Income Tax Slabs 2010 - 2011 (Financial Year)

Proposed Income Tax Slabs 2010 - 2011 (Financial Year)

Income between Rs. 1.6 lakhs to Rs. 5 lakhs - 10% (10 per cent )- Income between Rs. 5 lakhs and Rs. 8 lakhs - 20% (20 per cent) - Income above Rs. 8 lakhs - 30% (30 per cent )- Income Tax Department ready to unveil new saral 2 form for salaried individuals in two pages - Deduction of Rs 20,000 allowed over Rs 1 lakh; to be invested in infra bonds

GDS service to be taken for shortfall of Pensionary service

Short fall in Qualifying Service for grant of minimum pension shall be taken from GDS period of employment- An Historical Decision by CAT Madras Bench upheld by Honourable Madras High Court and the Supreme Court followed by an Order by the Department of Posts.

1. CAT ORDERS.
CENTRAL ADMINISTRATIVE TRIBUNAL: MADRAS BENCH
Thursday, the 18th day of April 2002 (18-4-2002)
PRESENT
The Hon'ble Shri S. Manickavasagam, Member (A)
and
The Hon'ble Shri A. SATHATH KHAN, Member (J)
O.A.No. 1264 of 2001
M.R. Palanisamy ....Applicant

Vs

UOI rep. by
1. The Secretary
Department of Posts
Dak Bhavan
New Delhi-110 001

2. The Chief Post master General
Tamil Nadu Circle, Chennai-2

3. The Superintendent of Post Offices
Tirupur division
Tiruppur-641 601 .....Respondents
......................

Mr. S.Ramaswamy Rajarajan.. Advocate for the applicant
Mr. G. Nanmaran .. Advocate for the respondents

Order : Pronounced by the Hon'ble Shri S.MANICKAVASAGAM MEMBER (A)

Briefly stated the case of the applicant is as follows:-

2. The applicant served as an ED BPM from 1.6.1963 to 1.7.1992. Thereafter he was promoted to the Gr. D cadre and on attaining the age of superannuation (60 years) the applicant retired from service on 31.10.2001. It is the case of the applicant that since he had completed only 9 years, 3 months and 29 days in the Gr. D cadre, he has not been granted any pension as it is less than the minimum of pensionable service of 10 years. Though he made representations requesting the respondent department to reckon a portion of his service as EDBPM as qualifying service to get over the shortfall of a few months which would enable him to draw the pro-rata pension, this was turned down by the respondent department. Hence the present OA.

3. The thrust of the reply filed by the respondents is to the effect that the service rendered in ED Posts are not pensionable service posts. It is further averred that since the applicant had rendered only 9 years and 3 months as a qualifying service, he is not entitled for any pro-rata pension. As per the relevant Pension Rules, an employee who has not completed 10 years of regular service is not entitled for pension and is entitled to only service gratuity/retirement gratuity and accordingly the applicant was paid a sum of Rs. 28120 as retirement gratuity and Rs. 20387 as service gratuity. The respondents have prayed that the OA is liable to be dismissed as devoid of merit.

4. We have heard the learned counsel for both sides and perused the records.

5. At the outset, we find that the applicant had worked as an ED BPM from 1.6.1963 to 1.7.1992. In the normal course, had the applicant continued to work as an ED BPM he would have continued up to the age of 65 years and could have continued in service even now. But in view of the fact that he was promoted to the Gr. D cadre he had to retire at the age of 60 years which is the age of superannuation in Govt. service. Thus promotion in the instant case has come to mean reduction in the age of retirement by five years. Under such circumstances it is to be seen that the reduction in the retirement age in any way is compensated to the applicant. It may be true that as a Gr. D employee the applicant would have received higher pay and allowances. Therefore, to earn the increased pay and allowances the applicant was required to work full-time. But on the contrary as an ED BPM, which was only a part-time job, it carried a lesser salary. Thus, the increased working hours as a Gr. D employee had resulted in increase in wages. In other words the applicant had not gained much by way of promotion.

6. The pertinent factor in this case which requires a mention is that the applicant had lost five years of service as an ED BPM and in return he is not getting even the minimum pension because persons who complete 10 years of service alone are eligible for the pro-rata pension. Further, had the applicant served for another three months he would have become eligible for prorata pension as he would have completed 20 half-yearly periods but no his credit he has only the half yearly periods and therefore he is not eligible for any pension. In other words all the service rendered by him as an ED BPM to the extent of 29 years are of no use in so far as the pension is concerned. It is this aspect of the matter which required consideration.

7. Keeping the above point in mind we would like to observe that in cases where the employees had been dismissed or removed from service they are also eligible to get what is called 'compassionate allowance' not exceeding 1/3rd of the pension according to Rule 41(1) of the CCS(Pension) Rules which is subject to the orders of competent authority. But in the instant case even though the applicant had served for nearly 29 years as an ED BPM, he is not eligible for any pension because he fell short of one half-yearly period. Therefore, this is a matter which requires to be examined by the highest authority after an indepth analysis into the whole matter.

