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Tax treatment under Unified Pension Scheme: CBDT

Tax treatment under Unified Pension Scheme: CBDT

No. 178/4/2025-ITA-1
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
(ITA-I Division)

New Delhi, the 2nd July 2025

OFFICE MEMORANDUM

Sub: Tax treatment under Unified Pension Scheme – reg.

Kindly refer to your OM F.No. FX-11/16/2025-PR dated 17.06.2025 received in this office by email from TPL Division. CBDT vide OM E.No. 370149/84/2025-TPL dated 25.06.2025.

2. In this regard, it is stated that your Department Gazette issued notification dated 24th January, 2025 regarding introduction of Unified Pension Scheme (UPS) as an option under National Pension System (NPS). Further. it has been stated in your OM dated 17.06.2025 that UPS has been introduced as an option under NPS. vide notification dated 24.01.2025. for such central government employees covered under NPS through an amendment to the said notification dated 22.12.2003. The UPS is to the managed within the existing institutional NPS architecture regulated by PFRDA.

3. Further, vide your OM dated 17.06.2025 it was requested to issue concurrence on the following: :

“The provisions of Section 80CCD (1), 80CCD (1B), 80CCD (2). 8OCCD (3). 8NCCD (4), 10(12A) and 10(128) of the Income Tax Act, 1961, would he applicable mutatis-mutandis on Unified Pension Scheme (UPS) as it is an option under National Pension System (NPS)”

4, With reference to the above it is concurred that the provisions of Section 80CCD (1), 80CCD (1B). 80CCD(2), 80CCD(3), 80CCD(4). 10(12A) and 10(12B) of the Income Tax Act. 1961 would be applicable mutatis-mutandis to Unified Pension Scheme (UPS) to the extent of limits as provided in the aforementioned Sections. Any diversion regarding payout/contributions shall require legislative amendment.

5. This issues with the approval of Member (IT). CBDT.

(Hardev Singh)
DCIT(OSD) (ITA-1)

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IDA from July 2025 for 2017 Pay Scales CPSE Employees – DPE ORDER

IDA from July 2025 for 2017 Pay Scales CPSE Employees – DPE ORDER

No. W-02/0039/2017-DPE (WC)/FTS-8022
Government of India
Ministry of Finance
Department of Public Enterprises

Public Enterprises Bhawan
Block 14, CGO Complex,
Lodi Road, New Delhi-110003
Dated: 09th July, 2025

OFFICE MEMORANDUM

Subject:- Board level and below Board level posts including non-unionised supervisors in Central Public Sector Enterprises (CPSEs)- Revision of scales of pay w.e.f. 01.01.2017 – Payment of IDA at revised rates.

The undersigned is directed to refer to para 7 and Annexure-III (B) of DPE’s OM dated 03.08.2017 wherein the rates of DA payable to the Board level and below Board level executives and non-unionized supervisors of CPSEs have been indicated, and to state that DA payable to the executives and non-unionized supervisors of CPSESs following 2017 pay scales has been revised to 49% w.e.f. 01.07.2025.

2 The above rate of DA i.e. 49% would be applicable in the case of IDA employees who have been allowed revised pay scales (2017) as per DPE O.Ms. dated 03.08.2017, 04.08.2017 & 07.09.2017.

Also read: IDA from July 2025 for 2007 Pay Scales CPSE Employees – DPE ORDER

3. All administrative Ministries/Departments of the Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.

4. This issues with the approval of the Secretary, Department of Public Enterprises.

(Dr P K Sinha)
Deputy Secretary to the Government of India

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IDA from July 2025 for 2007 Pay Scales CPSE Employees – DPE ORDER

IDA from July 2025 for 2007 Pay Scales CPSE Employees – DPE ORDER

No. W-02/0002/2014-DPE(WC)/FTS-2037
Government of India
Ministry of Finance
Department of Public Enterprises

Public Enterprises Bhawan
Block 14, CGO Complex,
Lodi Road, New Delhi-110003
Dated: 09th July, 2025

OFFICE MEMORANDUM

Subject:- Board level and below Board level posts including non-unionised supervisors in Central Public Sector Enterprises (CPSEs)- Revision of scales of pay w.e.f. 01.01.2007 – Payment of IDA at revised rates.

