Bonus Orders under Issue

Finance Ministry cleared 60 days bonus for Postal staff with ceiling Rs.2500/-.
Orders are under issue.

ACP-accepted by Both the Unions issued joint letter

Letter of Acceptance of ACP Scheme
Yesterday (29. 09.08) letter signed by both the Secretaries General (FNPO & NFPE) accepting the ACP Scheme was handed over to the Secretary, Department of Poss. The following is the text of the letter.
" Sub: - Acceptance of ACP Scheme for Postal Employees - reg.Ref: Discussions on 16.09.2008 meeting taken by Member (P)Sir,
Both the Federations consent to the introduction of 3 ACP Scheme to Postal Employees presently covered by TBOP / BCR Scheme on the basis of the discusions held in the meeting taken by Member (P) with both the Federations on 16th September 2008."
Thanking you,
Yours faithfully,sd/ D. Theagarajan sd/ K.RagavendranSecretary General, FNPO Secretary General, NFPE

New TA/DA Rules wef 01-09-2008

New TA/DA Rules
The Grade Pay will determine the TA/DA entitlement of the Central Govt. Servants.
Grade Pay Rs. 10,000 and above. Travel entitlement: Businces/Club Class by air/AC first class by train.
Grade pay of Rs.7600, Rs.8700 and Rs.8900. Treavel entitlement: Economy class by air/AC First Class by train.
Grade pay of Rs.5400 and Rs.6600. Travel entitlement : Economy Class by air/ AC II Tier class by train.
Grade pay of Rs.4200,Rs.4600 and Rs.4800. Travel entitlement: First Class/AC III Tier/AC Chair Car by train.
Daily Allowance on Tour
Grade pay of Rs.10,000 and above and those in pay scales of HAG + and above. Daily allowance : Reimbursement for Hotel accommodation/guest house of up to Rs.5000 per day; reimbursement of AC taxt charges of up to 50 kms. for travel within the city and reimbursement of food bills not exceeding Rs. 500 per day.
Grade pay of Rs.7600 to Rs. 8900. D.A;- Reimbursement for Hotel accommodation of up to Rs.3000 per day; reimbursement of non AC taxt charges of up to 50 kms. per diem for travel within the city and reimbursement of food bills not exceeding Rs.300 per day.
Grade pay of Rs.5400 to 6600: D.A:- Reiombursement for Hotel acommodation of up to Rs.1500 per day, reimbursement of taxt charges of up to Rs.150 per diem for travel within the city and reimbursement of food ;bills not exceeding Rs. 200 per day.
Grade pay of Rs.4200 to Rs.4800. D.A;- Reimbursement for Hotel accommodation of up to Rs.500 p[er day, reimbursement of travel chrages of up to Rs.100 per diem for travel within the city and reimbursement of food bills not exceeding Rs.150 per day.
Grade pay of below Rs.4200. D.A:- Reimbursement for Hotel accommodation of up to Rs.300 per day; reimbursement of travel charges of up to Rs.50 per diem for travel within the City and reimbursement of food bills not exceeding Rs.100 per day.

Bonus orders under issue

Ministry of Finance clears PLB for 60 days with ceiling of Rs2500/-
orders under issue.

Revised Ceiling for Bonus- confederation writes to MOF

Copy of Confederation's letter addressed to the Secretary, Expenditure, Ministry of Finance, Govt. of India, dated 27th September,

To
The Secretary,
Expenditure
Ministry of Finance
Govt. of India,
North Block
New Delhi. 110 001

Madam,

We solicit you kind reference to the O.M. No. 7/22/2008.E-IIIA dated 5th September, 2008 granting adhoc bonus to employees who are not covered by the PLB Scheme for the accounting year 2007-08. It has been mentioned therein that the calculation ceiling of Rs. 2500 would remain unchanged.

As you are aware, the calculation ceiling of Rs. 2500 was imposed in consonance with similar provision in the Bonus Act as is applicable to industrial workers. The said ceiling of Rs. 2500 was raised to Rs. 3500 by the Government and made applicable to the workers covered by the Bonus Act for the accounting year 2006-07 itself. We had taken up the issue both through correspondence and in the JCM Standing Committee immediately on promulgation of the ordinance raising the ceiling limit to make it applicable to Government employees.

We expected the Government to raise the ceiling limit to Rs. 3500 before orders are issued for the grant of adhoc bonus pertaining to 2007-08. We request you to kindly issue necessary orders to raise the calculation ceiling limit to Rs. 3500 applicable for the grant of adhoc bonus for the accounting year 2006-07 onwards.