8. At the time of arguments, the learned counsel for the applicant made a fervent plea that in the Railways, for the casual labourers with temporary status, 50% of the temporary status service is taken into account for purposes of qualifying service subsequent to their absorption against regular posts in Gr. D cadre and this benefit has been extended to the temporary status casual labourers for extending the pensionery benefits. Therefore, applying the above analogy to the case on hand and as a model employer, the respondent department ought to have come forward to reckon a portion of the service rendered as ED BPM as a qualifying service which would enable persons like the applicant to draw the minimum pension. As again the above suggestion of ours, there can be two opinions, one in favour of the suggestion and the other against.
In this connection we would like to place reliance on the Justice Talwar Committee's recommendations to resolve the issue on hand in the interest of justice, based upon which the Dept. of Posts had issued an OM dated 17.12.1998 and the subsequent clarificatory circular dated 10.8.1999, and the relevant portion is extracted below:-

"(f) Severance amount on retirement/death:- A lumpsum severance amount of Rs. 30,000/- may be paid only on retirement of an ED Agent at the age of 65 years or on the death of an ED Agent, provided he/she has completed a minimum of 20 years of continuous service.
However, in case of an ED Agent who has completed continuous service equal to or more than 15 year but less than 20 years of continuous service, the severance amount shall be only Rs. 20,000 on retirement or death. These provisions will be effective from the date of issue of these orders.
(g) Severance amount on absorption on regular basis- Severance amount of Rs. 20,000/- may be paid to an ED Agent who has been absorbed on a regular basis against a departmental post after 15 years of continuous service as ED Agent. This provision will be effective from the date of issue of these orders".

9. A conjoint reading of the above provisions would go to show that an EDA who had rendered a continuous minimum service of 20 years would be entitled for the severance amount of Rs. 30,000 and in the case of absorption of an EDA against a regular post in the department after rendering a continuous service as an EDA for 15 years, he would be entitled to severance amount of Rs. 20,000/-. In the instant case, we find that the applicant has rendered 29 years of service as an EDA before his promotion to the Group-D cadre. But the service rules for ED Staff are silent with regard to reckoning a portion of service as an ED Agent as a qualifying service on absorption as a regular Gr. D or on promotion as a Grou D against the departmental post. Here we would like to invite a reference to the OM dated 12.04.1991 issued by the DOPT with regard to regularisation of casual labourers are concerned. In the said scheme there is a clause stating that 50% the service rendered as temporary status employee will be reckoned as a qualifying service for regulating the retiral benefits after regularisation against Gr. D Posts. This provision is on similar lines prevailing in the Railways and other Govt. of India departments. In a nutshell the essence is that even in respect of casual labourers who get regularised at a subsequent date against regular Gr. D Posts. a portion of their service rendered with temporary status is reckoned as qualifying service for regulating the retiral benefits.

10. On the other hand, there is no such welfare scheme in respect of ED Agents. One reason may be that the ED Agents are part-time workers and therefore no weightage is called for. It is in this connection we would like to observe that a distinction has to be made in respect of a person who works as an ED employee and retires as such and a person who works for some time as an ED Agent and gets absorbed as a Gr. D official. In the former case since the employee retire as an ED Agent, there is no scope for any pension at all. On the other hand, in the latter case since the employee retires as a Gr. D official after regularisation, the department has to decide whether any weightage need be given for the services rendered by him as an ED Agent for well over several years.

11. The above point will have to be seen in the light of the fact that on regularisation as a Gr. D employees, the age of superannuation of the employee gets reduced from 65 years. Surely this amounts to a reduction in the superannuation age and deserves to be adequately compensated. Thus it would appear that on promotion to the Gr. D cadre, the ED employee does not gain and on the contrary he seems to be more on the losing side. We therefore hold that this position has to be adequately corrected by reckoning a portion of the service rendered as an EDA as a qualifying service for pensionary purposes.

12. We would like to observe that this need not be 50% of the service as in the case of a casual labourer with temporary status, but perhaps a lesser percentage may be reckoned as a qualifying service in respect of the service rendered as an ED Agent. This can be any where around 20 to 25%. But, to say that no weightage will be given to the service rendered as an ED Agent, even after regularisation on absorption or, promotion as a Gr. D employee will not be in harmony with other schemes obtaining in other departments of the Govt. Principles of equity and fair play require that certain portion of the service rendered as an EDA should be reckoned as a qualifying service for pension purposes and if that is done, persons like applicant would get over the shortfall and it will entitle them for at least minimum pension, especially when similar benefits are extended to persons working in Railways and other departments of the Govt. of India. In short, it would appear that after regularisation, the ED Agent does not get the same treatment as in the case of a casual labourer. This is an anomalous situation. We therefore hold that this is a fit case where the respondents as a model employer should apply their mind and formulate a welfare scheme as has been formulated by the DOPT and Railways which would help many persons like the applicant to get at least the minimum pension.

13. Thus, we are convinced that the applicant's case deserves a sympathetic consideration in view of the fact that there is absolutely no provision in the service rules for ED Staff for pension on absorption as regular Gr. D. We are constrained to observe that it is for the respondent department to take into account the overall picture and then take a sympathetic view.
14. We further find that the impugned order has been issued by the superintendent of Post Offices which in our opinion is not proper as he is not the competent authority to consider the case of the applicant. This is a matter which should be considered at the highest level and the first respondent alone is the competent authority.

15. In the light of the discussion above, we hold that the ends of justice would be met if the following or areal are passed:-
(a) The impugned order dated 6.11.2001 is quashed.
(b) The first respondent is directed to consider the case of the applicant in a proper perspective and formulate a scheme as has been formulated by the DOPT in their, scheme issued in the OM or 12.04.1991 as also in the Railways, by giving weightage for certain percentage or service rendered as an ED Agent for reckoning the same as a qualifying service for purposes of pension in respect of persons who get absorbed or promoted against regular Gr. D posts in the department which would enable such employees to get the minimum pension. This exercise shall be completed within four months of receipt of a copy of this order by the respondents.

16. We are directing the Registry to send a copy of this order direct to the first respondent in view of the importance involved in this case and for expecting action thereon.

