Non-Filling up of Reserved quota for Gr-D cadre is illegal

Non-Filling up of Reserved quota for Gr-D cadre is illegal

CENTRAL ADMINISTRATIVE TRIBUNAL
ERNAKULAM BENCH

O.A 469 OF 2010

Monday, this the 6th day of December, 2010.
CORAM:

HON'BLE Mr. K. GEORGE JOSEPH, ADMINISTRATIVE MEMBER

D.K. Mohanan, S/o. Kumaran,
Fulltime temporary status casual labourer,
RMS 'CT' Division, Kannur,
Residing at Pushpa Nivas,
Kannothumchal, Chovva (P.O.),
Kannur - 6.
... Applicant

(By Advocate Mr. T.A. Rajan )

Versus

1. Union of India represented by
Secretary, Government of India,
Ministry of Communications,
New Delhi.

2. The Chief Postmaster General,
Kerala Circle, Trivandrum.

3. The Post Master General,
Northern Region, Kozhikode.

4. The Senior Superintendent of Post Officers,
RMS CT Division, Kozhikode. ... Respondents

(By Advocate Mr. Millu Dandapani, ACGSC)

The application having been heard on 30.11.2010, the Tribunal on 6.12.2010 delivered the following:


O R D E R

HON'BLE Mr. K. GEORGE JOSEPH, ADMINISTRATIVE MEMBER


This O.A. has been filed by the applicant for the following reliefs :
i) to declare that the non filling up of Group D post under the 25% quota reserved for casual labourers is arbitrary and illegal.

ii) to declare that the applicant is eligible and entitled to be considered for appointment to Group D post under the 25% quota based on his seniority.

iii) to direct the respondents to consider the applicant for appointment to Group D post against the 25% quota reserved for casual labourers.

iv) In alternative direct the 4th respondent to consider and dispose of Annexure A4 presentation without further delay.

v) Award costs of and incidental to this application. vi) Grant such other relief, which this Hon'ble Tribunal may deem fit and proper in the circumstances of the case.


2. The applicant who was initially appointed as part time casual labourer on 04.02.1981 became a full time casual labourer on 01.10.1983 was granted temporary status with effect from 01.10.1994 in the office of the Inspector, RMS CT-1 Sub Division, Kannur. The applicant's contention was that the respondents were not filling up the vacancies under 25% quota for casual labourers with temporary status in Group-D post. Being at serial No. 2 in the seniority list of full time temporary status casual labourers, the applicant is eligible to be considered for appointment against the 25% quota. The representation submitted by the applicant in this regard has not been considered by the 4th respondent. Being aggrieved, the applicant has filed this O.A.
3. Respondents have contested the O.A. In the reply statement filed by the respondents, it was pointed out that the applicant was made a full time casual labourer with effect from 01.10.1993 and not from 01.10.1983. It was further submitted that 20% of unfilled Group-D vacancies in the Department
of Posts are set apart for casual labourers. The respondents have considered the case of the applicant in accordance with the provisions in the recruitment rules and his seniority position and he has been ordered to be appointed as Group-D, Ottapalam H.O. In Ottapalam Postal Division for a vacancy occurred in the year 2006 with notional service from 2006, vide Memo No. B2/4/Group D/Rectt dated 16.07.2010. However, the applicant is yet to assume the charge of the post. Further, it was submitted that there was no vacancy approved by the competent authority remaining unfilled in RMS CT-1 Division, when the representation was received. In view of the above, the applicant is not entitled to any reliefs as prayed for in the O.A.
4. In the rejoinder, the applicant admitted that he was made a full time casual labourer as on 01.10.1993 and the same was correctly stated in para 2 of the O.A. and that the typographical error in the date mentioned in synopsis may be excused. It was further submitted that the applicant is

working in Railway Mail Service (RMS). The Postal Division and the RMS are entirely two different seniority units and the employees in RMS will be considered for appointment in the Postal Division, only if there is no vacancy in the RMS and vice versa. In spite of having several vacancies in the RMS, the applicant was appointed in the Postal Division , which is arbitrary and illegal. At the same time, several juniors of the applicant were given appointment in the RMS as can be seen from the Annexure A-7 memo dated 16.07.2010. The representations submitted by the applicant dated 19.07.2010 and 04.08.2010 have not been considered by the respondents till now. Therefore, the O.A. Should be allowed as prayed for.

5. Arguments were heard and documents perused.

6. As per column 11 (ii) (PART-II - Post of Subordinate Offices) of Department of Posts (Group D Posts) Recruitment Rules, 2002, 25% of the vacancies are to be filled up by part time casual labourers recruiting division or unit, the relevant portion of which is reproduced below:

"(ii) 25% of the vacancies remaining unfilled after
recruitment of employees mentioned at Sl. No.2, such
vacancies shall be filled up by selection-cum-seniority in the
following order:

(a) by casual labourers with temporary status of the recruiting division or unit failing which,

(b) by full-time casual labourers of the recruiting division or unit failing which,

(c) by full-time casual labourers of the neighbouring division or unit failing which,

(d) by part-time casual labourers of the recruiting division or unit failing which,

(iii) by direct recruitment.

Explanation : 1. For Postal Division or Unit, the neighbouring Division or Unit, as the case may be, shall be the Railway Mail Service Sub-Division and vice-versa."
7. As per explanation No. 1 above, in the case of the applicant who is in the RMS, Postal Division is a neighbouring Division. The applicant has given an appointment in the Postal Division instead of RMS Division as per order dated 16.07.2010. The contention of the respondents is that he could
not be given a posting in the RMS, because, in compliance of the orders of Hon'ble High Court of Kerala and this Tribunal, they had filled up the vacant Group-D posts in Kerala Circle and no vacancy approved by the competent authority for filling up, was remaining unfilled in the RMS Division when the
applicant's representation was received. The respondents would have appointed the applicant in the RMS if there was a vacancy approved by the competent authority. It has been made clear in the judgement in W.P.(C) No. 28574/2009 and connected Writ Petitions that any clearance by the
screening committee to fill up the vacancies in the promotion quota is not required at all and there is no question of abolition of posts to be filled up for the promotion quota. This position was clearly brought out while allowing the O.A. No. 628/2010 and connected cases on 27.10.2010. The relevant part of the order is reproduced as under :
" With regard to the first question of abolition of the posts, as per the finding entered by the Hon'ble High Court of Kerala in Writ Petition No. 28574 of 2009 and connected Writ Petitions, it is categorically held that there shall not be any question of abolition of posts to be filled up for the promotion quota as the abolition question comes only to the direct recruitment quota. Further the Hon'ble High Court has held that there is no question of any clearance by the screening committee to fill up the vacancies. It is also found by the Hon'ble High Court that there is no records to show that these posts were abolished on the basis of any order given by the competent authority and even if any abolition has been now ordered, it is only applicable to the direct recruitment quota.
With the above finding entered by the Hon'ble High Court of Kerala, the vacancy position existed from 2000 to 2009 are 431 vacancies including 286 vacancies alleged to have been abolished. If the Department wants to comply with the order passed by this Tribunal the Department shall
take either to revive all the vacancies abolished without permission of law or without an order passed by the competent authority with regard to the promotion quota. Further it is also held that if they are not in a position to fill up the vacancies already existed they should adjust the vacancies now arisen during the year 2009 i.e. 97 vacancies. "

8. In view of the above decisions, clearance by the competent authority for appointment and abolition of posts in the promotion quota are out of question. Therefore, the respondents should reassess the number of vacancies available in the promotion quota. If there is any vacancy available in the RMS CT Division, Kannur / Kozhikode, the applicant should be accommodated. This exercise should be carried out within a period of 2 months from the date of this order.

9. The O.A. is allowed to the extent indicated above. No order as to costs.

(Dated, the 6th day of December, 2010.)

K. GEORGE JOSEPH
ADMINISTRATIVE MEMBER

Bi-Ennial Conference of National Union of Aska Division

The open Session of Bi-enniel Conference of NAPE Gr-C NUPE PM and MTS and NUGDS was held at MAA KHSMBESWARI PEETH,Aska on 19-12-2010.

Honourable MP Shri Nityananda Pradhan,Hon'nble MLA ,Chairaman of South Orissa Vikash Parishad, Shri Prafulla Rao Advocate had joined the Conference.

Shri Bishnu Charan Parida,Circle Secretary NAPE Gr-C had joined the meeting as the Chieg Guest. In his speech he enlightened the present political,economical,financial scenario of the nation and the role of National Union for the betterment of the common Employees.

Shri Bamadev Tripathy,C/S NUPE Postmen and MTS,Shri P K Prushty Divl.Secretary,NAPE Gr-C,Koraput Divn. had addressed the gathering.

Retired Officials were felicitated by the Chief Guest and other dignatories.

Syllabus for Examination of postmasters' Cadre

The syllabus for Postmasters' cadre has been issued as above.

Products Through Post Offices

Products Through Post Offices

The Department of Posts has signed agreements with financial institutions including many other organisations to sell their products through Post Offices in the country. List of products sold at national level is as given below.
Sl.No. Name of Company/Financial Institution Description of product/service
1 Western Union Money Transfer International money transfer to India
2 UTI Mutual Funds Sale of UTI Mutual Funds through post offices
3 Pension Fund Regulatory & Development Authority Point of Presence for National Pension Scheme Accounts
4 M/s Nirmal Packaging Systems Sale of Corrugated boxes and Paper board envelops.
5 M/s Narsingh Dass & Co. Sale of Tyvek Envelops
6 Ministry of Railways Booking/cancellation of Railway Reservation Tickets under PRS Scheme
7 CBOP( Now merged with HDFC Bank)Sale/Purchase of foreign exchange
8 Reliance Money Infrastructure Limited Sale of Gold Coins
9 BSNL Sale of recharge coupons Sancharnet Cards etc.
10. India Post SBI tie-up Department sells assets and liability products of SBI through identified postal outlets.
11. NABARD-SHG linkage scheme India Post has entered into a tie-up with NABARD to disburse micro credit to women self help groups (SHGs) on pilot basis.
The Central and State Governments take various measures from time to time to promote and popularize small saving schemes through print and electronic media as well as holding seminars, meetings and providing training to various agencies involved in mobilizing deposits under the schemes. As part of this ongoing exercise, Government has taken following steps to make the small savings schemes more attractive and investor friendly:- -Introduction of Bonus at the rate of 5% on the deposits made under Post Office Monthly Income Account (POMIA) Scheme on or after 8th December, 2007 upon the maturity of the deposit. -The benefit of Section 80C of the Income Tax Act, 1961 has been extended to the investments made under 5-Year Post Office Time Deposits Account and Senior Citizens Savings Scheme, with effect from 01.04.2007. -With effect from 1.8.2007, the maximum deposit ceilings of Rs.3.00 lakh and Rs.6.00 lakh under the Post Office Monthly Income Account (POMIA) Scheme has been raised to Rs.4.50 lakh and Rs.9.00 lakh in respect of single and joint accounts respectively. -The penalty on pre-mature withdrawal of deposits under the Post Office Monthly Income Account (POMIA) scheme has been rationalized from 3.5% to 2% on withdrawal on or before expiry of three years and 1% on withdrawal after expiry of three years. -All categories of pensioners have been allowed to open and maintain ‘Pension Account’ under Post Office Savings Account Rules, with effect from 11th July, 2007. -The restriction on opening of more than one account during a calendar month under the Senior Citizens Savings Scheme has been removed with effect from 24th May, 2007. -Opening of “Zero deposit/Zero Balance” accounts for workers employed under NREG Act, under Post Office Savings Account Rules, with effect from 26th August 2008. -Opening of “Zero deposit/Zero Balance” accounts for Old Age Pensioner Account under Indira Gandhi Old Age Pension Scheme, Widows Pensioner Account under Indira Gandhi National Widow Pension Scheme and Disabled Pensioner Account under Indira Gandhi National Disabled Pension Scheme with effect from 13th October 2009. -National Savings Institute, a subordinate organization under the Department of Economic Affairs (Budget Division) also maintains its web site i.e nsiindia.gov.in in collaboration with National Informatics Centre to facilitate interface with the public through wider dissemination of information on small savings and on-line registration and settlement of investor’s grievances. This information was given in written reply to a question in Lok Sabha today by Shri Gurudas K amat, the Minister of Communications and Information Technology.

