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Tuesday, January 28, 2014

Kendriya Vidyalaya -5-day week plan wef 2014-15

5-day week plan for Kendriya Vidyalaya kids
Kids, maybe its time to say “Yay”!
Some five lakh children studying in classes I to V in about 1,100 Kendriya Vidyalayas in the country may get two days off every week instead of only Sunday from the coming academic year.
 
The board of governors of the Kendriya Vidyalaya Sangathan (KVS) will meet tomorrow to consider a proposal to switch to a five-day-week schedule for children in these classes from 2014-15.
 
The new schedule may not be applicable for teachers.

An expert committee set up by the KVS had suggested the change to conform to a provision under the Right to Education (RTE) Act, which provides for 200 days of schooling for children in primary classes and 220 days for kids in upper primary classes.
 
If approved, the new schedule will give students more time for self-paced learning and pursuing hobbies, a KVS source said. The six-day-week schedule will remain unchanged for upper-primary classes (VI to VIII).
 
The KVS is also planning to prescribe 45 hours of work in a week for teachers, in line with the RTE Act. Now, a teacher in a Kendriya Vidyalaya puts in 37 hours a week.
 
A source, however, said the board of governors, headed by human resource development minister M.M. Pallam Raju, might not approve the 45-hour plan.
Source : The Telegraph.

Monday, January 27, 2014

Republic Day parade in Mumbai


Army refuses to be led by cops on Republic Day parade in Mumbai




MUMBAI: With the state planning an extravagant show on Marine Drive for the first time, the army and the navy have managed to completely sideline the police in their own state capital.

The top brass of Maharashtra police is miffed with the state government for submitting to what they call the armed forces' "unreasonable diktat" to marginalize the state police's role in tomorrow's
Republic Day Parade.

The Republic Day Parade is happening on Marine Drive for the first time this year. Till last year, only the navy and the police used to participate and the parade was led by a police officer. This year, the state government wanted an extravagant parade on the promenade and decided to include the army and air force and a display of their artillery.

Sources in the know said the navy agreed to participate on the condition that only a defence officer will lead the parade, while a police officer could be the second lead.

After the state agreed to this condition, the army stepped in, saying the armed forces contingent will not march under the leadership of a police officer, even if he was the second lead. The state, sources said, meekly agreed to this condition also. The navy then delivered the final blow, compelling the state to discontinue the traditional ceremony of distributing medals to police personnel during the parade.

The state police was stunned by this sharp departure from the nation-wide tradition of parades in state capitals being led by the local police. Till late on Friday, the police bosses were so miffed that they were bent on withdrawing the police contingent from the parade.

But top bureaucrats intervened and convinced the state police to acquiesce to the armed forces' demands, resulting in discontent in the police rank and file against the state government for the shabby treatment.

"The naval contingent never objected to a police officer leading the parade till now," said a senior IPS officer who did not want to be named.

"Thus, though we were surprised by their demand that they will lead the parade, we agreed to it. But the navy's second demand was outrageous and unacceptable. They forced the state to discard the traditional ceremony of presentation of medals to policemen. Then the army came in and deprived the police of the second lead also. Worse, the government agreed to all these things despite the strong objection of top police officers."

Sources close to state Home Minister RR Patil said he was kept in the dark about the developments. They said he, too, lodged a strong protest during the cabinet meeting on Wednesday when he was informed about the plan.

But state government officials insisted there was nothing wrong with the arrangements. "I attended the full dress rehearsal on Friday morning and I feel there is no problem," said Chief Secretary JS Saharia.

Protocol Minister Suresh Shetty and additional chief secretary (protocol) Sumit Mallick refused to comment on the issue. Director General of Police Sanjeev Dayal was not available for comment.

Lieutenant General P R Shankar, commanding officer, Maharashtra-Gujarat-Goa, told Mumbai Mirror, "We will follow the same protocol as is done for the Republic Day parade in Delhi. There will be no deviation from it."

Thirty-four platoons, including 10 from the police and 10 from the armed forces, will participate in the parade.

Personnel of the Central Industrial Security Force, the state excise department, school students and differentlyabled children will also participate.

While the army will parade its artillery, the air force will deploy a lone helicopter and the navy will line up its fast attack craft along Marine Drive.