17. The OA is allowed to the extent indicated above with no order as to costs.

2. SLP DISMISSED

ITEM No.15 COURT NO.10 SECTION XII
SUPREME COURT OF INDIA
RECORD OF PROCEEDINGS
Petition(s) for Special Leave to Appeal (Civil)........./2008 CC 13829/2008
(From the judgement and order dated 04/10/2007 in WP No. 45465/2002 of THE HIGH COURT OF MADRAS)
SECRETARY DEPARTMENT OF POST & ORS. Petitioner (s)
VERSUS
M.R. PALANISAMY Respondent(s)

With A 1 (c/delay in filing SLP)
Date: 17/10/2008 This Petition was called on for hearing today

CORAM:
HON'BLE MR. JUSTICE LOKESHWAR SINGH PANTA
HON'BLE MR. JUSTICE AFTAB ALAM

For Petitioner(s) Mr. B.Dutta, A.S.G.
Mrs. Rajani Ohri Lal, Adv.
Mr. B.K. Prasad, Adv.
Mrs. Anil Katiyar, Adv.
For Respondent (s)
UPON hearing counsel the Court made the following

ORDER
Delay condoned
The special leave petition is dismissed. However, the question of law is left open to be decided by appropriate court in appropriate case.
Sd/- Sd/-
(A.D. Sharma) (Phoolan Wati Arore)
Court Master Court Master

3. ORDER IMPLEMENTING THE CAT DECISION

Dept. of Posts No. 99-3/08-Pen Dated 09.10.2009
Sub. : WP No. 45465/W.P.M.P No. 66391 filed by Shri M.R. Palaniswamy retired Group D Tiruppur. Tamilnadu Circle WP
I am directed to refer to your office letter DO letter No. APA/86-237/2002 dated 24.03.2009 regarding the abovementioned subject
Approval of Deptt. of Pension & Pensioner' Welfare, is hereby conveyed for implementation of the Order/Judgement dated 4.10.2007of High Court of Chennai in WP No. 45465 of 2007 arising out of CAT Chennai OA No. 1262 of 2001, as a special relief of Shri M.R. Palaniswamy, Retired Group 'D' Tiruppur, by sanctioning at least the minimum pension by making up the shortfall in service to the extent of shortfall by taking into account the EDA period of employment
Yours faithfully,
(A.K. Sharma)
Deputy Director General (Estt)

Employee can withdraw the Voluntary Retirement application

Employee can withdraw the Voluntary Retirement application

before it is accepted

The Bombay High Court has held that an application under Voluntary Retirement Scheme (VRS) can be withdrawn before the employer accepts it. Division bench of Justices S A Bobade and Vasanti Naik held in the recent judgement that even though the VRS rules do not provide for withdrawal of application, it can be allowed.
Petitioner Madhusudan Trivedi, who was working with UCO Bank, Nagpur, had sought voluntary retirement under the scheme that was announced by the bank in November 2000.
He applied for VRS on January 1, 2001.
However, he contended in his petition that at the time of applying for it, he was not aware of all the provisions of the scheme.
On realising that some provisions did not suit him, he wrote to the bank that he wanted to withdraw his application.
However, the bank said that according to the rule, an application once made could not be taken back.
Trivedi then moved the Nagpur bench of the high court. The high court observed that the bank was yet to approve Trivedi’s VRS application when he sought to withdraw it. Therefore, relying on a Supreme Court ruling, the High Court held that as long as his application was not accepted Trivedi was free to withdraw it.

No Arrogance While Discharging Duty

“No arrogance while discharging duty” Supreme Court


The Supreme Court has advised those in power to ensure that there should be no trace of arrogance and vanity while discharging their official duty.
A bench of Justice Dalveer Bhandari and Justice A.K. Patnaik gave this counsel to the Central Reserve Police Force (CRPF), while also rebuking it for dismissing one of its head constables Angad Das arbitrarily.

“People in power and authority should not easily lose equanimity, composure and appreciation for the problems of the lesser mortals. They are always expected to remember that power and authority must be judiciously exercised according to the laws and human compassion”,
said the bench Thursday.
“Arrogance and vanity have no place in discharge of their official functions and duties,” the bench said while restoring Das’s original punishment of compulsory retirement with all pensionary benefits and gratuity.
The CRPF June 14, 1996, imposed the punishment of compulsorily retirement on Das, serving in the 51 Battalion in Jammu and Kashmir, on the ground that he obtained the job using a false birth date certificate.
Following the order for his retirement, Das wrote a mercy plea to the authorities begging that he should not be retired and instead be awarded any other punishment. In his plea, he said that if he is forced to retire, his entire family including his five daughters, would be ruined and would be forced to begging. He also argued that his birth certificate was not false but was issued to him by the block development officer (BDO) and the panchayat authorities.
Irked by Das’s mercy plea, the CRPF authorities treated it as his appeal against his punishment of compulsory retirement entailing all retirement benefits like pension and gratuity etc and ordered his “removal from service”, depriving him from all terminal benefits.
Das appealed in the apex court. The apex court regretted the attitude of the authorities, saying: “The appellant had sent a very polite letter of request to the additional deputy inspector general of police praying that his request for re-employment be kindly considered because he has enormous responsibility of educating and marrying his five daughters. The prayer was made with folded hands and touching his feet. The letter reflected pinnacle of humility”.
The apex court said no provision of law permits the authorities to treat a letter of request for re-employment as an appeal.
“The DIG (Police) has no power or authority to enhance the sentence of the appellant. We fail to comprehend how such an innocuous and polite letter of request seeking re-employment on compassionate ground can ever receive such an unwarranted and arrogant reaction. The order is wholly arbitrary and illegal,” the apex court said.