Thanking you,

Yours faithfully,


K.K.N. Kutty
Secretary General

ACP - Accepted by both the Unions-Letter being submitted Today

It is informed by the Secretary General, FNPO that both FNPO & NFPE will submit letters to the Department of Posts accepting the ACP Scheme on Monday, the 29th September 2008.
What is Assured Career Progression Scheme ?

According to DO P&T O.M.No. 35043-1/97-Estt.(D) dated 9.8.99, the 5th Central Pay Commission has made certain recommendations relating to the Assured Career Progression (ACP) Scheme for Central Government civilian employees in all Ministries/Department. The ACP Scheme needs to be viewed as a ‘Safety Net’ to deal with the problem of genuine stagnation and hardship faced by the employees due to lack or adequate promotional avenues. Accordingly after careful consideration it has been decided by the Government to introduce the ACP Scheme recommended by the Fifth Central Pay Commission with certain modifications.

2. Group ‘A’ Central Services.
In respect of Group ‘A’ central Services (Technical/Non Technical), no financial up gradation under the Scheme is being proposed for the reasons that promotion in their case must be earned. Hence, it has been decided that there shall be no benefits under the ACP Scheme for Group ‘A’ Central Services
3. Group ‘B’, ‘C’ and ‘D’ Services/ Posts.

3.1 While in respect of these categories also promotion shall continue to be earned, it is proposed to adopt the ACP Scheme in a modified form to mitigate hardship in cases of acute stagnation either in a cadre or in an isolated post. Keeping in view all relevant factors, it has, therefore, been decided to grant two financial up gradations (now three financial up gradations) as recommended by the Fifth Central Pay Commission and also in accordance with the Agreed Settlement dated September 11, 1997 (in relation to Group C and D employees) entered into with the Staff Side of the National Council (JCM) under the ACP Scheme to Group ‘B’, ‘C’ and ‘D” employees on completion of 12 years (now 10 years) and 24 years (now 20 years and 30 years) (subject to condition no. 4 in Annexure I) of regular service respectively. Certain categories of employees such as casual employee (including those with temporary status), ad-hoc and contract employees shall not qualify for benefits under the aforesaid Scheme. Grant of financial up gradations under the ACP Scheme shall, however, be subject to the conditions mentioned in Annexure-I.

3.2 ‘Regular Service’ for the purpose of the ACP Scheme shall be interpreted to mean the eligibility service counted for regular promotion in terms of relevant Recruitment/Service Rules.

4. Introduction of the ACP Scheme should, however, in no case affect the normal (regular) promotional avenues available on the basis of vacancies. Attempts needed to improve promotion prospects in organizations/cadres on functional grounds by way of organizational study, cadre reviews, etc. as per prescribed norms should not be given up on the ground that the ACP Scheme has been introduced.

5. Vacancy based regular promotions, as distinct from financial up gradation under the ACP Scheme, shall continue to be granted after the screening by a regular Departmental Promotion Committee as per relevant rules/guidelines.
6. Screening Committee

6.1 A departmental Screening Committee shall be constituted for the purpose of processing the cases for grant of benefits under the ACP Scheme.

6.2 The composition of the Screening Committee shall be the same as that of the DPC, prescribed under the relevant Recruitment/Service Rules for regular promotion to the higher grade to which financial up gradation is to be granted.

6.3 In order to prevent operation of the ACP Scheme from resulting into undue strain on the administrative machinery, the Screening Committee shall follow a time schedule and meet twice in a financial year – preferably in the first week of January and July for advance processing of the cases. Accordingly, cases maturing during the first-half (April – September) of a particular financial year for grant of benefits under the ACP Scheme shall be taken up for consideration by the Screening Committee in the first week of January of the previous financial year. Similarly, the Screening Committee meeting in the first week of July of any financial year shall process the cases that would be maturing during the second-half (October-March) of the same financial year. For example, the Screening Committee meeting in the first week of January, 1999 would process the cases that would attain maturity during the period April 1, 1999 to September 30, 1999 and the Screening committee meeting in the first week of July, 1999 would process the cases that would mature during the period October 1, 1999 to March 31, 2000.Annexure – 1

CONDITIONS FOR GRANT OF BENEFITS UNDER THE ACP SCHEME

1. The ACP Scheme envisages merely placement in the higher pay-scale/grant of financial benefits (through financial up gradation) only to the Government servant concerned on personal basis and shall therefore, neither amount to functional/regular promotion nor would require creation of new posts for the purpose.

