प्रधानमंत्री श्री नरेन्द्र मोदी की अध्यक्षता में केन्द्रीय मंत्रिमंडल ने केन्द्र सरकार के कर्मचारियों के लिए महंगाई भत्ता और पेंशनभोगियों के लिए महंगाई राहत की एक अतिरिक्त किस्त को जारी करने की मंजूरी दे दी है, जो 1 जनवरी, 2020 से प्रभावी होगी। मूल्य वृद्धि की क्षतिपूर्ति के लिए मूल वेतन/पेंशन की वर्तमान दर 17 प्रतिशत में 4 प्रतिशत की वृद्धि होगी।
महंगाई भत्ता और महंगाई राहत के कारण सरकार पर प्रतिवर्ष 12,510.04 करोड़ रुपये का वित्तीय बोझ पड़ेगा और वित्त वर्ष 2020-21 में कुल 14,595.04 करोड़ रुपये इस मद में खर्च होंगे। (जनवरी, 2020 से फरवरी, 2021 तक के 14 महीनों की अवधि के लिए) इससे 48.34 लाख केन्द्र सरकार के कर्मचारियों तथा 65.26 लाख पेंशनभोगियों को लाभ मिलेगा।
यह वृद्धि स्वीकृत नियमों के अनुरूप है, जो 7वें केन्द्रीय वेतन आयोग की अनुशंसाओं पर आधारित है।
Cabinet approves release of an additional instalment of Dearness Allowance and Dearness Relief due from 1.1.2020
The Union Cabinet, chaired by the Prime Minister, Shri Narendra Modi has approved to release an additional instalment of Dearness Allowance (DA) to Central Government employees and Dearness Relief (DR) to pensioners w.e.f. 01.01.2020. There will be an increase of 4 percent over the existing rate of 17 percent of the Basic Pay/Pension, to compensate for price rise.
The combined impact on the exchequer on account of both Dearness Allowance and Dearness Relief would be Rs.12,510.04 crore per annum and Rs.14,595.04 crore in Financial Year 2020-21 (for a period of 14 months from January, 2020 to February, 2021). It will benefit about 48.34 lakh Central Government employees and 65.26 lakh pensioners.
The increase is in accordance with the accepted formula, which is based on the recommendations of the 7th Central Pay Commission.
As per extant instructions, upto a maximum of 5% of direct recruitment vacancies arising in a year in Group ‘C’ posts can be filled up by compassionate appointment. There is no fixed quota of posts to be filled up annually on compassionate grounds, as compassionate appointments are to be made by the administrative Ministries/Departments as per the general policy guidelines laid by the Department of Personnel and Training subject to availability of vacancies, number of applicants seeking compassionate appointment etc.
A person selected for appointment on compassionate grounds is to be adjusted in the reservation roster against the appropriate category, viz. a candidate belonging to SC/ST/OBC/General category would occupy the position allocated to the respective category, in the roster.
This information was provided by the Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh in written reply to a question in Rajya Sabha today.
No.21011/01/2009-Est(A)-Part Government of India Ministry of Personnel, Public Grievances and Pensions Department of Personnel & Training
North Block, New Delhi
9th March 2020
OFFICE MEMORANDUM
Subject : Extension of timelines for submission of summary of the Medical Report in respect of Group ‘A’ officers of Central Civil Services for the year 2019-2020 – reg.
The undersigned is directed to say that this Department had vide O.M. No.21011/1/2009-Estt.(A)-Part dated 01.02.2012 introduced the scheme of Annual Medical Examination for the Group ‘A’ officers of Central Civil Services of age 40 years and above. As per the said O.M., the officer concerned is required to attach a summary of the Medical Report with his/her APAR.
2. In view of the situation arising out of the spread of Novel Coronavirus (COVID-19), it has been decided with the approval of the competent authority to extend the last date for submission of the summary of Medical Report by Group ‘A’ officers of Central Civil Services for the year 2019-2020, upto 30th June, 2020.
3. However, the timelines for recording and completion of APAR for the year 2019-2020, as laid down in this Department’s OM No. 21011/01/2005-Estt(A)(Pt.II) dated 23rd July, 2009, remain unchanged.
(Jayashree Chellamani)
Under Secretary to the Govt. of India
F.No.11017/02/2019-AIS-III
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel and Training
North Block, New Delhi
Dated the 03 March, 2020
To,
The Chief Secretaries of all the States / UTs
Subject: Proposal to amend Rule 11 of AIS (Conduct)Rules, 1968 by inserting a new-sub Rule 4 – reg.