The undersigned is directed to refer to the para 6 and Annexure-II (B) of DPE’s OM dated 26.11.2008 wherein the rates of DA payable to the Board level and below Board level executives and non-unionized supervisors of CPSEs have been indicated and to state that the rate of DA payable to the executives and non-unionized supervisors of CPSEs following 2007 pay scales has been revised to 227.1% w.e.f. 01.07.2025.

2. The above rate of DA i.e. 227.1% would be applicable in the case of IDA employees who have been allowed revised pay scales (2007) as per DPE OMs dated 26.11.2008, 09.02.2009 & 02.04.2009.

Also read: IDA from July 2025 for 1997 Pay Scales CPSE Employees – DPE ORDER

3. All administrative Ministries/Departments of the Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.

This issues with the approval of the Secretary, Department of Public Enterprises.

(Dr P K Sinha)
Deputy Secretary to the Government of India

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IDA from July 2025 for 1997 Pay Scales CPSE Employees – DPE ORDER

IDA from July 2025 for 1997 Pay Scales CPSE Employees – DPE ORDER

No. W-02/0004/2014-DPE(WC)/FTS-424
Government of India
Ministry of Finance
Department of Public Enterprises

Public Enterprises Bhawan
Block 14, CGO Complex,
Lodhi Road, New Delhi-110003
Dated: the 09th July, 2025

OFFICE MEMORANDUM

Subject:- Board level and below Board level posts including Non-unionised supervisors in Central Public Sector Enterprises (CPSEs)- Revision of scales of pay w.e.f. 01.01.1997 – Payment of IDA at revised rates.

The undersigned is directed to refer to the new DA Scheme at Annexure-III of DPE’s OM dated 25.06.1999 wherein the rates of DA payable to the Board level and below Board level executives and non-unionized supervisors of CPSEs have been indicated, and to state that the rate of DA for CPSEs following 1997 pay scales is revised to 452.3% from 01.07.2025

Also Read: IDA from July 2025 for 1987 and 1992 basis Pay Scales CPSE Employees – DPE ORDER

2. The above rates of DA i.e. 452.3% would be applicable in the case of IDA employees who have been allowed revised pay scales (1997) as per DPE O.M. dated 25.06.1999.

3. All administrative Ministries/Departments of the Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.

4. This issues with the approval of the Secretary, Department of Public Enterprises.

(Dr. P.K. Sinha)
Deputy Secretary to the Government of India

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IDA from July 2025 for 1987 and 1992 basis Pay Scales CPSE Employees – DPE ORDER

IDA from July 2025 for 1987 and 1992 basis Pay Scales CPSE Employees – DPE ORDER

No.W-02/0003/2014-DPE(WC)/FTS-2038
Government of India
Ministry of Finance
Department of Public Enterprises

Public Enterprises Bhawan
Block 14, CGO Complex,
Lodi Road, New Delhi-1 10003
Dated: the 09th July, 2025

OFFICE MEMORANDUM

Subject:- Payment of DA to Board level/below Board level executives and non-unionized supervisors following IDA scales of pay in Central Public Sector Enterprises (CPSEs) on 1987 and 1992 basis

This Department vide its O.M. No. 2(50)/86-DPE(WC) dated 19.07.1995 indicated the rates of DA payable to the executives holding Board level post (Annexure-II). In its subsequent O.M. No. 2(50)/86-DPE(WC) dated 19.07.1995, this Department indicated the rates of DA payable to the below Board level executives and non-unionized supervisors (Annexure-III). In accordance with the DA scheme spelt out therein, the instalments of DA become payable from 1st January, 1st April, 1st July and 1st October, every year based on the price increase above quarterly Index average of 1099 (1960=100).

