Sunday, December 3, 2017

10 Income Tax rules you need to know

1. Tax saving on house rent allowance

House rent allowance, commonly known as HRA, is a major chunk of a salaried individual's total pay. Under Section 10 (13A) of the Income Tax Act, you can save tax on the rent you pay to your landlord. However, you get partial tax benefit on the rent you pay. The amount that is allowed for exemption under HRA is calculated as the minimum of:

i) Rent paid annually minus 10 per cent of basic salary plus dearness allowance
ii) Actual HRA received
iii) 40 per cent of basic and dearness allowance (50 per cent in case of metro cities).

Your HRA allowance will be taxable if you are not paying any rent or you stay in your own house. But those who stay with their parents can also claim HRA benefits by paying rent to their parents.

2. Deductions under Section 80C

One can claim tax benefit on investments up to Rs 1.5 lakh under Section 80C of the Income Tax Act. If you fall in the highest tax slab (30 per cent), by investing Rs 1.5 lakh you can save tax for up to Rs 46,350 (including cess charges.) per year. Investments that qualify for tax benefit under this section are Employees' Provident Fund (EPF), Public Provident Fund (PPF), Sukanya Samriddhi Account, National Savings Certificate and tax-saving fixed deposits. The premium paid for life insurance plans, National Pension Scheme (NPS) and tax-saving mutual funds (ELSS) also qualify for deduction under Section 80C.

One can also claim tuition fees paid for up to two children, principal repayment on home loan, stamp duty and registration cost on the house bought as a deduction under Section 80C.

Read: Save income tax through mutual fund investment. All you need to know

3. Deductions under Section 80CCD(1B)

This section was introduced in Budget 2015-16. Under this section, one can get tax benefits on investments up to Rs 50,000 in NPS tier 1 account. This is over and above the Rs 1.5 lakh limit under Section 80C. An individual in highest tax bracket can save Rs. 15,450 by investing Rs. 50,000 in NPS under Section 80CCD(1B).

4. Deduction under Section 80E

If you have taken an education loan for yourself, spouse or children, then the interest paid on the loan qualify for tax benefit under Section 80E. The best thing here is that there is no upper limit on the amount of deduction. But the criteria is that the loan must have been taken from a financial institution or approved charitable institution and for full-time higher education.

5. Deduction of interest on housing loan (Section 24B)

If you have taken a housing loan to buy a house, then the interest you pay on your housing loan qualify for tax benefit under Section 24B. Interest paid up to Rs 2 lakh in a financial year on housing loan is allowed as deduction from your income. If you have taken a home improvement loan, then interest up to Rs 30,000 will be allowed as deduction under this section.

6. Deduction under Section 80EE

Re-introduced in Union Budget 2016, an additional deduction of Rs. 50,000 is available under this section, which is over and above the limit of Section 24B on interest paid on home loans if a person is buying a house for the first time. But there is a condition to avail this benefit. The cost of the property must be below Rs 50 lakh and the loan amount must be less than equal to Rs 35 lakh.Also, the property must be bought after April 1, 2016.

7. Deduction under Section 80D

Premiums paid for health insurance for self, spouse, children, and parents qualify for deduction under Section 80D. One can claim deduction of Rs. 25,000, if he is below 60 years of age, and Rs. 30,000 if he is above 60 years of age, towards medical insurance premium paid for self, spouse and children. Under this section, additional deduction of Rs. 25,000 is available if one buys medical insurance for his parents. This deduction can go up to Rs. 30,000 per year if parents are above the age of 60 years. So the total deduction you get under Section 80D is up to Rs 60,000.

8. Deduction under Section 80DD

If a tax payer has dependent parents, spouse, children or siblings who are differently-abled, then he can claim deductions up to Rs. 75,000 for expenses on their maintenance and medical treatment under this section. If the disability is severe in nature, then the deduction can increase to Rs 1.25 lakh.

9. Deduction under Section 80DDB

Under this section, one can claim deduction of Rs. 40,000 for medical treatment of specified disease or ailment for self and dependents. The deduction can go up to Rs. 60,000 if the tax payer is above 60 years of age and if he is above 80 years of age, then the deduction amount is up to Rs. 80,000. The diseases have been specified in Rule 11DD. To claim this benefit a certificate in form 10 I is to be furnished by the taxpayer from any registered doctor.