Sir / Madam;
I am directed to refer to the subject noted and to state that presently there are no provisions under AIS (Conduct) Rules, 1968 with regard to receipt / retention of gifts from foreign dignitaries by members of AIS being a member of Indian delegation or otherwise. Therefore, it has been decided with the approval of competent authority to insert a new sub-rule (4) under Rule 11 of AIS (Conduct) Rules, 1968.
2. Accordingly, a draft of the proposed amendments in AIS (Conduct) Rules, 1968 is enclosed herewith with request to furnish your comments / views on the same latest by 31 st March, 2020 positively. Soft copy of the comments / views may also be sent by email at [email protected]. If no reply is received within the stipulated time, it will be presumed that State Government has no objection to the proposed amendments.
Encl: as stated.
Yours faithfully,
(Jyotsna Gupta)
Under Secretary (Services)
Proposal to amend AIS (Conduct) Rules 1968
Existing Rules
Proposed amendment
11. Gifts.
11(1) A member of the service may accept gifts from his near relatives or from his personal friends having no official dealings with them, on occasions such as wedding, anniversaries, funerals and religious functions when the making of gifts is in conformity with the prevailing religious and social practice, but he shall make a report to the Government if the value of such gift exceeds RS.25, 000/-.Explanation– For the purposes of this rule “gift” includes free transport, free boarding, free lodging or any other service or pecuniary advantage when provided by a person other than a near relative or personal friend having no official dealings with the member of the Service but does not include a casual meal, casual lift or other social hospitality.
11(2) Save as otherwise provided in sub-rule
(1), no member of the service shall accept any gift without the sanction of the Government if the value of gift exceeds Rs.5,000/-
11(3) Member of the Service shall avoid accepting lavish hospitality or. frequent hospitality from persons having official dealings with them or from industrial or commercial firms or other or organisations.
After sub-rule (3) of Rule 11 of AIS (Conduct) Rules, 1968, the following sub-rule (4) shall be inserted:-
11(4):- Notwithstanding anything contained in sub-rule (1), (2) and (3), a member of Service, being a member of the Indian delegation or otherwise, may receive and retain gifts from foreign dignitaries in accordance with the provisions of The Foreign Contribution (Acceptance or Retention of Gifts or Presentation) Rules, 2012, as amended from time to time.
MACP on Promotional Hierarchy – Supreme Court Judgement – SLP(C) No. 021803/2014 (Read/Download Full Judgement)
REPORTABLE
IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION
CIVIL APPEAL NO. 2016 OF 2020 (Arising out of SLP(C) No.21803 of 2014)
UNION OF INDIA AND OTHERS
…Appellants
VERSUS
M.V. MOHANAN NAIR
…Respondent
WITH
CIVIL APPEAL NO. 2017 OF 2020
(Arising out of SLP(C) No.22181 of 2014)
CIVIL APPEAL NO. 2018 OF 2020
(Arising out of SLP(C) No.23335 of 2014)
CIVIL APPEAL NO. 2019 OF 2020
(Arising out of SLP(C) No.23333 of 2014)
CIVIL APPEAL NO. 2020 OF 2020
(Arising out of SLP(C) No.18227 of 2015)
CIVIL APPEAL NO. 2021 OF 2020
(Arising out of SLP(C) No.31125 of 2016)
CIVIL APPEAL NO. 2022 OF 2020
(Arising out of SLP(C) No.33706 of 2016)
CIVIL APPEAL NO(s). 2044-2045 OF 2020
(Arising out of SLP(C)No(s). 5917-5918 of 2017
@ SLP(C)Diary No.6042 of 2017)
JUDGMENT
R.BANUMATHI, J.
Leave granted.
2. The instant batch of appeals have been filed assailing the orders of various High Courts dismissing petitions filed by the appellants, thereby upholding decisions rendered by different Benches of Central Administrative Tribunal granting financial upgradation of grade pay in the next promotional hierarchy by placing reliance upon Union of India and others v. Raj Pal and another CWP No.19387 of 2011 dated 19.10.2011. In these batch matters, we are concerned with the question whether MACP Scheme entitles financial upgradation to the next grade pay or to the grade pay of the next promotional hierarchy.
3. In all these appeals, almost all the High Courts have followed the Raj Pal and Ved Prakash’s case and granted relief as prayed for by the Being aggrieved, the appellant- UOI has filed these appeals.
4. The main questions falling for consideration in these appeals are:-
(i) Whether MACP scheme entitles financial upgradation of pay to the next grade pay or to the grade pay of the next promotional post as envisaged under the ACP scheme? Whether MACP Scheme envisages grant of financial upgradation in Grade Pay Hierarchy and not in promotional hierarchy?
