New ITR 1 form released

Income tax Return file form

Government released Saral-II (ITR 1)for salaried employees for Financial Year 2009-10 (Assessment Year 2010-11)

click here to download

http://www.4shared.com/document/UD77ukhH/SARAL-II-ITR-1.html

Prime Minister award to Department of Posts

Prime Minister Award to DOP on the Civil Service day on 21-04-2010

Prime Minister Dr. Manmohan Singh inaugurated the Civil Services Day, 2010 on 21-04-2010. Awards for Excellence in Public Administration were also presented to the winners. In his remarks, Dr. Manmohan Singh said the civil services have a major role to play in helping government fashion a suitable and adequate response to various issues that face the country. The civil servant of today should not only be alive and sensitive to the problems at hand but should also be well equipped to tackle them.
In the group category the award given to (i) Implementation of the ST and other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 (Madhya Pradesh), (ii) Computerization of Paddy Procurement and Public Distribution System (Chattisgarh) and (iii) Integrated Tax Payer Data Management System – A Data Mining Tool, CBDT, Government of India. Project Arrow – Transforming India Post, Government of India bags the award in the organization category.

LTC to NER

Relaxation for LTC to NE Region

Relaxation for travel by AIR on LTC to NER is further extended for two years from 01-05-2010 vide OM No. F.No. 3 101 11412007-Estt.(A) dated 20-04-2010

Resignation Letter under protest or Duress is no resignation

Resignation Letter under protest or Duress is no resignation: Bombay High Court

Their letter expressing a desire to quit owing to the government’s indifference will not cost two doctors their job, thanks to a Bombay high court order. The state government had challenged an order of the Maharashtra Administrative Tribunal (MAT) on January 19 this year allowing two doctors, from the department of obstetrics and gynecology of the JJ Hospital at Byculla, to return to their jobs by holding that the “resignations tendered by the applicants (the two doctors) were under duress and by way of frustration.”
The two doctors, Disha Rajput and Kavita Tilwani, were both lecturers at the state government-run Grant Medical College in 2005 and 2007 respectively. On August 21, 2009, six doctors had submitted a letter to the government stating: “as a protest against government’s apathy and non-action against injustice and humiliation meted to them that they are resigning.”
In the letter, the court recorded, the doctors had stated that the government has taken no steps towards improving the hygiene in the hospital as a result of which patients were becoming prone to bacterial infections. Since the government had not taken any corrective measures for the same despite reminders from time to time, the doctors said in their letter, they were tendering a conditional resignation with a month’s notice. The letter was withdrawn six days after it was submitted. The letter was jointly written by six doctors. However, the government issued relieving orders to only Tilwani and Rajput based on this letter. But prior to Maharashtra chose to accept only two doctors’ resignation and not four other very senior doctors and that there was no explanation given in the affidavit in reply as to why the government had not accepted resignations of other doctors.” Tilwani and Rajput had therefore contended that the action against them was also discriminatory.
The counsel for the state government submitted to the court that the two doctors who had been issued relieving orders were on probation while the other four doctors were permanent employees. Owing the withdrawal letter of August 27, 2009, the aggrieved duo was given a relieving letter on August 26, 2009. The MAT in its findings had recorded that “strangely the government of to that, he said, their cases may have been dealt with differently.
After hearing the arguments, justice PB Majmudar and justice GR Ketkar agreed with the inference drawn by the tribunal and held that the letter written by the doctors cannot be treated as a resignation. “At the most it can be said to be merely an expression of intention to resign in a particular eventuality,” the judges said in their order.
The court directed the government to allow the two doctors to resume their duty latest by April 19.

Postage Stamp issued on Sh Chandrasekhar

The Stamp was issued on 17 Apr 2010.

Sh Chandra Shekhar was the Prime Minister of India in 1990.

