Minutes of the meeting of the Sub-Committee-III to suggest measures for streamlining implementation of the National Pension System with employees’ Associations held on 10.02.2017 at Lok Nayak Bhawan, New Delhi
Are arrears of salary taxable? – Income Tax FAQ
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? Are all allowances taxable?
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.
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, 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.
Rulings for Issuing Duplicate NSC Certificate at Post Office Counter
1. Filled Form-NC29 for the Issue of Duplicate Certificate
2. Statement showing the details of NSC– such as number, amount and the
date of certificate and the circumstance attending such loss, theft,
destruction, mutilation or defacement.
3. Bond of Indemnity – In case of mutilated or defaced certificates, no
indemnity bond is required. But for lost, stolen, destroyed, you also
need to submit bond of indemnity. You also need to furnish an indemnity
bond in the prescribed form with one or more sureties or with a bank
guarantee is required.
A- Bond of Idemnity (Form NC-54(a))
This form is used for issuance of a duplicate National Savings certificate(s) in lieu of lost, misplaced, spoiled or mutilated certificates.
B- Bond of Idemnity (Form NC-54(b))
This bond of indemnity is to be executed for the issue of a duplicate certificate(s) in lieu of lost, misplaced, spoiled or mutilated certificates with a Bank guarantee.
C- Bond of Indemnity (Form NC-61)
This bond of indemnity is to be executed at the time of discharge of original certificates or Issue of duplicate certificate(s) in lieu of lost, misplaced, spoilt, destroyed, defaced or mutilated certificate (s), where original application for purchase is missing.
4. Copy of FIR – If the Certificate is lost, stolen, destroyed.
5. Identification Document of Surety – e.g. Valid Indian Passport, Indian Driving License, Salary Certificate of the Surety.
6. Payment Receipt of Fees for Issue of Duplicate Certificates (Fee Rs.5)
If the officer-in-charge of the post office of registration is satisfied
of the loss, theft, destruction, mutilation or defacement of the
certificate, he shall issue a duplicate certificate on the application.
Things you should Know
A duplicate NSC certificate shall be treated as equivalent to the
original certificate for all the purposes of these rules except that it
shall not be encashable at a post office other than the post office at
which such certificate is registered without previous verification.
VERY GOOD” BENCH MARK FOR MACP AND DENIAL OF PROMOTIONAL HIERARCHY
Eversince,
the MACP scheme was introduced in 2008, confederation and the JCM staff
side has been demanding promotional hierarchy instead of grade pay
hierarchy. Govt, instead of considering this genuine demand, suddenly
issued orders imposing “very good” bench mark condition for MACP. The
JCM staffside was not even consulted. JCM staff side, secretary wrote a
letter to cabinet secretary on 28-07-2016 as follows:
“The Govt. has accepted one of the adverse recommendations of 7th CPC
without holding any consultation with the staff side. The recommendation
of the 7th CPC regarding bench mark for performance appraisal for
promotion and financial upgradation under MACPs, to be enhanced from
“Good” to “very good”, has been accepted by the Govt. without
considering the implication on the morale of the Central Government
employees… We are of the firm opinion that Govt. should reconsider their
decision on the above issues and we request you to kindly withdraw the
same.”
Subsequently the case was discussed in the JCM standing committee
meeting also on 25-10-2016, as an agenda item given by staff side.
Inspite of all these, the Government is not ready to withdraw or modify
the orders.
This shows the attitude of the BJP led NDA Govt. towards JCM staff side and Central Govt. employees.
Apply for passports at select post offices from next month
From next month, people in select cities will be able to apply for
passports in post offices under an ambitious initiative of the External
Affairs Ministry. This is aimed at making the passport issuance process
hassle-free and ease burden on passport offices across the country which
are grappling with large volume of applications. In the first phase of
the project, passport services will be made available in select post
offices in Rajasthan, West Bengal, Tamil Nadu, Karnataka and Jharkhand
and some other states.
The External Affairs Ministry, which issues passports, is making all
required arrangements for roll-out of the scheme in some of the select
cities in first half of March. Currently, 89 Passport Seva Kendras (PSK)
are operating across the country as extended arms of the 38 Passport
Offices. According to the MEA, the government rendered 1.15 crore
passport and other related services during 2016.
In Rajasthan, passport services will be available in Kota, Jaisalmer,
Bikaner, Jhunjhunu and Jhalawar while in West Bengal it will be in
Asansol, Nadia, North Dinajpur North Kolkata. In Jharkhand, services
will be offered in Deoghar, Jamshedpur and Dhandbad. “It is our effort
that Post Office Passport Sewa Kendras announced in the first phase
should start functioning before 31.3.2017,” External Affairs Minister
Sushma Swaraj tweeted.