(ii) As contended by the respondents, whether MACP scheme is disadvantageous to the employees in comparison to ACP scheme as long as the financial upgradation is granted in hierarchy of grade pay under MACP scheme?
(iii) Whether respondents are entitled to stepping up of their grade pay to be at par with grade pay of their juniors who were getting the higher grade pay on account of implementation of MACP Scheme?
Appeals relating to Issue No.III were ordered to be de-tagged and listed separately.
5. At the outset, it is to be pointed out that almost all the Tribunals/High Courts have only relied upon Raj Pal’s case for grant of financial upgradation on promotional hierarchy and rejected the stand of the appellant-UOI that under MACP scheme, the employees are entitled to financial upgradation of the next grade pay only. Since the matter was considered on merits and since the issue involves impact on the public ex- chequer and also interest of the staff of various establishments, we requested learned Senior counsel, Mr. Jaideep Gupta to assist the Court as amicus curiae which the learned Senior counsel has readily Mr. Kunal Chatterji, learned counsel has agreed to assist the learned Senior counsel-amicus.
Assured Career Progression (ACP) Scheme:-
6. The Government of India with a view to “deal with the problem of genuine stagnation and hardship faced by the employees due to lack of adequate promotional avenues”, introduced the Assured Career Progression (ACP) Scheme with effect from 09.08.1999 vide its Office Memorandum dated 09.08.1999. To mitigate the hardship in cases of acute stagnation in a cadre or in an isolated post, it has been decided to grant two financial upgradations under the ACP Scheme to Group ‘B’, ‘C’ and ‘D’ employees on completion of 12 and 24 years of regular service. As per ACP Scheme, isolated post in Group ‘A’, ‘B’, ‘C’ and ‘D’ cadres which have no promotional avenues also qualify for similar benefits. The financial upgradations under the ACP Scheme is placement in the higher Pay Scale and financial benefits in the higher Pay Scale without regular promotion. Under the financial upgradation, grant of financial benefits under the ACP Scheme to the government servants concerned is on personal basis. Such financial upgradation neither amounts to regular promotion nor require creation of new post. Some of the salient features of the ACP Scheme are as follows:-
The ACP Scheme envisages merely placement in the higher pay- scale/grant of financial benefits (through financial upgradation) only to the Government servant concerned on personal basis and shall, therefore, neither amount to functional/regular promotion nor would require creation of new posts for the purpose;
Under the ACP Scheme, two financial upgradations shall be allowed to Group ‘B’, ‘C’ and ‘D’ employees on completion of 12 years and 24 years of his/her regular service.
As per para 5.1 of Annexure-1 – conditions for grant of benefits under the ACP Scheme, it is stipulated that two financial upgradations would be available only if no regular promotion during the prescribed period (12 and 24 years) was granted to an employee. If an employee has already received one regular promotion, he/she would qualify for second ACP only on completion of 24 years of regular service. However, in case if two regular promotions have been received by an employee, no further benefit under the ACP Scheme would accrue in favour of the employee.
As per para 3.1 of the Office Memorandum dated 09.08.1999, the grant of financial upgradations under the ACP Scheme shall be subject to the conditions mentioned in the Annexure-I annexed thereon to the Office Memorandum dated 09.08.1999.
7. Para 8 of the Annexure provides that the financial upgradations shall be purely personal to the employee and would have no relevance to his/her seniority position. In other words, there would be no additional financial upgradations for the senior employee on the ground that the junior employee has got the higher pay scale under the ACP Scheme. Para No.12 of Annexure-I provides that the ACP Scheme contemplates merely placement on personal basis in the higher pay scale/grant of financial benefits only and shall not amount to actual functional promotion of the employees concerned. We may usefully refer to the relevant features of the ACP Scheme as stipulated in Annexure-I to the Office Memorandum dated 09.08.1999-Conditions for Grant of Benefits under the ACP Scheme, which reads as under:-
Conditions for grant of benefits under the ACP Scheme:-
1. The ACP Scheme envisages merely placement in the higher pay-scale/grant of financial benefits (through financial upgradation) only to the Government servant concerned on personal basis and shall, therefore, neither amount to functional/regular promotion nor would require creation of new posts for the purpose;
…………
4. The first financial upgradation under the ACP Scheme shall be allowed after 12 years of regular service and the second upgradation after 12 years of regular service from the date of the first financial upgradation subject to fulfilment of prescribed conditions. In other words, if the first upgradation gets postponed on account of the employee not found fit or due to departmental proceedings, etc. this would have consequential effect on the second upgradation which would also get deferred accordingly;
………
8. The financial upgradation under the ACP Scheme shall be purely personal to the employee and shall have no relevance to his seniority position. As such, there shall be no additional financial upgradation for the senior employee on the ground that the junior employee in the grade has got higher pay-scale under the ACP Scheme;
……….