2. The highest pay-scales up to which the financial up gradation under the Scheme shall be available will be Rs.14, 300-18300. Beyond this level, there shall be no financial up gradation and higher posts shall be filled strictly on vacancy based promotions.(N.B: Now, the Govt. will have to change the above pay scale.—G.S)

3. The financial benefits under the ACP Scheme shall be granted from the date of completion of the eligibility period prescribed under the ACP Scheme or from the date of issue of these instructions whichever is later.

4. The first financial up gradation under the ACP Scheme shall be allowed after 12 years of regular service and the second up gradation after 12 years of regular service from the date of the first financial up gradation subject to fulfillment of prescribed conditions. In other words, if the first up gradation gets postponed on account of the employees not found fit or due to departmental proceedings, etc. this would have consequential effect on the second up gradation which would also get deferred accordingly.{N.B; - Now, the Govt. should amend the above order as 10, 20 and 30 years.—G.S)
5.1 The financial up gradations under the ACP Scheme of the entire Government service career of an employee shall be counted regular promotions (including in-situ-promotion and fast track promotion availed through limited departmental competitive examination) availed from the grade in which an employee was appointed as a direct recruit. This shall mean that two financial up gradation under the ACP Scheme shall be available only if no regular promotions during the prescribed periods (12 and 24 Years) have been availed by an employee. If an employee has already got one regular promotion, he shall qualify for the second financial up gradation only on completion of 24 years of regular service under the ACP Scheme. In case two prior promotions on regular basis have already been received by an employee, no benefit under the ACP Scheme shall accrue to him.

5.2 Residency periods (regular service) for grant of benefits under the ACP Scheme shall be counted from the grade in which an employee was appointed as a direct recruit
6. Fulfillment to normal promotion norms (bench-mark, departmental examination, seniority-cum-fitness in the case of Group ‘D’ employees etc.) for grant of financial up grations, performance of such duties as are entrusted to the employees together with retention of old designations, financial up gradations as personal to the incumbent for the stated purpose and restriction of the ACP Scheme for financial and certain other benefits (House Building Advance, allotment of Government accommodation, advance etc.) only without conferring and privileges related to higher status ( e.g invitation to ceremonial functions, deputation to higher posts etc.) shall be ensured for grant of benefits under the ACP Scheme.

7. Financial up gradation under the Scheme shall be given to the next higher grade to in accordance with the existing hierarchy in a cadre/category of posts without, creating new posts for the purpose.

8. The financial up gradation under the ACP Scheme shall be purely personal to the employees and shall have no relevance to his seniority position. As such, there shall be no additional financial up gradation for the senior employee on the ground that the junior employee in the grade has got higher pay-scale under the ACP Scheme.

9. On up gradation under the ACP Scheme, pay of an employee shall be fixed under the provisions of FR-22(i)a(1) subject to a minimum financial benefit of Rs.100/- as per the Department of Personnel and Training Office Memorandum No. 1/6/97-Pay. I dated July 5, 1999. The financial benefit allowed under the ACP Scheme shall be final and so pay fixation benefit shall accrue at the time of regular promotion i.e., posting against a functional post in the higher grade.
10. Grant of higher pay-scale under the ACP Scheme shall be conditional to the fact that an employee, while accepting the said benefit, shall be deemed to have given his unqualified acceptance for regular promotion on occurrence of vacancy subsequently. In case that he refuses to accept the higher post on regular promotion subsequently, he shall be subject to normal debarment for regular promotion as prescribed in the general instructions in this regard. However, as and when he accepts regular promotion thereafter, he shall become eligible for the second up gradation under the ACP Scheme only after he completes the required eligibility service/ period under the ACP Scheme in the higher grade subject to the condition that the period for which he was debarred for regular promotion shall not count for the purpose. For example, if a person has got one financial up gradation after rendering 12 years of regular service and after 2 years there from if he refuses regular promotion and is consequently debarred for one year and subsequently he is promoted to the higher grade on regular basis after completion of 15 (12+2+1) of regular service, he shall be eligible for consideration for the second up gradation under the ACP Scheme only after rendering ten more years in addition to two years of service already rendered by him after r the first financial up gradation (2+10) in that higher grade i.e. after 25 years (12+2+1+10) of regular service because the debarment period of one year cannot be taken into account towards the required 12 years of regular service in that hither grade.

11. In the matter of disciplinary penalty proceedings, grant of benefits under the ACP Scheme shall be subject to rules governing normal promotion. Such cases shall, therefore, be regulated under the provisions of relevant CS (CCA) Rules 1965 and instructions there under.

