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Monday, January 23, 2017

Income Tax Rates FY 2016-17 (AY 2017-18) - Finmin Orders

Income Tax Rates FY 2016-17 (AY 2017-18) - Finmin Orders
CIRCULAR NO : 01/2017
F.No.275/192/2016-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi
Dated the 2nd January, 2017
SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2016-17 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.
Reference is invited to Circular No.20/2015 dated 02.12.2015 whereby the rates of deduction of income-tax from the payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961 (hereinafter ‘the Act’), during the financial year 2015-16, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2016-17 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.
2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2016:
As per the Finance Act, 2016, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2016-17 (i.e. Assessment Year 2017-18) at the following rates:
2.1 Rates of tax
A. Normal Rates of tax:
B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:
C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

"TRUST SHALL NOT BE BETRAYED"

7th Central Pay Commission has quoted in para - 1.29 of " Foreword " , the following observations of the Supreme Court in the case of Bhupendranath Hazarika and another Vs State of Assam and others (reported in 2013 (2) Sec 516).
"It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair.......... A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness ; then only the concept of good governance can be concretized. We say no more."
Unfortunately, the NDA Government and the Group of Ministers consisting of Sri Rajnath Singh, Hon'ble Home Minister, Sri Arun Jaitley, Hon'ble Finance Minister, Sri Suresh Prabhu, Hon'ble Railway Minister who gave assurance on 30th June 2016 that Minimum wage and Fitment formula will be increased and a High Level Committee will be Constituted with a time - frame of four months , have given least concern for the above observations of the Apex Court. Now seven months are almost over. Further there is no guarantee that Allowance Committee will increase the percentage of HRA recommended by 7th CPC. Instead there is every chance, to deny retrospective effect from 01.01.2016 to the revised allowances and it may be implemented prospectively from 01.01.2017 or 01.04.2017, thus denying the eligible arrears for one year or more. It has become certain that the Option - 1 for pensioners recommended by 7th CPC, which is the one and only favourable recommendation, stands rejected. Orders on abolition of Advances including Festival advance and imposing "very good " condition for MACP are issued unilaterally .
Request of the JCM National Council Staff side Secretary to give one more opportunity to present it's case before the Allowance Committee is not conceded by the Finance Secretary, who is the Chairman of the Committee. The request of the JCM Staff side to modify the Terms of Reference of Anomaly Committee is also not yet considered by the Department of Personnel and Training. The Committee constituted for New Pension Scheme is only for streamlining the NPS by making some cosmetic changes as recommended by 7th CPC and not for considering the demand of the JCM Staff side to scrap NPS. Not even a single demand of the staff side submitted to Cabinet Secretary on 10th December 2016, requesting modifications in the recommendations of 7th CPC is settled by the Government.
The All India Conference of the Confederation of Central Government Employees & Workers held in August 2016 at Chennai had taken a decision to request all constituents of NJCA to revive the indefinite strike , if Government is not ready to honour it's commitment before 30th October 2016.  The AIC had further decided that, in case NJCA is not ready to revive the deferred indefinite strike, then Confederation should organise independent trade union action including strike. Confederation strongly feels that there in no meaning in waiting indefinittely for Government's decision. We cannot cheat the employees like NDA Government. As no consensus decision could be taken in NJCA, Confederation had decided to  go for one day strike and organised country wide demonstrations, mass dharnas and massive Parliament March. Strike notice for one day strike on 15th February 2017 was served on 28th December 2016. Due to announcement of assembly elections in five states by Election Commission of India and 15th February being a polling day, the strike was postponed to 16th March 2017.
Intensive campaign and mobilisation is going on in full swing all over the country. About 13 to 15 lakhs Central Government employees will participate in the strike, with the full support and solidarity of about 34 lakhs pensioners, Central Trade Unions, independent Federations of State Government employees, Bank and Insurance employees and other public sector employees.
After reviewing the participation of employees in the one day strike, Confederation shall explore the possibility of declaring higher form of trade union action including indefinite strike .

