlement for traveling by Shatabadl Express

An office memorandum has been issued by Department of Expenditure, Ministry of Finance regarding admissibllity / entitlement for traveling by Shatabadl Express. The OM clarifies that for the purpose of journeys on tour, officers drawing Grade Pay of Rs.7600 and above are entitled to travel by Executive Class in Shatabadi trains and AC First Class In Rajdhani trains.

Saturday, August 8, 2009

Strike ends, banks to resume work from today

The two-day strike by the bank employees ended on Friday with the Indian Bank Association (IBA) reportedly agreeing to the demand of the agitating bank employees for 17.5% hike in their salaries.
Convener of the United Forum of Bank Unions (UFBU) AK Srivastava said that since the IBA has agreed to the demand of the bank employees they would resume work from Saturday. He informed that the agreement was reached at a meeting held between the UFBU and IBA in New Delhi.
Bank officials said they would ensure that customers get the best of the services. But since banks function for half-day only on Saturday, customers may have some problems when banks resume work. Officials said they had no intention to hit the customers but then it was the decision of the IBA to roll back the earlier agreed hike of 17.5% which forced them to go on a two-day strike. But, the issue has now been resolved, they added.
Bank sources said that transactions to the tune of Rs 20,000 crore to Rs 25,000 crore were affected because of the strike in UP alone.
Meanwhile, the Reserve Bank Employees Association here too came out in open support of the bank employees strike. The RBI employees staged a demonstration at the RBI office in Gomtinagar to express their solidarity with the agitating bank employees. The association condemned the Central government's uncalled interference in wage negotiations of banking industry and demanded immediate wage settlement along with pension related issues.

Thursday, August 6, 2009

Revision of pay scales of Faculty and Scientific/Design Staff as per 6th CPC

Revision of pay scales of Faculty and Scientific/Design Staff and other academic staff of Centrally funded technical institutions following pay revision of the Central Government employees on the recommendation of the sixth Pay Commission.
The Union Cabinet today approved the revision of pay scales of Faculty, Design & Scientific Staff and other academic staff of the Centrally funded institutions. The Cabinet also approved giving financial assistance to States for implementing the above revised scales.
This will enable the Institutes to recruit and retain talented and well qualified faculty and to provide them an environment and working conditions that encourage them to enhance their performance and capacity

Wednesday, August 5, 2009

Employee to be heard in case of adverse ACR: CAT

The government has to give an opportunity to its employee to present his case if there is an adverse remark in the Annual Confidential Report(ACR) which could hamper his promotion, the Central Administrative Tribunal(CAT)has said.
The tribunal passed the order on a petition of a senior scientist, J P Sharma, working with Indian Council of Agricultural Research(ICAR),alleging that he was deprived of promotion on the basis of an adverse ACR without giving him an opportunity to challenge the report.
The government contended that overall grading in his ACR for last two years was 'average' but denied him the right to representation on the ground that it was 'not adverse'per se.
But, the tribunal did not agree with the government's view and said the employee has the right to be heard in all cases where his prospect of promotion gets adversely affected due to the 'average' grading as he would get promoted only after getting 'very good' grading.
"It is the effect which the entry is having which determines whether it is an adverse one or not. Any entry below the benchmark which deprives someone of eligibility for promotion must be informed about and be given a right to representation," the Bench comprising chairman V K Bali and N D Dayal said.

LIC staff to go on 2-hour strike on Aug 4 to protest LIC Bill

The LIC employees will observe a nationwide two-hour walk out strike on August 4, 2009 in protest against the introduction of LIC (Amendment) Bill 2009 in the Lok Sabha. The strike call was given by All India Insurance Emoloyees' Association (AIIEA).
The Bill introduced in the Lok Sabha was a step further in implementing the recommendations of the Malhotra Committee which recommended opening up of insurance sector to private capital, General Secretary of the association K Venu Gopal said in a statement here today.
The move is to meet the demands of the foreign capital to further liberalise the insurance sector and the bill is detrimental to the interests of the policyholders and the national economy, he said.