IDA Calculator

2. In continuation of this Department’s O.M. of even No. dated 28.1.2025, the rates of DA payable to the executives of CPSEs holding Board level post, below Board level post and Non-Unionized Supervisors of CPSEs following IDA pattern of 1992 pay scales are modified as follows:-

Date from which payable: 01.07.2025

Average AICPI (1960=100) for the quarter March, 2025 to May, 2025 is 9433. The increase over the link point in percentage [(9433-1099)/ 1099*100] is 758.3%. DA Rates for various Pay Ranges w.e.f. 01.07.2025:

Basic Pay per MonthDA Rates
Upto Rs.3500758.3% of pay subject to minimum of Rs.16668/-
Above Rs.3500 and Upto Rs.6500568.7% of pay subject to minimum of Rs.26541/-
Above Rs.6500 and Upto Rs.9500455.0% of pay subject to minimum of Rs.36966/-
Above Rs.9500379.1% of pay subject to minimum of Rs.43225/-

3. The payment on account of dearness allowance involving fractions of 50 paise and above may be rounded off to the next higher rupee and the fractions of less than 50 paise may be ignored.

4 The quantum of IDA payable from 01.07.2025 at the old system of neutralization @ Rs.2.00 per point shift for increase of (19) points, may be Rs.38/- and at Average AICPI 9433, DA payable may be Rs. 17456 to the executives holding Board level post, below Board level post and non-unionized supervisors following IDA pattern in the CPSEs of 1987 pay scales.

5. All administrative Ministries/Departments of Government of India are requested to bring the foregoing to the notice of the CPSEs under their administrative control for necessary action at their end.

6. This issues with the approval of the Secretary, Department of Public Enterprises.

Sd/-
(Dr. P.K. Sinha)
Deputy Secretary to the Government of India

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8th Pay Commission: RSCWS writes to PM for immediate constitution

8th Pay Commission: RSCWS writes to PM for immediate constitution

RAILWAYS SENIOR CITIZENS WELFARE SOCIETY(RSCWS)

No. RSCWS/CHD/PM/2025-12

Dated: 30.06.2025

The Hon’ble Prime Minister of India
Prime Minister’s Office
South Block, Raisina Hill
New Delhi – 110011

Subject: Request for Expediting the Constitution and Working of the 8th Central Pay Commission

Respected Sir,

I am writing this letter to respectfully bring to your kind attention the need to expedite the constitution and subsequent work of the 8th Central Pay Commission, as approved by the Union Cabinet on January 16, 2025, with an expected implementation date of January 1, 2026.

The announcement regarding the 8th Pay Commission in January 2025 brought immense relief and expectation among over 47 lakh central government employees and 65 lakh pensioners across the country. This timely initiative by the Central Government to revise salary structures, allowances, and pensions in line with current economic realities, inflation, and evolving needs, is highly appreciated. However, it has been noted that while the approval for the 8th Pay Commission was made in January 2025, the formal constitution of the commission, including the appointment of its Chairman and members, and the finalization of its Terms of Reference (ToR), appear to be getting delayed. This prolonged silence and lack of concrete progress in formalizing the commission are leading to growing uncertainty and apprehension among the central government employees and pensioners.

The timely functioning of the Pay Commission is crucial for several reasons:

Addressing Economic Realities: With the current 7th Pay Commission’s recommendations ending on December 31, 2025, a swift review and revision of pay structures are essential to address the impact of inflation and the rising cost of living that employees and pensioners have been facing.

Boosting Morale and Productivity: A clear roadmap and timely implementation of the new pay scales will significantly boost the morale and motivation of the central government workforce, ultimately enhancing their productivity and commitment to public service.

Ensuring Financial Security: For retired personnel, a timely revision of pensions is paramount for their financial security and to ensure a dignified life in their golden old years. Concerns are being raised, particularly regarding the benefit of pay revision to pensioners.

