Tuesday, 31 May 2016

Latest Development on 7th CPC recommendations


Latest Development on 7th CPC recommendations

NJCA
National Joint Council of Action
4, State Entry Road New Delhi-110055
Ph: 011-23365912, 23343493, Fax: 23363167
No.NJCA/2016
Dated May 27, 2016
All Constituent Organisations,
National Council (JCM)

Dear Comrades,
As there had been no response from the Government to our communication dated 2nd May, 2016, we decided to seek an appointment with the Cabinet Secretary. Accordingly a delegation consisting of the following members of the NJCA met Cabinet Secretary, Shrl P.K. Sinha on 26. May 2016.

Com. Shiva Gopal Misra Com.
Guman Singh
Corn. K.K.N. Rutty

From the discussions, it appears that, the Empowered Committee has made up their mind to recommend to the Government a slight increase in the Minimum Wage. No indication was however given as to the consequential revision of the Fitment Formula and Pay Matrix. There had also not been any hint about the need to restore the percentage of the HRA, which the 7th CPC has recommended for reduction. On Advances and Allowances, abolished, the Government might be advised to setup a committee to go into the matter and make suggestions. In the matter of the New Contributory Pension Scheme also, the Government might refer the demand to a committee.

On the question of pension benefit to the retired personnel, who are covered by the defined benefit pension scheme, the Cabinet secretary indicated that, both the Department of Pension and Defence Ministry were of the firm view that the first option recommended by the 7th CPC to bring about the parity with the past pensioners being infeasible and impracticable (due to the non-availability of the requisite records) might not be accepted and acted upon.

Surprised over this development, the delegation requested for an official formal meeting of the Standing Committee so that the considered views of the Staff Side could be presented. The delegation informed to the Cabinet Secretary that, non-acceptance of the recommendation of the 7th CPC in the case of pensioners will be extremely disappointing for them and will give rise to avoidable discontent. The Cabinet Secretary suggested to the Staff Side to reach out to the Department of Pension and Ministry of Defence in’ the matter. So far he is concerned; he is an open minded on this subject, provided it is workable.

The National JCA will meet on 3rd June 2016 at New Delhi to consider these developments and take appropriate decision.

NJCA Circular

Monday, 30 May 2016

No TDS on Disability Pension to Armed Forces Personnel


No TDS on Disability Pension to Armed Forces Personnel
By Prashant Thakur -February 3, 2016

The tax exemption of disability pension received by Armed Force Personnel are among those exemptions under Income Tax Act for which you may not get a direct reference in the Income Tax Act.

However , such tax exemption are allowed by the executive instruction issued by either Finance Ministry notification or under the delegated powers to CBDT . Armed Forces personnel get the disability pension which is basically aggregate of two components-disability pension and service pension. Previously , this website had posted earlier 3 Types of Pension to Armed Forces Completely Tax Free!

Disability Pension to Armed Forces : What is it ? Update :

The below portion is modified as the government, has issued new circular for minimum disability pension .

The circular is applicable to all Pre-2006 Armed Forces Disability/War Injury Pensioners who were/ are in receipt of Disability Pension/ Liberalized Disability Pension/ War Injury Pension as on 24th September 2012.

Download the Circular 542 dated 27/05/2015

As per the website of Principal Controller of Defence Accounts (Pension), where an Armed Forces Personnel is invalided out of service, which is accepted as attributable to or aggravated by military service, he shall be entitled to disability pension consisting of Service Element & Disability Element as follows:-

Service Element The amount of service element shall be determined as 50% of less emoluments drawn as given in para 6 of MOD letter dt- 12.11.2008 which is subject to minimum Rs 3500/- p.m.

Disability Element The rates of disability elements for 100% disability for various ranks shall be 30% of emolument last drawn subject to Rs. 3510/- per month. Disability lower than 100% shall be computed by reducing proportionately.

Disability Element on Invalidment Where an Armed Force personnel is invalided out of service under circumstances mentioned in para 4.1 of Govt. letter dt. 31.01.01, the extent of disability shall be determined as follows for the purpose of computing the DE :- Percentage as finally assessed by Competent AuthorityPercentage to be reckoned for computing DE Between 1 to 4950 Between 50 & 7575 Between 76 &100100 Disability Element on Retirement/Discharge Where an Armed Forces personnel is retained in service despite disability and subsequently retired/ discharged on completion of tenure or on attaining the age of retirement, he shall be entitled to Disability Entitlement at the rate prescribed for 100% disablement. For disablement less than 100% but not below 20%, the rates shall be reduced proportionately.
No disability element shall be payable for disability less than 20% .