Fake order on Revision of OTA

FAKE ORDER ON REVISION OF OTA FOR CG STAFF

An adventurous babu arbitrarily announcing increase in overtime allowances to please colleagues in central government offices? The case in question is that of a “fake” order being circulated in these offices on increasing allowances on the basis of a circular issued by the finance ministry on April 1 last. Although a high-level inquiry has been ordered by the finance ministry and the department of personnel and training (DoPT), no clue has yet been found on who was behind the mischief. The office memorandum number 1(4)/2010E-II dated 27/3/2010 was issued by the finance ministry with the signature of under secretary S Rajan Chandranaydu. “The case is being probed by senior officials. But nothing as yet has been found,” a DoPT official said. “The possibility of it being an April Fool prank is also being looked into. But even in such a case, the guilty could face the music,” he said. The official clarified that it had nothing to do with DoPT, which is the nodal department on such issues. “It pertains to the finance ministry and they are probing it,” he said. The issue came to the notice of DoPT after enthusiastic central government officials started seeking details of the hiked overtime allowances, such as the date from which they would become operative. Acting swiftly, DoPT got in touch with the finance ministry, only to discover that the order was fake. To set the record straight, DoPT issued a fresh office memorandum to clear doubts about the veracity of the order. “It is clarified that no such instruction has been issued by either DoPT or the finance ministry. The ministries and departments are advised not to take cognisance of the fake instructions being circulated in central government offices,” the office memorandum signed by DoPT director Simmi R Nakra said.

source-i net

Wage revision of Contingent Workers in DOP

Wage revision of Contingent Workers in DOP

The Wage revision of Part Time Contingent workers in Department of Posts is badly delayed.

Revision Orders are expected soon

DA ORDERS FOR GDS RELEASED

DA ORDERS FOR GDS RELEASED BY
DEPARTMENT OF POSTS on 12-04-2010

New DA on Pre-Revised scale

New DA rate for those drawing Pay in the Pre-revised (Vth) CPC scale will be raised from 73% to 87% w.e.from 01-01-2010

New SARAL form to be launched soon

Saral Form can be as Saral as law

The finance ministry will soon unveil a new format for income-tax returns that will hopefully make tax filing easier for the salaried and pensioners. Theoretically, redesigning a returns form should not be as complex as, say, rewriting archaic income-tax laws. Taxmen have, however, been grappling with the new format for over six months as the challenge is to make it really simple.

The quest for a simple I-T return form began over a decade ago. Former finance minister Yashwant Sinha launched this initiative after one of his trips to the US where he got a chance to look at their most widely-usedreturn form , 1040 EZ, and was impressed with its user-friendly design. On his return, he nudged taxmen to work on Saral in the hope that an EZ, or easy,return form would foster voluntary compliance.
His successor P Chidambaram replaced Saral with Form 2F for assessment year 2006-07, and it was similar to a company’s balance sheet. Taxpayers resisted when they were asked to furnish a cash-flow statement detailing every transaction in the financial year. Next year, the cash-flow statement was dropped and a series of I-T return forms (ITRs) were designed for taxpayers with multiple sources of income. The brief was to make forms user-friendly for all taxpayers.
Saral II will replace ITRs in assessment year 2010-11. Finance minister Pranab Mukherjee too believes that return forms should be simple. With the permanent account number (PAN) now mandatory, and in a world of computerised transactions, there is scope to maketax filing less cumbersome and tedious.
The language can be simple as taxpayers across the country find I-T laws, rules and, to some extent, even return forms a word-maze to tests their comprehension skills. The instructions for tax-filers should also be easy to follow.
Changes are, however, needed at a fundamental level as our tax laws are still complex and subject to different interpretations. Dhirendra Kumar, CEO of Value Research, says that it is ironical to have a third version of Saral when taxlaws continue to be complex and ambiguous. They simply don’t work together.
The direct taxes code promises to remove ambiguity in tax laws and provide stability to the tax regime. Return forms will have to be redesigned when the code comes into force because it will change the way taxpayers compute their income and tax outgo.
This fiscal year, the burden on personal income tax payers has been lightened, with a widening of the tax slabs to reward the missing middle for better compliance. Would Saral II, along with a lower tax liability, improve tax compliance among individuals?
Barring the slowdown in the last two years, direct tax revenues surged with economic growth. Direct tax collections contribute more than half of total tax revenues today compared to just 14% in 1990-91. The taxpayer base saw a spurt in the late 1990s with the introduction of one-by-six scheme that induced scores of people to file taxreturns . But this effort yielded small amounts of tax — too small to justify the administrative costs. The base shrank when the scheme was dropped and has since remained stagnant.
Today, there are over 3.3 crore taxpayers in the country. The proportion of high net worth individuals (HNIs) in the taxpayer base is, however,minuscule. That the big fish continue to swim safely outside the tax net is not acceptable.
The tax administration is now well-equipped to go after them, with the tax information network that gathers information on large financial transactions. A foolproof PAN is needed to match data from multiple sources with the information furnished by the taxpayer in his return.
The tax department should, therefore, focus on making it easy for individuals to get a PAN. It would also make sense to target a smaller number of HNIs than fritter away administrative energies on many taxreturns yielding small amounts of tax. What matters is the amount of tax collected, not the number.
Ideally, salaried taxpayers should be spared of providing a mine of information in their returns. The physical interface between tax authorities and assessees should also be minimal. This will happen when the centralised processing centres are equipped to handle allreturns. Information can always be sought if a return is picked up for scrutiny through the computer-aided system.
There is also a pressing need to implement more reforms in direct taxes: end exemptions and lower tax rates. The taxpayer is the engine of the economy, and the mantra for success of tax reforms is simplelaws and rules. Designing a truly saral (simple) form will then be aasaan (easy).