source-i net

Post Office Box Lobby-Recycling Program Is Expanding

Post Office Box Lobby-Recycling Program Is Expanding

WASHINGTON — More than 200,000 tons, and counting. That’s how much paper, plastics and other waste the U.S. Postal Service recycled in 2009, representing a decrease in its greenhouse gas emissions of approximately 1.67 million barrels of oil.
An integral part of that undertaking is the Post Office Box Lobby Recycling program which is expanding to include an additional 2,435 Post Offices, including those in a number of U.S. national parks. That brings the total number of participating sites to more than 8,064, an increase of 150 percent from 2005, when the Post Office Lobby recycling effort started. This program is based on the success of similar mail recycling programs in the northeastern part of the United States, which began more than 10 years ago.
Postal customers are being encouraged to “read, respond, recycle” their P.O. Box mail in Post Office lobbies as a convenient and environmentally responsible alternative to taking it home to discard.
“Lobby recycling helps divert paper waste from landfills, eliminating greenhouse gas emissions from solid waste disposal,” said Deborah Giannoni-Jackson, vice president, Employee Resource Management. “In 2009, the Postal Service sold raw materials from recyclables, diverting them from landfills, making us greener and producing a positive impact on our bottom line.”
Secure recycling bins in Post Office lobbies are locked and the opening is slim –– about the width of a magazine, so the mail, and customer privacy, are ensured. P.O. Box customers are encouraged to open their mail (read), take whatever action is necessary (respond) and place the rest of it in the bin (recycle). A complete list of participating “Read, Respond, Recycle” Post Offices can be found at usps.com/green on the recycle page by clicking on Earth911.com. Type the word “mail” in the search engine for a list by ZIP Code.
“This Post Office Box recycling program is part of a comprehensive approach to mail production, delivery and recycling that helps create a sustainable future for generations to come,” said Sam Pulcrano, vice president, Sustainability. “It makes it even easier for Post Office Box customers to go green by recycling their discarded P.O. Box mail right at the Post Office.”
Pulcrano added, another way customers can go green is with 100 percent recyclable Postal Service packaging supplies. The Postal Service is the only mailing and shipping company to earn Cradle to Cradle™ certification for the environmentally friendly design and health standards of Priority Mail and Express Mail supplies, and Ready Post envelopes, tape and labels. Priority Mail and Express Mail supplies are free to the customer and can be delivered at no charge. They can be ordered from the Post Office that’s always open, 24 hours a day, at usps.com/green. Visit usps.com/green for the latest information about all the Postal Service’s green initiatives, tools and products.
P.O. Box Lobby Recycling is one more way the Postal Service is demonstrating its commitment to environmental stewardship, Pulcrano said. The Postal Service has won more than 75 environmental awards, including 40 White House Closing the Circle, 10 Environmental Protection Agency WasteWise Partner of the Year, Climate Action Champion, Direct Marketing Association Green Echo, and the Postal Technology International Environmental Achievement of the Year, 2009.
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations.

source-PN&I

Birth of Cheap Communication

Birth of Cheap Communication

In England in 1830, postage for letters was calculated not only by the number of sheets of paper but also by the number of miles traversed, and the recipient was the one who had to pay. For a person of ordinary means, a letter of middling length could come to about a day’s wages, a fearsome cost for the unfortunate household that received a letter.
But a decade or so later, when Britain and the United States introduced cheap, flat postal rates, without regard to the number of sheets or distance traveled, correspondents enjoyed something like our unmetered broadband today. Communication became more frequent, and ties were strengthened among families and friends. But cheap rates also led to junk mail and postal scams.
In Victorian London, though service wasn’t 24/7, it was close to 12/6. Home delivery routes would go by every house 12 times a day — yes, 12. In 1889, for example, the first delivery began about 7:30 a.m. and the last one at about 7:30 p.m. In major cities like Birmingham by the end of the century, home routes were run six times a day.
“In London, people complained if a letter didn’t arrive in a couple of hours,” said Catherine J. Golden, a professor of English at Skidmore College and author of “Posting It: The Victorian Revolution in Letter Writing” (2009).
And, not unlike us, most Victorian letter writers seemed more concerned about getting a rapid response than a long one. “Return of post” was an often-used phrase, requesting an immediate response, in time for the next scheduled delivery that day.
As any English major could tell you, the literary output of eminent Victorians was prodigious. Anthony Trollope, for example, wrote dozens of novels while working for the British post office, using the Victorian equivalent of a laptop computer: a portable writing desk. For his books, he didn’t stint on words: a modern reprint of “He Knew He Was Right,” with small type, runs 930 pages. But Ms. Golden said his letters tended to be brief and businesslike.
David M. Henkin, a history professor at the University of California, Berkeley, says that there has been “a distorted impression of how articulate or thoughtful 19th-century letter writers were — both American and British.”
“The historical letters we encounter were often written by famous, articulate people,” he added, “preserved by their recipients and selected for publication.”
When researching letters written by not-so-famous Americans, Mr. Henkin was struck by writing that was “prosaic, not poetic.”
In the early 1800s, before the postal reforms, Americans often sent letters that weren’t letters at all, but newspapers they had received in the mail and then resent to distant friends and family. Postal rates favored the practice, as newspapers could be remailed in their entirety for about what a single-sheet letter would cost — and the sender was spared the obligation of writing an actual letter.
In 1840, The New Orleans Picayune tried to persuade its subscribers to buy gift subscriptions instead of remailing their own copies of the paper, gently scolding that when “you send your friend all the news in a printed journal you have a very fair excuse for being lazy with your pen.” (Online readers should feel perfectly free to send this column to friends.)
Postal service was democratized in Britain in 1839, with legislation that set a flat rate effective the next year and introduced the adhesive postage stamp, shifting the payment burden to the sender. For a penny, a letter of up to half an ounce could reach any destination in Britain. (Recipients could still do the paying, but that would cost 2 pence.)
The United States, like other countries, soon followed. In 1845 and 1851, Congress substantially reduced the cost of sending a letter and offered a steep discount for prepayment. But inexpensive postage didn’t spur people to send long, handwritten letters, so much as it enabled advertisers to spew out unsolicited junk mail on a mass scale. In 1855, according to Mr. Henkin, 30 or 40 mailbags filled with nothing but printed “circulars” for lotteries and patent medicines arrived daily at some post offices.
The same postal reforms that allowed family members and legitimate businesses to get in touch inexpensively also made it possible for cheats to do so, too. In the United States after the Civil War, a guide to New York City estimated that more than 2,000 “swindling establishments” were using the postal system, Mr. Henkin writes in “The Postal Age: The Emergence of Modern Communications in 19th-Century America” (2006).
These operators sent out “tens of thousands of solicitations and at minimal expense,” he writes. “Even a small percentage of replies from eager victims remitting a dollar or just a postage stamp could translate into a major windfall.” (Unused stamps could be resold or used in the next mailing and sometimes functioned as currency, he says.)
THE Victorians mailed all sorts of things besides words: tree cuttings, leeches, mosses and even manure, Ms. Golden writes. We could say that the only thing left for the modern correspondent to invent was the completely empty envelope — the Facebook “poke,” the sending of a greeting without saying so much as “hi.”
When one Facebook member clicks to “poke” another, of course, the receiver can poke back, returning the wordless greeting. Compared with a poke, even a brief e-mail message seems impressively articulate.