No Distinction between Private Hospital,Nursing Home and Clinic

No Distinction between Private Hospital,

and Private Nursing Home/ Clinic

Government of IndiaMinistry of Communications & ITDepartment of PostsDak Bhavan, Sansad MargNew Delhi – 110116
No. 6-1/2006-Medical Dated – 27th October, 2010

To,All recognized Unions/Associations of Department of Posts

Sub: - CS (MA) Rules, 1944 – Reimbursement of expenditure involved in emergent cases for the treatment taken at private nursing home/clinic – Delegation of powers – reg. Sir,I am directed to forward herewith a copy of Ministry of Health and Family Welfare, New Delhi O.M. No. S-14025/46/92-MS dated 4-2-1993 on the above subject for your information/guidelines and necessary action.

(Mahendra Kumar)Assistant Director General (Medical)

No. S-14025/46/92-MSGovernment of IndiaMinistry of Health and Family WelfareNirman Bhawan, New Delhi – 110011
Dated the 4th February, 1993
Office Memorandum

Subject – CS (MA) Rules, 1944 – Reimbursement of expenditure involved on emergent cases for the treatment taken at private nursing home/clinic – Delegation of powers – Regarding. The undersigned is directed to say that under the CS (MA) Rules, 1944, vide Miscellaneous Important Decisions No. 5 under Section VII of the compilation of the CS (MA) Rules and further modified vide O.Ms. No. S-14012/9/75-MC (MS) dated 23.2.77, 7.5.79 and 18.6.82, powers have been delegated to the Heads of Departments to allow reimbursement of the medical claims in respect of the treatment obtained under emergency at private hospitals, as distinct from private nursing home/private clinic, subject to item-wise ceilings as per the rates prescribed in the Annexure to the O.Ms. referred to above without any financial limit on the total amount to be reimbursed.

2. However, although the broad guidelines provided in para 1 (iv) of the O.M. dated 18.6.82 referred to above are only indicative and not exhaustive, a large number of cases are being referred to this Ministry/Dte. G.H.S. for seeking relaxation of the rules stating that the hospital is not run on ‘No profit and No Loss Basis’, which otherwise could have been settled by the concerned Department under the delegated powers.

3. It has now been decided by the Government that in order to eliminate the confusion regarding distinction between the private hospital and a private nursing home Clinic, the delegated powers referred to above are applicable to all private medical institutions without making any distinction between a private hospital and a private nursing home/clinic.

4. the medical claims for specialized treatment for heart diseases, kidney transplantation, etc. may be settled as per the schedule of rates approved for the treatment of C.G.H.S beneficiaries from time to time at private recognized hospitals under that Scheme or the actual charges, whichever is less, and all other cases may be settled as per the item wise ceilings prescribed in the Annexure to the O.Ms. referred to above. No. references should be made to this Ministry/Dte. G.H.S. in the matter for further relaxation of the Rules and may be settled by the concerned Ministry/Department.

5. In this connection it may be reiterated that as already stated in para (iii) of the O.M. dated 18.6.82 referred to above, reimbursement of expenses incurred on treatment obtained in the private clinics/nursing homes of the Authorised Medical Attendants would not be admissible under the above provisions and also in relaxation of the CS(MA) Rules even in emergent cases.

6. All pending cases may be decided accordingly, However, the cases which are already settled or decided, may not be re-opened.

7. This issues with the concurrence of the Department of Pension and Pensioners’ Welfare vide their U.O. No. 272/92 P& PW (K) dated 19.10.1992 and the Ministry of Finance Deptt. Of Expenditure) vide their U.O. No. 1441/E.V/92 dated 17.11.1992. 8. In so far as persons serving in the Indian Audit and Accounts Deptts. are concerned, this issues with the concurrence of the office of the comptroller and Auditor General of India vide their U.O. No. 27-Audit-I/72-90, dated 25.1.1993.

Sd/-(Braham Dev)Under Secretary to the Govt. of India

DIN required for filling IT Returns

Document Identification Number(DIN)

required for filling IT Returns

Taxpayers will now have to procure a 'new number' for filing returns and making any communication with the Income Tax department. The unique Document identification number (DIN), on the lines of numbers like PAN and TAN, will be quoted on "every" income tax-related communication, including returns to be filed next year for the financial year 2010-11. According to the new guidelines brought out by the Central Board of Direct Taxes (CBDT), the DIN will be mandatory "in respect of every notice, order, letter or any correspondence" with the department, by the taxpayers.
"The DIN will be generated by the I-T department and will be useful, essentially, for error-free filing of tax returns, claiming refunds and other communication with the department by the assesses," a senior Finance Ministry official said.
The 'Aykar Sampark Kendras' will hand out the DIN from this month, the official said.
Assesses will not be put to any trouble, as the numbers will be generated and allotted by the department itself.
I-T officials will also be allotted the numbers in order to streamline the process, the official said, adding, the number has to be produced thereon for every activity with the department.
Taxpayers and tax collectors are currently required to quote Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) among others when returns are filed with the department.
According to section 282B of the Income Tax Act that deals with DIN, if the document sent to the tax authority does not bear this unique computer-generated number then "such document, letter or any correspondence shall be treated as invalid and shall be deemed never to have been received."
DIN is aimed at bringing more transparency in tax administration as the whole exercise involves a number of documents and proformas. Apart from regular filing of taxes, a taxpayer deals with the department for various other financial services, which DIN will help to ease, the official said.

Higher Tax of Tax Deduction at Source for Non PAN holders

Higher Rate of Tax Deduction at Source for non-PAN holders

No.402/92/2006-MC (04 of 2010)
Government of India / Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
***
New Delhi dated 20th January 2010
PRESS RELEASE

A new provision relating to tax deduction at source (TDS) under the Income Tax Act
1961 will become applicable with effect from 1st April 2010. Tax at higher of the prescribed
rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account
Number (PAN) of the deductee is not available. The law will also apply to all non-residents
in respect of payments / remittances liable to TDS. As per the new provisions, certificate for
deduction at lower rate or no deduction shall not be given by the assessing officer under
section 197, or declaration by deductee under section 197A for non-deduction of TDS on
payments shall not be valid, unless the application bears PAN of the applicant / deductee.
2. All deductors are liable to deduct tax at the higher rate in all transactions not having
PAN of the deductees on or after 1st April 2010. In order that there is no dispute regarding
quoting / non-quoting of PAN or accuracy thereof, the law requires all deductees and
dedutors to quote PAN of deductees in all correspondences, bills, vouchers and other
documents sent to each other. All deductors are, therefore, advised to intimate their
deductees to obtain and furnish their PAN so as to avoid TDS at a higher rate. All deductees,
including non-residents having transactions in India liable to TDS, are advised to obtain PAN
by 31st March 2010 and communicate the same to their deductors before tax is actually
deducted on transactions after that date.
3. The procedure for obtaining PAN is simple, inexpensive and quick. Application for
PAN can be filed in Form 49A to National Securities Depository Ltd. (NSDL) or Unit Trust
of India Investor Services Ltd. (UTIISL) or their intermediaries. Non-residents can apply
through the local embassy / consulate of India. Applications can also be filed, paid for or
tracked online through the Internet on the following web-sites:-
http://incometaxindia.gov.in/
https://incometaxindiaefiling.gov.in/portal/index.jsp
http://www.tin-nsdl.com/
http://www.utitsl.co.in/
4. The Central Board of Direct Taxes (CBDT) has issued Notification No.94/2009
relating to taxation of perquisites / profits in lieu of salary and Circular No.1/2010 for the
guidance of tax dedutors for salaries. These documents are available on the department’s web
site at http://incometaxindia.gov.in/
XXX