Monday, August 3, 2009

No data on Muslim employees in Central govt jobs: Khurshid

The government today said it does not maintain statistics of Muslim employees in Central government services but it has data for the five minority communities as a whole.

In reply to a written question in the Rajya Sabha, Minister of State (Independent charge) of the ministry of Minority Affairs, Salman Khurshid said, "government does not maintain statistics of employment of Muslims in the Central government services".

Khurshid said the data is not collected minority community wise or service wise by the DOPT but for the five minority communities as a whole.

Giving these statistics, the minister said that while 12,182 minorities were recruited in ministries and departments in 2006-07, this figure stood at 12,195 in 2007-08 and 4,479 in the year 2008-09.

He however, said the guidelines issued by Department of Personnel and Training (DOPT) on January 8, 2007, include instructions for monitoring the progress in recruitment of minorities in all ministries, departments, public sector enterprises, public sector banks and financial institutions.

Tuesday, July 28, 2009

Preparation and maintenance of Annual Performance Assessment Reports : OM

Ministry of Personnel, Public Grievances and Pensions has issued an office memorandum on Preparation and maintenance of Annual Performance Assessment Reports

http://persmin.gov.in/WriteData/CircularNotification/ScanDocument/21011_1_2005-Estt(A)_(Pt-II)-1.pdf

Monday, July 27, 2009

INS Arihant – NDTV Video

India, on Sunday, became only the sixth nation to produce a nuclear-powered submarine. India's own nuclear-powered submarine, INS Arihant, was launched by the Prime Minister.

Saturday, July 25, 2009

Enhancement of Child Adoption Leave from 135 days to 180 days and extension of the facility of Paternity Leave to adoptive fathers

No. 13018/1/2009-Estt.(L)
GOVERNMENT OF INDIA
Ministry of Personnel, Public Grievances & Pensions
(Department of Pension & Pensioners'Welfare)

Lok Nayak Bhawan,New Delhi-110003
dated the 22nd July, 2009

OFFICE MEMORANDUM

Sub: Enhancement of Child Adoption Leave from 135 days to 180 days and extension of the facility of Paternity Leave to adoptive fathers.

The undersigned is directed to refer to this Department's O.M. No.13018/4/2004-Estt.(L) dated 31st March, 2006 regarding grant of Child Adoption Leave for 135 days to female Government servant on adoption of a child upto the age of one year, on the lines of maternity leave admissible to natural mothers. After implementation of the Sixth Central Pay Commission recommendations, the period of maternity leave was enhanced from 135 days to 180 days. Subsequently, this Department has received representations requesting for enhancement of the period of Child Adoption Leave from 135 days to 180 days in line with the maternity leave. The matter has been examined in this Department and it has been decided to enhance the period of Child Adoption Leave from 135 days to 180 days.

2. A female Government servant in whose case the period of 135 days of Child Adoption Leave has not expired on the date of issue of these orders shall also be eligible for Child Adoption Leave of 180 days.

3. It has also been decided that a male Government servant (including an apprentice) with less than two surviving children, on valid adoption of a child below the age of one year, may be sanctioned Paternity Leave for a period of 15 days within a period of six months from the date of valid adoption.

4. These orders shall take effect from the date of issue.

5. In so far as persons serving in the Indian Audit and Accounts Department are conceded, these orders issue in consultation with the Comptroller and Auditor General of India.