M. KRISHNAN 
Secretary General
Confederation 
Mob & WhatsApp : 09447068125
Email : mkrishnan6854@gmail.com

AGAIN ASSURANCES - Cabinet Secretary assured to resolve the pending issues at the earliest in NJCA Meeting

WE DON'T WANT ANY MORE ASSURANCES --- WE WANT POSITIVE ACTION AND NEGOTIATED SETTLEMENT -- SEVEN MONTHS ARE OVER AFTER THE JUNE 30th ASSURANCES -- AGAIN SWEET WORDS AND ASSURANCES BY HON'BLE HOME MINISTER AND CABINET SECRETARY -- THIS TIME NO TIME FRAME --- PENSION COMMITTEE REPORT UNILATERALLY SUBMITTED TO CABINET WITHOUT REACHING ANY NEGOTITED SETTLEMENT WITH STAFFSIDE -- THE ONE AND THE ONLY POSITIVE RECOMMENDATION OPTION -1 FOR PENSIONERS IS GOING TO BE REJECTED -- FATE OF OTHER COMMITTEES MAY NOT BE DIFFERENT IF THERE IS NO NEGOTIATED SETTLEMENT --  ALLOWANCE COMMITTEE NOT YET CONCEDED THE DEMAND OF JCM STAFFSIDE SECRETARY FOR GIVING ANOTHER CHANCE FOR DISCUSSION -- NO NEGOTIATED SETTLEMENT ON ANY ISSUES -- GOVT MADE JCM FORUM ONLY A TALKING SHOP -- NEIROS ARE FIDDELING WHEN  ROME IS BURNING -- CENTRAL GOVT. EMPLOYEES AND PENSIONERS CANNOT BE FOOLED ANY MORE --  ENOUGH IS ENOUGH -- MAKE THE 16th MARCH 2016 ONE DAY STRIKE A THUNDERING SUCCESS.

FULL REPORT FOR DOWN LOAD

SOME MORE

Dear Comrades,


For the preliminary information to all our GDS Comrades & well-wishers, a gist of recommendations have been extracted from the GDS Committee Report submitted by Shri Kamalesh Chandra.
= Categories of GDS:

Present Nomenclature
Category
BRANCH POST MASTER
All Branch Post Masters
ASSISTANT BRANCH POST MASTER  
GDS  MD, GDS MC
DAK SEVAK
GDSSV,GDS PKR
, GDSMM
..
= Viability of GDS Post Offices:

New norms for calculation of GDS Pos are recommended.
Further Categorization of GDS POs based on proportion of Revenue / Expenditure
Category of GDS PO
Revenue Norm
Urban & Rural (Normal)
100% of its expenditure
Rural (special)
50% of its expenditure
..
Category
Colour
Proportion of Revenue to expenditure
A
Green
100% or more of prescribed form
B
Orange
75% to 99% of prescribed form
C
Pink
50% to 74.99% of prescribed form
D
Red
Less than 50% of prescribed form
=Workload assessment:

In place of point system, the Committee recommends the new wage payment system. The new system linked to revenue generation and not to work load.

= Rural Business Development and Marketing:

The Committee Recommended many items for successful realization of rural business potentials.

= Committee recommends to improve the accessibility, visibility and infrastructure of GDS POs.