Invest more and save IncomeTax

Invest more and save IncomeTax

There is a new kind of tax saving option is introduced by finance minister this financial year and that is Section 80CCF. Equity savvy investor never liked to invest in Infrastructure bond and to encourage them to take part in Indian growth story and at the same time save some income tax too. According to the proposal, individuals can invest up to Rs 20,000 in these bonds in addition to the Rs 1 lakh limit available under Sections 80C, 80CCC and 80CCD such as life insurance premium, provident fund, PPF and National Savings Certificate.
IFCI Infrastructure Finance Company Limited plans to raise Rs 100 crores with a greenshoe option to retain over-subscription for issuance of additional infrastructure bonds. The bonds have a face value of Rs 1,000 with 10 years maturity. There is a lock-in period of 5 years from the date of allotment. Earlier, IFCI raised about Rs 100 crore, including a greenshoe option of Rs 50 crore. But unlike the other IDFC bond, which has a triple A rating and L&T , which has a AA+, IFCI bonds are unrated.
Issue Details :-Issue Period : 16th November 2010 to 30th December 2010Rating : “unrated” by ICRAIssue Size : Rs 100 crore with a greenshoe option to retain over-subscription for issuance of additional infrastructure bonds.Face Value : Rs 1000 per BondSubscription Amount : Minimum 5 bondsLock-in Period : 5 yearsListing : NSE/BSEBuyback Option : At the end of 5 yrs and 7 yrs from the date of allotment
The 10-year bonds are offered under four options:-Option I, which comes with a buyback after five years, offers yield on redemption of 8% per annum.Option III, without the buyback option, will offer 8.25%. Both will be non-cumulative .Option II and Option IV will have cumulative payment at the end of the buyback period, or 10 years, as per the option opted by the investor.
The funds raised through this issue will be utilised towards “infrastructure lending” as defined by the RBI in the regulations issued by it from time to time, after meeting the expenditures of, and related to the issue.
The maximum amount of income not chargeable to tax in case of individuals (other than women assesses and senior citizens) and HUFs is Rs 1,60,000. In the case of women, the limit is Rs 1,90, 000 and in the case of senior citizens, it is Rs 2,40,000 for FY10. Hence those guys whose income exceeds these slabs can go for these bonds.
Tax Benefits :- Under section 80CCF of the Income Tax Act, Rs 20,000 per annum paid or deposited as subscription to long term infrastructure bonds shall be deducted in computing the taxable income. This is over and above Rs 1,00,000 tax benefit available under section 80C, 80CCC and 80CCD.
Benefits as per Tax slabs :-1. Slab 10.3% : Rs 2,0602. Slab 20.6% : Rs 4,1803. Slab 30.9% : Rs 6,180
Pros:- The limit of Rs 20,000 per annum is in addition to Sections 80C, 80CCC and 80CCD. Hence, it is advisable to consider applying in this issue.Cons:- The bonds are locked in for five years, so there is no exit in case you need the money midway which restricts liquidity.
IDFC officials have recently said they will float a second batch of taxsaving infrastructure bonds by March 2011 as it aims to mop up a total Rs 3,400 crore through these longterm bonds. It has already raised Rs 436 crore from the first tranche, which closed on October 25. IDFC was followed by L&T Infrastructure Finance, which raised about 240 crore.

When a government servant has submitted representation to the higher authority, he has a right to know the result thereof in compliance with the prin

When a government servant has submitted representation to the higher authority, he has a right to know the result thereof in compliance with the principles of natural justice.
CENTRAL ADMINISTRATIVE TRIBUNAL
CUTTACK BENCH: CUTTACK

O.A. No.555 of 2010
Cuttack, this the 23rd day of September, 2010

C O R A M
THE HON BLE MR.M.R.MOHANTY, VICE-CHAIRMAN (J)
AND
THE HON BLE MR.C.R.MOHAPATRA, MEMBER (A)

Sri Rudranarayan Mohanty, aged about 43 years, Son of Sri Ambika Charan
Mohanty resident of Village Patana, Post- Jharakata, Via-Bentakar, Dist.
Cuttack presently working as Sub Post Master of Rameswar Sub Post Office,
At/Po. Rameswar, Dist. Cuttack, Orissa, PIN 754 201.
Applicant

By legal practitioner: M/s. P.K.Padhi, M.P.J.Ray, J.Mishra, K.Sharma, Counsel

-Versus-

1. Union of India represented through its Chief Postmaster General, Orissa Circle,
At/Po. Bhubaneswar, Dist. Khurda, 751 001.

2. Director of Postal Services (Hqrs.), O/O. Chief Postmaster General, Orissa Circle,
At/Po.Bhubaneswar, Dist. Khurdas 751 001.

3. Superintendent of Post Offices, Cuttack South Division, At-P.K.Parija Marg, Po-
Cuttack GPO, Dist. Cuttack, 753 001 . Respondents

By legal practitioner: Mr. U.B.Mohapatra, SSC.
O R D E R
MR. C.R.MOHAPATRA, MEMBER(ADMN.):

On being mentioned by Mr. P.K.Padhi, Learned Counsel appearing for the Applicant in presence of Mr.U.B.Mohapatra, Learned Senior Standing Counsel of the Union of India (on whom copy of this OA has been served), this matter is taken up today. Heard both of them at length and perused the materials placed on record.
2. In this Original Application filed under section 19 of the A.T. Act, 1985, the Applicant challenges his order of transfer under Annexure-A/3 dated 20.09.2010 posting him in his present capacity as PA to Tirtol SO. It is the stand of the Applicant that in the year 1997 he was promoted and post of Postman from EDMC and consequently on 1.4.2006 he was posted as PA in Chhatia SO. Within a short span of his posting as PA in Chhatia SO, vide order dated 2.5.2008 he was transferred and posted to Jagatsinghpur HO. He challenged the said order of his transfer. On the strength of the interim order
passed by this Tribunal he was continuing in the said post. However, this Tribunal dismissed the Original Application earlier filed by the Applicant challenging his order of transfer to Jagatinghpur on 22.01.2010. Thereafter, instead of Jagatsinghpur the Department vide order dated 22.1.2010 posted him at Rameswar in which place/post the applicant joined on 1.4.2010. Within a span of six months he has again been transferred and posted to Tirtol SO vide order under Annexure-A/3 dated 20.09.2010. Applicant by making representation dated 22.09.2010 (Annexure-A/4) has sought cancellation of his order of transfer on various grounds, frequent and unscheduled is one of them. Accordingly, Learned Counsel for the Applicant while praying for issuance of notice to the Respondents, insists for staying his order of transfer as he has not yet been relieved from post.
3. Mr. Mohapatra, Learned SSC appearing for the Respondents opposed to such contention of the Learned Counsel for Applicant on the ground that transfer being an incidence of service and the applicant having been transferred and posted to Tirtol SO in public interest/administrative exigency, this Tribunal should not entertain this OA; especially for the reason that the applicant submitted representation only on 22.9.2010 and before expiry of the statutory period of six months, he has approached this Tribunal.
4. We have given our thoughtful consideration to the submissions made by parties. We are in agreement with the Learned SSC that since the applicant has submitted representation on 22.9.2010 and approached this Tribunal on 23.09.2010 the OA is premature one and that transfer being an incidence of service the applicant cannot raise objection when it has been made in public interest. At the same time we may record that the applicant has approached his authority for cancellation of the present order of transfer on various grounds mentioned therein. According to us, when he has submitted representation he has a right to know the result thereof in compliance with the principles
of natural justice.
5. In view of the above, without expressing any opinion on the merit of the matter, this OA is disposed of at this admission stage with direction to the Respondent No.2 to consider the representation of the applicant as submitted by him under Annexure-A/4 and intimate the result thereof in a reasoned order to the applicant within a period of fifteen days hence. Till such consideration is given the order of transfer of the applicant shall be kept in abeyance.
Send copies of this order along with OA to the Respondent No.2 and free copies of this order be made available to Learned Counsel for both sides.
(M.R.Mohanty) (C.R.Mohapatra)
Vice-Chairman(J) Member(Admn.)

Casual employees cannot claim employment as a matter of right

Casual employees cannot claim employment as a matter of right,CAT

A temporary employee or a casual wage earner cannot claim permanent appointment merely because he served beyond the period for which he was recruited, the Central Administrative Tribunal has held.
"Merely because a temporary employee or a casual wage worker is continued for a time beyond the term of his appointment, he would not be entitled to be absorbed in regular service or made permanent," a bench of members M Chibber and AK Mishra said.
The Tribunal passed the order on an application by Umrav Singh Rawat, a temporary employee of Directorate General of Central Excise Intelligence, seeking regularisation of his services.
Rawat had contended that despite working satisfactorily, his services were terminated suddenly by the Directorate without giving him any notice.
The Directorate opposed Rawat's plea on the ground that the temporary status granted to him was withdrawn as his services were no longer required by it and being a contractual employee, he could not claim regularisation as a matter of right.
Citing an apex court ruling, the tribunal said casual employees cannot claim employment as a matter of right.
"It is clear that a person who is engaged on casual basis has no right to continue. His engagement comes to an end when it is discontinued," it said.
Source-pti

India Post Pavilion at Trade Fair Inaugurated

India Post Pavilion at Trade Fair Inaugurated

India Post issues four Postage Stamps on Children’s Day

India Post’s pavilion was inaugurated by Ms. Radhika Doraiswami, Secretary Posts, Government of India here today. India Posts is participating in India International Trade Fair – 2010 organized by ITPO from 14.11.2010 to 27.11.2010 at Pragati Maidan. The attractions of the pavilion set up in Hall No. 12 include- Project Arrow - Transformation of Rural Post Offices, A variety of Premium Products/Services, Tailor made solutions for your mailing needs, Customized Business Packages for Corporate Customer, Solution for your logistics needs, Financial Services, Insurance Services, Philatelic Stamps/Stationery and Print to Post – offering services printing, pre-mailing and dispatch of mail under one roof. A set of commemorative Postal Stamps on Children’s Day was also released by her on this occasion. Department Of Posts celebrates the 14th of November, each year with the issue of Special Postage Stamps on Children’s Day. Going by the tradition, Department of Posts has issued a set of four stamps on “Children’s Day” released by Ms. Radhika Doraiswamy today, during a formal function organized at its Pavilion in Pragati Maidan. These Postage stamps show the wooden and mud toys such as the ones from Chennapatna, the dolls, tops of different hues and kites that colour their sky. The miniature sheet also pictures the little drag-cart which rattles happily with a stick on its stretched drum, dragged by a child. This year the Children’s Day Special Postage Stamps celebrate return to innocence, the tenderness of nostalgia and also pays tribute to a heart full of compassion for those who have less than others. These stamps and First Day Cover were designed by Sh. Sankha Samanta.

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When a GDS official fulfils residential and all other conditions and appointed as such, should not be disturbed to accommodate others.

When a GDS official fulfils residential and all other conditions and appointed as such, should not be disturbed to accommodate others.

CENTRAL ADMINISTRATIVE TRIBUNAL
ERNAKULAM BENCH

O.A No. 494 / 2009
Monday, this the 1st day of November, 2010.
CORAM
HON'BLE Ms. K NOORJEHAN, ADMINISTRATIVE MEMBER
HON'BLE DR K.B.SURESH, JUDICIAL MEMBER

Binsha Mol.C.,
W/o Gireesh A,
Mundathadathil House,
Vallillapuzha.P.O.,
Areecode, Malappuram. ....Applicant

(By Advocate Mrs TB Mini )
v.
1. Union of India represented by
Secretary to Govt. of India,
M/o Communications,
Department of Post, New Delhi.