Friday, July 24, 2009

LIFE COVER OF Rs 1 CRORE FOR JUST Rs. 15000

There is a quiet rate war raging among insurers that has brought down the cost of Rs 1 crore cover to Rs 15,000 from over Rs 50,000 per annum a decade ago. A big chunk of the reduction has happened in recent months. Without much publicity life insurance companies have drastically reduced premium rates on high-value term insurance policies of Rs 1cr and above.
As against a premium of over Rs 50,000 for a Rs 1 cr cover for a 30-year old woman charged by Life Insurance Corporation a decade ago, private life insurer Birla Sun Life are offering a similar cover for an annual premium of around Rs 15,000.
Other private life insurers, such as ICICI Prudential life and HDFC Standard Life, have also reduced their term insurance rates. The term rates for LIC policies, too, have come down drastically as compared to 10 years ago.
Today, one can avail of a LIC term policy with a sum assured of Rs 1cr for an annual premium of nearly Rs 25,700-32 ,000. But unlike LIC whose rates are available to most buyers, Birla Sun Life has stringent underwriting norms and the rates are available to only those in the best of health.
Term insurance is a cover where the only benefit is a payment if the insured dies during the term of the policy is the most basic form of life insurance. The cover is now almost a commodity with web-based aggregators offering quotes from all insurance for term protection.
ICICI Prudential Life appointed actuary Avijit Chatterjee said the decline can be attributed to better mortality experience in the recent past.
This is another factor, industry-watchers feel, that has worked in favour of the rich. Since such policyholders have access to quality healthcare and lead a relatively superior lifestyle, their life expectancy is high, and this translates into lower rates.
“Term insurance premium rates have started seeing a downward trend since the last three years. Over the last couple of years, they have dropped by nearly 30%," said Rahul Aggarwal, CEO, Optima Insurance Brokers. One of the reasons for this, he explained, is the increasing demand, mainly from the high net worth segment, which has inflated the volumes. "Increasing volumes are driving the rates down and lower rates, in turn, are stimulating the demand for term insurance," he added
"Over the last six months, some insurers have reduced the term insurance rates. The price reduction is limited mainly to high value policies targeted at the HNI segment, that is, people earning over Rs 1 lakh per month, who seek policies entailing a sum assured of more than Rs 25 lakh," said a senior executive with a private life insurance company.
HDFC Standard Life Insurance, for instance, has reduced the premium rates of its term plan by around 25% across different premium and age bands.

Monday, July 13, 2009

‘One rank, one pension’ for officers, too

Defence Minister A K Antony today clarified in the Lok Sabha that "one rank, one pension" recommendation of the Cabinet Secretary-led panel had been accepted by the government for jawans as well as officers.

The government has accepted recommendations of the panel on "one rank, one pension" and other related matters concerning the armed forces, the Lok Sabha was informed today.

The decision is now nearer to the goal of “one rank, one pension” demand of nearly 1.5 million personnel, Antony said during question hour.

The total financial implications on account of benefits to the personnel would be Rs 2,144 crore, the minister said.

The committee has recommended inclusion of Classification Allowance for the Personnel Below Officer Rank (PBOR) from January 1, 2006, and removal of linkage of full pensions with 33 years from the same date, he said.

The committee also recommended revision of pension of Lt Generals after carrying out a separate pay scale for them, bringing parity between pension pre and post October 10, 1997, for PBOR pensioners and further improving PBOR pensions based on award of Group of Ministers in 2006.

With regard to the separate pay commission, the minister said it had been agreed, and as and when necessary it would be set up in the future.

Antony said the government had also accepted the committee's recommendations regarding raising the pension amount for those disabled or injured in war.

"After considering all aspects of the issue, the committee made several recommendations to substantially improve pensionary benefits of Personnel Below Officer Rank and Commissioned Officers, which have been accepted by the government," the minister added.

Payment of Dearness Relief to re-employed pensioners and employed family pensioners. OM

F.No.38/88/2008-P&PW(G)
GOVERNMENT OF INDIA
Ministry of Personnel, Public Grievances & Pensions
(Department of Pension & Pensioners' Welfare)

3rd Floor, Lok Nayak Bhavan
Khan Market,New Delhi, 
dated: 9th July, 2009
OFFICE MEMORANDUM

Sub: Payment of Dearness Relief to re-employed pensioners and employed family pensioners.