By RANDALL STROSS

Re-verification Process started

Re-verification Process started

Download the forms for Authorisation Letters

Details or order is available at

http://sites.google.com/site/postalinfosite/re

Spread Over the Arrear Salary & get IT relief

Spreading Over of Arrear salary is very Simple & EasY.

Take benefit of Income Tax Relief under Sec-89(I)

Please download the form10-E and Annexure I given herewith, fill up and claim the relief to the DDO before the Tax is deducted from salary.

New reverification process started.

Department of Posts in letter no. 13-01/2010-SR dated 18-02-2010 has ordered for re-verification of membership of Service Unions.

Last date for submission of authorisation letters to

Divisional Heads is 26-04-2010

Display of lists on the Notice Board is 27-04-2010 to 30-04-2010

Representation of aggrived members if any to be submitted before 06-05-2010

Subscription as per new authorisation letters to be deducted from the salary for May-2010 to be paid on 31-05-2010

(Authorisation Forms for Dept. and GDS staff are given above)

Tax Planning and Savings Funds

Tax Planning and Savings Funds for purpose of
Income Tax

Under this section, you can invest a maximum of Rs l lakh and if you are in the highest tax bracket of 30%, you save a tax of Rs 30,000. The various investment options under this section include:

Provident Fund (PF) & Voluntary Provident Fund (VPF):
PF is automatically deducted from your salary. Both you and your employer contribute to it. While employer’s contribution is exempt from tax, your contribution (i.e., employee’s contribution) is counted towards section 80C investments. You also have the option to contribute additional amounts through voluntary contributions (VPF). Current rate of interest is 8.5% per annum (p.a.) and is tax-free.

Public Provident Fund (PPF):
Among all the assured returns small saving schemes, Public Provident Fund (PPF) is one of the best. Current rate of interest is 8% tax-free and the normal maturity period is 15 years. Minimum amount of contribution is Rs 500 and maximum is Rs 70,000. A point worth noting is that interest rate is assured but not fixed.

General Provident Fund (GPF):
General Provident Fund is deducted from salary of Govt. employees up to a maximum of Basic Pay(as on 1st March) per month.Interest rate 8%.Savings benefit up to one lakh (all together)

Life Insurance Premiums:
Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction. Please note that life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C. If you are paying premium for more than one insurance policy, all the premiums can be included. It is not necessary to have the insurance policy fromLife Insurance Corporation (LIC) – even insurance bought from private players can be considered here.

Equity Linked Savings Scheme (ELSS):
There are some mutual fund (MF) schemes specially created for offering you tax savings, and these are called Equity Linked Savings Scheme, or ELSS. The investments that you make in ELSS are eligible for deduction under Sec 80C.
Home Loan Principal Repayment: The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of theIncome Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.
Stamp Duty and Registration Charges for a home:
amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction undersection 80C in the year of purchase of the house.

National Savings Certificate (NSC):
National Savings Certificate (NSC) is a 6-Yr small savings instrument eligible for section 80C tax benefit. Rate of interest is eight per cent compounded half-yearly, i.e., the effective annual rate of interest is 8.16%. If you invest Rs 1,000, it becomes Rs 1601 after six years. The interest accrued every year is liable to tax (i.e., to be included in your taxable income) but the interest is also deemed to be reinvested and thus eligible forsection 80C deduction.

Infrastructure Bonds:
These are also popularly called Infra Bonds. These are issued by infrastructure companies, and not the government. The amount that you invest in these bonds can also be included in Sec 80C deductions.

Pension Funds – Section 80CCC:
section – Sec 80CCC – stipulates that an investment in pension funds is eligible for deduction from your income. Section 80CCC investment limit is clubbed with the limit of Section 80C – it maeans that the total deduction available for 80CCC and 80C is Rs. 1 Lakh.This also means that your investment in pension funds upto Rs. 1 Lakh can be claimed as deduction u/s 80CCC. However, as mentioned earlier, the total deduction u/s 80C and 80CCC can not exceed Rs. 1 Lakh.

5-Yr bank fixed deposits (FDs):
Tax-saving fixed deposits (FDs) of scheduled banks with tenure of 5 years are also entitled for section 80C deduction.

Senior Citizen Savings Scheme 2004 (SCSS):
A recent addition to section 80C list, Senior Citizen Savings Scheme (SCSS) is the most lucrative scheme among all the small savings schemes but is meant only for senior citizens. Current rate of interest is 9% per annum payable quarterly. Please note that the interest is payable quarterly instead of compounded quarterly. Thus, unclaimed interest on these deposits won’t earn any further interest. Interest income is chargeable to tax.