2. Chief Postmaster General,
Kerala Circle, Thiruvananthapuram.

3. Assistant Postmaster General(S),
Kerala Circle, Trivandrum.

4. The Postmaster General,
Northern Region, Calicut.

5. Senior Superintendent of Post Office,
Manjeri Division, Manjeri,
PIN: 676 121.

6. Smt A.M.Geetha Devi,
GDSBPM, Vallillapuzha.P.O.
Malappuram Dist-673 639. ....Respondents

(By Advocate Mr Sunil Jacob Jose, SCGSC for R.1 to 5)

(By Advocate Mr Shafik M.A for R.6)


This application having been finally heard on 19.10.2010, the Tribunal on 1.11.2010 delivered the following:

O R D E R
HON'BLE DR K.B.SURESH, JUDICIAL MEMBER

The applicant is a Gramin Dak Sevak who was appointed pursuant to Annexure A-1 notification dated 22.7.2008 issued by the competent authority. This application was for appointment to the post of GDSBPM, Vallillapuzha on temporary basis. Apparently, the applicant also applied and was selected and
issued with an appointment order Annexure A-2 dated 24.9.2008. The Annexure A-2 would say that she has been provisionally selected as GDSBPM on purely temporary basis subject to verification of residential condition and other aspects. In normal case, to the uninformed and even to the partial informed this will solicit a case that the appointment will be provisional and temporary subject to verification of residential condition and other aspects. She would say that thereafter, she had been appointed and is handling the BPO from 5.10.2008.
2. But from two months later, wisdom seems to have dawned on authorities. They issued Annexure A-4 order dated 3.12.2008 clarifying that the said post at Vallillapuzha has been made on a provisional basis from 15.10.2008 till regular appointment is made. It is to be noted in this connection that at that time the applicant has worked almost 2 months in that post. It was mentioned that the provisional appointments made will be terminated when regular appointment is made. But all other notifications and the offer of appointment is silent on the nature of the appointment. The applicant would contend that once the appointment has been made and she believing the version of the authorities have accepted the employment. She would then contend that she had a legitimate expectation for the continuation of such employment. According to her, her residential qualification and other aspects has been satisfactorily approved by the competent authority.
3. It appears that the 6th respondent was a GDSBPM, Keezhuparambu and she had been working there from 1.8.2001. An order of provisional appointment was also issued to her as well and she would say that her appointment order is dated 13.9.2001. It would appear that the Postal Department appoints people in posts and issues appointment orders much later. She was apparently appointed in a post where the incumbent was put off from service but she was directed to be reinstated on the basis of orders of this Tribunal. But both the applicant the 6th respondent had completed more than 5 years, she claimed alternative employment and consequently a memo dated 19.6.2008 had been issued deploying her as appointed as GDSBPM, Omanur BO while she was working as GDSBPM, Cheruvayor, from 21.7.2007 onwards. But she finds that her new position was uneconomical and therefore, she submitted repeated representation for a transfer and apparently the request made by the 6th respondent found favour with the authorities who had issued the order of 15.5.2009 to transfer her to Vallillapuzha on her request. It would appear that she had reached thereon 6.5.2009. She would say that she had been given a letter of appointment on 5.5.2009 whereas she was already in employment and
therefore could only have been transferred but GDS cannot be transferred otherwise than in compliance with rules. But admittedly she reached along with SDI, Malappuram on 6.5.2009 i.e. Going by the normal parlance it is before the issuance of the appointment order. The SDI apparently handed over charge of
the Vallillapuzha BPO to the 6th respondent. The question which would arise in this connection is that if the Post Office accommodation is to be provided by the GDS themselves how could the SDI handover charge to the 6th respondent without any advance notice and a selection of premises. Any how aggrieved by this, the applicant is before us now.
4. The respondents would say that the 6th respondent was provisionally appointed as GDS, Keezhuparambu in the vacancy of Smt O.K.Pennuty and she was to be at Kizhuparambu where Smt Geethadevi was to be appointed as GDS, Omanur in lone available vacant post then. At that point of time Vallillapuzha was not vacant since Smt Geedhadevi was holding the post. They would say that the 6th respondent being a retrenched GDS she was eligible for a tansfer to Vallillapuzha which is a place nearer to her house. It has also come out that the 6th respondent was working as GDS at Omanur on a regular basis. Therefore, the following points are urged:

i) The factor of provisional appointment cannot be deduced from Annexure A-1 to Annexure A-2;

ii) the 6th respondent was transferred to Omanur as she had to be given an alternative appointment, as the Ex-BPM of Kizhuparamba had to be reinstated in this Tribunal's order on 22.7.2007. She was working in Kizhuparamba BO from 01.08.2001 and Omanur BO was at a distance of 30 Kms. The 6th respondent was eligible for a transfer to a nearby BO, as per DG's letter at Annexure R-4. The expected and proper course of action by the administration was to consider the request of the 6th respondent for transfer to Vallillapuzha and issue a notification to fill up the post at Vallillapuzha only after her request was considered by the 2nd respondent and suitable order issued. As such, the applicant who
was selected after observing all formalities cannot be displaced by another employee without going through the best practices available in the rules.
iii) The appointment to GDS is granted on the basis of a regular livelihood available to that person in the geological area mentioned.
Once the 6th respondent was ready to accept employment at Omanur it has to be presumed that her alternate source of livelihood was present in that location.That itself to be noted is that the applicants livelihood also substantially revolves around the area of Vallillapuzha. It has come out that she was ejected from Vallilapuzha without any notice and not even affording an opportunity of being heard. It is also seen that GDS Conduct Rules are not followed in this matter. Therefore, the following orders are issued:

a) The applicant shall be retained at Vallillapuzha Post Office with immediate effect;
b) the 6th respondent shall be transferred back to Omanur.

5. The O.A is allowed to the extent indicated above. There shall be no order as to costs.

DR K.B.SURESH K NOORJEHAN
JUDICIAL MEMBER ADMINISTRATIVE MEMBER

If a promotion is ordered by the Department in the existing cadre to the higher cadre, it is incumbent on the part of the authorities to fix the

If a promotion is ordered by the Department in the existing cadre to the higher cadre, it is incumbent on the part of the authorities to fix the pay of the applicant in the promoted post.

CENTRAL ADMINISTRATIVE TRIBUNAL
ERNAKULAM BENCH

O.A.No.580/2009

Thursday this, the 4th day of November, 2010

CORAM:
HON'BLE MR.JUSTICE K.THANKAPPAN, JUDICIAL MEMBER
HON'BLE MR.K.GEORGE JOSEPH, ADMINISTRATIVE MEMBER

P.Vijayakumaran Nair, Aged 60 years,
S/o Parameswaran Nair,
Retired A.S.P.(vig),
O/o The Postmaster General, Kochi,
Residing at Pranavam House, Palliamattom Compound,
Thalayolaparambu P.O.,
Pin-686 605. .. Applicant

By Advocate: Shri P.C.Sebastian

vs.

1. The Union of India, Represented by its Secretary,
Ministry of Communications,
Department of Posts, New Delhi.

2. The Director General, Posts,
Department of Posts, Dak Bhavan,
New Delhi.

3. The Postmaster General, Central Region,
Kochi-682 018.

4. The Director Accounts (Postal),
Kerala Circle, Thiruvananthapuram. .. Respondents

By Advocate: Mr.C.M.Nazar, ACGSC

The Application having been heard on 29.10.2010, the Tribunal on
delivered the following:

ORDER

HON'BLE MR.JUSTICE K.THANKAPPAN, JUDICIAL MEMBER:

The applicant a retired Postal employee has filed this Original Application, aggrieved by the orders dated 28.08.08 and 11.11.2008 of the Accounts Officer of the Pension Section of the Department of Posts, Office of the Director of Accounts(Postal),Kerala Circle, Trivandrum. The applicant prayed that the said orders may be quashed and the amount ordered to be recovered from him, i.e, an amount of Rs.58140/- shall be returned to him with interest. The facts which are relevant for a decision of the Application are as follows.

2. While the applicant was working as Postal Assistant with TOBP, the applicant appeared for a Departmental competitive examination for promotion to the cadre of Inspector of Post Offices and he was promoted as Inspector of Post Offices on 2.5.1988.On the promotion to the cadre of Inspector which carried higher responsibilities the pay of the applicant was refixed as per FR 22(C) (now amended as FR 22(1)(a)(1)). At the time of the applicant's promotion the applicant was getting a pay scale of Rs.1400-2300 which was subsequently revised to Rs.5500-9000 with effect from 1.1.1996. He was
again promoted to the next higher cadre, namely as Assistant Superintendent of Post Offices with effect from 1.3.2001 and he retired from service on 31.10.2008. During his promotion period, the third respondent, namely the Post Master General, Central Region, Kochi issued a memo on 16.11.2004
informing the applicant that his pay on promotion to the cadre of Inspector was wrongly fixed under FR 22(C) since he was holding the post of LSG PA with identical pay scale with that of Inspector and therefore the applicant was not entitled to get the benefit of FR 22(C). Against the said memo the applicant has filed representations and finally a representation to the Director of Postal Services. As an answer to the representations, the applicant received a letter dated 28.8.2008 ordering the recovery of Rs.56,935/- from his salary by monthly instalments, a copy of which is produced as Annexure A7. Against
Annexure A7 the applicant further represented for which the Accounts Officer (Pension) of the office of the Director of Accounts, Postal, Kerala Circle issued a letter dated 11.11.2008 ordering the recovery of the balance amount of Rs.41,935/- from the DCRG amount of the applicant. A copy of which is
produced in the O.A. as Annexure A9. Aggrieved by the above orders/letters, the applicant has filed the present O.A
3. The Application has been admitted by this Tribunal and the notice ordered. In pursuance to the receipt of the notice, a reply statement has been filed for and on behalf of the respondents. The stand taken in the reply statement is that though the applicant appeared in the Departmental examination for promotion to the cadre of Inspector of Post Offices and he was promoted to Inspector of Post Offices with effect from 2.5.1988, the further fixation of the pay of the applicant done by the Post Master, Head Office, Palai under FR 22(C) was an inflation of his pay by two increments in the pay scale of Rs.1400-2300 which was subsequently revised accordingly. It is the further case contained in the reply statement that though the applicant was promoted to the cadre of Inspector of Post Offices carrying identical pay scale of Rs.1400-2300 his pay fixed under FR 22(C) is irregular as it is pointed out by the internal check inspection party from the office of the 4th respondent in the year 2004. That is why the applicant was informed by the letter dated 15.7.2008 that the fixation of pay scale of the applicant under FR 22(C) was irregular and the payment made thereon has to be recovered. A copy of this letter has been also produced by the respondents as Annexure R4. The further
stand taken in the reply statement is that as it is informed by the internal check inspection party that after the amendment brought to the Fundamental Rules in 1989, the pay of the applicant ought not have been continued which was fixed under FR 22(C). It is also of the case stated in the reply statement that as FR 22(C) has been taken away and introduced FR 22(1)a (i) restricting the refixation of any pay of an employee only on carrying the same job and only because of the reason of promotion, the pay ought not have been fixed . It is further stated in paragraphs 5 and 6 of the reply statement as follows:-

"5. However, the recovery of the overpayments was kept in abeyance, on the request of the applicant, till receipt of the Directorate letter No.2-27/2008-PAP dated 26.6.2008 wherein the RO was advised to settle the case in the light of its order dated 31.5.1995.Copy of the Directorate letter dated 26.6.08 is produced herewith and marked as Annexure R-3. Consequently the overpayment from 2.5.1988 to 30.6.2008 was calculated as Rs.56,935/-. A sum of Rs.15,000/- was recovered from the pay and allowance of the applicant for the months from August, 2008 to October 2008 @ Rs.5,000/- per month, and the balance of Rs.41,935/- was recovered from the DCRG payment on his retirement from service on superannuation on 31.10.2008. The applicant has filed this Original Application for refund of Rs.58,140/-(i.e. the amount recovered from his with interest thereof).