Thursday, January 23, 2014

Remittance of NPS funds solely through electronic mode

Remittance of NPS funds solely through electronic mode (NEFT/RTGS) from 01st April 2014: PFRDA Circular -
 
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY
 
 
PFRDA/2014/01/CSG/1
 
Date: 09th January 2014
To,

 All Central Government Ministries & State Governments

Dear Sir/Madam,


Remittance of NPS funds solely through electronic mode (NEFT/RTGS) from 01st April 2014

 1. The Circulars no. PFRDA/2013/10/CRTB/1 dated 30th April 2013 and PFRDA/2013/12/CRTB/2 dated 31″ May 2013 may be referred.

2. It has been observed that the following problems are presently being faced on account of remittance of NPS contribution funds through physical instruments:

a.) Higher percentage of rejection of contributions/ funds return

 b.) Delays due to cheque clearing activity

 c.) incidences of cheque rejection due to financial/ technical reasons.

3. All the aforementioned issues affect the timely investments of the subscribers thus adversely impacting their pension corpus accumulation. To obviate the aforesaid concerns, and in compliance of CVC instructions issued vide Office Order No. 20/4/04 File No. 98/ORD/1 dated 06-04-2004 PFRDA has decided to discontinue the remittance of NPS contribution funds through physical instruments and to accept remittance solely through electronic mode from 01st April 2014.

4. Accordingly from 01st April 2014 onwards, all the nodal offices remitting NPS contributions have to mandatorily remit NPS Contributions through electronic mode i.e. NEFT/ RTGS only.

5. The overall procedure for remittance of funds to Axis Bank (Trustee Bank), matching & booking of SubscriberContribution Files (SCFs) and the receipt of funds from it shall remain unchanged.

6. This circular may be sent to all the nodal offices under your jurisdiction for necessary action/ compliance.
7. The contact details of NPS Cell at Axis Bank is as follows:
First Level of Contact:
S No.Contact PersonDesignationPhone No.
1Mr Abhishek GautamSenior Manager022-24253678
2Mr Dakshesh BarbhayaSenior Manager022 24253639
3Mr Yash MayekarSenior Manager022 24253628

Second Level of Contact:
S No.Contact PersonDesignationPhone No.
1Mr Debraj SahaAssistant Vice President011 43506532
2Mr Piyush K SinghDeputy Vice President022 24253680
The Circular has also been placed on PFRDA website at http://www.pfrda.org.in
Yours faithfully,
sd/-
(Ashish Kumar)
General Manager
Source: https://www.npscra.nsdl.co.in/download/Remittance-Update.pdf

Wednesday, January 15, 2014

Merger of 50 percent DA may soon be considered by Central Government –Sources


 
 
Merger of 50 percent DA may soon be considered by Central Government –Sources
 
Sources close to the Central Government Employees Federations told that Merger of 50% DA will soon be considered by Central Government before the budget session of Parliament in February 2014. According to the sources, the central government is likely to consider the central government employees demand for merging of 50 % DA, for the reason that the DA will be crossing 100% level after January 2014.
 
The rate of dearness allowance to be paid to govt servants has been increasing consistently due to the rise in the prices of essential commodities for the past two years. In 2011 the rate of DA was at 50 % level. Since then all the Federation demanded the central government to merge the 50 Percent DA with basic Pay. But the government did not accept this demand to merge the DA with basis pay, as it was not recommended by sixth CPC.
 
The demand would be considered in view of parliament elections
 
But federations kept on demanding the government that raising dearness allowance alone will not help to compensate the alarming rate of price rice. So they urged the government to consider their demand favorably. It is believed that after the defeat in the election of four state legislative councils, the UPA government has decided to reconsider about its decision on the issues which directly affects the common public. The high command of the ruling party thought that the reason for their defeat in the state election is mainly because of their government failed to contain the price rise. The gap between common public and UPA government has been considerably increased. To correct these failures the UPA government decides to do something to attract the voters.
 
After announcing the government’s proposal to constitute the 7th pay commission, the community of central government employees has been convinced to have soft view on this government. Further the 50 lakh central government employees would be made happy if the 50% DA is merged with Basic Pay. It is told that , as the central government staff association and federations demanding it very seriously, in case the government decides go with this demand, there will be around one crore voters will be in favour of UPA government. So the government may consider the demand of merging of 50% DA with basic Pay in view of forthcoming Parliament elections.
 