PO are with 10’ X 10’ dimensions in ground floor.
Building owned by Gram Panchayat
Building owned by Central Govt or State Govt. ie.,schools or offices BPM’s own house
Proper rented accommodation in a busy place of the village
Building owned by NGOs.
With all furniture and power supply.
= Legal status of GDS:
The Committee observed that the matter is sub judice.
The Department should take suitable steps to increase security of job, prevent exploitation and increase income of GDSs so that they feel secure and live happily with in the GDS system and with the existing legal status.
= Terms and conditions of engagement.
The Committee recommends changes in Rule-3A.
Introduce voluntary discharge scheme on willing to leave the post before 65 years
Discharge from the service on the last day of the month.
Relaxation on limited transfer facility.
= Recommendations on wage structure and fixation of wages.
Committee recommends raising of minimum duty from 3 hours to 4 hours of all GDSs
Comparison : BPM = Postman
                        Asst. BPM & Dak Sevak = MTS
Minimum wage fixed at :
Rs.10,000- for 4 hours & Rs.12,000- for five hours. (Level-I)
Rs.12,000- for 4 hours & Rs.14,500- for five hours (Level-2)
Annual increase @ 3% on 1st January or 1st July
Wage matrix & Wage Level Table & Arrears calculation Table are given in detail.
= Allowances:
Dearness Allowance – no change
% of DA with regular employees – no change
Increased rate of DA – no change
Recommended allowances :
Composite Allowance
Cash Conveyance Allowance
Combined Duty Allowance
Children Education Allowance
Revenue linked Allowance for eligible BPMs
Risk & hardship allowance
Allowances to be withdrawn:
Office Maintenance Allowance
Fixed Stationery Allowance
Boat Allowance
Cycle Maintenance Allowance
Uttarakhand Allowance
Split Duty Allowance.
Composite Allowance Includes:
Rent for housing GDS PO, Rent for Accommodation, washing-repairs-maintenance of premises, furniture, stationery charges, electricity usage charges for office, Mobile / Telephone usage charges, Boat Allowance/ CMA/ TA, Hospitality charges for drinking water, other incidental charges.
=Performance Related Incentive
Revenue linked allowance along with the present system of incentives with automatic payment at the end of each month.
= Ex-gratia Bonus:
Dept should re-examine the formula for payment of bonus and ex gratia bonus with reference to the share of revenue generated by the departmental as well as GDS POs.
= Methods of engagement
Method of selection : on line method engagement should be introduced.
Recruiting Authority : appended to the GDS (Conduct & Engagement) Rules, 2011
Qualification :SSC/SSLC from State Board/CBSE/ICSE with certificate course or diploma course in IT
Knowledge of local language.
Maintenance of Reservation roster at divisional level.
Stop the security in the form of FG bonds, introduce 5 year TD or NSC as security.
= Career Progression
There is need to increase the Direct Recuitment quota of GDS in Postman & Mail Guard because of large working strength of GDS and to provide them with better opportunities for getting into departmental posts.
 Introduce a guaranteed special increase in wages after 12, 24 & 36 years of service with two annual increases.
Designation of GDSs should be changed after each financial upgradation.
=Leave & substitute arrangement:
Paid leave should be renamed as ordinary leave and enhanced from 20 to 30 days in a year.
Introduce Encashment of Ordinary leave.
Introduce ‘emergency leave’ for 5 days in a calendar year, but no carry forward.
No full time substitute will be engaged.
Women GDS – 26 weeks of maternity leave and paid from salary head.
Paternity leave for 7 days.
= Disciplinary Rules:
Department  should add a new punishment of ‘compulsory discharge from the service’ in the list  “major penalties’ and the content of Rule-9 of GDS (Conduct & Engagement)Rules 2011.
= Social Security Schemes:
Severance Amount : @ Rs.4,000 from 01-01-2016 for every completed year of service subject to maximum of Rs.1,50,000-.
Service Discharge Benefit Scheme (SDBS):
GDS contribution should be revised as minimum of 3% and maximum of 10%  of the basic wage per month.
Department contribution should be fixed as 3% of the basic wage.
Bring the GDS under the purview of Gratuity Act with an upper limit of Rs.5,00,000-
Group Insurance Scheme : enhance the rate of monthly subscription by Rs.500 per month with insurance coverage of Rs.5,00,000-.
 =Welfare Schemes:
GDS CWF subscription should be enhanced from Rs.20- to Rs.100- pm.
Department grant should be enhanced from Rs.100- to Rs.300- PA.
Point system should not be applied to the compassionate appointment of dependents of GDS.
Photo identity cards to all GDS with free of cost.

