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Wednesday, March 31, 2010

Declaration of Holiday on 14th April, 201& Birthday of Dr.B.R.Ambedkar.

It has been decided to declare Wednesday, the 14th April 2010, as a Closed Holiday on account of the birthday of Dr. B.R. Ambedkar, for all Central Government Offices including industrial establishments throughout India.

The above holiday is also being notified in exercise of the powers conferred by Section 25 of the Negotiable Instruments Act, 1881 (26 of 1881).

Saturday, March 27, 2010

OM - 35% Dearness Allowance - Revised rates from 1.1.2010

No.1(3)/2010-E-II(B)

Government of India
Ministry of Finance
Department of Expenditure
*******

New Delhi, the 26th March, 2010.

OFFICE MEMORANDUM

Subject:- Payment of Dearness Allowance to Central Government Employees - Revised Rates effective from 1.1.2010.

The undersigned is directed to refer to this Ministry's Office Memorandum No.1(6)/2009-E-II(B)dated 18th September, 2009 on the subject mentioned above and to say that the President is pleased to decide that the Dearness Allowance payable to Central Government employees shall be enhanced form the existing rate of 27% to 35% with effect from 1st January, 2010.

2. The provisions contained in paras 3, 4 and 5 of this Ministry's O.M. No.1(3)/2008-E-II (B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional instalment of Dearness Allowance payable under these orders shall be paid in cash to all Central Governmentemployees.

4. The payment of arrears of Dearness Allowance for the month of January and February, 2010 shall not be made before the date of disbursement of salary for March, 2010.

5. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employeesseparate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the Comptroller and Audit General of India.

(R. Prem Anand)
Under Secretary to the Government of India

Friday, March 19, 2010

8 per cent hike in Dearness Allowance for Central staff

The Cabinet on Friday approved eight per cent increase in the dearness allowance of government employees and pensioners.

'The Cabinet approved an eight per cent increase in the dearness allowance of government employees and dearness relief of pensioners with effect from Jan 1, 2010,' Information and Broadcasting Minister Ambika Soni said.

'This is over and above the existing rate of 27 per cent (of basic pay),' she said while briefing reporters after a cabinet meeting chaired by Prime Minister Manmohan Singh.

'The decision will cost the exchequer Rs.6,969.36 crore annually,' Ambika Soni said.

Sunday, March 14, 2010

Home Ministry introduces flexi-hours for its employees

The Home Ministry has allowed flexi-hours for it's employees with a maximum relaxation of two hours to attend social obligations or visit a doctor but they have to ensure a 40-hour work schedule in the week.

"In exceptional cases like consultation with doctors in Central Government Health Services, hospitals, attending social obligation, late arrival in the morning, early departure in afternoon up to two hours (maximum) will be allowed subject to the condition that prior intimation or approval of the immediate supervising officer has been obtained," Home Secretary G K Pillai said in an order.

The arrangement has been made after the ministry employees made two representations to Home Minister P Chidambaram on November 19 last year and March 3 this year.

Chidambaram had then assured the employees of working out a solution and subsequently asked Pillai to issue an order, sources said.

Sunday, March 7, 2010

How retirement benefits computed for salaried segment?

Provident Fund (PF), Pension Fund and gratuity are components of retirement benefit schemes. The Employees' Provident Fund and Miscellaneous

Provisions Act provides for compulsory contributory fund for the future of an employee after his retirement or for his dependents in case of his untimely death.
Every factory engaged in any industry specified in Schedule I in which 20 or more persons are employed, every establishment employing 20 or more persons or class of such establishments which the Central Government may notify, any other establishment so notified by the Central Government even if employing less than 20 persons is covered.

Both the employee and the employer contribute to the fund at the rate of 12 percent of the basic wages, dearness allowance and retaining allowance, if any, payable to employees per month. The rate of contribution is 10 percent in the case of some establishments which are mentioned in the Act. The rate of interest is fixed by the Central Government in consultation with the Central Board of Trustees, Employees' Provident Fund every year in March, so it can vary from year to year.

The entire amount of the PF along with the accumulated interest can be withdrawn by an employee on retirement, after attaining the age of 58 years. However, in cases of termination, retirement on account of permanent disablement, on immigration from India for a permanent settlement abroad and in cases of retrenchment, the amount can be withdrawn before the completion of 58 years. A person can also withdraw 90 percent of the amount a year before his retirement.