12. The proposed ACP Scheme contemplates merely placement on personal basis in the higher pay-scale/grant of financial benefits only and shall not amount to actual/functional promotion of the employees concerned. Since orders regarding reservation in promotion are applicable only in the case of regular promotion, reservation orders/roster shall not apply to the ACP Scheme which shall extend its benefits uniformly to all eligible SC/ST employees also. However, at the time of regular/functional (actual) promotion, the Cadre Controlling Authorities shall ensure that all reservation orders are applied strictly;
……..
8. ACP Scheme was replaced by Modified Assured Career Progression (MACP) Scheme which became operational with effect from 09.2008. The Sixth Central Pay Commission has recommended the adoption of MACP Scheme primarily to rectify the problems arising from inter-departmental disparities:-
i) ACP Scheme led to creation of certain disparities within the employees in different organisations/departments who were directly recruited in the same pay scale who received different financial upgradations under the ACP Scheme because of existence of different promotional hierarchical structure and different promotional pay scales in different organisations/ departments;
ii) Another adverse consequence in the implementation of the ACP Scheme was that the benefit of a higher pay scale was not available if the next post in the hierarchy also existed in the identical pay scale.
9. In order to bring systematic changes in the existing scheme of ACP so that all employees irrespective of existing hierarchical structure in their organisations/cadre get the same benefit, MACP was recommended by the Sixth Central Pay Commission which was accepted by the Government with certain modifications vide its Office Memorandum dated 05.2009. Under the Sixth Central Pay Commission, revised pay structure has been implemented with effect from 01.01.2006; whereas benefits of ACP Scheme have been allowed till 31.08.2008. Vide Office Memorandum dated 19.05.2009, the Government of India introduced the MACP Scheme, in supersession of the ACP Scheme w.e.f. 01.09.2008. There shall be no change in distinction, classification or higher status on grant of financial upgradation under MACP as the upgradation is purely personal and merely placement in the next higher Grade Pay.
Modified Assured Career Progression (MACP) Scheme:-
10. Under the MACP Scheme, three financial upgradations are made available in the next grade pay to an employee who has completed 10, 20 and 30 years of regular service in the same post without getting any The benefit would be available at the next higher grade pay. Some of the salient features of the MACP Scheme are as follows:-
Para 2 of the MACP Scheme provides that the “MACP Scheme envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay”.
As per para 10 of the MACP Scheme – Office Memorandum dated 19.05.2009, no stepping up of pay in the pay band or grade pay would be admissible with regard to junior getting more pay than the senior on account of pay fixation under the MACP Scheme.
As per para 11 of the said memorandum dated 19.05.2009, the differences in pay scales on account of financial upgradations under the ACP Scheme and MACP Scheme would not be construed as anomaly.
11. Para (19) of MACP Scheme contemplates merely placement on personal basis in the immediate higher grade pay/grant of financial benefits only and shall not amount to actual/functional promotion of the employees concerned. As per para (20) of the MACP Scheme, financial upgradations shall be purely personal to the employee and shall have no relevance to the seniority position. As such, there shall be no additional financial upgradation for the senior employees on the ground that the junior employees in the grade have received higher grade pay under MACP Scheme. We may usefully extract the relevant portion of Annexure-I of the Office Memorandum dated 19.05.2009, which reads as under:-
ANNEXURE-I
MODIFIED ASSURED CAREER PROGRESSION SCHEME (MACPS)
1. There shall be three financial upgradation s under the MACPS, counted from the direct entry grade on completion of 10, 20 and 30 years service Financial upgradation under the Scheme will be admissible whenever a person has spent 10 years continuously in the same grade-pay.
2. The MACPS envisages merely placement in the immediate next higher grade pay in the hierarchy of the recommended revised pay bands and grade pay as given in Section 1, Part-A of the first schedule of the CCS (Revised Pay) Rules, Thus, the grade pay at the time of financial upgradation under the MACPS can, in certain cases where regular promotion is not between two successive grades, be different than what is available at the time of regular promotion. ln such cases, the higher grade pay attached to the next promotion post in the hierarchy of the concerned cadre/organisation will be given only at the time of regular promotion.
…………
17. The financial upgradation would be on non-functional basis subject to fitness, in the hierarchy of grade pay within the PB-1.Thereafter for upgradation under the MACPS the benchmark of ‘good’ would be applicable till the grade pay of Rs. 6600/- in PB-3. The benchmark will be ‘Very Good’ for financial upgradation to the grade pay of Rs. 7600 and above.