6. It is submitted that the applicant passed the Departmental Examination for promotion to the cadre of Inspector(Posts) and was promoted as Inspector Posts (Sub Divisional Inspector) wef 2.5.2008
carrying the identical scale of pay 1400-2300. But by mistake, his pay was fixed under FR 22(C) (Now FR 22(1)a(i). Later the internal check Inspection party from the office of the 4th respondent Director of Accounts(Postal), Kerala Circle, Thiruvanthapuram found out the same in the year 2004, and complying with the objection made by them in this regard, Annexure R1 memo was issued from the office of the 3rd respondent refixing his pay at Rs.1560/- w.e.f 2.5.1988 with Date of Next Increment as 1.4.1989 to the stage of Rs.1600 in the scale of pay of Rs.1400-2300. A copy of the same was also sent to the applicant. However, the applicant submitted a representation with some points requesting that recovery may be stopped till a clarification from Postal Directorate is received on the points raised by him. Subsequently Directorate clarified vide Annexure R3 that the Annexure R1 memo is correct. Accordingly the applicant was informed of the fact by letter No.A&P/20-4/2004 dated 15.7.2008."

4. We have heard the learned counsel appearing for the applicantr.P.C.Sebastian and Mr. C.M.Nazar, ACGSC appearing for the respondents.

5. The learned counsel appearing for the applicant Mr. P.C.Sebastian contended that as per FR 22(C) stood at that time when the applicant was promoted as Inspector of Posts on the pay scale of Rs.1400-2300 his pay has been rightly fixed by the authorities as the Fundamental Rules permits for such
a fixation of the pay on promotion. Even if FR 22(C) has been amended by inserting FR 22 (1)(a)(1) with effect from 1989, any pay fixed under the earlier rule could not be changed. Apart from that the pay of the applicant was fixed by the authorities on the basis of the Fundamental Rules stood at the time of
his promotion. Even if any amendment was brought to FR 22(C) it is not applicable to the case of the applicant. Even if it is not permissible for such a pay fixation after 1989 on finding of the wrong fixation as evidenced from Annexure A4, cannot be taken as a ground to recover any amount from the
applicant as the authorities have not given any ground for non-fixation of his pay under FR 22(C). The introduction of FR 22 (1)(a)(1) is only prospective and it has no retrospective effect and after 2.5.1988, the applicant's pay has not been refixed in the cadre of Inspector. Hence the finding of the internal check inspection party that the pay fixed by the authorities under FR 22(C) cannot be approved as wrong as the pay fixation was on the basis of the rules stood on that day of his promotion. Apart from that the recovery ordered is after a lapse of several years, namely during 2004. The counsel further submits that
as per the judgment of the Apex Court reported in Aleyamma Varghese v. Secretary,General Education Department;2007(3) KLT 700(SC) , the recovery from the pay on account of audit objection after long period of time is not proper. Further the learned counsel also brought to the notice of this Tribunal the
latest judgment of the Apex Court reported in Syed Abdul Qadir and Others v. State of Bihar and Others; (2009)1 SCC (L&S) 744.

6. The above contentions of the learned counsel of the applicant has been answered by the learned counsel appearing for the respondents relying on the reply statement and further contended that as the applicant was promoted to the post of Inspector of Post Offices and his pay was fixed on
2.5.88 under FR 22(C) that pay fixation would not have been done in the light of the amendment brought to the Fundamental Rules on 1.4.1989. Since the provision of FR 22(C) has been amended on the basis of the report of the recommendation of the Administrative Committee, the same provision has to be applied to the applicant. The counsel further submits that as per the judgment of the Hon'ble High Court of Kerala reported in 2006(1)ATJ 321; Shanthakumari P.J. vs. State of Kerala and Others, the recovery of the excess payment on the basis of the wrong pay fixation done by the authorities, can
be recovered. The counsel further submits that as per Annexure R4 the matter has been found by the internal audit party and the applicant was informed about the irregular fixation of his pay. Hence the recovery is justifiable.

7. On considering the contentions of the counsel appearing for the parties and the legal position argued before us, the question to be considered is that whether Annexures A7 and A9 are justifiable or not and the applicant is entitled for any relief which he claimed. It is an admitted fact before us that the applicant appeared in the Departmental examination for promotion to the post of Inspector of Post Offices and he was promoted on passing such test on 2.5.1988. If a promotion is ordered by the
Department in the existing cadre to the higher cadre, it is incumbent on the part of the authorities to fix the pay of the applicant in the promoted post. It is not denied before us that the applicant was promoted on 2.5.1988 and his pay was fixed as per FR 22(C) which stood at the relevant time of his
promotion and it is also noted by us that the applicant was entitled for fixation of his pay on his promotion. Any subsequent change brought to the rule for fixation of the pay scale can be pressed into service of such cases which are applicable to the promotions effected after the introduction of the amended rules. It is also brought to our notice that after 2.5.1988 the pay scale of the applicant has not been refixed whereas his pay was fixed prior to the introduction of FR 22(1)(a)(1) and if so, as FR 22 (1)(a)(1) has no retrospective application, the pay fixed by the authorities cannot be considered
as a wrong fixation but the continuous fixation of the pay under FR 22(C) may be wrong. That apart it is found that the refixation of the pay fixed prior to 1989, after a lapse of several years namely about 16 years, is not sustainable. Even if the pay fixed could be considered as wrong, the recovery ordered with
this distance of time cannot be adjudged as permissible. In this context the judgment of the Apex Court in the case of Aleyamma Varghese (cited supra) the Apex Court categorically held that " a mistake apparent on the face of the record may be rectified, but in a matter of this nature, we would expect the
State to react more magnanimously and not resort to recovery proceedings after a period of 17 years. We, therefore, in the peculiar facts and circumstances of this case, are of the opinion that with a view to do complete justice to the parties, the amount sought to be recovered may not be recovered from the appellant and we direct accordingly". Further we have to note that in the judgment of the Apex Court in Syed Abdul Qadir(citedsupra), the Apex Court considered the equity of recovery of any amount
which was paid in excess on the result of a wrong interpretation of the rule that was applicable to the employees. The Apex Court while considering the application of FR 22 (1)(a)(1) and FR 22(C) held that the pay ought to have been fixed under the amended rule but "the excess that has been paid to the
appellant teachers, was not because of any misrepresentation or fraud on their part and the appellants also had no knowledge that the amount that was being paid to them was more than what they were entitled to. The Finance Department of the respondent State has admitted that it was a bona fide
mistake. The excess payment made was a result of wrong interpretation of the rule that was applicable to them, for which the appellants cannot be held responsible"

8. In the light of the findings entered and the views expressed by us, we are of the view that the Original Application has to be allowed and we direct the respondents to refund the entire amount recovered from the applicant within two months from the date of receipt of a copy of this order. If the amount is not so paid within the stipulated time, the entire amount shall carry 6% interest till its refund. Ordered accordingly. There is no order as to costs.


(K.GEORGE JOSEPH) (JUSTICE K.THANKAPPAN)
MEMBER(A) MEMBER(J)

free Home Calling Facility from Mobile

Sachin Pilot Launches free Mobile Connection for BSNL Landline Customers

free Home Calling Facility from Mobile

Shri Sachin Pilot, the Union Minister of state for Communications and Information Technology, today launched a Unique plan “PYARI JODI” combining Landline and Mobile Services of Bharat Sanchar Nigam Limited (BSNL), on the auspicious occasion of Diwali. Launching the promotional scheme, Shri Sachin Pilot said, “The aim of this promotional plan “PYARI JODI” is not only to boost mobile business of BSNL, but also arrest steep decline in the landline business. This is consistent with the role of BSNL as the truly national telecom provider with the core philosophy of connecting all parts of the nation” The landline customers of BSNL can now take a free SIM card and can make unlimited free local calls to his/her landline/WLL number. In addition, the customers can also call two BSNL Local numbers at a reduced rate of 20p per minute and one BSNL number anywhere in India at a reduced rate of 30p per minute, without paying any additional monthly charges. On activation, customer will also get Rs.15 talk value, 1000 Local SMS, 1000 National SMS and 1000 MB data free. The Minister said that BSNL has achieved substantial growth in mobile services by adding 22.89 lakh customers in August, 2010, 23.41 lakh customer in the month of September, 2010 and 25 lakh customers in the month of October, 2010. He directed BSNL on the occasion to maintain and even better the growth trends in the coming months also by introducing such attractive offers. He added that the quality of services offered by BSNL would continue to be closely monitoredThe Minister has also launched special festive offers for BSNL 3G customers wherein all new 3G activation will get one week unlimited data download free in addition to normal freebies. SP/AT
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Postal industry is first to commit to CO2 reductions

Postal industry is first to commit to CO2 reductions

The international postal sector is the first services industry worldwide to commit to reducing its carbon dioxide (CO2) emissions, according to the International Post Corporation (IPC).
The US Postal Service and 21 other postal operators in North America, Europe and the Asia-Pacific region – all members of IPC – have pledged to measure CO2 emissions and collectively reduce them by 20% by 2020, under IPC's Environmental Measurement and Monitoring system (EMMS).
“The US Postal Service continues to build on our long history of green innovation, and we’re proud to work with our global postal partners to reduce the size of our industry’s carbon footprint,” said Sam Pulcrano, vice president of sustainability. “Collectively, the 21 EMMS participating posts manage more than 100,000 facilities, 600,000 vehicles and deliver more than 80% of the world’s mail. Our joint effort to reduce CO2 emissions will have a major positive effect on the environment.”
The Postal Sector Sustainability Report 2010 recently published by the IPC announced that the global postal industry has already cut CO2 emissions by greater than a half million metric tons – more than one-third the goal – since 2008.
The IPC developed EMMS to provide a common carbon measurement and reporting framework. The EMMS tool measures carbon management proficiency (CMP) across 10 areas, including management and strategy, employee engagement and measurement and verification.
In 2009, the global postal sector had an average CMP score of 61%. One of USPS’s goals for this initiative was to improve its score and exceed the industry average, according to Pulcrano. The postal service met this objective by increasing its score from 53 to 73, a 38% improvement, and 18% higher than the industry average.

source-postaltechnologyinternational

Interest be paid on wrongly recovered sum

Interest be paid on wrongly recovered sum

CENTRAL ADMINISTRATIVE TRIBUNAL
CHANDIGARH BENCH
OA No.178/PB/2010
Date of order:22.10.10

Coram: HON BLE SMT. SHYAMA DOGRA, MEMBER (J)
HON BLE SHRI KHUSHIRAM, MEMBER (A)

1. Mohan Singh son of S.Gurdial, Postal Assistant, Moga Head Post Office, Moga.

2. Baldev Raj son of Dina Nath, Postal Assistant, Moga, Head Post Office Moga.

3. Sita Devi wife of Balwinder Kumar Dharia, Postal Assistant Moga Head Post Office, Moga.

4. Satwant Kaur wife of Nachhattar Singh Sekhon, PA,, Faridkot Head Post Office, Faridkot.

5. Balwant Kaur wife of Darshan Singh, PA, Faridkot Head Post Office, Faridkot.

6. Sukhdev son of Mangat Ram, PA, Postal Assistant Faridkot Head Post Office, Faridkot.

7. Sunita Rani wife of Jiwan Parkash, Postal Assistant, Faridkot Head Post Office, Faridkot.

...Applicants

Versus

1. Union of India through the Secretary, Ministry of Communication and Information Technology, Department of Posts, Dak Bhawan, New Delhi.