In Tamil Nadu, passport services in post office will be rolled out in
Salem and Vellore while in Karnataka, it will be in Belgaum, Davangere,
Hassan, Gulbarga and Mysuru. According to MEA, the objective of the
government has been to cater to the demand for passports and to reach
out to the people located far away from the passport offices. The MEA
had recently liberalised norms for certain categories of citizens as
part of efforts to streamline the passport issuance process.
Cadre Restructuring of Group C, Hyderabad City Division Started
CADRE RESTRUCTURING OF GROUP-C , HYDERABAD CITY DIVISION STARTED:-
Difference between Tier 1 and Tier 2 Account
What is the difference between Tier 1 and Tier 2 Account in NPS? Many
Government employees or others subscribed to NPS. However, the majority
of them do not know what is the meaning and difference of Tier 1 and
Tier 2 Accounts of NPS.
Let us first brief about NPS.
- NPS or New Pension Scheme is a retirement product launched by Government of India. It is managed by PFRDA (Pension Fund Regulatory and Development Authority). This product helps you to create retirement corpus.
- Any citizen of India (whether resident or NRI) can invest in this scheme. The age of the subscriber must be within 18-60 years of age. However, an individual of unsound mind or existing members of NPS are not allowed to open new account.
- Therefore, an individual can open only ONE NPS account.
How to open NPS Account?
- You have to fill the application form and provide the relevant KYC documents at your nearest POP-PS (You will find the list in PFRDA portal).
- However, if you want to open new Tier 2 account, then the process is different. You have to approach POP-PS with copy of PRAN (Permanent Retirement Account Number) and Tier 2 activation form.
- The subscriber has to make the first contribution while opening the account. Minimum contribution for Tier 1 is Rs.500 and Rs.1, 000 for Tier 2.
- Note-Now you can open NPS account online and also contribution can be made it online through eNPS portal. Refer my latest post on the same “eNPS – How open and invest in NPS account online?“.
What are the investment choices?
- Asset Class E-Invests predominantly in the equity market. You may say high return and high risk.
- Asset Class C-Invests in fixed income instruments other than Government Securities. Risk is medium in this category.
- Asset Class G-Invests in Government Securities. So lower risk and lower return.
- Along with that, you have two different options to choose regarding allocation.
- Active Choice-You have the option to choose your investment among E, C or G asset classes. However, if you opted for E asset class, then the maximum equity exposure is 50% only.
- Auto Choice-If you don’t want to take active part in switching asset class, then PFRDA will do it according to your age. It is predefined.
- You can change both scheme preference and investment choices at any point of time. But it is allowed only once in a year.
- Please remember that there is no ASSURED RETURN from NPS.
- Your retirement fund will be managed by fund managers appointed by PFRDA. Currently there are six fund managers. They are as below.
- ICICI Prudential Pension Funds Management Company Limited, Kotak Mahindra Pension Fund Limited, Reliance Capital Pension Fund Limited, SBI Pension Funds Limited, UTI Retirement Solutions Limited, and Annuity Service Provider (ASP).
- You can change your fund manager at any point of time. This change is allowed only one time in a year.
- Along with that, PFRDA tied with IRDA approved Life Insurance companies to pay the pension once the subscriber reaches 60 years of age. They are as below.
- Life Insurance Corporation of India, SBI Life Insurance Co. Ltd., ICICI Prudential Life Insurance Co. Ltd., Bajaj Allianz Life Insurance Co. Ltd., Star Union Dai-ichi Life Insurance Co. Ltd., Reliance Life Insurance Co. Ltd. and HDFC Standard Life Insurance Co. Ltd.
Following conditions apply:
- Subscriber is not covered under employer assisted retirement benefit scheme and also not covered by social security schemes under any of the following laws:
- Employee Provident Fund and Miscellaneous Provision Act, 1952
- The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948
- The Seamen’s Provident Fund Act, 1966
- The Assam Tea Plantation Provident Fund and Pension Fund Scheme Act, 1955
- The Jammu & Kashmir Employee Provident Fund Act, 1961
- Subscriber contribution in NPS is minimum Rs. 1000 and maximum Rs.12000 per annum, for both Tier1 and Tier II taken together, provided subscriber makes minimum contribution of Rs.1000 per annum to his Tier 1 account
- Based on the limitations mentioned above, I think most people reading this blog will be ineligible.
How to exit from NPS?
Once you attain the age of 60 years, you can withdraw up to 60% of
accumulation as lump sum and rest 40% will be converted into pension.