In case a person is going for a job change, his PF account can be transferred for further continuation. For this, he has to file a transfer application on Form 13 and submit it to the PF office concerned. If a person is switching to an organisation that does not come under this Act, he can receive all the accumulated money which is in his PF account till date. In cases of untimely death of the person, his nominee receives the amount.

The Employees' Provident Fund and Miscellaneous Provisions Act 1952 was amended in1971 and was renamed 'The Employees' Provident Fund and Family Pension Act 1952'. It was felt that in case of premature death of the worker or a permanent disablement, the PF was too less an amount to support him and his family. This led to the introduction of another social security benefit - pension.
After the last amendment in 1995, Employees' Pension Scheme 1995 came into effect from November 16, 1995. The assets and liabilities of the erstwhile PF were transferred and merged with the new pension fund. The benefits and entitlements to the members under the old scheme remains protected and continued under the new Employees' Pension Scheme 1995.

The existing members as on November 16, 1995 of PF who did not opt to join the erstwhile Employees' Family Pension Scheme 1971 and the beneficiaries under the erstwhile Employees' Family Pension Scheme 1971 in case of death or exit between April 1, 1993 and November 15, 1995 have the option to join the new scheme.
In case of gratuity, the employer has to contribute to this fund. The amount of gratuity payable is computed at a rate of 17 days' wages based on the rate of wages last drawn, for every completed year of service. The maximum amount of gratuity payable was Rs 1 lakh earlier. After the 11th amendment to the Act in 1998 the amount payable under the scheme has been raised to Rs 3.5 lakhs. Companies have a choice of opting for a higher benefit of gratuity, that is, a higher total amount to be paid.

Completion of at least five years of continuous service is necessary to receive this amount. However, it does not apply in cases where a person has stopped working due to death or disablement.

Friday, March 5, 2010

Special Recruitment Drive to fill SC/ST/OBC posts backlog

Backlog reserved vacancies in government of india Ministries and Department.
As per information received from 37 Ministries/Departments of Government of India, the number of backlog reserved vacancies of the Scheduled Castes, the Scheduled Tribes and the Other Backward Classes as on 01.11.2008 were 3537, 2969 and 6439 respectively.

The Government has launched a Special Recruitment Drive to fill up the backlog reserved vacancies of SCs, STs and OBCs.

This information was given by the Minister of State in the Ministry of Personnel, Public Grievances & Pensions, Shri Prithviraj Chavan in written reply to a question in Lok Sabha.

Wednesday, March 3, 2010

Understanding Tax



Particulars

Taxable/Non-Taxable

Exemption/Rebate

Limit

Taxable Items:

-

-

-

Basic Pay

Fully Taxable

-

-

Dearness Pay

Fully Taxable

-

-

Grade Pay

Fully Taxable

-

-

Dearness Allowance

Fully Taxable

-

-

House Rent Allowance

Fully Taxable

-

-

City Compensate Allowance

Fully Taxable

-

-

Medical Allowance

Fully Taxable

-

-

Family Planning Allowance

Fully Taxable

-

-

Arrear Amount

Fully Taxable

-

-

Maturity Amount of NSC

Fully Taxable

-

-

Total amount withdrawn from NSS

Fully Taxable

-

-

Transport Allowance

Partially Taxable

Rebate

Maximum upto Rs.15%0 PM

Children Education Allowance

Partially Taxable

Rebate

Maximum upto Rs.100 PM

Deductions:

Less-Allowance U/S 10(13A) Actual Rent Paid

-

Exempt

Actual amount of HRA received or Expenditure on rent in excess of 1/10th of the salary or 50% of Salary, which ever is less Rent Paid

Interest on HBA U/S 24

-

Deduction

Maximum Rs.1,50,000

Reimbursement of Medical Exp. U/S 17(2)V

-

Deduction

Maximum Rs.15,000

U/S 80C

-

Deduction

Maximum Rs.1,00,000

Refund of loan taken for the construction of House

-

Deduction

Maximum Rs.1,00,000

C.P.F / G.P.F

-

Deduction

Maximum Rs.1,00,000

G.I.S

-

Deduction

Actual

LIC Premium

-

Deduction

Maximum Rs.1,00,000

Subscription of N.S.C. / P.P.F

-

Deduction

Maximum Rs.1,00,000

Interest Occurred on investment in N.S.C.