5-Yr post office time deposit (POTD) scheme:
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) – which currently offers 7.5 per centrate of interest –qualifies for tax saving undersection 80C. Effective rate works out to be 7.71% per annum (p.a.) as the rate of interest is compounded quarterly but paid annually. The Interest is entirely taxable.

NABARD rural bonds:
There are two types of Bonds issued by NABARD (National Bank for Agriculture and Rural Development): NABARD Rural Bonds and Bhavishya Nirman Bonds (BNB). Out of these two, only NABARD Rural Bonds qualify undersection 80C.

Unit linked Insurance Plan:
stands for Unit linked Saving Schemes. ULIPs cover Life insurance with benefits of equity investments. They have attracted the attention of investors and tax-savers not only because they help us save tax but they also perform well to give decent returns in the long-term.

Others:
Apart form the major avenues listed above, there are some other things, like children’s education expense (for which you need receipts), that can be claimed as deductions under Sec 80C.

More over, the Arrears of pay received on account of Sixth CPC, may be spread over for the concerned previous years to get relief under Sec.-89(I)

CAT clears air on promotion benefits

CAT clears air on promotion benefits

If an employee, fulfiling the eligibility criteria for promotion to a particular post, works for a reasonable period on that post against a vacancy,, the government cannot deny him/her the actual promotion and accompanying financial benefits, the Central Administrative Tribunal (CAT) has held.
A Central Administrative Tribunal (CAT) bench headed by Chairman Justice V.K. Bali held that in such a situation, it would be arbitrary to deny salary and other benefits of the promoted post to the employee.
The bench ordered the Delhi Government to re-fix the salary and retirement benefits of six retired school teachers, who had been given notional promotion to the post of principal, albeit without any accruing financial benefits.
Rejecting the Delhi Government’s arguments that all promotions had to be prospective and retired employees had no right to actual promotion, the CAT allowed the petition filed by Gaurishankar Sharma, Budh Prakash Tyagi, Raj Kumar Uppal, Prabhu Dayal, Jagdish Prasad Sharma and Chintamani Mathur.
It directed the Delhi Government to fix the correct salary of the petitioners, from the dates each of them had been promoted notionally to principal and to fix par arrears of salary for the period they were in service.
The CAT also ordered payment of revised retirement benefits, with six per cent interest on arrears within four months. The petitioners had served as heads of schools over several years.
But the Departmental Promotion Committee (DPC), held after their retirement, recommended only notional promotion for them and accordingly, the government did not give them any financial benefit of promotion.
Aggrieved by the decision, they moved the CAT, seeking benefit of the pay scale of principal, from the date they were assumed charge of the post, plus the arrears of pay and allowances after proper pay fixation, with retrospective effect. They also demanded revision of their retirement benefits.
The government contended the DPC could not be convened due to procedural reasons while they were in service and making them principals was only a stopgap arrangement. It said petitioners were not eligible for revision of retirement benefits and back wages because their promotion was only notional.
But citing the Supreme Court’s rulings on the issue, the CAT rejected these arguments.
“By virtue of the fact that the Applicants have actually worked on the post of principal, they would …be eligible for payment of back wages also, besides salary for the post of principal, from the date they have been notionally promoted to that post,” it said.

Date of joining is immaterial for pay fixation: CAT

Date of joining is immaterial for pay fixation: CAT

Candidates selected for posts in the Delhi government will be entitled to parity in pay scale fixation even if they join later than their colleagues, the Central Administrative Tribunal (CAT) has held.
Six applicants, selected as medical officers in 2002, approached the tribunal seeking parity in terms of fixing of pay scale, back wages and pension after they were denied these as they joined late due to some legal hurdles.
"The applicants would be eligible for appointment to the post of Medical Officer (Ayurvedic) from the date three other persons selected along with them were appointed," the tribunal, comprising Chairman V K Bali and Vice Chairman L K Joshi, said.
The CAT, however, held that they would not be entitled to back wages.
It also ordered the Delhi government to place them under the pension scheme of 1972.

Source=PTI

The use of Digital Smart Card is discontinued for iMO

The use of Digital Smart Card is discontinued for iMO Service w.e.f 08/02/2010. Smart Card Reader and Smart Cards may be kept in custody of the Postmaster.

PSS Gr-B exam in May-2010

PSS Group B Examination scheduled to be held in May 2010

Department of Posts has issued notification for conducting PSS Group 'B' Examination for General Line and IP Line officials. The examination is scheduled to be held on 3rd and 4th of May 2010.
The vacancy declared is as under:-
Cadre General line OC=25 SC= 6 ST= 2