If you want to exit from NPS before 60 years of age, then you are
allowed to withdraw only 20% accumulated amount. You have to buy a
pension product with that 80% fund.
However, in case the death of the subscriber, a nominee is allowed to withdraw 100% of NPS.
I wrote a post on recent changes about new withdrawal of exit rules of NPS. Refer below post.
National Pension System (NPS)-New Partial Withdrawal and Exit Rules
This is the brief about NPS.
Let us come back to the main purpose of this post. I tried to put it the difference in below image.
Note-
-As per recent PFRDA circular dated 8th August, 2016, the minimum
contribution in Tier 1 Account is now reduced to Rs.1,000 a year. There
will be no minimum investment limit for Tier 2 account (Earlier, it was
Rs.250). Also you no need to maintain the minimum balance in Tier 2
account (Earlier, it was Rs.2,ooo).
-From Budget 2016, the 40% withdrawal at the time of your retirement
from NPS will be tax-free. Rest 60% of the corpus will be treated
taxable income as per old rules. Hope this above table cleared your
doubts.
Conclusion-You notice that when it comes to taxation, NPS is one of the
worst products. Everybody concentrating on the tax benefits of NPS while
investing. However, they forget the tax issues at retirement or at
withdrawal. Along with that, liquidity is an issue with NPS. For
Government employees and corporate employees, no option but to invest.
Revision of Minimum Pay, Fitment Formula – High Level Committee not yet Constituted – Confederation
While deferring the indefinite strike from 11th July 2016, as per the
assurance given by the Group of Ministers, the NJCA in its statement
dated 06-07-2016, stated as follows:
“The committee set up to look into the matter of minimum wage and
fitment formula is expected to submit their report to the Government in
the given time frame of not more than four months”.
Finance Ministry’s press statement issued on 06-07-2016 also stated as
follows: “The Ministers assured the Union leaders that the issues raised
by them would be considered by a High Level Committee”.
After one month, the NJCA wrote letters on 28-07-2016 to Hon’ble Home
Minister, Finance Minister, Railway Minister and Cabinet Secretary in
which it conveyed the following:
“It is a matter of concern that, despite elapsing of a pretty long time,
nothing has been heard in this regard from the Government of India,
which is leading to serious resentment amongst the Central Government
employees.”
Again after two months the JCM staff side, Secretary, wrote a letter on
12-08-2016, to Shri. Arun Jaitely, Finance Minister – “We are expecting a
quick action on the part of the Government to operationalise the
assurance of setting up a High Level Committee to go into the Minimum
Wage, Multiplication factor etc. However, we are disappointed that even
after a lapse of more than a month, no orders have been issued by the
Government in this regard ………. we therefore appeal to you that the
concerned authorities may be asked to expedite the issuance of orders
setting up the committee and finalisation of the report within the
available time of remaining three months.”
A group of Senior Officers invited the JCM staff side on 30-08-2016 to
discuss the grievances arising out of the recommendations related to 7th
CPC. No High Level Committee was constituted and no terms of reference
was notified. The second meeting with Group of seniors was held
on24-10-2016.
Eventhough the group of senior officers held two round of discussion
with JCM staff side, surprisingly they had not come prepared to discuss
increase in minimum wage and fitment formula. They made a mockery of the
meeting by disclosing in the first meeting that they are not fully
aware of the details of the issues to be discussed and in the second
meeting they told that they came for discussing allowances (though
another committee under the chairmanship of Finance Secretary is
constituted for allowances) and not minimum wage and fitment formulas.
The JCM staffside leaders felt humiliated.
After that meeting, the JCM staffside wrote the following letter on 26-10-2016, to Hon’ble Finance Minister…..
“We (staff side) interacted with the said committee headed by Shri. P.
K. Das, Addl. Secretary (Expenditure) on 24-10-2016. It would be quite
appropriate to bring to your kind notice that, we have felt, during the
course of meeting, that the proceedings of the committee are extremely
disappointing and are left with the impression that committee is
dilly-dallying the issue…we are, therefore, left with no option, but to
address this communication with the fervent hope that, your goodself
will direct the said committee to interact with the staff side in a
fruitful manner and arrive at a mutually agreeable proposal on the issue
of minimum pay and fitment formula…. We have full trust and believe
that, the Government would honour the decision taken in the meeting held
on 30-06- 2016 in your benign presence and suitable direction will be
given to the committee to complete the assigned task within the
stipulated time frame in a satisfactory manner…. It would be the most
unfortunate development, we regret to state, if we are constrained to
tread the path of struggle once again in the event of the committee not
coming up with a satisfactory settlement.”