Also Read: Mutual fund: Should you opt for regular plan or direct plan for wealth creation

10. Tax benefit under Section 80TTA

Under this section, interest income up to Rs 10,000 per annum from savings account is allowed as deduction from taxable income. However, interest earned from fixed deposits, term deposits does not qualify for deduction under this.

Source; All India IPOs/ASPOs Association, CHQ

Tuesday, November 28, 2017



Click below link to download Rate of Bonus for PLI in DOP

1. Whole Life Insurance - Rs.85 /- per thousand of sum assured
2. Endowment Assurance - Rs.58/- per thousand of sum assured
3. Anticipated Endowment Assurance - Rs.53/- per thousand of sum assured
4. Convertible Whole life Policies - While life Bonus is applicable on conversion Endowment bonus will applicable.

Thursday, November 23, 2017

Government has classified Posts of Central Government Employees after 7th Pay Commission

Classification of Post in 7th CPC – Gazette Notification

(Department of Personnel and Training)

New Delhi, the 9th November, 2017
S.O. 3578 (E).— In exercise of the powers conferred by the proviso to article 309 of the Constitution read with rule 6 of the Central Civil Services (Classification, Control and Appeal) Rules, 1965 and in supersession of the notification of the Government of India in the Ministry of Personnel, Public Grievances and Pensions (Department of Personnel and Training) number S.O. 2079(E), dated the 20th August, 2014, except as

respects things done or omitted to be done before such supersession, the President hereby directs that with effect from the date of publication of this Order in the Official Gazette, all civil posts except persons serving in the Indian Audit and Accounts Department under the Union, shall be classified as follows :-

Explanation – For the purpose of this Order, ‘Level’ in relation to a post means, the Level specified in third row of Part A of the Schedule to the Central Civil Services (Revised Pay) Rules, 2016.
[F. No. 11012/10/2016-Estt.A-III]

Are you eligible for getting Bunching benefit in 7th CPC ? Please see in enclosed table.
How to see the table ? Please follow this link for complete information about bunching stages in 7 th CPC.

To see the method of this table please follow this link
Thanks to 
Shri. Anand Agrawal
email : 
SA Post

Tuesday, November 21, 2017



Sunday, April 23, 2017


I) SB commission paid to BPMS
1) one year TD 0.5%
2)Two years & three years TD 1%
3) five years TD 2%
4) POSB 2% on net accretion of not less than
Rs.500.excluding deposit made in March but including withdrawals of March.
II) Incentive@ 2% of the sale of stamps/stationery up to
Rs 30/- to each customer.
III) Commission paid to PRSS:
1) One year TD Nil
2)2 &3 year TD 1%
3) 5 year TD 2%
4) 6Year NSC VIII issue 0.5%
1) Opening of account
a)Supervisor Rs 0.50 per account
b)Asst. Rs 1.00 "
c) LC Rs 0.50 "
2) Payment
a)Supervisor Rs 0.50 "
b) Counter PA Rs 1.00 "
c) LC Rs 0.50 :Ceiling is for individual for Rs. 500 p.m and not per counter of office
V) Speed Post Incentive
1) Rs.0.50 is payable for each SP article booked where no seperate booking counter is provided for speed post work.
2) Incentive of Rs.0.75 per article booked over and above the threshold specified where seperate post has been sanctioned for speed post work.
3) Incentive of Rs.0.50 per article delivered in addition to his other normal duties.
4) Rs 5/- per customer in respect of articles booked under special journal.
5) No incentive is payable to postman whose return is more than 2%


Incentive is admissible when atleast 10 transactions in the account in a financial year.Both deposits and withdrawals will be taken in to account of the purpose of arriving at the number of transactions.

1. GDS BO with one official only Rs.8.60 per account per annum
2. GDS BO with 2 officials GDS BPM- Rs7.60 per account per annum other GDS official-Rs.1.00 per account per annum
3.GDS BO with 3 officials-GDS BPM-Rs.6.60 " GDS-1 - Rs.1.00 "GDS-II - Rs.1.00 "


Rs.4.40 per account per annum having 10 transactions in a financial year.
Group-D/Packer ------Rs.1.00
SPM (Cl-II & Cl -I)
Supervisor- Rs.1.40
Postal Asst. Rs.2.00
Group-D/Packer Rs.1.00