Meghdoot Post Card-some facts

Meghdoot Post Card

India Post introduced Meghdoot Post Card on September 2, 2002. Meghdoot is priced at 25 paise that is half the cost of the regular post card. The writing space available on the address side of the regular post card is made available for advertising in multicolor in case of Meghdoot. The rate of the advertisement is Rs.2 per card and the minimum order for print is 100,000 cards. Meghdoot is printed by Security Printing Press at Hyderabad in sheets of 8 cards, although some have been supplied to post offices by the press in sheets of 4 and pairs of 2 cards.
Being a postal stationery article with an advertisement, its area of distribution is determined by the advertiser, as its design and copy. In addition to the post offices in the area of its distribution the Meghdoot is also made available in limited quantity of 2000 cards at select 8 philatelic bureaus that handle postal stationery, namely Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Lucknow, and Mumbai.
Meghdoot literally means the cloud-messenger and is title of a play in Sanskrit penned by Kalidasa a few millenniums earlier. Meghdoot is also the name of an award that India Post presents for meritorious services to its employees annually.
The printing of Meghdoot were decentralized to Circle level on October 15, 2003 enabling India Post’s 23 postal circles to directly place their order on the press. However all other postal stationery articles with advertisements such as regular Post Card, Inland Letter Card, Aerogramme, and Envelopes continue to be printed by the order of the national Postal Directorate, New Delhi.