19. The MACPS contemplates merely placement on personal basis in the immediate higher Grade pay /grant of financial benefits only and shall not amount to actual functional promotion of the employees Therefore, no reservation orders/roster shall apply to the MACPS, which shall extend its benefits uniformly to all eligible SC/ST employees also. However, the rules of reservation in promotion shall be ensured at the time of regular promotion. For this reason, it shall not be mandatory to associate members of SC/ST in the Screening Committee meant to consider cases for grant of financial upgradation under the Scheme.
………….
25. lf a regular promotion has been offered but was refused by the employee before becoming entitled to a financial upgradation, no financial upgradation shall be allowed as such an employee has not been stagnated due to lack of opportunities. If, however, financial upgradation has been allowed due to stagnation and the employees subsequently refuse the promotion, it shall not be a ground to withdraw the financial upgradation. He shall, however, not be eligible to be considered for further financial upgradation till he agrees to be considered for promotion again and the second the next financial upgradation shall also be deferred to the extent of period of debarment due to the refusal.
……………”
12. Clause 28 contains illustrations as to grant of financial upgradation under MACP. The illustrations in Clause 28 of the Scheme can easily be understood by referring to the First Schedule, Part-A of Section 1 of Central Civil Services (Revised Pay) Rules, 2008 which gives a comparison of the scale of pay under the 5th Pay Commission and the 6th Pay Commission as under:-
DA / DR to Central Government Employees paid in March and September – Lok Sabha QA
Government of India Ministry of Finance Department of Expenditure
Rajya Sabha
Unstarred Question No. 1336
To be answered on Tuesday, 3 March, 2020 Falguna 13, 1941(Saka)
INCREASE/DECREASE IN DA/DR
1336: SHRI MAJEED MEMON
Will the Minister of Finance be pleased to state:
(a) Whether it is a fact that Daily Allowance (DA) and Dearness Relief (DR) for Central Govt. employees and pensioners have become due with effect from 4th January, 2020.
(b) If so, the details thereof
(c) Whether DA/DR is based on rise in inflation and increase in prices of essential commodities; and
(d) If so, whether the increase in DA allowance is in line with increase in price of essential items and if not, the reason therefore?
Answer Minister of State in the Ministry of Finance : (Shri Anurag Thakur)
(a) & (b): Yes Sir. Dearness Allowance and Dearness Relief are granted to serving employees and pensioners of the Central Government respectively each year with effect from 1st January and 1st July and normally paid in the month of March and September respectively.
(c) & (d): Yes Sir. The level of inflation for the purpose of DA/DR to Central Government employees/pensioners is calculated on the basis of All India Consumer Price Index for Industrial Workers which is issued by Labour Bureau, Shimla
भारत सरकार
वित्त मंत्रालय
व्यय विभाग
राज्य सभा
अतारांकित प्रश्न संख्या 1336
मंगलवार; 03 मार्च; 2020/ 13 फ़ाल्गुन, 7947 (शक)
डीए/डीआर में वृद्धि/कमी
1336. श्री माजीद मेमन:क्या वित्त मंत्री यह बताने की कृपा करेंगे कि;
(क) क्या यह सच हे कि केन्द्र सरकार के कर्मचारियों और पेंशन भोगियों को दिए जाने वाला दैनिक भत्ता (डी.ए.) और महंगाई राहत (डी.आर.) 1 जन्नवरी, 2020 से देय हो गई है;
(ख) यदि हां, तो तत्संबंधी ब्यौरा क्या है;
(ग) क्या डीए/डीआर मुद्रास्फीति में वृद्धि तथा आवश्यक वस्तुओं की कीमतों में वृद्धि है पर आधारित होते हैं; और
(घ) यदि हां, तो क्या डीए भत्तों में वृद्धि आवश्यक वस्तुओं की कीमतों में वृद्धि के अनुरूप है और यदि नहीं, तो इसके क्या कारण हैं?
उत्तर
वित्त मंत्रालय में शज्य मंत्री (श्री अनुराग सिंह ठाकुर)
(क) और (ख): जी, हां। महंगाई भत्ता और- महंगाई राहत क्रमश: केन्द्र सरकार के सेवारत कर्मचारियों एवं पेंशनभोगियों को प्रत्येक वर्ष 1 जनवरी और 1 जुलाई को प्रदान किया जाता है और सामान्यतः इसका भुगतान क्रमश: मार्च और सितम्बर माह में किया जाता है।
(ग) और (घ): जी, हां। केन्द्र सरकार के कर्मचारियों/पेंशनभोगियों को महंगाई भत्ता/महंगाई राहत प्रदान किए जाने के लिए मुद्रास्फीति के स्तर की गणना औद्योगिक कामगारों के लिए अखिल भारतीय उपभोक्ता मूल्य सूचकांक के आधार पर किया जाता है जिसे श्रम. ब्यूरो, शिमला द्वारा जारी किया जाता है।
What is considered as salary income?