The undersigned is directed to say that the grant of DR to re-employed pensioners and employed family pensionersis presently regulated in accordance with the instructions contained in this Department's OM No.45/73/97 P&PW(G) dated 2.7.1999. Consequent upon the revision in ignorable amount of pension from Rs.1500/- to Rs.4000/- in terms of DOPT OM no. 3/13/2008-Esst,(PAY-I) dated 11.11.2008, the amount of Rs.1500/- appeared in OM dated 2.7.1999 is revised as Rs.4000/-. The other conditions for grant of DR to re-employed pensioners and employed family pensioners remain the same: :

2. In so far as persons serving in the Indian Audit Accounts Department are concerned, these orders are being issued after consultation with the CAG of India.

3. This issues with the concurrence of Misnistry of Finance, Department of Expenditure vide their UO No. 132/EV/2009-Esst.(Pay II) dated 21.4.2009 and DOP&T vide their UO No.3/16/2009-Esst.(Pay II) dated 23.6.2009.

Wednesday, July 8, 2009

5% Dearness Allowance is expected for Central Govt. Employees w.e.f. 1st July 2009

Central Govt. employees and pensioners may expect a hefty rise of 5% in D.A. with effect from today, the 1st July 2009. According to the statistics of Labour Bureau, Govt. of India, All India Consumer Price Index No. has climbed up to 151 points in May 2009 in comparison to 147 in December 2008. [See the chart below.] 


With this expected rise, the total Dearness Allowance will be 27% w.e.f. 01.07.2009. It may be mentioned that the rise in Dearness Allowance effects Transport Allowance also as per the Sixth Pay Commission for the Central Govt. Employees. 


Calculation is based on All India Consumer Price Index Number for Industrial Worker based on [Base Year 2001 = 100] 



Month

Year

Base Year 
2001=100

Total

Average

App. DA

DA

May

2008

139

1613

--

--

--

June

2008

140

1623

135.25

16.84

16

July

2008

143

1634

--

--

--

August

2008

143

1634

--

--

--

Sep

2008

146

1659

--

--

--

Oct

2008

148

1673

--

--

--

Nov

2008

148

1687

--

--

--

Dec

2008

147

1700

141.67

22.38

22

Jan

2009

148

1714

--

--

--

Feb

2009

149

1728

--

--

--

Mar

2009

148

1739

--

--

--

Apr

2009

150

1751

--

--

--

May

2009

151

1763

--

--

--

June

2009

--

--

--

--

27

Monday, June 15, 2009

Govt proposes New Health Insurance Scheme in lieu of CGHS

With an effort to introduce Central Government Employees & Pensioners Health InsuranceScheme (CGEPHIS) recommended by Sixth Central Pay Commission, Ministry of Health & FamilyWelfare, invites Expressions of Interest from Insurers and Health Insurance consultants for the proposed scheme.

As per the document known as Expression of Interest published the CGHS website in this regard,Government of India proposes to provide inpatient health care services to the following personnel of the Central Government .

Beneficiaries

  • All personnel of the Central Government including All India Service officers, serving, newly recruited, retired and retiring and others who are covered under the existing CGHS(Central Government Health Services)  and under CS (MA) [Central Services (Medical Attendance) Rules] Rules shall be offered Health Insurance Scheme  on voluntary or on compulsorily basis . This could be:
  • CGEPHIS shall be compulsory to new Central Government Employees who would be joining service after the introduction of the health Insurance Scheme.
  • CGEPHIS shall be compulsory to new Central Government retirees who would be retiring from the service after the introduction of the Insurance Scheme.
  • CGEPHIS would be available on voluntary basis for the existing Central Government Employees and pensioners serving in CGHS area/ covered by CGHS. In this case such serving Central Government Employees and Central Government existing Pensioners shall have to opt out of CGHS scheme. They will also have the option of choosing both CGHS and Insurance policy. In such case the total premium has to be born by the beneficiary.
  • CGEPHIS would also be available on voluntary basis for the existing serving employees and pensioners in non-CGHS areas not covered by CGHS. In this case such serving Central Government Employees and existing Pensioners (who have opted for CGHS facility) shall have to opt out of CGHS scheme. They will also have the option of choosing both CGHS and Insurance policy. In such case the total premium has to be born by the beneficiary.