Allowances will have no impact on merging DA with basic Pay
 
The sources, associated with National Council JCM, said that the government initially was not willing to consider this demand as some allowance and advances have been raised by 25% whenever the DA crosses 50% level as per the sixth CPC recommendation. But federations insisted that the allowances, which are raised to 25 % level when DA crosses 50%, will have no impact on merging DA with basic pay. The only allowance will have an increase when Basic Pay increases are HRA. No other allowances will be increased and other entitlement of the respective Grade Pay will not be revised as the 50% DA to be merged will be kept under separate component like it was treated in 5CPC as Dearness Pay. “There is no need to worry about financial implications, as the 50% DA will be paid by just changing its nomenclature as Dearness Pay”, said sources.
 
50% DA merger to be decalered before DA crosses 100%
 
Further, it has been informed that it is good enough for the government to announce its decision before declaring the next additional installment of DA. Because the AICPIN for Industrial workers for the Month of December 2013 is awaited to determine the rate of dearness allowance to be paid from January 2014.The result of last 11 months AICPIN shows that DA will definitely be raised by 10 % from existing 90% level. So the rate of DA will be 100% with effect from 1st January 2014. After the DA increased to 100%, the demand for 50% DA merger will have to change its avatar. Probably the demand would be for 100% DA merger. So the federations expect the government may consider 50% DA merger soon.
 
However, decision if any in this regard should be taken before the announcement of election for parliament. It is expected that election announcement for parliament will be made by the end of February 2014. Before that, the announcement of 50% DA merger is expected from central government.

48 hours nationwide strike on 12th &13th February 2014

 

Confederation declared 48 hours nationwide strike on 12th &13th February 2014 demanding settlement of 15 point Charter of Demands including DA Merger, Interim Relief...

Confederation declared 48 hours nationwide strike of Central Government Employees on 12th &13th February 2014 demanding settlement of 15 point Charter of Demands including DA Merger, Interim Relief...

CONFEDERATION OF CENTRAL GOVT. EMPLOYEES & WORKERS
      1st Floor, North Avenue PO Building, New Delhi – 110001
      Website: www.confederationhq.blogspot.com
            Email: confederationhq@yahoo.co.in

Circular No. 1

Dated 12.1.2014 
WORKERS ARE NOT BEGGARS

Dear Comrades,

Confederation declared 48 hours nationwide strike of Central Government Employees on 12th &13th February 2014 demanding settlement of 15 point Charter of Demands including DA Merger, Interim Relief, Inclusion of Gramin Dak Sewaks in 7th CPC, Regularization & Revision of wages for casual labourers, Date of effect of 7th CPC as 01.01.2014. Rescind the PFRDA Act etc.

Start campaign and preparation now onwards. Each Affiliated organization should issue separate circulars to all the State and District units and conduct Department wise campaign. Strike notice should be served by each organization to their Head of the department.

MAKE THIS STRIKE A THUNDERING SUCCESS

MASS DHARNA AT JANTAR  MANTAR, NEW DELHI on 9th JANUARY, 2014
In culmination of the first phase of our agitation programme a mass dharna was organized at Jantar Mantar, New Delhi on 9th January, 2014 in pursuance of the 15 point charter of demands.   As per the decision of the National Secretariat, all Secretariat members along with the leaders and workers of Delhi State was to take part in the Dharna.  However, quite a number of comrades from various other parts of the country volunteered to participate in the programme, despite the chilling weather conditions of Delhi, which reflected the growing determination of the rank and file of the workers to fight for the demands and to win the same. Com. K. K. N. Kutty National President presided. 

The Dharna was inaugurated by Com. S. K. Vyas,  Adviser, Confederation which preceded by a welcome speech delivered by Com. Vrighu Bhattacharya, Secretary, Delhi State Committee.  Leaders of almost all major affiliates of the Confederation and other Secretariat. Members addressed the participants.  Com. A.K. Padmanabhan, President, CITU while greeting the participants in the Dharna, stressed the need for a long and sustained struggle to win the demand. While concluding and congratulating the participants for the large turnout, Com. Secretary General said that a meeting of the National Executive of the Confederation is scheduled to meet on the next day.  He added that National Executive will evaluate the developments of the last few months and will decide upon the date of commencement of the impending strike action. The Dharna programme which was commenced at 11.00 AM was concluded at 3.00 PM, when Com. Parashar on behalf of the National Secretariat. Thanked the participants and the Delhi State Committee. 