Section 17 of the Income-tax Act defines the term ‘salary’. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary.
What are allowances?
Allowances are fixed periodic amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. E.g., Tiffin allowance, transport allowance, uniform allowance, etc.
There are generally three types of allowances for the purpose of Income-tax Act – taxable allowances, fully exempted allowances and partially exempted allowances.
Perquisites are benefits received by a person as a result of his/her official position and are over and above the salary or wages. These perquisites can be taxable or non-taxable depending upon their nature. . Uniform allowance is exempt to the extent of expenditure incurred for official purposes u/s 10(14).
My employer reimburses to me all my expenses on grocery and children’s education. Would these be considered as my income?
Yes, these are in the nature of perquisites and should be valued as per the rules prescribed in this behalf.
During the year I had worked with three different employers and none of them deducted any tax from salary paid to me. If all these amounts are clubbed together, my income will exceed the basic exemption limit. Do I have to pay taxes on my own?
Yes, you will have to pay self-assessment tax and file the return of income.
Even if no taxes have been deducted from salary, is there any need for my employer to issue Form-16 to me?
Form-16 is a certificate of TDS. In your case it will not apply. However, your employer can issue a salary statement.
Is pension income taxed as salary income?
Yes. However, pension received from the United Nations Organisation is exempt.
Is Family pension taxed as salary income?
No, it is taxable as income from other sources.
If I receive my pension through a bank who will issue Form-16 or pension statement to me- the bank or my former employer?
The bank.
Are retirement benefits like PF and Gratuity taxable?
In the hands of a Government employee Gratuity and PF receipts on retirement are exempt from tax. In the hands of non-Government employee, gratuity is exempt subject to the limits prescribed in this regard and PF receipts are exempt from tax, if the same are received from a recognised PF after rendering continuous service of not less than 5 years.
Are arrears of salary taxable?
Yes. However, the benefit of spread over of income to the years to which it relates to can be availed for lower incidence of tax. This is called as relief u/s 89 of the Income-tax Act.
Can my employer consider relief u/s 89 for the purposes of calculating the TDS from salary?
Yes, if you are a Government employee or an employee of a PSU or company or co-operative society or local authority or university or institution or association or body. In such a case you need to furnish Form No. 10E to your employer.
My income from let out house property is negative. Can I ask my employer to consider this loss against my salary income while computing the TDS on my salary?
Yes but only to the extent of Rs. 2 lakh, however, losses other than losses under the head ‘Income from house property’ cannot be set-off while determining the TDS from salary.
Is leave encashment taxable as salary?
It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of non-Government employee leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.
Are receipts from life insurance policies on maturity along with bonus taxable?
As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax. However, following receipts would be subject to tax:
Any sum received under sub-section (3) of section 80DD; or
Any sum received under Keyman insurance policy; or
Any sum received in respect of policies issued on or after April 1st, 2003, in respect of which the amount of premium paid on such policy in any financial year exceeds 20% (10% in respect of policy taken on or after 1st April, 2012) of the actual capital sum assured;
or
Any sum received for insurance on life of *specified person (issued on or after April 1st 2013) in respect of which the amount of premium exceeds 15% of the actual capital sum assured.
* Any person who is –
i) A person with disability or severe disability specified under section 80U; or
ii) suffering from disease or ailment as specified in the rule made under section 80DDB.
Following points should be noted in this regard:
Exemption is available only in respect of amount received from life insurance policy.
Exemption under section 10(10D) is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.
Amount received on the death of the person will continue to be exempt without any condition.
What is the taxability of ex-gratia received from employer?
If a person or his heir receives ex-gratia from Central govt/state govt/ local authority/Public Sector Undertaking due to injury to the person/death while on duty such ex-gratia payment will not be taxable.
Where is House Rent allowance (HRA) to be reflected while filing income-tax return (ITR)?
The amount of HRA is required to be disclosed in the ITR under the column allowances to the extent exempt under section 10. section 10(3A) is the relevant section under which the amount of exempt HRA to be shown.
What is the taxability of House Rent allowance (HRA)?
Least/minimum of the following is exempt (Not taxable/deducted from total HRA received)
(a) Actual amount of HRA received
(b) Rent paid Less 10% of salary
(c) 50% of salary if house taken on rent is situated in Kolkata, Chennai, Mumbai and Delhi
or
40 % of salary if the house is taken on rent is NOT situated in Kolkata, Chennai, Mumbai and Delhi.