Supervisor Rs.1.15
SBPA Rs.2.00
Group-D/Packer Rs.0.50
Treasurer Rs.0.50
C.O Rs.0.25
Supervisor Rs.0.50
LC Rs.1.00
PA.SBCO Rs0.25
SupervisorSBCO RS.0.25
Treasurer Rs.0.50
Group-D/Packer Rs.0.25
C.O Rs.0.25
i)DO PLI------Up to Rs.4 crores of sum assured---------Nil/-
Above Rs.4 Crores and up to 6 crores of sum assured- Rs.20/- per Rs. 10000 sum assured.
Above Rs.6 crores of sum assured "

Incentive for field officer

Up to Rs.30 lacs of sum assured Rs.15/- per Rs.10000 of sum assured
Above Rs.30 Lacs and up to 40 lacs Rs.17.50/-
Above Rs.40 lacs and up to 50 lacs Rs.20/- 
Above Rs 50 lacs of sum assured Rs.25/- 


For effective business of atleast Rs.5 lacs-- Rs.625/- only  at least Rs.10 lacs Rs.1250/- only
For effective business of every Rs. one lac Rs.125/- per every one lakh of effective over and above Rs.10/- lacs business


RS.2.50 PER One thousand sum assured.
Rs.1% on renewal of premium
GDS employee incentive rates for RPLI has been revised
as 10% of first year premium and 2.5% of subsequent premium deposited by Insurant


  • RS.25/- per Rs.10000/- sum assured up to 2 crores of sum assured
  • Rs.20/- per Rs.10000/- sum assured for above 2 crores of sum assured
SDIs/ASPOs shall get commission of 10% on the total incentive paid to GDS staff on sum assured only for processing the proposal.


Rs.2.50 per 1000/- sum assured for procuring business Direct Agents will get incentive as per Field Officers

Deficit of the Department of Posts widened to Rs 11,138.84 crore

Deficit of the Department of Posts widened to Rs 11,138.84 crore in February this year on account of wage revision under the 7th Pay Commission. 

The revenue of the postal department was Rs 10,292.18 crore and the expenditure Rs 21,431.02 crore, Communications Minister Manoj Sinha said in a written reply to the Lok Sabha. 

The deficit widened as a result of the implementation of 7th Central Pay Commission recommendations, he said. 

In 2015-16, the deficit of DoP was Rs 6,007.18 crore, with revenue receipts totalling Rs 12,939.79 crore and expenditure amounting to Rs 18,946.97 crore. 

"Department of Posts takes action, from time to time, to induct technology and upgrade the system to cater to the growing market requirements and to increase revenue earnings," Sinha said. 

The department has plans to open 166 new branch post offices and 80 sub-post offices during the current financial year, 2017-18. 

The DoP has 1,54,802 post offices which include 812 head post offices, 24,566 sub-post offices and 1,29,424 branch post offices. The department has computerised 25,348 post offices till date.

Source:-The Economic Times

Friday, March 31, 2017


1.55 lakh post offices to become access points for the India Post Payments Bank (IPPB)

The Department of Posts has installed 976 ATMs which are mostly located in the rural areas of India, union minister Manoj Sinha informed the Lok Sabha. 

The minister said that the Department of Posts has set up India Post Payments Bank (IPPB) as a Public Limited Company on August 17, 2016 under the Companies Act 2013, to further the financial inclusion objectives of the government. 

The IPPB has launched operations in Raipur (Chattisgarh) and Ranchi (Jharkhand) with 8 access points on January 30, 2017. It is proposed to set up access points co-located with district level post offices in up to 650 districts with linkages to all the post offices throughout the country by September, 2017, subject to feasibility and fulfillment of regulatory requirements. 

Thus after complete roll-out, approximately, 1.55 lakh post offices will become access points for the IPPB. Read: India Post launches payments bank Sinha said that IPPB has not installed any ATM, as of now. IPPB has issued 1,619 Debit Cards of which 832 debit Cards have been issued in Jharkhand and 787 debit Cards have been issued in Chattisgarh. 

The minister said that many companies have approached the Department of Posts for IPPB which include domestic and international financial entities in the field of banking, insurance, international money transfer, mutual funds etc. Some preliminary discussions had taken place with International Finance Corporation (World Bank); no formal proposal to this effect has been received. 

While the department is in various stages of discussions with them, decision on formal partnerships will be taken after carefully evaluating the entire value proposition that they propose for the common man, he said.