National Sectt. Meeting on 9.1.2014
The Secretariat Members who took part in the Dharna programme met in an emergent meeting at 5.00 PM to finalise the proposal to be presented to the extended meeting of the National Executive the next day.  Com. Vyas narrated the efforts undertaken by him and the President to interact with the leaders of the AIRF and AIDEF to bring about a common approach both in the matter of 7th CPC and other issues in the charter.  When the Staff Side of the National Council met to finalize draft terms of reference, there had been few takers for the five year wage revision proposed by the Confederation.  He explained as to how the Confederation representatives had to agree with a compromise formula for the date of effect being 1.1.2014 (instead of 1.1.2011), with the clear understanding that the question of periodicity of wage revision of Central Government Employees must be a matter of contention before the 7th CPC.  Despite the overwhelming response from the Railway workers, (more than 90% is reported to have voted in favour of strike in the strike ballot conducted by AIRF) Com. Vyas said that the leaders of the Railway Federation have not indicated their willingness to pursue the demands with a strike action.  The Defence Federation leaders have also indicated that it would be difficult for them to pursue the issues with strike action, unless the same is organized under the auspices of a joint platform of all Federations of Central Government employees.

In the deliberations that followed the introductory remark of Com. Vyas, the following points emerged:
(a) The announcement of the setting up of 7th CPC by the UPA Government was to be considered as a ploy to obtain electoral mileage;
(b) The compulsion has been brought about by the Confederation through sustained struggles including the one day (12.12.2012) strike action.
(c) The need for organizing strike action before the commencement of the election process
(d) The leaders of the Confederation might make another attempt with the Railway and Defense Federations before the National Executive meeting.
(e) The possibility of inordinate delay in the setting up of the 7th CPC if not done before elections notified
(f) Apprehension was expressed by the participating comrades that the Government might go ahead and issues the requisite notification without taking into account the view points of the Staff Side contained in the draft terms of reference submitted.

The meeting, therefore, came to the conclusion that (a) the strike action is the need of the hour and must be organized before the election process commences; (b) the indefinite strike for which  the Secretariat had earlier taken decision must be attempted under the auspices of the joint platform of all Central Government Employees organizations; (c) the Secretary  General might make a proposal for two days strike in the first fortnight of the February for the consideration of the National Executive.(d) A few comrades were of the view that in view of the paucity of time for campaign etc, the proposed strike action might be in the last week of February; (e) fear of the election code of conduct coming into operation immediately after the Parliament session was also expressed by some comrades at the meeting.

The Secretariat authorized the Secretary General to present the proposal for two days strike in the first fortnight of February 2014 to the extended meeting of the National Executive. 

Extended meeting of the National Executive and decisions - 10.1.2014
The extended meeting of the National Executive was held at MP Club, North Avenue, New Delhi on 10.1.2014.  In the inaugural address, Com. S. K. Vyas, Advisor briefly placed the developments after the announcement of the setting up of the 7th CPC by the Government.  He particularly referred to the electoral reverses of the UPA in the five State Assembly elections held in November/December, 2013. He considered the electoral reverses as an expression of anger of the common man against the policies pursued by the UPA-II Government. He advised the members to take note of the inescapable conclusion emanating from the election result that the common man given an opportunity will throw out the perpetrators of injustice and anger agony on them.  According to him, whoever follows the neo liberal policies are bound to be the victim of the ire of the working people. 

He then narrated the course of discussions on the terms of reference both at the Staff Side meeting as also at the official meeting chaired by the Secretary Personnel.  In his opinion, the Government may not accept any of the suggestions made by the Staff Side unless it is backed up by sustained struggles. The very announcement of the Pay Commission itself was due to the compulsion brought about by the Confederation and its affiliates through struggles.  He reminded the comrades that the Government had consistently refused to meet in the JCM at the National and Departmental levels. The negotiating machinery has almost been closed down.  He said that whenever the meeting takes place, it was with a clear view to defer decisions on the legitimate demands of the employees.  He also explained the efforts undertaken by the Confederation leaders to bring about a united platform of all organizations participating in the JCM in the background of the nugatory attitude of the Government and its failure.  He added that in the given circumstances, hoping for the emergence of a joint platform would be a grave mistake and the Confederation as had been its historical approach, must pursue the charter of demands, which include the setting up of the 7th CPC, through a strike action. 