12. The proposed ACP Scheme contemplates merely placement on personal basis in the higher pay-scale / grant of financial benefit only and shall not amount to actual/functional promotion of the employees concerned. Since orders regarding reservation in promotion are applicable only in the case of regular promotion, reservations orders/roster shall not apply to the ACP Scheme which shall extended its benefits uniformly to all eligible SC/ST employees also. However, at the time of regular/functional (actual) promotion, the Cadre Controlling Authorities shall ensure that all reservations orders are applied strictly.

13. Existing time-bound promotion scheme, including in-situ promotion scheme, in various Ministries/Departments may, as per choice continue to be operational for the concerned categories of employees. However, these schemes shall not run concurrently with the ACP Scheme. The Administrative Ministry/Department not the employees shall have the option in the matter to choose between the two schemes. i.e, existing time bound promotion scheme or the ACP Scheme, for various categories of employees. However, in case of switchover from, the existing time-bound promotion scheme to the ACP Scheme, all stipulations (viz., for promotion, redistribution of posts, up gradation involving higher functional duties, etc.) made under the former (existing) scheme would cease to be operative. The ACP Scheme shall have to be adopted in its totality.

14. In case of an employee declared surplus in his/her organization and in case of transfers including unilateral transfer on request, the service rendered by him/her in the previous organization shall be counted along with his/her regular service in his/her new organization for the purpose of giving financial up gradation under the Scheme; and
15. Subject to Condition No.4 above, in cases where the employees have already completed 24 years of regular service, with or without a promotion, the second financial up gradation under the scheme shall be granted directly. Further, in order to rationalize unequal level of stagnation, benefit of surplus regular service (not taken into account for the first up gradation under the scheme) shall be given at the subsequentl stage (second) of financial up gradation under the ACP Scheme as a one time measure. In other words, in respect of employees who have already rendered more than 12 years but less than 24 years of regular service, while the first financial up gradation shall be granted immediately, the surplus regular service beyond the first 12 years shall also be counted towards the next 12 years of regular service required for grant of the second financial up gradation and, consequently, they shall be considered for the second financial up gradation also as and when they complete 24 years regular service without waiting for completion of 12 more years of regular service after the first financial up gradation already granted under the Scheme.
(This Scheme is applicable to IPOs and ASPOs also.)

DDOs to deduct TDS on rent paid to House Owners

DDOs to watch and act accordingly ( Internal Audit Objection)

3.1.2 Non recovery of TDS for Rs. Approx 95 lacs

to be recovered from the bill of Rent for office premises.

In terms of Rule 194(1) of the Income TaxAct, 1961 income tax @ 20% plus
surcharge/ cess is to be deducted as TDS from the rent paid to owner of hired premises.
On scrutiny of the bills of rent paid by the Securities appellate Tribunal (SAT)
Mumbai it was noticed that the office has paid rent to the tune of Rs.4.69 crores from
November’1998 to March’ 2007, but no TDS had been recovered from the rent bills. This
has resulted loss to Govt. by way of non-recovery of Income Tax amounting to Rs. 95
lacs approx.This was pointed out in previous audit reports, but no action has been taken for
last several years. The office has been instructed to recover the TDS which has not been
deducted by the office so far.

DDOs to deduct Income Tax from 6CPC Pay Arrear

Fixation of Pay and Date of Increment on Promotion

Fixation of Pay and DNI on Promotion

In light of (F.No: 1/1/2008-IC dated 13.9.08) clarification, the common option under Rule 5 of CCS Revised Pay Rules 2008 for 6CPC Pay fixation as well as pay fixation for ACP/Promotion is not warranted now.
Those who get ACP/Promotion will have the option of getting their 6CPC pay fixed on 1.1.2006 or on the date of their pre-revised increment based on the option exercised by them under Rule 6 of CCS Revised Pay Rules 2008. Afterwards, for the purpose of fixing the Pay on account of ACP/Promotion they can exercise one more option under FR 22 (I) (a) (1) to get his pay fixed in the higher post either from the date of his promotion, or from the date of his next increment, viz., July of the year.
Now, let’s see the method to be adopted in these two options
Option 1 : Pay Fixation from the date of next increment:
On the date of promotion pay in the pay band shall continue unchanged, but the grade pay of the higher post will be granted. Further re-fixation will be done on the date of his next increment ie. 1st July. On that day he will be granted two increments; one annual increment and the second on account of promotion.
Option 2: Pay fixation on the date of promotion/ACP
The increment on account of promotion will be granted on the day of promotion, but the employee has to wait for another 12 months to get his annul increment. In other words, he shall get his first annual increment in the higher grade on the next 1st July, if he was promoted between 2nd July and 1st January. If he was promoted between 2nd January and 30th June of the particular year, he shall get his increment on 1st July of the next year.
Comparison of Options:
Those who get their promotion between 2nd Jan and 30th June will get the additional benefit of one annual increment in the ACP/Promotion year itself, if they opt to defer their pay fixation for promotion to next grade to 1st July of the year at the loss of fixation benefit from promotion month to July of that year. This onetime loss will be very minimal while comparing long term benefit we get out of addition of one more increment in the year. Anyway, this onetime loss has also been minimized by the Govt to the extent possible as the grade pay gets revised on the date of ACP/Promotion though we prefer to defer it to July.
On the contrary, for those who get the their promotion between 2nd July and 1st January, deferring their pay fixation to next July will not fetch any additional benefit as they will earn their annual increment prior to their promotion in July during that year. So they can opt for fixing the pay on their regular date of promotion which would fetch them an additional increment in the same year.
We feel that this comparison will be applicable only to straight cases and may tend to vary in special cases.