Preventing Speculation and Rumours: Delays in formalizing the commission and publicizing its ToR often lead to widespread speculation and rumours, which can be detrimental to the overall sentiment. Transparency at every step will foster trust and confidence.

Therefore, we humbly urge your esteemed office to direct the concerned ministries and departments to expedite the following:

Immediate Constitution of the Commission: Promptly announce the Chairman and members of the 8th Central Pay Commission.

Finalization and Publicizing of Terms of Reference (ToR): Clearly define and make public the ToR, clarifying the scope of the commission’s work, including the mandate for reviewing allowances, pension-related benefits, and addressing specific demands such as the commuted pension restoration period.

Setting a Clear Timeline: Establish and communicate a definitive timeline for the commission’s work, including the submission of its recommendations, to ensure that the revised pay and allowances can be implemented from January 1, 2026, as anticipated.

A proactive approach in this matter will reaffirm the government’s commitment to the welfare of its employees and pensioners, ensuring that their genuine concerns are addressed without undue delay.

Profusely thanking you in advance for your kind attention to this important matter.

Yours faithfully,

(T S KALRA)
Chairman/RSCWS
(Railways Senior Citizens Welfare Society)
Chandigarh

Chandigarh,
30.06.2025

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Big Recruitment Push: Railways Gives 9,000 Jobs in Q1; Plans 50,000 for FY 2025-26

Big Recruitment Push: Railways Gives 9,000 Jobs in Q1; Plans 50,000 for FY 2025-26

1.08 Lakh Vacancies Announced Since 2024; 50,000 Appointments in FY 2026-27

To ensure Fair Exams, Railways is using Aadhaar for candidate Authentication and Use of Jammers to eliminate scope of cheating through electronic devices

Railway Recruitment Boards (RRBs) have since November 2024 conducted Computer Based Tests (CBTs) for more than 1.86 crore candidates for seven different notifications comprising 55197 vacancies. This will enable RRBs to offer appointments to more than 50,000 candidates in financial year 2025-26. More than 9000 appointments have already been issued by RRBs in first quarter of this financial year.

Conducting CBTs for RRB exams is a huge exercise requiring lot of planning and co-ordination. RRBs have recently taken the initiative to allot exam centres closer to candidates’ places of residence, with special preference given to female and PwBD candidates. This requires enlisting more exam centers and garnering more human resources to conduct the exam in a fair and transparent manner.

With twelve notifications already issued for 108324 vacancies since 2024 as per the annual calendar published by RRBs, another more than 50,000 appointments will be on offer in next financial year 2026-27.

To increase the fairness of exam, E-KYC based Aadhar authentication has been used to authenticate identity of candidates for the first time in such large-scale exams achieving more than 95% success. Jammers are now being deployed 100 % across all exam centers of RRBs to eliminate scope of cheating through electronic devices.

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Opening of the new Kendriya Vidyalaya Bemetara, Distt. Bemetara, Chhattisgarh

Opening of the new Kendriya Vidyalaya Bemetara, Distt. Bemetara, Chhattisgarh

KENDRIYA VIDYALA YA SANGATHAN
Under Ministry of Education, Govt. of India
Headquarters, New Delhi
Website: wvvw.kvsangathan.nic.in
18, Institutional Area, Shaheed Jeet Singh Marg, New Delh

Comp No.: 28375
F.11072-2/Chhattisgarh/2013/KVS(HQ)/Admn-I\816-36

Dated 07.07.2025

Kendriya Vidyalaya Sangathan vide office-order of even number dated 27.12.2024, conveyed the approval of Government of India, for establishing 85 new Kendriya Vidyalayas under Civil/Defence Sector with the stipulation that the sponsoring authority concerned is required to transfer the identified demarcated land and also to give possession of the temporary accommodation to KVS prior to opening of the new Kendriya Vidyalaya. Kendriya Vidyalaya, Bemetara, Distt. Bemetara, Chhattisgarh in Parliamentary Constituency Durg is one of the 85 new Kendriya Vidyalayas sanctioned in December 2024.