Com. Secretary General presented the proposal emerged at the meeting of the Secretariat a day before, i.e. on 9th and the various viewpoints that came up for consideration at the meeting.  While presenting the proposal he asserted that the announcement of the 7th CPC has come about only on account of the initiative taken by the Confederation. He recalled how the Confederation leaders were ridiculed in 2011 when the demand for the 7th CPC and five yearly wage revision was first raised.  He said that the common employees who are members of the affiliates of the Confederation deserve congratulations for the magnificent response to the call for the March to Parliament on 26th  July, 2012 and the subsequent one day strike action on 12th December, 2012.  He cautioned that the draft terms of reference prepared by the Staff Side would remain in paper if the same is not pursued by militant actions.  

He told the participating members that the Confederation should not allow the setting up of the 7th CPC without a labour representative and must ensure that its Chairman is not one who is obsessed with the neo liberal economic reforms. He explained that the proposed struggle was not only for wage revision, though that being an important issue, but also to ensure that the neo liberal policies are not allowed to be pursued whoever comes to power. He reminded the comrades that the 15 point charter of demands include the important and significant issues like (a) withdrawal of the new contributory pension scheme, (b) stoppage  of contractorisation, outsourcing, privatization etc, (c) regularization of daily rated workers and GDS, (e) to bring the GDS within the ambit of the 7th CPC treating them as Civil servants, (f) revival of appointments on compassionate ground without conditions (g) filling up of vacant posts (h) functioning of the negotiating machinery and above all (i) arresting the ever rising prices of essential commodities.  He requested the members to appreciate the position explained and decide upon an inevitable strike action before the election process is begun.

Thereafter the house deliberated upon the proposal placed on behalf of the Secretariat.  Several Comrades took part in the discussions.  The decision to go on strike was welcomed by one and all. Some comrades forcefully pleaded that the Confederation must give a call for an indefinite strike action.  In the end, the house adopted a resolution indicating the following course of action to pursue the 15 point charter of demands.  (Full Text of the resolution, the press statement issued after the meeting, the details of the campaign programme at the National level will be placed on the website within a day or two).

(i) Strike will be of 48 hours (2 days) duration.
(ii) The two days strike will commence on 12th February, 2014 at 00 hours and will be concluded at 00 hours on 14th. i.e. Strike will be on 12th  and 13th  February 2014.
(iii) Strike notice will be served by the Confederation on Cabinet Secretary; all affiliates on their respective heads of Departments and copy of the same will be handed over to the respective heads of offices on 21st January, 2014. Prior to the serving of notice to the heads of offices, the unions will organize massive demonstration with cent per cent participation of members in front of all offices on 21.1.2014.
(iv) Nationwide campaign will be organized covering all State Capitals and other important cities and towns in January, 2014.
(v) State Committees will organize state wise campaigning programme covering all District Head Quarters in the first week of February 2014.
(vi) Hold Press conferences; issue press statements and take steps to ensure media converge for the ensuing strike action.

The resolution received unanimous approval of the house, which was followed by thunderous slogan shouting. 

Com. Secretary General then informed the house that the FNPO has agreed to synchronize their strike action for two days on the same dates and with the same charter of demands. 

The house then took up the applications received from ARIES Employees Confederation (ARYABHATTA RESEARCH INSTITUTE OF OBSERVATIONAL SCIENCES) DEHRADUN and the DOT Employees Association of India, KOLKATA for grant of affiliation.  The house approved the proposal for the grant of affiliation to the two organizations.

Com. President before declaring the closure of the session requested the affiliates to take immediate steps to clear off the subscription dues for; lack of finance should not hinder the functioning of the CHQ.  Com. Parashar on behalf of the Secretariat had welcome the participants in the beginning.  Com. R. Seethalakshmi, Convener, Women Committee of the Confederation and the newly elected General Secretary of All India Postal Employees Union, Postmen and MTS/Group ‘D’ proposed vote of thanks.