IP Line OC=21 SC= 3 ST=2

Some Important features on Income Tax

INCOME TAX – FREQUENTLY ASKED QUESTIONS

INCOME TAX – QUESTIONS AND ANSWERS :-

• What is an Assessment Year?
• It is the twelve-month period 1st April to 31st March immediately following the previous year . In the Assessment year a person files his return for the income earned in the previous year. For example for FY:2009-10 the AY is 2010-11.
• What does the Income Tax Department consider as income?
• The word Income has a very broad and inclusive meaning. In case of a salaried person, all that is received from an employer in cash, kind or as a facility is considered as income. For a businessman, his net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, and Commission etc. Infect the Income Tax Act does not differentiate between legal and illegal income for purpose of taxation. Under the Act, all incomes earned by persons are classified into 5 different heads, such as:
• Income from Salary
• Income from House property
• Income from Business or Profession
• Income from capital gains
• Income from other sources
• A child living abroad send Rs.20000/- per month for parent's maintenance. Would this be considered as income?
• No.
• What is a return of income?
• It is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the Financial year. Different forms are prescribed for filing of returns for different Status and Nature of income.
• From where one can get a return form?
• The Public Relation Officer [PRO] can be contacted for this purpose. The form can also be downloaded from the site http://www.incometaxindia.gov.in/.
• How can one know which form is applicable for the income?
• One should choose a return form according to the status and nature of income from the following:
• ITR1 – For Individuals having Income from Salary/ Pension/ family pension & Interest
• ITR2 – For Individuals and HUFs not having Income from Business or Profession
• ITR3 – For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
• ITR4 – For individuals & HUFs having income from a proprietary business or profession
• ITR5 – For firms, AOPs and BOIs
• ITR6 – For Companies other than companies claiming exemption under section 11
• ITR7 – For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)
• ITR8 – Return for Fringe Benefits
• ITRV – Where the data of the Return of Income/Fringe Benefits in Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature
• If one fails to furnish the IT return within the due date of filing, will he be fined or penalized?
• Yes. This may take the form of interest if the return is not filed before the end of the assessment year. If the return is not filed even after the end of the assessment year, penalty may also be levied.
• If one have paid excess tax how and when will it be refunded?
• The excess tax can be claimed as refund by filing the income tax return. It will be refunded by issue of cheque or by crediting to the bank account. The department has been making efforts to settle refund claims within four months from the month of filing return.
• There are various deductions that have not been reflected in the Form 16 issued by the employer. Can one claim them in his return?
• Yes.
• What is considered as Salary income?
• Whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as Salary.
• What are allowances? Are all allowances taxable?
• Allowances are fixed amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. There are generally three types of allowances for the purpose of income tax- taxable, fully exempted and partially exempted.
• Even if no taxes have been deducted from salary, is there any need for the employer to issue Form-16 ?
• Form-16 is a certificate of TDS and in this case it will not apply. Howeverthe employer must issue a salary statement.
• If one is getting pension through a bank/Post office who will issue Form-16 or pension statement - the bank /Post Office or the former employer?
• The bank/P Office.
• Are retirement benefits such as PF and Gratuity taxable?
• No. They are exempt subject to conditions and limits laid down in the Income Tax Act.
• Can the employer consider relief u/s 89(1) for the purposes of calculating the tax liability?
• Yes.
• Is leave encashment taxable as salary?
• It is taxable if received while in service. Received as retirement benefit, it is exempt subject to certain conditions.
• What is TDS?
• TDS means Tax Deducted at Source. It is the amount withheld from payments of various kinds such as salary, contract payment, commission etc. This withheld amount can be adjusted against your tax due.
• Some demand has been raised by the Assessing officer after assessment. Can one pay this demand in installments or seek time till the appeal is settled?
• Yes. the individual may approach the Assessing officer within 30 days of receipt of demand notice for installments or stay or seek time for payment. However it is liable to pay interest for delay in payment of demanded tax.

Postal Departmental Anomaly Committee Meeting

Postal Departmental Anomaly Committee Meeting

Held on dated 05.02.2010 in the Committee Room of Dak Bhawan New Delhi. Shri.A.K.Sharma, Chairman presided over the meeting. The DDG (P) and other members of official side have also participated.

The Staff Side was represented by S/Shri.K.V.Sridharan (Leader), Giriraj Singh (Secretary), K. Raghavendran, Member, Ishwar Singh Dabas, Member, S.P.Mukherjee, Member, D.Theagarajan, Member and D.Kishan Rao Member.

The issues discussed and the situation arising out of the discussion is as follows:

1. Placement of TBOP/BCR PA/SA at lower level in comparison to same cadre in Telecom: The stand of the Official Side is that this is not an anomaly of 6th CPC. However it was agreed by the Chiarman that the issue would be re-examined independently of the anomaly committee.

2. Denial of HIgher Pay Scale and also denial of special allowance of PO&RMS Accountants for fixation of pay on promotion: The Official Side took the position that this is also not an anomaly of the 6th CPC but agreed to examine the issue for making a favourable reference to the Nodal Ministry.

3. Anomaly of omission of grant of PB2 to Postal Machine Assistants renamed as Technical Postal Assistants: The Official Side agreed to have a re-check with all aspects raised by the Staff Side.

. 4.Head Mailman - disturbance of relativity with Postman/Mailguard following 5th CPC: The Official Side took the same position that this is not an anomaly of 6th CPC. AFter discussion in which the decision of the Departmental Council JCM in the year 1978 was pointed out, the Chairman stated that only the willing seniors at BCR Group D level with pay on par with Postman/Mailguard will be posted against Head Mailman post.

5. Chargehand - Placement of Chargehand in PB-2 rather than its merger with Artisan Grade I: Chairman agreed the justification of this Anomaly and stated the Department has taken up this issue with the DOPT for settlement.

6. Artisan Grade I - Common cadre including Railways and Defence - Parity from 01.01.1996: The Official Side pointed out that the anomaly existed after 5th CPC has been set right by the 6th CPC. Therefore there is no anomaly arising after 6TH CPC. However on the question of parity with Railways and Defence would be re-exmined.

7. Data Entry Operators - Lower placement than other Central Government Departments: The creation of DEO Posts by matching savings on direction from Directorate in Chennai DAP and the denial of 4000-6000 pay to these employees has been elaborately discussed. The Official Side contended that this cannot be taken as a 6th pay commission anomaly since the cadre of DEO has not been created in DoP so far. The Official Side admitted that follow up measurers should have been taken at that time itself for creating Recruitment Rules etc. However it is agreed that the issue would be addressed by creating the said DEO cadre with appropriate Recruitment Rules.

8. Cash Handling Allowance to PO & RMS Treasurer - allowing alowance at par with Cashiers in administrative offices: Once again the official side did not agree this as an anomaly of the 6th CPC. After much discussion it was suggested by the Official Side that we may have to make out a strong case in this matter and requested the staff side to provide such vital points in justification which will be examined by Official Side and taken up.