What is the taxability of Fixed Medical allowance?
Medical allowance is a fixed allowance paid to the employees of a company on a monthly basis, irrespective of whether they submit the bills to substantiate the expenditure or not. It is fully taxable in the hands of employee.
What is the taxability of Conveyance allowance?
As per section 10(14) read with Rule 2BB Conveyance allowance is exempt to the extent of amount received or amount spent, whichever is less. For e.g., If amount received is Rs. 100 and amount spent is Rs. 80, then only Rs. 20 is taxable. However, if amount actually spent is Rs. 100; then nothing is taxable.
Is standard deduction applicable to all the salaried person whether he is an employee of Central or State Government?
W.e.f. Assessment year 2019-20, the standard deduction is allowed while computing income chargeable under the head salaries. It is available to all class of employees irrespective of the nature of employer. Standard Deduction is also available to pensioners. Amount of Standard Deduction is Rs. 40,000 or amount of salary/pension, whichever is lower.
However, the Finance Act, 2019 has increased the maximum amount of standard deduction from Rs. 40,000 to Rs. 50,000.
Note: The standard deduction under section 16(ia) is available only for Pension Chargeable under the head “Income under the head Salaries” and not for Pension chargeable under “Income from Other Sources”.
Is transport allowance can be claimed as exemption by an employee from A.Y 2020-21 onwards?
Exemption of transport allowance of Rs. 1600 p.m granted to an employee is discontinued from A.Y 2019-20.
However, exemption of transport allowance of Rs. 3200 p.m granted to an employee who is blind or deaf and dumb or orthopaedically handicapped is still available.
Is standard deduction applicable to family pensioners from AY 2019-2020?
Section 16(ia) has been introduced by Finance Act, 2018 for class of person whose income is chargeable to tax under head salary. Family Pension is taxable under the head income from other sources. Hence standard deduction is not applicable in case of Family Pension.
Mr. X having Gross Salary of Rs. 7,00,000 during the the previous year 2019-20. Compute the standard deduction allowable to him?
Standard deduction is allowable to the extent of :
a) Rs. 50,000 or
b) Amount of Salary, whichever is lower
In this case standard deduction of Rs. 50,000 is allowable to Mr.X.
What is Form 12BB?
As per RULE LINK – Rule 26C of the Income Tax Rules – Form No. 12BB is required to be furnished by an employee to his employer for estimating his income or computing the tax deduction at source.
An assessee shall furnish evidence or particulars of the claims, such as House Rent Allowance, Leave Travel concession, Deduction of Interest under the head ” Income from house property” and deductions under Chapter-VIA in Form No. 12BB for estimating his income or computing the tax deduction at source.
When relief under section 89 of the Income Tax Act is available?
Relief under section 89 is available to an individual if he has received
Salary or family pension in arrears or in advance [Rule 21A (2)]
Gratuity in excess of exemption under section 10(10)(ii)/(iii) [Rule 21A(3)]
Compensation on termination of employment [Rule 21A(4)]
Commuted pension in excess of exemption under section 10(10A)(i) [ Rule 21A(5)]
In case of payment received other than above CBDT can allow relief under section 89 after examining each individual case. [Rule 21A (6)]
What is the effective date of enhancement of limit of gratuity from Rs 10 lakh to 20 lakh for purpose of tax exemption computation under section 10(10)(ii)?
The exemption limit under section 10(10)(ii) for the employees, who are covered under Payment of Gratuity Act, 1972, has been enhanced from Rs. 10,00,000 to Rs. 20,00,000 vide notification S.O.1420 (E) dated 29 March 2018 notified by Ministry of Labour and Employment. The exemption limit under section 10(10)(iii) for the employees, who are not covered under the Payment of Gratuity Act, 1972, is Rs. 20,00,000 as enhanced by Notification No. SO 1213(E), dated 08-03-2019
CGDA : Exemption to employees to mark biometric attendance in AEBAS – COVID-19
कार्यालय, रक्षा लेखा महानियंत्रक
उलन बटार रोड, पालम, दिल्ली छावनी – 110010
Controller General of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt – 110010
No.AN/III/3012/Misc./BAS
Dated: 06.03.2020
To
All PCsDA/PCA(Fys)/PIFA/CsDA/IFA/CFAs/RTCs
(through CGDA Website)
Sub : Exemption to employees to mark biometric attendance in Aadhar Based Biometric Attendance System(AEBAS)-reg.
Please find enclosed a copy of Deptt. of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions OM No.F.No.C-13014/1/2020- Vig. Dated 06.03.2020 on the subject matter for information and compliance.