With greetings,

Yours fraternally,

(M. Krishnan)
Secretary General

CHARTER OF DEMANDS

1. Accept the terms of reference of 7th CPC, submitted by the staff side, National Council JCM.
(a) To examine the existing structure of pay, allowances and other benefits/facilities, retirement benefits like Pension, Gratuity, other terminal benefits of various categories of Central Government Employees including Gramin Dak Sevaks (GDS) of Postal Department.
(b) To work out the comprehensive revised pay packet for the categories of Central Government employees including GDS as on 1.1.2014.
(c) The Commission shall determine the pay structure, benefits, facilities, retirement benefits etc. taking into account the need to provide minimum wage with reference to the recommendation of the 15th Indian Labour Conference (1957) and the subsequent judicial pronouncement of the honorable Supreme Court there-on, as on 1.1.2014.
(d) To determine the Interim Relief needed to be sanctioned immediately to the Central Government employees including GDS.
(e) To determine the percentage of Dearness allowance/Dearness Relief immediately to be merged with Pay and pension including GDS.
(f) To settle the anomalies raised in various fora of JCM.                                                     
(g) To work out the improvements needed to the existing  retirement benefits, like pension, death cum retirement gratuity, family  pension and other terminal or recurring  benefits maintaining parity amongst past, present and future pensioners and family pensioners including those who entered service on or after 1.1.2004.
(h) To recommend methods for providing cashless/hassle-free Medicare facilities to the employees and Pensioners including Postal pensioners.

2. Ensure every five year revision of wages of Central Government Employees in future.
3. (a) Regularisation of Gramin Dak Sevaks of the Postal Department and grant of Civil Servant status, statutory pension and all other benefits at par with regular employees.
(b) Regularisation and revision of wages of casual and contract workers.
4. Compassionate appointment – removal of restrictions imposed by Government.
5. JCM and Anomaly Committee Functioning.
6. Fill up all vacant posts and creation of new posts wherever justified.
7. Stop downsizing, outsourcing, contractorisation and privatization of Government functions.
8. Stop the move to introduce performance related Pay (PRP) system, Extend PLB Bonus for all, removing bonus ceiling.
9. Revise OTA and Night Duty Allowance rates and clothing rates.
10. Implement arbitration awards.
11. Five promotions to all.
12. Rescind the PFRDA Act. Ensure statutory Pension for all.
13. Stop price rise. Revive and extend public distribution system for all.
14. Stop trade Union victimization.
15. Ensure Right to strike.

Source : www.confederationhq.blogspot.in
[http://confederationhq.blogspot.in/2014/01/confederation-of-central-govt_13.html]

Monday, January 6, 2014

Income-Tax Deduction from Salaries

Income-Tax Deduction from Salaries during the Financial Year 2013-14: IT Circular No. 08/2013 Part-I

CIRCULAR NO : 08 /2013
F.No. 275/192/2013-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, dated the 10th October, 2013
SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2013-14 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.
Reference is invited to Circular No.08/2012 dated 05.10.2012 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 2012-2013, 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 2013-2014 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.



Para 2. Rates of Income-Tax as per Finance Act, 2013 [click here]

Para 3:  Method of Tax Calculation - Broad Scheme of Tax Deduction at Source from Salaries 

Para 4: TDS Return - Person Responsible Tax Deduction and their Duties: Income Tax on Salaries

Para 5: Computation of Income under the Head Salaries - Income Chargeable, Exemptions, Deductions u/s 16 & Chapter VI-A


Para 6 to 10 of IT Circular No. 08/2013:
6. REBATE OF RS 2000 FOR INDIVIDUALS HAVING TOTAL INCOME UPTO RS 5 LAKH [SECTION 87A]

Finance Act 2013 has provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or the amount of tax payable, whichever is lower.

7 TDS ON PAYMENT OF ACCUMULATED BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTRIBUTION FROM APPROVED SUPERANNUATION FUND:

7.1 The trustees of a Recognized Provident Fund, or any person authorized by the regulations of the Fund to make payment of accumulated balances due to employees, shall in cases where sub-rule(1) of Rule 9 of Part A of the Fourth Schedule to the Act applies, at the time when the accumulated balance due to an employee is paid, make therefrom the deduction specified in Rule 10 of Part A of the Fourth Schedule to the Act.