2. The Postmaster General, Punjab Region, Chandigarh.

3. The Director of Accounts (Postal) Kapurthala.

4. The Postmaster, Faridkot.

5. The Postmaster Moga.

6. The Superintendent Post Offices, Faridkot Division, Faridkot.

7. Ms. Mandep Kaur, Postal Assistant, Faridkot.
Respondents.
For the applicant Mr. R.K.Gupta, Advocate
For the respondents Mr. Suresh Verma, Advocate.
O R D E R
Hon ble Mr. Khushiram, Member (A):

The applicants in this case are Postal Assistants working in the Postal Department in the scale of Rs. 975-1540. Their claim is that on implementation of recommendation of the 5th Pay Commission, their pay was fixed at Rs. 4400/- with next date of increment falling in the moth of November. However, the pay of their junior Ms. Mandeep Kaur, respondent No.7, whose next date of increment happened to be Ist January, was fixed at Rs. 4500/- under provisions of Note -2 below Rule 7 of CCS (Revised Pay) Rules, 1997, which provided as under:
Note:- Where the increment of a Government servant falls on Ist day of January, 1996, he shall have option to draw the increment in the existing scale or the revised scale.

As the next date of increment of the applicants was Ist November, 1996, it was ante-dated to Ist January, 1996 in accordance with the provisions of Rule 8 of CCS (Revised Pay) Rules, 1997 and their pay was fixed at Rs. 4500/- w.e.f. 1.1.1996 at par with the junior, respondent No.7. They continued to draw the pay so fixed from January, 1996 till June, 2006, when an audit objection was raised by the Audit party. Consequently, their date of increment was postponed from Ist January to Ist November and the over-payment made to them was recovered from them. The applicants made representations to restore their pay as fixed earlier, but their request was turned down and, therefore, they filed this OA claiming the following reliefs.
a) That joint application against common order Annexure A-2 may kindly be allowed.
b) Respondents Audit para of inspection dated 12/22.6.2006 (Annexure A-1) and order dated 6.3.2009 (Annexure A-2) may be quashed and set aside being illegal, arbitrary and violative of statutory rules and the principle of natural justice;
c) Respondents may be directed to restore date of increment to applicants from the same date as was admissible to junior Respondent No.7 in accordance with the provision contained in proviso-2 below Rule 8 of CCS (Revised Pay) Rules, 1997 with all consequential benefits i.e. refund of amount recovered with interest @ 10% per annum.
Respondents have filed written statement, wherein they have stated that the cases of the applicants were re-examined by the legal cell and it was found that provisions of Rule 8 of CCS (Revised pay) Rules 1997 and the relief claimed by the applicants in this petition has been granted to them vide orders dated 10.8.2010, copies of which are placed at Annexures R-1 and R-2. So, the respondents have claimed that nothing survives in the petition and it has been rendered infructuous now.
We have heard the learned counsel for the parties.
It is seen that the pay of the applicants had been fixed rightly earlier by ante-dating their date of increment from Ist November to Ist of January under provisions of the CCS ( Revised Pay) Rules, 1997,but on an objection raised by the audit party, it was ordered to be re-fixed by taking their date of increment as Ist November and recoveries were made from them. This obviously is against the provisions of Rule 8 of the Pay Rules aforesaid, which provided as under:
8. Date of next increment in the revised scale.
The next increment of a Government servant whose pay has been fixed in the revised scale in accordance with sub-rule (1) of Rule 7 shall be granted on the date he would have drawn his increment, had he continued in the existing scale;

Provided that in case where the pay of a Government servant is stepped up in terms of Note 6 or Note 9 to sub rule (1) and also second proviso to sub-rule (1) of Rule 7, the next increment shall be granted on the completion of qualifying service of twelve months from the date of the stepping up of the pay in the revised scale.

Provided further that in cases other than those covered by the preceding proviso, the next increment of a Government servant, whose pay is fixed on the Ist day of January, 1996 at the same stage as the one fixed for another Government servant junior to him in the same cadre and drawing pay at a lower stage than his in the existing scale, shall be granted on the same date as admissible to his junior if the date of increment of the junior happens to be earlier.

Since the pay of respondent no.7, who was junior to the applicants was fixed higher than that of the applicants as her next date of increment was January, 1996, while that of the applicants fell in the month of November, applicants date of increment was required to be advanced to Ist of January under the second proviso of Rule 8 ibid and it was, in fact, rightly done earlier. However, under wrong interpretation of the rule-position, pay of the applicants fixed earlier was revised and recoveries were made from them in installments from the year 2006 onward. No doubt, the mistake has been rectified now by correctly fixing the pay of the applicants under orders at Annexures R/1 and R/2 passed in August, 2010, but the applicants have been harassed a lot and they have been denied the use of the money which legitimately belonged to them. Therefore, the ends of justice would be met if interest is ordered to be paid to the applicants on the recovered sums. Accordingly, respondent No. 3 is directed to pay interest to the applicants on the recovered amount @ 6% per annum from the date of recovery till refund of the same. This direction be complied with within a period of 3 months from the date of receipt of a certified copy of this order. O.A. stands disposed of accordingly.
No costs.

(KHUSHIRAM) (SHYAMA DOGRA)
MEMBER (A) MEMBER (J)

GDS to be posted as Gr-D in vacant posts on seniority basis.

GDS to be posted as Gr-D in vacant posts on seniority basis.

CENTRAL ADMINISTRATIVE TRIBUNAL, ERNAKULAM BENCH

O.A. NO.555/2009

Dated this the 28th day of OCTOBER, 2010

C O R A M

HON'BLE MRS. K. NOORJEHAN, ADMINISTRATIVE MEMBER
HON'BLE DR. K.B. SURESH, JUDICIAL MEMBER

K.J Issac S/o Joseph
working as Gramin Dak Sevak Mailman
RMS Thrissur under the Head Record Office
RMS EK Division,Ernakulam ,Kochi-16
residing at Kannanthara House
Anchery PO, Society Road
Thrissur-680 006 ...Applicant

By Advocate Mr E.D. George

Vs.

1 Senior Superintendent
RMS Ek Division, Ernakulam.

2 Chief Postmaster General
Kerala Circle,Thiruvananthapuram

3 Director General of Posts
Dak Bhavan,New Delhi

4 Union of India represented by
its Secretary, Ministry of Communications
Department of Posts
New Delhi. Respondents

By Advocate Mr.Sunil Jacob Jose,SCGSC

The Application having been heard on 25.10.2010 the Tribunal delivered
the following:

O R D E R

HON'BLE MRS. K. NOORJEHAN, ADMINISTRATIVE MEMBER

The applicant, a Gramin Dak Sevak having 22 years of service, is aggrieved by the inaction and inordinate delay on the part of the respondents in considering his claim for promotion to the cadre of
Group-D as per the extant recruitment rules.

2 The applicant is working as GDS Mailman in the RMS Thrissur of EKM Division for more than 22 years. He is at Sl. No. 40 in the seniority list as on 29.12.2005, he is eligible for promotion and appointment to the Group-D post. According to him, there are more than 50 vacancies in the
RMS Department. As per the Recruitment Rules of 2002, 75% of the vacancies are to be filled up by the GDS. Six persons were appointed as per orders of the Tribunal in O.A. 346/05, 16 persons are either not
eligible being over aged or not in service. The applicant is at Sl. No. 21 in the seniority list (A-1). He has approached the Department several occasions for appointment but was told that he will be appointed soon. As he is nearing the upper age limit he has filed this O.A to appoint him before he attain the upper age limit, following the dictum laid down by the Tribunal in O.A. 312/2008 and connected cases.

3 The respondents in the reply statement stated that the vacancies of Group-D are filled up after assessing the workload as per norms and that the applicant in O.A. 346/2005 was appointed as
Mailman as per the direction contained in the O.A as he was senior and as per his turn only. Hence, the applicant in this O.A. will be appointed as Group D in his turn after assessing the justification for filling up the posts as per the norms, regarding present workload.

4 The applicant has filed rejoinder reiterating the averments in the O.A and contending that if the promotion was done without delay he would have got it very early.


5 The respondents filed additional reply statement stating that the decision of the Tribunal in O.A. 314/08, O.A. 312/08 and similar OAs are pending implementation. They further stated that the applicant is at Sl. No. 34 and that they have no objection to consider his case as per rules, in accordance with his seniority.