PAN card is must for Financial Transactions

PAN card is must for Financial Transactions

PAN card has to be submitted for financial transactions. otherwise, tax burden will go up. The start of this new financial year requires additional effort from tax payers, as they need to be vigilant about their tax deduction at source (TDS). For some years now, there have been efforts made to ensure a particular procedure is followed for TDS and this includes disclosing the permanent account number (PAN).
Starting April 1, the punishment has been changed to a higher tax deduction for those who do not disclose PAN.
Tax at varied rates is deducted for various incomes and then the net payment is made to the beneficiary. The nature of income or earning, the person or entity receiving the income, determine the rate at which the tax is deducted. For instance, when a bank pays interest in excess of Rs 10,000 to an individual at a single branch, the tax is deducted at source from the interest earned. The individual will take a tax cut at the rate of 10 per cent plus an education cess.
As per the new guidelines applicable from financial year 2011, if a deposit holder does not provide the PAN, there is an obligation on the bank to deduct 20 per cent from the interest he earned, that is, double the rate applicable under normal circumstance. Here are some cases where the tax burden can suddenly jump higher for an individual. For better, easier understanding, the education cess is not taken into account.
INSTANCES
Many times, an individual has the PAN but does not disclose it. Like in case of a professional who has worked for, say, Rs 35,000. This could be a one-off service to a new client and in such a case, the PAN might not have been provided at the time of payment.
In this case, the entity making the payment would ensure that instead of 10 per cent, the tax is deducted at 20 per cent for not getting the person’s PAN. As a result, the individual’s net pay for his service is reduced to Rs 28,000.
Such a situation is likely with a large one-off transaction or even when the person does not normally come under the taxable limit. But, due to some extra payment, the tax is deducted at a higher rate.
THE VULNERABLE
Senior citizens are likely to get trapped in the higher TDS situation because they often have deposits with a bank or have invested in Government of India bonds, where the interest earned is more than Rs 10,000. Since the elderly have a basic exemption limit of Rs 2.4 lakh, their earnings may not come under the taxable limit. In that case, they can submit Form15H with the bank and avoid the TDS. However, if they fill the form but fail to mention the PAN, then they could be slapped with a tax deducted of 20 per cent instead of zero tax.
Usually, families have some deposits or bonds in the name of some members, even if they are unemployed like housewives. They have some deposits or government bonds in their name. Since, they are not working and do not fall under any tax bracket, they can submit Form 15G to the bank and avoid TDS. But, if they fail to provide the PAN in the form, they will be liable for a 20 per cent tax deduction at source.
PROCEDURES
There are often procedures adopted for various business dealings. One of it being quoting a PAN.
Often, when the mistake is realised, efforts are made to stop usage of the old number and replacing it with the correct one. In such a situation, could lead to authorities considering there was no PAN provided. Hence, the beneficiary could face a higher tax deduction.
For example, if there is a rent of Rs 20,000 paid per month to an individual, then the TDS on the amount would be 10 per cent. However, due to a wrong PAN disclosure, there could be some delay in conveying the correct number and in the interim, the tax could be deducted at the higher end.
DEDUCTOR’S MISTAKE
The worst situation is when an individual has provided his PAN to the concerned authorities. But, the there is a mistake committed by the authority. This could lead to either considering the number is misplaced or it is not given. Therefore, the deduction made is at a higher rate.
Example: The rate of tax deduction when a contractor is an individual is one per cent. If the authorities commit mistake with the person’s PAN, he will be slapped a higher tax outgo of 20 per cent. The difference will be huge, having a serious impact on the beneficiary.
WHAT TO DO
In sum, actual work begins even before the payment is made, because the PAN has to be conveyed to the payer. One condition in the new guidelines says the PAN has to be quoted in all correspondence, bills and vouchers exchanged between the deductor and the deductee, which will ensure the number is available with the concerned authorities.
Suppose a higher tax is deducted at source. The total tax to be paid would not increase, instead the individual will have to look for adjusting the deducted tax amount. For some people, this will take place only at the time of filing tax return, especially for a salaried people who might not have any additional tax burden to adjust the deducted amount. In such a situation, the tax return will show that a refund is due but this will take place only at the end of the financial year.
There can be quicker action if the individual has to pay some advance tax and this would be the case for professionals, salaried individuals with additional or other income. In this case, the adjustment will come earlier because they will pay the reduced amount of advance tax on the income after adjusting for the higher TDS made and hence need not wait till the year-end.
Source:Financial Express