-

Deduction

Maximum Rs.15,000

C.T.D. / L.I.P. / ULIP (Mutual Fund)

-

Deduction

Maximum Rs.1,00,000

Unit Linked Plan

-

Deduction

Maximum Rs.1,00,000

Tuition Fee (Limited to 2 children) & (After XII th full time course)

-

Deduction

Maximum Rs.1,00,000

5 Years Fixed deposit & 5 years time deposit scheme

-

Deduction

Maximum Rs.1,00,000

U/S 80D CCC

-

Deduction

Maximum Rs.10,000

U/S 80CCD

-

Deduction

Maximum 10% of BP & DA (Recruited on or after 1.1.2004)

Medi Claim Premium U/S 80D

-

Deduction

Maximum Rs.15,000 (Other than above Rs.1,00,000)

Premium paid for Self, Spouse & Children

-

Deduction

Maximum Rs.15,000 (other than above Rs.1,00,000)

Premium paid for Parents (If parent is not senior citizen)

-

Deduction

Maximum Rs.20,000 (Other than above Rs.1,00,000)

Premium paid for Parents (If parent is senior citizen)

-

Deduction

Maximum Rs.20,000 (Other than above Rs.1,00,000)

U/S 80DD

-

Deduction

Handicapped dependents :spouse, son / daughter, parents and brother / sister - Deduction Rs.75,000 to Rs.1,00,000

U/S 80DDB

-

Deduction

Maximum Rs.400,00 (other than above Rs.1,00,000)

U/S 80E

-

Deduction

Entire amount (Interest on higher Education/Study loans)

U/S 80 G

-

Deduction

Deduction for contribution to charitable organization

U/S 80U

-

Deduction

Disability Deduction Rs.75,000 to Rs.1,00,000

Tax Relief - Additional savings in Infrastructure Bonds : Rs.20,000

CGHS subscription will be exempted u/s 80D

Source: CGStaffNews

PSUs slash 31,000 jobs in FY’09

Hit by the slow down in the economy in 2008-09, central government owned public sector undertakings (PSUs) shed 31,000 employees during the year. The number of people employed by the Central Public Sector Enterprises (CPSEs) came down to 15.35 lakh at the end of 2008-09 from 15.66 crore in the previous fiscal, the Public Enterprises survey stated.

Even as the number employed reduced, the overall profits of the PSUs increased to Rs 1 lakh crore in 2008-09 from Rs 91,571 crore a year ago. The employee strength of the CPSEs has been constantly coming down since 2001-02 during which they had a staff of about 20 lakh. The PSU Survey also revealed that out of a total of 15.35 lakh people employed by 242 CPSEs in 2008-09, only 1.29 lakh were women.

“A good number of CPSEs, are faced with a high rate of attrition, as employees are leaving to join other organisations on account of higher salaries being offered elsewhere,” the survey said. The wage bill of CPSEs went up by 28.67 per cent during 2008-09 to Rs 82,735 crore from Rs 64,300 crore in the year ago period mainly on account of Pay Commission recommendations. Foreign exchange earnings through exports increased 9.61 per cent in 2008-09 to Rs 74,184 crore while the outflow on imports, primarily crude oil, also went up 16.46 per cent to Rs 4,28,821 core.

Tuesday, March 2, 2010

Tax benefits on CGHS payments

Budget 2010 has brought some cheer to the esti- mated 55 lakh central govern- ment employees, offering tax breaks on contributions made by them towards the Central Government Health Scheme (CGHS).

The minister said that all con- tributions towards the scheme would come under the existing provision of section 80 D of the Income Tax Act thereby bring- ing them on par with other health insurance schemes.

"Besides, contribution to health insurance schemes which is currently allowed as a deduc- tion under the IT Act, I propose to allow contributions to the CGHS also as a deduction under the same provision," Mukherjee said in his budget speech.

The level of contributions towards CGHS from employees was raised last year. However, the amount remained unaltered for the retired employees.

Currently, those drawing a monthly pay package of Rs 7,600 and above are required to make a contribution of Rs 500 per month towards CGHS facilities.

However, those drawing a salary of Rs 4,600 to Rs 6,600 are needed to pay Rs 325 per month towards the health scheme. Contributions are between Rs 50 and Rs 225 for employees earning upto a monthly salary of Rs 4,200.

Earlier, there was no deduc- tion was allowable for this con- tribution.

Deduction in respect of pre- mium paid towards a health insurance policy upto a maxi- mum of Rs 15,000 would be available for self, spouse and dependant parents.

According to a KPMG analy- sis, the move would leave more money in the hands of the cen- tral government employees.
"With the introduction of this provision, the employee would be able to claim a deduction which would finally leave him with more money in his hand," a KPMG executive said.

CGHS is a medical facility available to serving and retired government servants.