Is Disability Pension to Armed Forces Tax Free ?

Yes, although there is nothing in section 10 of the Income Tax Act , which is a general exemption section under Income tax Act , the disability pension has been made tax free through Finance Ministry notification No 878-F (Income Tax) dated 21-3-1922 .

The following instruction from CBDT explains that the entire disability pension is exempt

INSTRUCTION NO 136F.NO. 34/3/68-IT(AI)GOVT OF INDIA CENTRAL BOARD OF DIRECT TAXES NEW DELHI, DATED THE 14TH JAN 1970
FROM :SHRI S N NAUTIALSECRETARY, CBDT

TO:ALL COMMISSIONERS OF INCOME TAX

SUBJECT : EXEMPTION – SERVICE AND DISABILITY ELEMENT OF DISABILITY PENSION GRANTED TO A DISABLED OFFICER OF THE INDIAN ARMY –

WHETHER EXEMPTED FROM INCOME TAX. REFERENCE IS INVITED TO THE BOARD’S LETTER F NO 42/9/59-IT(AI), DATED THE 5TH SEPT 1960 ON THE ABOVE SUBJECT WHEREIN IT WAS MENTIONED THAT IN THE CASES FALLING UNDER ITEM (29) OF FINANCE DEPTT NOTIFICATION NO 878-F (INCOME TAX) DATED 21-3-1922, THE‘DISABILITY ELEMENT’ OF THE DISABILITY PENSION RECEIVED BY AN OFFICER OF THE ARMY WILL ONLY BE EXEMPTED FROM TAX AND THAT THE ‘SERVICE ELEMENT’ WILL BE SUBJECTED TO TAX.

2. ON RECONSIDERATION OF THE MATTER, IN CONSULTATION WITH THE MINISTRY OF LAW, THE BOARD ARE ADVISED THAT ITEM 29 OF THE NOTIFICATION DOES NOT DIFFERENTIATE BETWEEN TYPES OF PENSIONS. ACCORDINGLY IN THE CASES FALLING UNDER ITEM 29 OF THE ABOVE NOTIFICATION, ENTIRE DISABILITY PENSION WILL BE EXEMPTED FROM INCOME-TAX.

3.THE ABOVE INSTRUCTIONS MAY BE BROUGHT TO THE NOTICE OF ALL ASSESSING OFFICERS IN YOUR CHARGE. YOURS FAITHFULLY,

SD/- (S N NAUTIAL) SECRETARY ,CBDT

Confusion on Exemption Disability Pension & Service Element As the disability pension is aggregate of two elements- disability element and service element- a confusion was created in filed formation of tax authorities , whether the disability element only is tax free and not the service element. CBDT , therefore , in order to wipe out any confusion , issued another instruction

F. No. 200/51/00-ITA-1 dt. 02.7.2001 to stress that both element of disability pension is tax exempt.
Read the instruction below :

[F. NO. 200/51/00-ITA-1 DT. 02.7.2001 FROM MINISTRY OF FINANCE DEPTT. OF REVENUE CENTRAL BOARD OF DIRECT TAXES, NEW DELHI.]

SUBJECT: EXEMPTION FROM INCOME TAX TO DISABILITY PENSION, I.E. ” DISABILITY ELEMENT” AND “SERVICE ELEMENT” OF A DISABLED OFFICER OF THE INDIAN ARMED FORCES- INSTRUCTIONS REGARDING.

REFERENCE HAVE BEEN RECEIVED IN THE BOARD REGARDING EXEMPTION FROM INCOME TAX TO DISABILITY PENSION, I.E. “DISABILITY ELEMENT” AND “SERVICE ELEMENT” OF A DISABLED OFFICER OF THE INDIAN ARMED FORCES.

2. IT APPEARS THAT FIELD FORMATIONS IN CERTAIN CASES ARE NOT UNIFORMLY ALLOWING DISABILITY, PENSION IN SPITE OF BOARD’S INSTRUCTION NO.136 DATED 14TH JANUARY, 970 (F.NO.34/3/68-IT(A.1)).