CAT quashes Railways order

CAT quashes Railways order against officer

The Central Administrative Tribunal (CAT) has set aside an order of the Railways for a 10 per cent cut in the monthly pension of an officer of the Indian Railway Traffic Service for various charges. A bench of CAT chairman Justice V.K. Bali and vice-chairman L.K.Joshi quashed the August 27, 2007 order against IRTS officer R.S. Harit mainly on the ground of inordinate delay of 15 years in completing the departmental inquiry. Department inquiry proceedings against Harit, an IRTS officer of 1963 batch and a resident of Jangpura in Delhi, was started in February 1992 on nine charges, but it could be completed only in 2007, 12 years after his retirement in 1995. “It is apparent that there has been an unconscionable delay of nearly 15 years in concluding the inquiry, which started in 1992. The explanation of the Railways that the delay was due to a stay granted by the National Commission on Scheduled Caste and Tribes cannot be accepted as the said commission does not have the power to stay disciplinary proceedings. The delay is unexplained,” the bench said. Allowing the IRTS officer’s plea, the bench ordered immediate restoration of his pension and reimbursement of the amount deducted from his pension, with six per cent simple interest, within two months from the date of receipt of a certified copy of its order. It also took note of the fact that some documents relied upon by the Railways were not given to Harit. Harit was served chargesheet on nine counts, the main charge being refunding wharfage and demurrage (W&D) charges without authority. “W&D charges are like penalties to deter rail-users from delaying removal of their goods from Railway premises and the waiving of such charger cannot be said to have been at the cost of the Railway though this meant pecuniary benefit to some rail-users.” The lone witness had died and the inquiry was ex-parte as the officer did not participate in it. Though the inquiry officer indicted Harit on most of the counts, he said that no ulterior motive could be attributed to him. The report also blamed an Assistant General Manager for the lapses.

Taking objection to it, the bench said, “It is now a well settled principle of law that the note of disagreement recorded by the disciplinary authority has to be tentative in nature and not the final expression of the disciplinary authority’s views. The disciplinary authority has to take a final view in the matter after considering the reply of the delinquent to the report of inquiry officer, the tentative note of disagreement, the representation of the delinquent officer and other ancillary information. If the disciplinary authority comes to the conclusion that the charges are fully substantiated without considering the delinquent officer’s representation, it is unlikely that the disciplinary authority would change his views. His mind is made up. He has a closed mind, likely to be impervious to the applicant’s post-decisional pleas.”

Source: Hindustan Times

Retired employees to get medical reimbursement: Court

Retired employees to get medical reimbursement: Delhi High Court

Ruling that all government employees, even those retired, are entitled for medical reimbursement, the Delhi High Court Tuesday asked the Delhi government to pay the medical bills of a man who retired from a government enterprise in 2002. Justice Kailash Gambhir asked the government to pay the medical expenses of Suraj Bhan and said: 'The state has a constitutional obligation to bear the medical expenses of government employees while in service and also after they are retired. Clearly in the present case by taking a very inhuman approach, these officials have denied the grant of medical reimbursement to the petitioner forcing him to approach this court.' Bhan had approached court seeking reimbursement of his medical bills.
In 2003, following a circular issued by the government, Bhan got enrolled for the medical scheme and paid the premium on regular basis though he had retired a year earlier. In 2007, a new scheme was introduced, but he was not aware of it. Bhan was suffering from asthma and was under treatment at the Sir Ganga Ram Hospital from July 3 to July 9, 2004. When he moved an application for reimbursement of Rs.33,654 towards hospital bills it was rejected by the employment officer as Bhan was not part of the 2007 scheme. 'It is quite shocking that despite various directions from the courts, the government in utter defiance of the law has taken a position that the pensioner is not entitled to the grant of medical reimbursement since he did not opt to become a member of the said health scheme after his retirement,' the court said and imposed a law suit cost of Rs.10,000 on the government. The government said that since Bhan had not opted for the new scheme in 2007, he was not entitled to reimbursement.

'The scheme is prospective in nature and the same would be effective once an employee becomes a member of the scheme and not otherwise,' counsel for the government said.

'It is a settled legal position that a government employee during his life time or after his retirement is entitled to get the benefit of medical facilities and no fetters can be placed on his rights on the pretext that he has not opted to become a member of the scheme or had paid the requisite subscription after having undergone the operation or any other medical treatment,' the court said.