Inspite of all these, after that (ie after 24-10-2016) no meeting of the
group of senior officers was held and no discussion on minimum wage and
fitment formula took place. The four months time fixed for the High
Level Committee (which is yet to constituted) expired on 30-10-2016.
Government has gone back from the most important assurance given to the
NJCA leaders on 30-06-2016 by the Group of Cabinet Ministers. NJCA
decided to defer the strike mainly because of this assurance of the
Govt. that the Minimum pay and fitment formula will be enhanced. Now
that Govt. has gone back and betrayed the entire Central Govt. employees
and pensioners. NJCA has no other option but to revive the indefinite
strike.
Source: http://confederationhq.blogspot.in/
Recruitment Rules of Indian Postal Service, Group 'A'
Click below link to download
CONFEDERATION NATIONAL SECRETARIAT CALLS UPON ALL CENTRAL GOVERNMENT EMPLOYEES
Observe 6th March 2017
as
BLACK DAY
v Against the betrayal of Central Government employees and pensioners by Group of Ministers of NDA Government.
v Demanding increase in minimum pay and fitment formula.
Dear comrades
We know that all of you are in the midst of hectic preparation and campaign for making the 16thMarch
Strike action a great success. As has been explained in the article,
which we have placed on our website, the NDA Government, led by BJP has
exhibited the worst anti-employee attitude in the post independent era
of our country. This Government has treated its own employees as its
worst enemy. The decision taken by the Union Cabinet on 29th June,
2016 rejecting even the recommendations made by the high level
committee chaired by the Cabinet Secretary was unprecedented. Even the
setting up of various committees was nothing but an eye wash. Nothing
will come out of that. Even the NPS Committee on which the young
comrades had pinned some hope of at least getting a minimum guaranteed
pension will produce nothing. The discussions at the JCM fora has been
converted into mostly monologues i.e. the official side simply listening
and not reacting. The Government, it appears, has made the Pension
department to reject the one and only recommendation of the 7th CPC
which was considered to be positive i.e. Option No.1 for pensioners on
the specious ground that the same is not feasible to be implemented. The
allowances committee has dilly dallied its deliberation and would now
submit its report after the extended period of 6 months expires on
22.02.2017. Even if they make any positive recommendation, which is
seldom expected, the NDA Government would not act upon it. They have
very successfully postponed the payment of the revised allowanced for 15
months.
In the face of such terrible onslaught, betrayal and chicanery, which
no Government in the past has every indulged in, it is surprising that
some of our friends who has a predominant role in the movement of the
Central Government employees has unfortunately chosen to wait and
watch. It appears that they have chosen to wait endlessly hurting the
cause of the workers.
We have no hesitation to affirmatively state the obvious that we have
chosen the right path, the path of struggles, which can only the choice
of the working class against tyrannical attitude of the employer,
howsoever, powerful they may be. We must realize that those who are in
the saddle of power today are not permanently posted there. We were
witness to the abysmal downfall of persons who were arrogant
personified. It appears that the reasonableness, righteousness and
patience we had exhibited have been taken as signs of cowardice. The
undeniable fact is that those who fight, only can win. We, therefore,
appeal to you to carry on with conviction and courage.
Eight months will be over on 6th March,
2017, when the Group of Ministers held out the assurance of revisiting
the minimum wage and multiplication factor. It is now crystal clear
that that was an act of chicanery. No committee was set up and no
discussions were held to seriously consider the issue. We, therefore,
appeal to all of you to ensure that the day, i.e. 6thMarch, 2017 is
observed as a day of betrayal and all our members are requested to wear
a Black badge with the following words inscribed on it in bold letters
and conduct demonstrations in front of all Central Government offices.
HONOUR THE COMMITMENT MADE ON
30th June & 6th JULY, 2016
REVISE THE MINIMUM WAGE AND
MULTIPLICATION FACTOR
6TH March 2017 must be yet another occasion to mobilize our members to ensure their participation in the 16th March, 2017 strike action and ultimately win all the demands in the charter.
We fight to win and we shall win.
With greetings,
Yours fraternally,
(M Krishnan)
Secretary General
Confederation
Mob: 09447068125
Email: mkrishnan6854@gmail.com
RBI Result of Direct Recruitment of Officers in Grade “B” (General) – BY – 2016
Reserve
Bank of India (RBI) has published Result of Direct Recruitment of
Officers in Grade “B” (General) – BY – 2016, Check below for more
details.
Result of Direct Recruitment of Officers in Grade “B” (General) – BY – 2016
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