3. THE MATTER HAS BEEN RE-EXAMINED IN THE BOARD AND IT HAS BEEN DECIDED TO REITERATE THAT THE ENTIRE DISABILITY PENSION, I.E. ” DISABILITY ELEMENT” AND “SERVICE ELEMENT” OF A DISABLED OFFICER OF THE INDIAN ARMED FORCES CONTINUES TO BE EXEMPT FROM INCOME TAX.

4. THIS MAY BE BOUGHT TO THE NOTICE OF ALL THE OFFICERS WORKING UNDER YOU.
SD/- B.L. SAHU OFFICER ON SPECIAL DUTY (ITA .1)

No TDS on Disability Pension to Army Personnel
As it happens in India, everyone becomes the super authorities against the common man. The government received complaint that certain banks are deducting the tax on the disability pension .

So , government issued a press release that no TDS is required on the said disability pension paid to Armed Forces personnel.
Read below the excerpt. PRESS RELEASE, DATED 20-12-2007

IT HAS BEEN REPORTED IN THE PRESS THAT SOME BANKS WERE DEDUCTING TAX FROM PENSION OF DISABLED EX-SERVICEMEN IN VIOLATION OF GOVERNMENT INSTRUCTIONS.

RBI WAS REQUESTED TO HAVE THE MATTER INVESTIGATED AND REMEDIAL ACTION TAKEN. AFTER EXAMINATION, RBI DISCOVERED THAT IN ONE SPECIFIC INSTANCE, DUE TO OVERSIGHT, THE PENSIONER’S DISABILITY PENSION WAS WRONGLY TAKEN INTO ACCOUNT WHILE CALCULATING INCOME-TAX.

RBI HAS ISSUED INSTRUCTIONS TO ALL AGENCY BANKS TO STRICTLY ADHERE TO THE PROVISIONS OF PARA 88.3 OF DEFENCE PENSION PAYMENT INSTRUCTIONS, 2005, REGARDING EXEMPTION OF INCOME-TAX OF THE DISABILITY PENSION OF THE PENSIONERS OF ARMED FORCES.

BANKS HAVE BEEN ADVISED TO ISSUE SUITABLE INSTRUCTIONS TO ALL THEIR PENSION DISBURSING BRANCHES THAT INCOME-TAX SHOULD NOT BE DEDUCTED FROM THE DISABILITY PENSION PAID TO THE PENSIONERS OF THE ARMED FORCES.

Conclusion
The disability pension given to Armed Forces Personnel are having two components-disability element & service element. Both are tax free vide Ministry of Finance notification read with clarification from CBDT and also there can not eb any TDS as the amount is fully tax free.

Grant of Interim Relief to West Bengal State government employees amounting to 10 percent of their band pay



Grant of Interim Relief to West Bengal State Government Employees Amounting to 10 % of their Band Pay.

After coming to power for the second time, the Mamata Banerjee led government on Friday announced a grant of interim relief to state government employees amounting to 10 percent of their band pay.

"In our first cabinet meeting, we have decided to provide a grant of interim relief to state government employees amounting to ten percent of the band pay drawn by them," said state Finance Minister Amit Mitra.

"This will be effective from July and will cover state employees, teachers, local government employees and pensioners," he said.

"The interim relief is small in nature but the net impact to the state exchequer will be around Rs.3,000 crore," said Banerjee.

The difference in dearness allowance for state employees compared to their central counterparts stands at 50 percent.

Banerjee had announced a 10 percent hike in dearness allowance for the state employees from January reducing the difference to 44 percent. Later in March, the centre hiked the allowance by another six percent.
The government in its first stint had announced the Sixth Pay Commission to review the pay structure of state government employees.
Sunday, 29 May 2016

Claims regarding payment of Travelling Allowance to the staff promoted under cadre restructuring w.e.f 01/11/2013 - case of North Western Railway


Claims regarding payment of Travelling Allowance to the staff promoted under cadre restructuring w.e.f 01/11/2013 - case of North Western Railway

NFIR
National Federation of Indian Railwaymen

No. I/5(F)
Dated: 2310512016

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,
Sub: Claims regarding payment of Travelling Allowance to the Staff promoted under cadre restructuring w.e.f. 0l/11/2013- case of North Western Railway-reg.