Since the land in the matter of this Kendriya Vidyalaya has been transferred by the Sponsoring Authority in favour of Kendriya Vidyalaya Sangathan and temporary accommodation has been found suitable, sanction is hereby conveyed to start a new Kendriya Vidyalaya under Civil Sector with immediate effect at the following location:-

S.NoName of Kendriya VidyalayaKendriya Vidyalaya will be made functional during Academic Year 2025-26 at:
1Kendriya Vidyalaya Bemetara, Distt. Bemetara, ChhattisgarhKendriya Vidyalaya Bemetara, Govt. Higher Secondary School Building, Bawamohtara, Tehsil- Bemetara, Dist.-Bemetara, Chhattisgarh Pin:- 491335

The above Vidyalaya will start functioning from class I to V (single section in each class) and thereafter will grow consequently based on feasibility as per approval.

The admission process may be completed within 30 days after completion of all pending formalities of transfer of land and temporary accommodation.

(Deepesh Gehlot)
Additional Commissioner (Admn)

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Deputation to other Central Govt. Department/Offices/PSU etc: CGDA

Deputation to other Central Govt. Department / Offices / PSU: CGDA

O/o THE CONTROLLER GENERAL OF DEFENCE ACCOUNT
ULAN BATAR ROAD. PALAM. DELHI CANTT.110010

F. No.: AN/IX/Deputation/2025

Dated:26.06.2025

To
All the PCsDA/PIFAs/ CsDA/IFAs
AN-IV (Local)
(Through CGDA Website)

Sub: Deputation to other Central Govt. Department/Offiees/PSU etc.
Ref: This HQrs Letter even No. dated 16.02.2009.

It has been observed of late that certain applications for deputation are being submitted to CGDA (HQrs) Office either directly by the individual officer/staff or through the respective Controller offices, even in cases where no circular or vacancy notification has been issued by this Headquarters.

2. This practice of forwarding unsolicited deputation applications, in the absence of any requisition from HQrs Office, leads to avoidable correspondence and contributes to avoidable administrative workload.

3. In this context, attention is invited to the HQrs Officer circular cited under reference, wherein it has been categorically stated that applications of volunteers for deputation outside the department are to be forwarded only in response to specific requisitions or circulars issued by this Office.

4. In view of the above, it is requested that the contents of the aforementioned circulars be disseminated appropriately and brought to the attention of all officers and staff under your administrative jurisdiction.

This issues with the approval of Sr.Jt. CODA (AN).

(Vinit Parashar)
Sr.ACGDA (AN)

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Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Railway Employees covered by UPS

Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Railway Employees covered by UPS

RBE No. 66/2025.

GOVERNMENT OF INDIA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No. 2012/F(E)III/1(1)/4)

New Delhi, dated: 07.07.2025.

The General Managers/Principal Financial Advisors,
All Zonal Railways/Production Units etc,
DGs of RDSO and NAIR.

Subject :- Extension of benefits of ‘Retirement Gratuity and Death Gratuity’ to the Railway Employees covered by Unified Pension Scheme.

Ministry of Finance, Department of Financial Services, has vide Gazette Notification No. FX-1/3/2024-PR dated 24th January, 2025 introduced the Unified Pension Scheme (UPS) as an option under the National Pension System (NPS) for the recruits to the Central Government civil services w.e.f 01.04.2025 giving one time option to the Central Government employees covered under the National Pension System (NPS) for inclusion under the Unified Pension Scheme. The same has been adopted on Railways vide Board’s letter number F(E)II/2025/UPS/1 dated 18.03.2025.

2. Accordingly, it is clarified that the Railway employees covered under Unified Pension Scheme shall be eligible for benefit of ‘Retirement gratuity and Death gratuity on the same terms and conditions as are applicable to the Railway employees covered under the National Pension System in terms of Board’s letter No. 2012/F(E)III/1(1)/4 dated 05.09.2016.

(G. Priya Sudarsani),
Director, Finance (Estt.),
Railway Board

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