MAJOR RECOMMENDATIONS OF GDS COMMITTEE

MAJOR RECOMMENDATIONS OF THE GDS COMMITTEE
The Committee’s major recommendations are summarized below.
1.      The old system of payment of Time Related Continuity Allowance (TRCA) is dispensed with and replaced with a new wage payment system. Under the new wage payment system, 11 TRCA slabs are subsumed into 3 Wage Scales with two Levels each for BPMs and for other than BPMs One wage scale would be common for both the categories of GDSs.
New Wage Scales
1. 10,000               -           24,470 (Other than BPM Level 1)
2. 12,000               -           29,380 (Other than BPM Level 2 & BPM Level 1)
3. 14,500               -           35,480 (BPM Level 2)
2.      The minimum working hours of GDS Post offices and GDSs is increased to 4 hours from 3 hours.
3.      The new working hours for GDS Post Offices will be 4 hours and 5 hours only.
4.      The Level 1 GDS Post Offices/GDSs will have 4 hours as working hours and Level- 2 will have 5 hours as working hours.
5.      The Point System for assessment of workload of BPMs has been abolished.
6.      The new wage payment system is linked to revenue generation of GDS Post Offices. Under the new system, there will be no increase in wages of BPMs from Level – 1 to Level – 2 on the basis of workload but the same will be increased based on achievement of prescribed revenue norms which is fixed at 100% for normal areas and 50% for special areas which presently have 15% anticipated income norms.
7.      The GDS Post Offices not achieving the prescribed revenue norm within the given working hours will have to open GDS Post Offices for minimum of additional 30 minutes beyond the prescribed working hours.
8.      The GDSs BPMs will be paid Revenue Linked Allowance @10% beyond Level 2 wage scale if they will be successful in achieving revenue beyond prescribed norms.
9.      The GDS Post Offices has been categorized into A, B, C and D categories based on the revenue generation norms. The GDS Post Office in A category will achieve 100% revenue. The Committee has recommended a set of actions for each category of GDS Post Offices.
10.  The six approved categories of GDs are subsumed into two categories only. One category will be Branch Post Master and all other 5 categories of GDSs are subsumed into one Multi Tasking Category.
11.  The job profile of Multi Tasking GDS is expanded to include work such as Business Development and Marketing etc. Their jobs will no more be confined to their old designations. The Assistant BPM will assist BPMs for increasing revenue generation.
12.  The GDSs working in the GDS Post Offices will be known as Assistant Branch Post Master (ABPMs) and those working in the Departmental Post Offices will be known as Dak Sevak (DS).
13.  The minimum wage has been increased to Rs.10000/- per month and maximum to Rs.35,480/- per month.
14.  The rate of annual increase is recommended as 3%.
15.  A Composite Allowance comprising of support for hiring accommodation for GDS Post Offices as well as mandatory residence, office maintenance, mobile and electricity usage charges etc. has been introduced for the first time.
16.  Children Education Allowance @ Rs.6000/- per child per annum has been introduced for GDSs.
17.  Risk & Hardship Allowance@ Rs.500/- per month for GDSs working in the special areas has also been introduced.
18.  A Financial upgradation has been introduced at 12 years, 24 years and 36 years of services in form of two advance additional annual increases.
19.  The Celling of ex-gratia gratuity has been increased from Rs.60,000 to Rs.5,00,000/-.
20.  The GDS Contribution for Service Discharge Benefit Scheme (SDBS) should be enhanced maximum up to 10% and minimum up to 3% of the basic wage per month, whereas the Department should contribute a fixed contribution of 3% of the basic wage of the GDSs.
21.  The coverage of GDS Group Insurance Scheme has been enhanced from Rs.50,000/- to Rs.5,00,000/-.
22.  The contribution of Department in Circle Welfare Fund (CWF) has been increased from Rs.100/- per annum to Rs.300/- per annum.
23.  The scope of CWF is extended to cover immediate family members such as spouse; daughters, sons and dependent daughters in law in the scheme.
24.  The Committee also recommended 10% hike in the prescribed limits of financial grants and assistance in the Circle Welfare Fund.
25.  The Committee has recommended addition of Rs.10,000/- for purchase of Tablet/Mobile from the Circle Welfare Fund in the head “Financial Assistance from Fund by way of loans with lower rate of interest (5%)”.
26.  Provision of 26 weeks of Maternity Leave for women GDSs has been recommended.
27.  The wages for the entire period of Maternity Leave is recommended to be paid from salary head from where wages of GDSs are paid.
28.  The Committee has also recommended one week of Paternity Leave.
29.  The Committee has recommended 5 days of emergency leave per annum.
30.  Leave accumulation and encashment facility up to 180 days has been introduced.
31.  Online system of engagement has been recommended.
32.  The maximum age limit of 50 years for Direct Recruitment of GDSs has been abolished.
33.  Minimum one year of GDS service will now be required for GDSs for Direct Recruitment into Department cadres such as MTS/Postman/Mail Guard.
34.  Alternate livelihood condition for engagement of GDSs has been relaxed.
35.  Voluntary Discharge Scheme has been recommended.
36.  The Discharge age has been retained at 65 years.
37.  The Limited Transfer Facility has been relaxed from 1 time to 3 times for male GDSs. There will be no restriction on number of chances for transfer of women GDSs. The power for transfer has been delegated to the concerned Divisional head.
38.  The ex-gratia payment during put off period should be revised to 35% from 25% of the wage and DA drawn immediately before put off.
39.  The Committee has recommended preferring transfer before put off duty.
40.  The Compassionate Engagement of GDSs has been relaxed to give benefits to eligible dependents in all cases of death of GDS while in service.

Saturday, January 14, 2017

GDS COMMITTEE REPORT

MINISTER GRANTED PERMISSION TO PUBLISH THE GDS COMMITTEE REPORT WITH THE CONDITION THAT THE ELECTION COMMISSION'S APPROVAL SHOULD BE OBTAINED BEFORE PUBLISHING THE REPORT.