Women Employees R most benefited in 6CPC

Meeting at Dte.

The meeting was held on 16.9.2008 at Dak Bhawan.

Staff Side consisting of FNPO & NFPE participated in the meeting.
1. Introduction of ACP in Dept. of Posts:-The Department is agreeable to introduce ACP in the Dept. of Posts. The Department asked the staff side to give letter in writing agreeing for the ACP.

2. Group C cadre restructuring - The Department asked the staff side to submit a Note on the subject before the end of this month.

3. Supervisory Allowance - The Department will consider this issue in the course of cadre restructuring.

4. System Administrators - The department will consider favorably higher scale of pay.

5. PO & RMS Accountant - Separate scale of pay demanded. But the Department is not in favour.

6. Change of nomenclature Treasurers as Cashiers : The department is not in favor of changing the designation.

7.Artisan scale of pay :- This will be considered by the Anomaly Committee .The Department will shortly form Anomaly Committee in the Department of Posts.

Are the Central Government Employees Really Happy?

Calculators for Pension Arrear

Calculators for calculation of Arrears of pensions with/without DP are available. Please download and use for quick and accurate calculation.
Please log on to : www.postalinfo.synthasite.com

Income Tax -calculation procedure for Arrear salaries

Income Tax Rates for the F.Y 2008-09 (Assessment Year 2009-10)

The (direct taxes) Income Tax rates for the financial year 2008-2009 (Assessment year 2009-2010) are significantly lower than that for the financial year 2007-2008. Threshold limit of exemption from personal income tax in the case of all assesses is Rs.150,000. The threshold limit for a resident woman assessee is Rs.180,000, while for a resident senior citizen is Rs.225,000.
I. For Individuals (includes nonresidents), HUF, AOP and BOI
1. From 1,50,001 to 3,00,000 : 10% of amount greater than Rs. 1,50,000.
2. From 3,00,001 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 plus Rs. 15,000.
3. Above 5,00,000 : 30% of amount greater than Rs. 5,00,000 plus Rs. 55,000.
II. For Resident Woman (except senior citizen)
1. From 1,80,000 to 3,00,000 : 10% of amount greater than Rs. 1,80,000.
2. From 3,00,000 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 plus Rs. 12,000.
3. Above 5,00,000 : 30% of amount greater than Rs. 5,00,000 plus Rs. 52,000.
III. For Resident Senior Citizen
1. From 2,25,000 to 3,00,000 : 10% of amount greater than Rs. 2,25,000.
2. From 3,00,000 to 5,00,000 : 20% of amount greater than Rs. 3,00,000 plus Rs. 7,500.
3. Above 5,00,000 : 30% of amount greater than Rs. 5,00,000 plus Rs. 47,500.
Note: For nonresident senior citizen the exemption limit is Rs. 1,50,000.
Education CessThe total tax amount (including surcharge) is subject to an education cess at 3%.SurchargeA 10% surcharge (tax on tax) is applicable if the net income (after all the non-taxable allowances and deductions) is above Rs. 10 lakh. This surcharge is subject to marginal relief. The net income tax and surcharge shall not exceed the total amount payable as on income tax on income of Rs. 10,00,000 by more than the amount of total income that exceeds Rs. 10,00,000.*Senior Citizen Saving Scheme 2004 and the Post Office Time Deposit Account added to the basket of saving instruments under Section 80C of the Income Tax Act.*Additional deduction of Rs.15,000 allowed under Section 80D to an individual paying medical insurance premium for his/her parent or parents.Statutory Obligation to file return (Section 139(1)). Every individual has to furnish the return of income if his total income before allowing deduction under Chapter VI-A (that is under sections 10A, 10B, 10BA, 80C to 80U) exceeds the maximum amount which is not chargeable to income tax.