The proposals relating to sum assured/policy limits, family size, age limit, Insurance coverage are as follows

Sums Insured / Policy Limits

The scheme shall provide coverage for meeting all expenses relating to hospitalization of beneficiary members up to Rs. 500,000/- per family per year subject to stated limits on cashless basis through smart cards. The benefit shall be available to each and every member of the family on floater basis i.e. the total reimbursement of Rs. 5 .00 lack can be availed by one individual or all members of the family. The document also says the Government has proposed to restrict the benefit in respect of Domiciliary hospitalization and Maternity to Rs.50,000/- for each admission

Family Size / Age Limit

  • Serving Employees: Self, spouse, two dependent children and dependent parents (New born shall be considered insured from day one).
  • Retired Employees: Self, spouse and one dependent child.
  • Additional dependent family member can be covered under the scheme by paying the fixed percentage of premium per additional dependent family member. The premium shall be borne by the beneficiary.
  • All beneficiaries shall be insured till survival.
  • The definition of dependent shall be as per guidelines issued by Central Government.

Insurance Coverage

In addition to the coverage afforded under a standard medical insurance policy, the following shall also be covered under CGEPHIS:

  • Pre-existing diseases
  • Maternity benefit
  • Day-one Coverage for all diseases
  • New-born babies
  • Pre and Post hospitalization cover of 30 days and 60 days respectively
  • Domiciliary Hospitalization

Wednesday, June 3, 2009

Standard deduction for salaried employees may return

Ahead of the annual budget, here’s some cheer for salaried employees and pensioners. The finance ministry is considering bringing back standard deduction of up to Rs 20,000 in individual taxable incomes.
According to revenue department officials, the government may be willing to take a small hit in return for a spike in spending that it hopes will result from a bigger disposable income with the salaried classes.
Till the budget for 2005-06, a standard deduction of Rs 30,000 or 40 per cent of income, whichever was lower, was allowed to salaried employees with an annual income between Rs 75,000 and Rs 5 lakh. For those earning more, the standard deduction was fixed at Rs 20,000.
The standard deduction was meant to compensate salaried people for the fact that self-employed small business persons or entrepreneurs paid tax only on their net income after deducting business expenditure.
Industry has been demanding the re-introduction of standard deduction so that individual taxpayers are able to spend more and stimulate domestic demand. As Indira Gandhi’s finance minister, Pranab Mukherjee had in fact, raised it from Rs 5,000 to Rs 6,000 in the budget for 1983-84.
“There are two ways of looking at reducing personal tax. One option before the government is to do away with surcharges. The other option would be to give relief to individual earnings up to a particular level. In other words, keeping in mind fiscal deficit constraints, the benefit could be extended to only lower income earners.
This would help reduce administrative burden of the department and focus on the big fish,” said Sudhir Kapadia, Partner, Taxation, Ernst & Young. P Chidambaram had as finance minister removed the standard deduction after overhauling tax slabs and raising the exemption limit to Rs 1 lakh. He had introduced three slabs of 10 per cent, 20 per cent and 30 per cent for individuals in the Rs 1 lakh to Rs 1.5 lakh income bracket, Rs 1.5 lakh to Rs 2.5 lakh and over Rs 2.5 lakh respectively.
Source: The Indian Express
“Standard deduction should be restored,” the Institute of Chartered Accountants of India (ICAI) said in its pre-Budget memorandum to the government.