Today Directorate has informed the Secretary General, NFPE that Hon'ble Minister of Communications has granted permission to publish the GDS Committee Report with a condition that Election Commission's approval should be obtained before publishing the Report.
Directorate has also informed that they will meet the Election commission on 16th January (Monday) and submit the letter seeking approval for publishing the GDS Committee Report.

Wednesday, January 11, 2017

ALLOWANCE COMMITTEE MEETING TODAY !

MARITAL STATUS CERTIFICATE GIVEN BY WIDOWS OF DECEASED EMPLOYEES CAN BE SELF CERTIFIED

No.1/1/2016-P&PW (E)/23913
Government of India
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioners’ Welfare

3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi
19th December, 2016
OFFICE MEMORANDUM

SUB:       CERTIFICATE OF RE-MARRIAGE/MARRIAGE—REG.


            The undersigned is directed to refer to Annexure XXVI of the Scheme Booklet of the O/o CGA, which is a proforma for Certificate of Re-marriage/Marriage. As per the Scheme Booklet, this certificate is to be submitted once every six months in May and November by widowers and unmarried daughters; this is required to be countersigned by a responsible officer or a well-known person.

2.         This department has received request from Pensioners Union of Railway Employees, Chennai. (copy enclosed) stating that the widows of the deceased ’employees are required to submit the certificate countersigned by a responsible officer or a well-known person. More often the widow, when approaches the show-called responsible officer/well-known person, are being harassed. They feel that the present stipulation of getting counter signature is not only unwarranted but also an affront to the womanhood in the context of atrocity against women rampant in the country. This is inconsistent with acceptance of certificates with self-attestation.

3.         Therefore, the Union has requested to eliminate the provision of counter signature from others duly accepting self attested certificates.

4.         This department has also received representations against revision for submission of these certificates every six months, which had been forwarded to the CPAO for further necessary action. as general references.

5.         This department has already allowed submission of self-certificate for non-marriage and declaration of income vide OM dated 21st July, 1999, re-iterated vide OM dated 8th December, 2011 and 20th September, 2012 (copies available at www.persmin.nic.in) Rule 54 of CCS (Pension) Rules, 1972 has been amended to allow submission of marital and income certificates only once a year.

6.         In view of the foregoing, Central Pension Accounting Office, Department of Ex-servicemen Welfare and Ministry of Railways are requested to make suitable changes to their respective forms for the above certificate.
(D.K.Solanki)
Under Secretary to the Government of India

INCOME-TAX RULES AMENDED TO PROVIDE THAT BANK SHALL OBTAIN AND LINK PAN OR FORM NO. 60 (WHERE PAN IS NOT AVAILABLE) IN ALL EXISTING BANK ACCOUNTS (OTHER THAN BSBDA) BY 28.02.2017.

Press Information Bureau

Government of India

Ministry of Finance

08-January-2017 18:17 IST

 

            Income-tax Rules amended to provide that bank shall obtain and link PAN or Form No. 60 (where PAN is not available) in all existing bank accounts (other than BSBDA) by 28.02.2017.


            Income-tax Rules have been amended to provide that bank shall obtain and link PAN or Form No. 60 (where PAN is not available) in all existing bank accounts (other than BSBDA) by 28.02.2017, if not already done. In this connection, it may be mentioned that RBI vide circular dated 15.12.2016 has mandated that no withdrawal shall be allowed from the accounts having substantial credit balance/deposits if PAN or Form No.60 is not provided in respect of such accounts. Therefore, persons who are having bank account but have not submitted PAN or Form No.60 are advised to submit the PAN or Form No. 60 to the bank by 28.2.2017.


            The banks and post offices have also been mandated to submit information in respect of cash deposits from 1.4.2016 to 8.11.2016 in accounts where the cash deposits during the period 9.11.2016 to 30.12.2016 exceeds the specified limits.


            It has also been provided that person who is required to obtain PAN or Form No.60 shall record the PAN/Form.No.60 in all the documents and quote the same in all the reports submitted to the Income-tax Department.


            The notification amending the relevant rules is available on the official website of the Income-tax Department i.e. www.incometaxindia.gov.in

Source: PIB   DSM/MS  (Release ID :156211)


(CLICK THE LINK BELOW TO VIEW NOTIFICATION )