6 We have heard learned counsel for the parties and perused the records.

7 We have gone through the statement of the respondents in the reply/additional reply that the case of the applicant would be considered according to his seniority as per the Recruitment Rules 2002 and the orders of the Tribunal in O.A. 346/2005 etc. Therefore, we are of the view that this O.A can be disposed of following the orders of the Tribunal cited above directing the respondents to consider appointment of the applicant to the cadre of Group-D in his turn. We order
accordingly.
Dated 28th October, 2010

DR.K.B. SURESH K.NOORJEHAN
JUDICIAL MEMBER ADMINISTRATIVE MEMBER

Clarifications on Hostel Subsidy & Reimbursement under

Some Clarifications on Hostel Subsidy and CEA

Readers may aware that as per DOPT OM No: 12011/3/2008-Estt (Allowance) dated 2.9.2008 and clarification OM No: 12011/03/2008-Estt (Allowance) dated 11.11.2008, Hostel subsidy at the rate of Rs.3000 per month is allowed as reimbursement for two children of central government employees provided the children study in a hostel of a school away from the station at which the employee is posted or is residing. However, as reported, many administrative authorities have rejected the Hostel subsidy claim under New CEA scheme of the employees on the ground that their children were not forced to study in hostel due to reasons such as transfer etc but they have been admitted in a school away from the working place of employees for the purpose of better education. It is very clear from the OM dated 2.9.2008 of DOPT that all the previous instructions relating to reimbursement of tuition fees and hostel subsidy etc have been superseded by the new CEA scheme. So, the old instructions relating old hostel subsidy will not be applicable to hostel subsidy under New children education Scheme. Also there is no specific instruction from DOPT to reject hostel subsidy on the ground detailed above. Now to the relief of employees who have admitted their children in a school away from working place for better education, DOPT has issued categorical clarification vide letter No: 12011/01/2010-Estt (Allowance) dated 11.1.2010. It is clarified by DOPT that OM dated 2.9.2008 of DOPT and subsequent clarification of even number dated 11.11.2008 have been issued in supersession of all the earlier orders. Hostel subsidy is reimbursable to all central government employees for keeping their children in the hostel of a residential school away from the station they are posted or are residing irrespective of any transfer liability Clarifications on Hostel Subsidy & Reimbursement under

Children Education Assistance.

The latest clarification is reproduced below.

33-4/2010-PAPGovernment of IndiaMinistry of Communications & ITDepartment of Posts(Establishment Division)

Dak Bhawan,

Parliament Street

New Delhi – 110001

Dated 21.07.2010

All Chief Postmasters General

All Postmasters General

All Directors of Accounts (Postal)

Subject : Sub: – Grant of Hostel subsidy and Children Education Assistance

Sir/Madam
Representations have been received from the staff side that:
(i) In many circles, the Hostel Subsidy has not been sanctioned to the officials as per the OM No 12011/03/2008-Estt (Allowance) dt. 2.9.2008
(ii) that the officials are entitled for reimbursement of all fee paid for children like imparting music or any other subject fee for the use of any aid or appliance extra-curricular activities, besides reimbursement of one set of text-books and notebooks, 2 sets of uniform and one set of school shoes, etc. However, the reimbursement has not been made for the above item for want of separate orders from the Directorate about the modalities. He requested the Directorate for issue of clarifications to circles.
2. The issues raised by the staff side have been examined and in consultation with the Department of Personnel and Training. The Department of Personnel and Training vide their U.O. No. 12011/05/2010-Estt (Allowance) dt. 05.07.2010 intimated that, it has been clarified vide OM NO. 12011/03/2008-Estt (Allowance) dt. 11-11-2008 that “hostel subsidy means expenses incurred by the Government servant if he has to keep his children in the hostel of a residential school away from the station at which he is posted or is residing. There are no further conditions attached to it. Further the OM no. 12011/03/2008-Estt (Allowance) dt. 2-9-2008 has been issued in supersession of the earlier orders. Therefore for payment of Hostel subsidy, the condition required to be fulfilled is keeping his children in the hostel of a residential school away from the station at which he is posted or is residing and it is not linked to transfer of Government servant as clarified by the Nodal Ministry. Further, as per OM No. 12011/03/2008-Estt. (Allowance) dated 02.09.2008, both Hostel Subsidy and Children Education Assistance cannot be availed concurrently.
3. In regard to point no. 2 raised by the Staff side, attention of the circles is invited to OM no. 12011/03/2008-Estt (Allowance) dt. 02.09.2008 wherein reimbursement items that can be claimed were detailed as:
“Tuition fee, admission fee, laboratory fee, special fee charged for agriculture, Electronics, music or any other subject, fee charged for practical work under programme of work experience, fee paid for the use of any aid or appliance by the child, library fee, games/sports fee and fee for extra-curricular activities This also includes reimbursement for purchase of one set of text books and note books, two sets of uniforms and one set of school shoes can be claimed for a child in a year”.
However, all these items are within the Annual Ceiling of Rs.12000 subject to production of cash receipts and other conditions prescribed by the Nodal Ministry in the said OM.
4. It is requested to bring these instructions to the notice of all concerned for scrupulous observance and strict compliance.

Sd/-(K. Rameshwara Rao)

Assistant Director General (Estt)

USPS faces loss with Fake Postage Stamps

USPS faces loss with Fake Postage Stamps

Counterfeiters are in un dating the US Postal Service with fake postage stamps and inspectors can't even say how bad the problem really is. "Those (fake) stamps are everywhere," said a source at the Postal Service, which reported a loss of $3.5 billion in the quarter that ended last month. That was the 14th loss in the last 16 reporting periods. Three of the six images accompanying this column are counterfeit postage stamps. Can you tell which ones? Neither can most people. If you had the actual 44-cent flag stamps in front of you, you might see that the fakes are a little more bluer and the real stamps a little bit purplish. Odd, no, that the colors of the American flag are red, white and blue - not purple! The easiest way to tell fakes from the real thing is the price. Not surprisingly, the loss-ridden Post Office doesn't offer discounts. But our fake stamps were purchased on the streets of Queens recently for 34 cents apiece.
A hundred-roll of stamps went for $34, compared with the $44 that the real things would set you back. The counterfeiters also give a discount for bulk purchases -- if you buy a thousand stamps the price goes down to 29 cents apiece. "If you are not paying full price," says one Postal source, "you know they are stolen or fake." There is one other obvious difference between the real and fake postage. The real stamps come in a continuous roll of 100. The fakes are rolled up like the real things but when uncoiled you'll see that they are in several sections -- each of which seems only as long as the biggest piece of photographic paper on the consumer market. The counterfeiters also make their stamps self-adhesive for consumer convenience. But you may have to move around the city from spot to spot before large quantities of the fake stamps are put in your possession -- in what looks like a security measure used by the counterfeiters to avoid Postal inspectors. But the counterfeiters apparently don't have much to worry about.
Detecting fake 44-cent stamps is way down on the list of things overworked Postal inspectors are concerned about. "They'll crack down more on those tending to be higher quantity mailers," said a Postal source, and not folks trying to slip an envelope or two through without paying.
Helping the counterfeiters even more is the fact that the number of Postal inspectors is way down and things like suspicious packages are much higher in priority.
And although counterfeiting (and even using) fake stamps is a federal offense, it is not the sort of crime that gets prosecutors' hearts racing. Sources say the buyers of large amounts of fake stamps often sell smaller quantities to bodegas and other places that deal directly with regular consumers. And these stores often mark up the price of stamps above the original 44 cents.
How would these stores know they are selling fake stamps? If they didn't pay the Post Office's rate of 44 cents apiece they are counterfeit. But even this isn't foolproof since counterfeiters could easily up their price to 44 cents to make their product look legit -- and achieve a higher profit margin in the process. And the bad guys lucked out recently when a request by the Postal Service for a rate increase was turned down. If postage for a regular envelope had risen from 44 cents, the counterfeiters would have had to copy a new stamp or produce a whole batch of low-profit penny postage to keep their 44 cent fakes in demand. The Post Office says there are ways for its processing machines to catch fakes, although it wouldn't tell me how. There doesn't appear to be anything unique with the paper on which the stamps are printed -- no imbedded fibers or 3-D images like on paper currency. But Postal machines might shine ultraviolet light on the stamps to detect fakes. The trouble is, even if fakes are detected Postal officials have to decide whether to let suspicious envelopes through or stop the cancellation process. That would also slow down thousands of envelopes with legitimate postage and make the Post Office even less efficient.

source-NewYork Post

Some FA Q about Tax Deduction and savings

Some Frequent Asked Questions about Tax Deduction and savings

1. What is a tax deduction?
A tax deduction is simply an item that helps you reduce your taxable income by the amount of the deduction. So by utilizing that particular deduction, you can reduce the amount of income tax by reducing the amount of your taxable income.

For example: If you have a taxable income of Rs. 2,50,000 for the financial year, and you invest Rs. 70,000 in PPF and Rs. 30,000 in Equity Linked Savings Schemes, then your taxable income is: Gross Taxable Income: Rs. 2,50,000

Deductions:
PPF: Rs. 70,000
ELSS: Rs. 30,000
Total Deductions: Rs. 1,00,000
Net Taxable Income: Rs. 1,50,000
2. How can I save tax using different tax deductions?
There are different tax deductions available to an individual under different Sections of the IT Act. Section 80C for example has a deduction limit of Rs. 1 lakh per annum.
You can save tax by making use of the various deductions available to you under different sections of the IT Act i.e. investing in these instruments.
3. What are the investment avenues available under Section 80C?
The specified investment schemes under section 80C are:
a. Life Insurance Premiums
b. Contributions to Employees Provident Fund (EPF)
c. Public Provident Fund (PPF)
d. National Savings Certificates (NSC)
e. Unit Linked Insurance Plan (ULIP)
f. Repayment of Housing Loan (Principal)
g. Equity Linked Savings Scheme (ELSS) of Mutual Funds
h. Fixed Deposit (FD) with Banks having a lock-in period of five years
i. Pension Funds
4. Does Section 80C include Section 80CCC and 80CCD?

Yes. The total deduction available under Section 80C is Rs. 1 lakh, inclusive of Section 80CCC and Section 80CCD. These two sub sections are to do with pension. Under Section 80CCC, you can invest up to Rs. 1 lakh in a Pension fund of LIC of India or any other insurance company. Under Section 80CCD you can invest in the National Pension Scheme of the Central Government up to 10% of your salary. Any contribution to this scheme of more than 10% of your salary will not be eligible for tax deduction.
5. What is the limit for Section 80CCF: Long Term Infrastructure Bonds?
An additional deduction of Rs. 20,000 has been introduced by way of investment into long term infrastructure bonds.
Here, any investment made into the specified long term infrastructure bonds between April 1st, 2010 and March 31st, 2011 will be eligible for a tax deduction up to Rs. 20,000.
This is in addition to the Rs. 1 lakh deduction available under Section 80C.
6. How does Life Insurance Premium payment contribute to Section 80C investment?
An amount up to Rs 1 lakh that you pay towards life insurance premium for yourself, your spouse or your children can be included in Section 80C deduction and reduced from your taxable income.
If you are paying premium for more than one insurance policy, all the premiums can be included, subject to the limit of Rs. 1 lakh.
a. Can I include life insurance premiums paid for my parents?
No. Life insurance premium paid for your parents or your in-laws is not eligible for deduction.
b. Does this apply to all life insurance products such as endowment, money back, term plans, ULIPs etc?
Yes. Any premium paid for any life insurance in any life insurance product is eligible for tax deduction under Section 80C.
Also note that any sum, including the bonus, received on maturity of a life insurance policy is tax free. Death benefits received are also exempt from tax.
Most importantly, remember to invest in a life insurance policy only if you need it, and not for the tax benefit. If you opt for it keeping in mind the tax benefit, you may end up being under-insured or possibly over-insured.
7. How do I save tax by contributing to general provident fund?
The GPF is a scheme intended to help government employees and deducted from their salary every month.
An employee can withdraw or take advances from the available fund.