The accumulated balance is treated as income chargeable under the head “Salaries”

7.2 Where any contribution made by an employer, including interest on such contributions, if any, in an approved Superannuation Fund is paid to the employee, tax on the amount so paid shall be deducted by the trustees of the Fund to the extent provided in Rule 6 of Part B of the Fourth Schedule to the Act. TDS should be at the average rate of tax at which, the employee was liable to be taxed during the preceding three years or during the period, if that period is less than three years, when he was member of the fund.

The deductor shall remain liable to deduct tax on any sum paid on account of returned contributions (including interest, if any) even if a fund or part of a fund ceases to be an approved Superannuation fund.

8. DDOS TO SATISFY THEMSELVES ABOUT THE GENUINENESS OF CLAIM:

The Drawing and Disbursing Officers should satisfy themselves about the actual deposits/ subscriptions / payments made by the employees, by calling for such particulars/ information as they deem necessary before allowing the aforesaid deductions. In case the DDO is not satisfied about the genuineness of the employee's claim regarding any deposit/ subscription/ payment made by the employee, he should not allow the same, and the employee would be free to claim the deduction/ rebate on such amount by filing his return of income and furnishing the necessary proof etc., therewith, to the satisfaction of the Assessing Officer.

9. CALCULATION OF INCOME-TAX TO BE DEDUCTED:

9.1 Salary income for the purpose of section 192 shall be computed as follow:-

(a) First compute the gross salary as mentioned in para 5.1 including all the incomes mentioned in para 5.2 and excluding the income mentioned in para 5.3.

(b) Allow deductions mentioned in para 5.4 from the figure arrived at (a) above and compute the amount to arrive at Net salary of the employee

(c) Add income from all other heads- House property, Profits & gains of Business or Profession, capital gains and Income from other Sources to arrive at the Gross Total Income as shown in the form of simple statement mentioned para 3.5. However it may be remembered that no loss under any such head is allowable by DDO other than loss under the Head “Income from House property”.

(d) Allow deductions mentioned in para 5.5 from the figure arrived at (c) above ensuring that the relevant conditions are satisfied. The aggregate of the deductions subject to the threshold limits mentioned in para 5.5 shall not exceed the amount at (b) above and if it exceeds, it should be restricted to that amount.

This will be the amount of Total income of the employee on which income tax would be required to be deducted. This income should be rounded off to the nearest multiple of ten rupees.

9.2 Income-tax on such income shall be calculated at the rates given in para 2.1 of this Circular keeping in view the age of the employee and subject to the provisions of sec. 206AA, as discussed in para 4.8. Rebate as per Section 87A upto Rs 2000/- to eligible persons (see para 6) may be given. Surcharge shall be calculated in cases where applicable (see para 2.2).

9.3 The amount of tax payable so arrived at shall be increased by educational cess as applicable (2% for primary and 1% for secondary education) to arrive at the total tax payable.

9.4 The amount of tax as arrived at para 9.3 should be deducted every month in equal installments. Any excess or deficit arising out of any previous deduction can be adjusted by increasing or decreasing the amount of subsequent deductions during the same financial year.

10. MISCELLANEOUS:

10.1 These instructions are not exhaustive and are issued only with a view to guide the employers to understand the various provisions relating to deduction of tax from salaries. Wherever there is any doubt, reference may be made to the provisions of the Income-tax Act, 1961, the Income-tax Rules, 1962, the Finance Act 2013, the relevant circulars / notifications, etc.

10.2 In case any assistance is required, the Assessing Officer/the Local Public Relation Officer of the Income-tax Department may be contacted.

10.3 These instructions may be brought to the notice of all Disbursing Officers and Undertakings including those under the control of the Central/ State Governments.

10.4 Copies of this Circular are available with the Director of Income-tax (Research, Statistics & Publications and Public Relations), 6th Floor, Mayur Bhavan, Connaught Place, New Delhi-110 001 and at the following websites:

www.finmin.nic.in & www.incometaxindia.gov.in

Hindi version will follow.

(Anshu Prakash)
Director(Budget)
Central Board of Direct Taxes

Source: www.incomtaxindia.gov.in [Click here to download Circular in .pdf file 334 kb]