2. It is learnt that one of the most common method of transmission of novel coronovirus (COVID-19) seems to be through infected surfaces. It is, therefore, desirable to avoid touching surfaces which might be infected due to human touch.
3. In view of above, it has been decided to exempt marking of attendance through Aadhar Based Biometric Attendance System (AEBAS) till 31st March, 2020. However, all the employees are required to mark their attendance in attendance register, (as done prior to launch of biometric system), during this period.
PCDA Circular 631 : Revision of pension of Pre-01.01.2006 retiree Havildar granted Hony Rank of Nb Subedar
Government of India
Ministry of Defence (Finance)
O/o THE PRINCIPAL CONTROLLER OF DEFENCE ACCOUNTS (PENSIONS)
DRAUPADI GHAT, ALLAHABAD- 211014
Circular No. 631
Dated: 05.03.2020
To,
1. The Chief Accountant, RBI, Deptt. Of Govt, Bank Accounts, Central Office C-7, Second Floor, Bandre- Kurla Complex, P B No. 8143, Bandre East Mumbai- 400051
2. All CMDs, Public Sector Banks.
3. The Nodal Officers, ICICI/ HDFC/ AXIS/ IDBI Banks
4. All Managers, CPPCs
5. Military and Air Attache, Indian Embassy, Kathmandu, Nepal
6. The PCDA (WC), Chandigarh
7. The CDA (PD), Meerut
8. The CDA Chennai
9. The Director of Treasuries, All States
10. The Pay and Accounts Officer, Delhi Administration, R K Puram and Tis Hazari, New Delhi.
11. The Pay and Accounts Office, Govt of Maharashtra, Mumbai
12. The Post Master Kathua (J&K) and Camp Bell Bay.
13. The Principal Pay and Accounts Officer Andaman and Nicobar Administration Port Blair.
Subject :– Revision of pension of Pre-01.01.2006 retiree Havildar granted Hony Rank of Nb Subedar.
Reference :– Circular No. 415 dated 22.07.2009.
******
Reference is invited to the GoI, MoD letter No. 1(8)/2008-D(Pen/Policy) dated 12th June 2009 under which Honorary rank of Naib Subedar granted to Havildars has been notionally considered as a promotion to the higher grade of Naib Subedar and benefit of fitment in the pay band and the higher grade pay has been allowed notionally for the purpose of fixation of service pension only. This provision was applicable for Havildars granted Hony Rank of Naib Subedar retired on or after 01.01.2006.
2. MoD has issued the required order vide GoI, MoD letter No. 1(13)/2016/D(Pen/Policy) dated 21.02.2020 as per direction of Hon’ble Court extending the provision of GoI, MoD letter No. 1(8)/2008-D(Pen/Policy) dated 12th June 2009 w.e.f. 01.01.2006 to Pre-2006 retiree Havildars who were granted Hony rank of Naib Subedars. Accordingly afresh revision table for Havildar granted Hony Rank of Nb Subedar pre-2006 retiree is issued for rates w.e.f. 01.01.2006, 01.07.2009 & 24.09.2012 as Annexure ‘A’ of this MoD letter replacing existing columns of tables of GoI, MoD letter dated 08.03.2010 and 17.01.2013 applicable w.e.f. 01.07.2009 and 24.09.2012 respectively for this rank. A copy of GoI, MoD letter dated 21.02.2020 along with table is attached with this circular which is self explanatory.
3. The Govt. has authorized PDAs to make the payment of pension/arrear in the affected cases of Pre-01.01.2006 Havildars granted Hony rank of Naib Subedars without any further authorization. Therefore all PDAs are requested to review all the affected cases of Pre-2006 Havildars granted Hony rank of Naib Subedar and revise their pension w.e.f. 01.01.2006, 01.07.2009 and 24.09.2012 as per rates of this order. The due drawn statement may please be prepared and pay the arrear due in this regard to all the affected pensioner under intimation to this office in soft data to Officer In-Charge Audit Section.
4. As revised table is available for Qualifying Service 15 years & more. Therefore pension of Hony rank of Nb Subedars who are in receipt of Special Pension, Invalid Pension and Service element of Disability Pension for less than 15 years of Qualifying Service will be revised by this office through Corr. PPO. An Annexure ‘B’ attached to this Circular may please be submitted to RO concerned in these cases so that RO may initiate the claim for issue of Corr. PPO in this regard.
5. All other terms and condition shall be applied as per various paras of this govt. order as well as the existing provisions on the issue.
6. This circular has been uploaded on this office website www.pcdapension.nic.in.