When Arrears relating to previous years are received, the Tax may be computed as under and relief for arrears may be given accordingly.
Total salaries during the financial year may sometimes include arrears relating to the previous years. Earlier, relief in such cases was to be given by the Income Tax authorities. Now the DDOs are authorized to give relief while deductions are made at source. The procedure for calculation of relief as given in Section 89/rule 21-A of Income Tax rules, is as follows:-
i) First step is to ascertain the years to which the arrears relate and their break-up-year wise;
ii) Income tax for the current year as per rates in force should be calculated for the total amount of salaries including the arrears.
iii) Income tax for the salaries for the current year excluding arrears should be calculated.
iv) Difference between (ii) and (iii) is treated as additional tax payable for the current year on the arrears of previous years.
v) Income tax for each of the previous years concerned for the salaries actually received should be calculated.
vi) Tax for the previous years including the arrears relating to the respective years should be calculated.
vii) Difference between (v) and (vi) is taken as additional tax that would have been payable in the respective years on the arrears.
viii) Relief to be given on the total tax due for the current year as per (ii) above will be the difference between Cols.(iv) and (vii).

Good News for Pensioners

Pension for Retired Employees Revised

Some salient features:-
Minimum pension Rs 4,060, up from earlier Rs 2,813 in hand (revised pension to be effective from Jan 1, '06).
Maximum pension Rs 52,200, up from Rs 33,075.
Maximum gratuity up to Rs 10 lakh (depending on years of service and last salary drawn).
Enhanced family pension, for employees dying in service, to be full pension for 10 years.
Employees eligible for full pension if service is for 20 years.
Incremental additional pension for those 80 years and above. People over 100 to get double pension.

Info.net Arrear Calculator for Esay calculation

Kindly find the Info.net calculator for Quick,Accurate and Flexible calculation of Arrears after implementation of New CCS(Revised) Pay rules,2008.

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1) Provision for editing the Pay in case of XOL,dies-non,strike,half-pay etc.

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Engagement of daily wage substitutes-relaxed

A relief to the Postmen/Group-D staff :-
GOVERNMENT ORDERS ON ENGAGEMENT OF PAID SUBSTITUES
Department of Posts issued New Guidelines

Guidelines for engaging of paid substitutes against leave / absentee Gr.D and Postman Staff – Modification regarding.
DG Posts No.10-7/2001-PR-II Dated 2.9.2008
References have been received from different quarters / Staff Unions regarding review of guidelines issued vide letter no dated 15.3.2004, in the matter of engaging of paid substitutes against leave / absentee Gr.D and Postmen Staff.

It has been noticed that in many cases the mails received in a post office could not be delivered by the Postman on the same day due to sudden absenteeism, long spell of leaves and long beat lengths.With a view to streamline the delivery and ensuring timely delivery of mail, following guidelines are issued for making substitute arrangement.The Divisional Heads / Gazetted Postmasters should engage paid substitutes (GDS) against the vacant / absentee / leave post of Group 'D' / Postman in Departmental Post Offices having a combined staff strength exceeding four Gr.'D' / Postman for a period not exceeding ninety days. However, the permission of Head of Circle / Region is mandatory if the arrangement of the paid substitute against the vacant / leave / absentee Postman / Gr.D exceeds ninety days.

The other conditions on the matter will remain unchanged till further order.

Yours faithfully,

Sd/-
Sunil Sharma
Asstt. Director General [Est.]

Have U Got your Arrears?

How to Pay your Income Tax on Arrear Salary

Know how the income tax charged on Salaries?

Confusion prevails on the tax treatment of the pay arrears that Central government staff are set to get as part of their latest wage revision. While tax experts and the income tax department maintained that the entire arrears are to be taxed this fiscal (even though they would get only 40% of the arrears this fiscal), another section of the finance ministry said that they would be taxed for only what they get this year. The government had decided to pay 40% arrears of their increased salaries this year and the rest next year to reduce the burden on the exchequer. At a briefing on the implementation of the latest wage rise for central government staff, an official of the finance ministry said, “the instruction to the ministry is to deduct tax only when it is paid.” The officials, however, declined to speak on record. “Government instructions issued on August 30 regarding fixation of pay and payment of arrears consequent upon the implementation of the Sixth Pay Commission’s recommendations, clearly states that in authorising the arrears, income tax as due may also be deducted and credited to the government. Generally speaking, income earned in a year is taxed in that particular year only”, said the official. Sources in the income tax department, however maintained that law as it stands today, provides for deducting the tax on the entire amount when it is ‘allowed’, irrespective of when they actually get the money. They said that the supreme court had upheld the provision regarding this in a case of CIT versus L W Russel 53ITR91. Income Tax Act says that any arrears of salary “paid or allowed” to him in the previous year, if not charged to income-tax for any previous year, can be charged to income-tax under the head salaries. The court had in its verdict said the expression “allowed” is of wider connotation and any credit made in an employees account is covered by it. It is equivalent to find/taking into account/set apart/granted and implies that the right is conferred on the employee in respect of the perquisite, it had said. The government had last month announced an average increase of 21% in the wages of employees.