9. Sorters in DAP - relativity disturbance from 5th CPC compared to Postman cadre: On explaining that the Sorter Cadre which was a promotional cadre to Group D is now placed in the same level with Group D, the Official Side suggested that this has to be set right through cadre restructuring. We pointed out that a recommendation to merge sorters wtih LDC is not been implemented. It was agreed to proceed in this issue along with cadre restructuring.

10. Grant of Supervisory Allowance to LSG/HSG-II/HSG-I supervisors - non grant of graded supervisory allowance: The Official Side pointed out that this is not an anomaly of 6th CPC.

11. Anomaly in connection with revision of pay scale of BCR Group D (multi skilled Group C) - non grant of PB-1 with Grade Pay of Rs.1900: Staff Side pointed out the non-fixing of 1900 Grade Pay from 1.1.2006 for the BCR Group D who were in pre-revised scale of 3050. The Official Side agreed to our view and agreed to set right the anomaly.

12. Supervisory allowance for Head Postman/Overseer Postman:Not an anomaly and this has to be taken up separately.

13. TA/DA to Mail Overseer: Not an anomaly and this has to be taken up separately

14. Higher pay scale to PA/Sa Supervisory Posts: After discussion the Official Side agreed to send a reference for grant of Grade Pay 4200/- in PB-2 for LSG Supervisors.

15. Anomaly in fixation of Stenographers: The Official Side stated that the anomaly of Stenographers has been sorted out after the orders of Government to grant 4600/- Grade Pay to Private Secretaries. We pointed out that the anomaly of Grade II and Grade I remaining in same grade pay of 4200/- still remains. The Official Side has taken the position that since this is a common cadre and has to be taken up at higher level.

16. Grant of Pay Scale to drivers equal to Postal Assistant (reference in accordance with judgment of High Court of Madras): The official side pointed out that this is an issue pertaining to common cadre. Staff side pointed out the differences between MMS Drivers and Government staff Car Drivers in the nature of duties and that Drivers are exchanging mails also. Finally the official side agreed to refer the issue to nodal ministry for enhancing the Drivers Scale on par with Postman to pre-revised 3200 scale.

17. Lab Attendent: Official Side told a reference has already been made to nodal ministry in this regard.

18. Medical Store Keepers:Already issued.

19. Nurses: Already issued.

Separate Cadre for Postmasters

Dept. of posts issued orders for separate cadre for Postmasters.

The order is reproduced below

No. 13-2/2010-PE.I

Government of India

Ministry of Communications & Information Technology

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi 110 001

Dated 05-02-2010

ORDER

It has been decided with the approval of the Competent Authority to constitute a separate cadre of Postmasters with the following number of posts by carving them out from the existing General Line Cadre posts and Postal Services Group -B of Postal Wing and to designate them as Senior Postmaster, Postmaster Grade-III, Postmaster Grade -II and Postmaster Grade I as detailed below:-

Sl.No.	Existing Cadre	Proposed Cadre	No.of Posts
1.	Postal Services Group B officer	Senior Postmaster Rs.7500-250-12000 (pre revised) Rs.9300-34800 + 4800 and 5400 after 4 years (Revised) (PB-2)	116
2.	Higher Selection Grade (HSG-I)	Postmaster Grade III 6500-10500 (Pre Revised) Rs.9300-34800 + Rs.4600 Grade Pay (Revised) (PB-2)	495
3.	Higher Selection Grade (HSG-II)	Postmaster Grade II Rs.5000 – 8000 (Pre Revised) Rs.9300-34800 +Rs.4200 Grade Pay (Revised) (PB-2)	511
4	Lower Selection Grade (LSG)	Postmaster Grade- I Rs.4500-7000 (Pre Revised) Rs.5200-20200 + Rs.2800 Grade Pay (Revised) (PB-1)	2097

2. The post will be deemed to have been to have been designated as Senior Postmaster, Postmaster Grade III, Postmastger Grade II and Postmaster Grade I with effect from the dates these are filled up.

3. The consequential action like framing of recruitment rules shall be taken by the Personnel Division.

sd/ (P. Ahilan)

Asst. Director General (Estt.

Demand Survey for CGEPHI Scheme

Demand Survey for Central Government Employees & Pensioners Health Insurance Scheme.

Subsistence Allowance on Revised Pay

Decisions of Supreme Court on Subsistence Allowance for Suspended Employees

The Supreme Court has ruled that a government employee under suspension is not entitled to subsistence allowance on the basis of a revised pay scale if the disciplinary action against him or her has been taken before the revision.

A bench of Justices R V Raveendran and K S Radhakrishnan in a judgement said the suspended employee is entitled to subsistence allowance on the basis of a revised pay scale if the suspension had taken after the revision.

Interpreting rule Note 3 to Rule 7 of the Revised Pay Rules and FR 53(1)(ii)(a) and Office Memorandum dated 27th, the apex court said the rule is clear that if the revision of pay takes effect from a date prior to the date of suspension of a government servant then he/she would be entitled to benefit of increment in pay and in the subsistence allowance for the period of suspension.

"But if the revision of scale of pay takes effect from a date falling within the period of suspension then the benefit of revision of pay and the subsistence allowances will accrue to him only after reinstatement depending on the fact whether the period of suspension is treated as duty or not," Justice Radhakrishnan writing the judgement said.

The apex court passed the judgement while upholding an appeal filed by the Centre challenging the directions passed by the Central Administrative Tribunal and the Delhi High Court to pay subsistence allowance to R K Chopa, a suspended employee of the Ministry of Commerce and Industries.

source-PTI

DA Hike by 8% w.e .from 01-01-2010

Dearness Allowance Hike by 8% from 01-01-2010

As per Consumer Price Index the DA rate comes to 35.70% at the end of December-2009.