SUMMARY OF GENERAL PROVIDENT FUND
Return (p.a.) :8 %
Risk: NIL
Lock In :Working Life
Income from Investment Interest earned is Tax Free
8. How do I save tax by contributing to the Public Provident Fund (PPF)?
PPF is eligible for tax deduction up to Rs. 70,000. So any amount up to Rs. 70,000 invested towards your PPF account will be eligible for tax deduction. The minimum investment in PPF is Rs 500 per year and the maximum investment is Rs 70,000 per year.
The unique feature of PPF is that in case of insolvency it will not be attached to the assets of the insolvent. So this is an attractive tax saving tool for business people in fluctuating and highly leveraged businesses. Withdrawals from your PPF account are allowed during certain years for specific purposes.
SUMMARY OF PPF DETAILS
Return (p.a.) :8.0%
Risk :NIL
Lock In : 15 years
Income from Investment Interest earned is Tax Free
Maturity Proceeds Exempt from tax.
NRI/PIO eligible :No

9. How do I save tax by investing in the National Savings Certificate (NSC)?
NSC is a good medium term investment option. An advantage of the NSC is that it can be pledged as security against a loan to banks/ government institutions.
The minimum investment starts from Rs 100 and there is no maximum limit for the investment in a year.
Return (p.a.) 8.0% compounded half-yearly, i.e., the effective annual rate of interest is 8.16%.
Risk :NIL
Lock In :6 years
Income from Investment • Interest accrued every year is liable to tax (i.e., to be included in your taxable income).
• However, interest is also deemed to be reinvested and thus eligible for section 80C deduction.
Maturity Proceeds It includes interest which is already taxed
NRI/PIO eligible :No
10. How do I save tax by taking a Unit Linked Insurance Plan (ULIP)?
Unit-Linked Insurance Plan (ULIP) is life insurance solution that provides for the benefits of risk protection and flexibility in investment. Part of the premium you pay goes towards the sum assured (amount you get in a life insurance policy) and the balance will be invested in whichever investments you choose as per what is available under the scheme - equity, debt or a mixture of both.
SUMMARY OF ULIP DETAILS
Return (p.a.) :Market linked
Risk Market and Fund manager risk
Lock In :5 years
Income from Investment: N.A.
Maturity Proceeds • Exempt under Section 10(10)D for any sum received from insurance policy as maturity proceeds. Death benefits are exempt from tax.
• However for ULIPs the maturity benefit is tax free only if the premium paid per year is less the 20% of the life insurance cover. In other words the life cover has to be at least 5 times the premium.
NRI/PIO eligible :Yes
11. How can I use my home loan to save tax?
The EMI (equated monthly installment) that you pay to repay your home loan consists of two components - one is the principal and the other is the interest. The principal component of the EMI qualifies for deduction under section 80C.
Even the interest component can save you significant income tax - but that would be under Section 24 of the Income Tax Act. Currently, anybody with a housing loan gets a deduction up to Rs 150,000, paid as interest for the loan, from his total income, for a self occupied property.
12. How do I save tax by investing in Equity Linked Savings Schemes (ELSS)?
Investment in ELSS is considered to be one of the best option to save tax because of many reasons like low expenses, short lock-in period, high liquidity and high growth in long-term. Year 2008 and 2009 had been extremely volatile. Still, many mutual funds have delivered positive return in past 3 years.
The limitations in ELSS are that premature withdrawal is not allowed. There is a 3 year lock in period. Also ELSS returns are not guaranteed as they are market linked investments.

SUMMARY OF ELSS DETAILS
Return (p.a.) :Market linked
(The last 5 years' return from ELSS has been approximately 20% compounded annually)*
Risk Market and Fund manager :risk
Lock In :3 years
Income from Investment Basically, dividend which is Tax Free
Maturity Proceeds Long term capital gain on sale of equity oriented mutual fund is tax free.
NRI/PIO eligible :Yes
13. How do I save tax by investing in the 5 Year Bank FD?
A fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of 15 days to five years and above. Investor gets a lump sum (principal + interest) at the maturity of the deposit.
The 5-year tax-saving bank deposit gives tax benefit under Section 80C as the amount you invest in the 5 year FD is deducted from your taxable income.
However interest received on the FD is taxable.
SUMMARY OF 5 YR BANK FD DETAILS
Return (p.a.) Typical interest rate is 8.00 to 8.50% with an additional 0.25 to 0.5% for senior citizens. The interest rate varies between banks and with time.
Risk NIL
Lock In 5 years
Income from Investment Interest received is taxable
Maturity Proceeds Includes interest which is already taxed
NRI/PIO eligible :Yes

14. How do I save tax using the New Pension Scheme?
This is a new, market-linked vehicle for those who do not have an EPF facility to target long-term retirement planning. It is open to any Indian citizen between the age of 18 and 55. Minimum investment is fixed at Rs. 6,000 p.a.
The NPS offers two accounts: tier I and tier II. This is a non-withdrawable account and investments in this keep accumulating till you turn 60.
SUMMARY OF NEW PENSION SCHEME DETAILS
Return (p.a.) :Market Linked
Risk :Market and Fund Manager Risk
Lock In :Till age of 60
Income from Investment :N.A.
Maturity Proceeds • Tax will be levied if you withdraw the money on maturity
• You can save paying tax by transferring the entire corpus to an annuity service provider and receiving a pension
NRI/PIO eligible: No

15. How do I save tax by investing in the Senior Citizens Savings Scheme (SCSS)?

It allows a retired person having a lump sum to invest it at a reasonably good interest rate. If you are 60 years old (or took voluntary retirement at 55), you are eligible for the scheme.
Minimum Investment under the scheme is Rs. 1,000 and maximum Rs. 15 lakhs.
The amount invested into SCSS is eligible for tax deduction under Section 80C thus reducing your taxable income in the year of investment.
This is a popular investment with senior citizens as it offers liquidity as well as periodic income – interest is paid out quarterly.

SUMMARY OF SCSS DETAILS
Return: (p.a.) 9%
Risk :NIL
Lock In :5 years (May be extended for another 3 years at the option of depositor)
Income from Investment :Fully taxable
Maturity Proceeds :Maturity proceeds includes interest which is already taxed every year
NRI/PIO eligible :No

16. How do I save tax by investing in the 5 Year Post Office Time Deposit (POTD)?

POTDs are similar to bank fixed deposits.
Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) qualifies for tax saving under section 80C.
The current rate of interest on the 5 year POTD is 7.50% p.a., compounded quarterly. The minimum investment amount is Rs. 200, there is no maximum investment amount. Interest on these deposits is calculated quarterly and paid out annually.
Return (p.a.) Effective 7.71% as interest is compounded quarterly
Risk NIL
Lock In :5 years
Income from Investment :Fully taxable
Maturity Proceeds Maturity proceeds includes interest which is already taxed every year
NRI/PIO eligible :No
17. How do I save tax by taking a Pension Plan?

Today pension plans are available with all life insurance companies. They typically come without any life cover (zero death benefit).
Pension funds are exempted under Section 80CCC, this section stipulates that an investment in pension funds is eligible for deduction from the income.
Section 80CCC investment limit is clubbed with the limit of Section 80C which means that the total deduction available for 80CCC and 80C is Rs 100,000. This also means that your investment in pension funds up to Rs 100,000 can be claimed as deduction under section 80CCC.
Of the maturity amount only one-third can be commuted in cash as tax free maturity. The rest of the amount (or the full amount as the case may be) has to be used to by a pension plan (annuity). Pension receipts from the same will be treated as income in the hands of the assessee and taxed accordingly. Recently, the Insurance Regulatory and Development Authority (IRDA) has come out with a clear rule that maturity amount should not be withdrawn as cash this is coming to effect from July 1, 2010. Currently, the maturity amount can be withdrawn as cash but the amount will be added to income and will be taxed accordingly.

Now that you know about the various investment instruments available, before you invest – ask yourself the following questions:
0. How much risk are you willing to take on the investment?
1. For how long will you not need to use these funds? i.e. what lock in period is suitable for you?
2. Do you want your returns to be tax free?
3. Do you want the maturity values of your investments to be non taxable?
4. Do you need liquidity?

Factor Criteria
1. Risk and Returns

• Fixed rate of return with more safety - NSC, PPF, Bank FD OR
• Market return with more risk - ELSS or ULIP.
2. Lock-in period

• Range: Up to 15 years lock-in;
• ELSS has the least lock-in period of 3 years, whereas PPF has the highest of 15 years;
• Others fall in between
3. How return are taxed

The most crucial part is to look at how the returns are taxed.
• Only PPF and ELSS offer tax free returns; whereas
• Interest on NSC, Post Office term deposits and bank FDs is taxable
4 (a) Tax Treatment on Maturity

• Usually products offer tax deduction on investment
• Few offer tax exemption on returns at the time of maturity
• The taxability on maturity reduces the effective return that an investment offers.
4 (b) EEE or EET category

• Exempt-Exempt-Exempt (EEE) tax status - tax benefits at the investment stage, the accrual (accumulation) stage and maturity stage - PPF, ELSS and Life Insurance
(• Exempt-Exempt-Tax (EET) tax status - tax benefits at the investment stage and the accrual (accumulation) stage and are taxed at the maturity stage - Bank FDs.
• In the new Direct Tax Code, lot of investment products will shift from EEE to EET wherein these products will be taxed at the maturity stage
5. Maximum Investment Limit

• If a product has maximum investment limit in a year, a tax payer will not be able to claim entire tax benefits for any amount invested above the maximum limit;
• PPF has maximum investment in a year of Rs. 70,000
• In case of ELSS and ULIPs there is no maximum investment limit.
6. Liquidity

• Most tax saving investment products come with a lock-in period;
• PPF allows partial withdrawal during the 15 years tenure of the investment.
• Tax savings bank FD cannot be broken before maturity and also

banks normally don’t give loans against these FDs.
• Traditional Life insurance policies and ULIPs allow partial withdrawals but only after completion of 3 years. Also, as an investor you can take loans against life insurance policies.
• An investor can also take loan against NSC Certificates.
7. Inflation protection

• Returns from financial products should beat inflation;
• Low fixed returns products are to be avoided by investors during periods

of high inflation as they yield negative returns.
• In the long run equities have consistently given higher inflation

adjusted returns than returns given fixed return securities.