Statesman Sources:-
The government today clarified that the arrears accruing from the pay hike recommended by the Sixth Pay Commission would be taxed as and when it was given and not in a lump-sum. “The income tax as due can only be deducted on the income earned in a particular year,” a finance ministry official said, refuting reports that 100 per cent tax would be collected this year even though the arrears would be split into two installments of 40 per cent this year and 60 per cent next fiscal. Stating that no special dispensation would be made for government employees, the official said tax would be levied when a payment was made on a person’s total income that year. There would be no advance tax. The ministry also sought to dispel the feeling that defence personnel would get a lower pay scale as compared to their civilian counterparts. Asked about the Budget provisions, the official said the total impact in the general Budget was calculated at Rs 15,564 crore. Since all allowances are prospective and would be thus applicable from 1 September, the government would be able to sustain the pay hike this year.(Statesman)


Govt to levy income-tax on 40 per cent pay arrears this year (PTI)

New Delhi, Sep 3 (PTI) Government today said it would tax only 40 per cent of salary arrears to be paid to central government employees in the current fiscal on implementation of Sixth Pay Commission recommendations.Generally speaking income earned in a year is taxed in that particular year, official sources said.A section of the media today reported that the entire amount of arrears would attract tax this fiscal.As per the notification issued by the government last month, central government employees will get 40 per cent of arrears during the current financial year and the remaining amount in the next financial year.Government instructions issued on August 30, 2008, regarding fixation of pay and payment arrears consequent to implementation of the Sixth Central Pay Commission recommendations clearly states that in authorising the arrears income tax as due may also be deducted and credited to the government.The arrears with effect from January 2006 would cost Rs 29,373 crore. Of the arrears, 40 per cent would be paid during the current year to the 50 lakh employees of the central government.The revised pay scales will add Rs 4,500-5,500 crore to the government exchequer this fiscal in the form of personal income tax.Besides, some money would also come through indirect taxes as some of the increased pay would go into buying products and services, official sources said here. PTI

Govt to levy income-tax on 40 per cent pay arrears this year
Finally there is good news for 5.5 million central government employees. This year the government will tax only 40 percent of arrears that one would be getting as per 6th Pay Commission recommendations.
Earlier there were reports that government had decided to tax the whole arrear despite the fact that only 40 percent of the arrears was being paid this year. The news had shattered many a hopes of government employees, but now they are a bit optimistic that they may well at last be able to spend a part of their arrears amount they would be handed over as part of sixth pay commission recommendations.The government had divided arrears in two installments with central government employees getting 40 percent amount of the arrears this year and the rest 60 percent next year.Sources in the finance ministry say that the ministry may not deviate from the general practice where tax is charged only on an income from that year and not what he would get next year.Government instructions issued on August 30, 2008, regarding fixation of pay and payment arrears consequent to implementation of the Sixth Central Pay Commission recommendations clearly states that in authorising the arrears income tax as due may also be deducted and credited to the government. The arrears with effect from January 2006 would cost Rs 29,373 crore. Of the arrears, 40 per cent would be paid during the current year to the 50 lakh employees of the central government.
Had the government decided to go this way it would have wiped out almost the entire amount of 40% arrears to be paid to central government employees this year. Senior bureaucrats will suffer the most as their tax would be topped with a surcharge of 10%, applicable on an income of Rs 10 lakh and above.The financial implication of Pay Commission on the General Budget would be Rs 15,717 crore and Rs 6414 crore on Railway Budget in 2008-09. The government’s present salary bill is over Rs 70,000 crore and the pension bill is over Rs 30,000 crore.

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To expedite the payment of salary arrears to lakhs of its employees after implementation of the Sixth Pay Commission’s report, the Government has waived any “pre-check” of the claims they would be submitting.This has been done to ensure that arrears are cleared at the earliest when the salary for September is paid to employees on the last working day of the month.The employees would, however, be required to furnish an undertaking so that the Government can later deduct any excess payment made to them due to any miscalculation. Usually, the drawing and disbursement officer in a government office is supposed to verify the salary and arrear bills of every employee but the one-time exception will save the accounts section the additional burden. It will, however, work out the details of the dues later.After the new salaries were notified on August 29, the government came out with a detailed “ready reckoner” that took into account each earlier pay scale and the corresponding change in it.“The calculation of new salary has become easy but some error may occur while calculating the arrears because increments are involved. It is good that the pre-check requirement has been dispensed with,” an officer said.Although the employees will have to pay income tax on the arrears, most of them are now busy calculating their dues. Only 40% of the arrears are to be paid during the current fiscal and the remaining 60% will be disbursed in 2009-10. The employees have the option to deposit the arrears in their GPF accounts after deduction of tax. For the payment of the hiked salaries, the employees have been asked to submit a statement of fixation of pay after tallying it with the ready reckoner.
The buzz in Government offices is also on a possible “anomaly” in the new scales. The pay band system, officers said, is likely to dilute the motivation for promotion because an employee’s salary will, anyway, go on increasing annually.Under the new rules, there are only four pay bands for all employees and officers with assured annual increments. As a result, large number of employees, despite their in-cadre seniority, would be placed in the same pay band for a considerable period.

Depertment of Posts isuued orders for implementation of 6 CPC

PAY COMMISSION
Department of Posts ORDER

FULL TEXT OF POSTAL DIRECTORATE ENDORSEMENT ORDER DOP NO.4-4/2008-PCC DATED 04.09.2008 ON REVISION OF PAY SCALES PLACED AS UNDER:

OFFICE MEMORANDUM

Sub; Sixth Central Pay Commission-Revision of Pay Scales in respect of Group 'A', 'B', 'C' and 'D' Employees –2008.

D.G. Posts No. 4-4/2008-PCC dated 04-09-2008.

A copy of the Ministry of Finance (MOF) Gazette Notification Vide G.S.R. 622(E) dated 29.08.2008 promulgating the Central Civil Service (Revised Pay) Rules 2008 is forwarded herewith along with the following other orders; notification of Revised Pay Structures and illustrations regarding fixation of pay of the employees in the Revised Pay Scales & Option Proforma and orders relating to various Allowances and Pension are forwarded herewith for information, guidance and necessary action.

Sl. No.

Letter /

Notification 1 Gazette Notification No. 304 in File No. 1/1/2008-IC dated 29.08.2008
Resolution. 2 1/1/2008-IC dated 29.08.2008
Instructions regarding Pay and Payment of arrears 3 1(3)/2008-E-II (B) dated 29.08.2008
Dearness Allowance 4 2(13)/2008-E-II (B) dated 29.08.2008
HRA & CCA 5 3(1)/ 2008-E-II (B) dated 29.08.2008
Spl. Comp. (Remote Locality) Allowance 6 4(2) 2008-E-II (B) dated 29.08.2008
Spl. Comp. (Hill Area) Allowance 7 9(11) 2008-E-II (B) dated 29.08.2008
Split Duty Allowance 8 21(2) 2008-E-II (B) dated 29.08.2008
Transport Allowance 9 5(1) 2008-E-II (B) dated 29.08.2008
Bad Climate Allowance 10 6(3) 2008-E-II (B) dated 29.08.2008
Project Allowance 11 11(5) 2008-E-II(B) dated 29.08.2008
Spl. (Duty) Allowance in NE & Ladhak 12 12(4) 2008-E-II (B) dated 29.08.2008
Hard Area allowance 13 12(3) 2008-E-II (B) dated 29.08.2008
Island Spl. (Duty) Allowance 14 13(1) 2008-E-II (B) dated 29.08.2008
Discontinuance of Border Area Allowance 15 17(1) 2008-E-II (B) dated 29.08.2008
Schedule /Tribal Area Allowance 16 19039/3/2008-E-III (A) dated 30.08.2008
Cycle (Maintenance) Allowance 17 7(19) 2008-E-III (A) dated 30.08.2008
NPA attached to Medical Officers 18 7(19) 2008-E-III (A) dated 30.08.2008
NPA attached to Veterinary Posts

2. The process to obtain, fixation of pay in the revised pay structure, calculating the arrears according to the Gazette Notification GSR 622(E) dated 29.08.08 may be started immediately. Before payment of arrears, it may be ensured that the undertaking as prescribed in MOF OM No. 1/1/2008-IC dated 30.08.2008 is obtained from each official and kept on record.

(A.K.Sharma)
Dy. Director General (Estt.)
04.09.28

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