 Ref: (i) GM(P)AJ.W. Rly's letterNo.600E/Bills/HQ/NWREU/7/2015 dated 25/01/2016.
(ii) NFIR's letter No. I/5(F) dated 01/03/2016.

(iii) Railway Board's letter No. F(E)I/2016/AL-28/17 dated 22/04/2016.


On going through the reply sent by the Board vide letter dated 22/04/2016, Federation is disappointed to note that the issue raised by NFIR vide its letter dated 01/03/2016, has not been gone into thoroughly with reference to the rules on the subject lPara1202 of IREM Vol. I and Para 1602 (2) of IREC Vol. II] and the stipulations mentioned in the footnote where following provision has been made in case of late authorization/drawal of increments by the employees from retrospective effect.

"Note: In the case of late authorization/drawal of increments with retrospective effect, other than where increments were withheld or where the increments take an officer above the stage ' of efficiency bar, there is no objection to the supplementary claims relating to Travelling Allowance, if any being admitted, on the basis of the enhanced pay including the increments."
These stipulations however have not been taken into account by the Board while sending negative reply to the Federation.



Incidentally, Federation desires to mention that the issue was raised by the General Secretary, NFIR in the PNM meeting held on 19th/20th May 2016 outside the agenda. It is also worth-mentioning that the benefit of cadre restructuring to be given effect from 0l/1112013 was actually granted after lot of delay due to various administrative reasons, therefore claims of staff for payment of Travelling Allowance at the enhanced rates effective from 01/11/2013 need to be considered as provided under the rules.

NFIR, therefore, requests the Railway Board to kindly review and issue suitable instructions to all Zones etc., on the subject. A copy of instructions issued may be endorsed to the Federation.


Yours faithfully,
(Dr. M. Raghavaiah)
General Secretary


Copy to the General Secretaries of affiliated Unions of NFIR.
Media Centre/NFIR.

NFIR
Saturday, 28 May 2016

7th Pay Commission report to be put up before Cabinet in June


Government is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel. It is is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel

7th Pay Commission report to be put up before Cabinet in June – 7th CPC implementation Notification to come at the earliest

Central government employees can expect to get some good news trickling in from government sources towards the end of June.

As per reports, the Finance Ministry is likely to table the 7th Pay Commission report to the Cabinet for approval in the last week of June.

The 7th pay panel headed by AK Mathur had recommended the minimum salary for central government employees at Rs 18,000 and maximum salary at Rs 2,50,000. As employees protested against the wage hike calling it the “lowest ever” raise, the government set up the Empowered Committee of Secretaries group to review the AK Mathur-panel’s recommendations.

The Empowered Committee of Secretaries on the Seventh Central Pay Commission is expected to soon wrap up its report on the remuneration of government employees.

Sources added that even the Prime Minister’s Office is keen on a favourable pay hike for the central government employees, so the panel is likely to recommend a minimum salary at Rs 24,000 and the highest salary at Rs 2,70,000.

Sources added that the government is exploring options for meeting the additional payout over and above what was recommended by the 7th pay panel. The payout could be substantial with salary hike and arrears adding up to a Rs 1.02 lakh crore burden on government finances.

Report add that once the report moves from the table of the empowered group of committee to the cabinet, there is no reason why the cabinet would inordinately delay it.

The Finance Ministry is keen that higher salaries reach government employees just before the festive season starting mid-August, as spurt in consumption during the festive period will have a domino effect on the economy.

Source: Zee News

Rotational transfer of CSS officers of Deputy Secretary grade and above during the year 2016


No.4/6/2016-CS-I(D)
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel & Training)
*****
2nd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-3
Dated May 26, 2016
OFFICE MEMORANDUM

Subject: Rotational transfer of CSS officers of Deputy Secretary grade and above during the year 2016 – regarding

The undersigned is directed to refer to the revised Rotational Transfer Policy (RTP) published in the website of this Department vide OM No. 21/2/2009-CS.I(P) dated 16.07.2015. In terms of the revised RTP, Deputy Secretaries/ Directors/ Joint Secretaries (in-situ) who have completed 5 years or more in the same Ministry/Department are eligible for transfer. The officers serving in certain Ministries/Departments have a reduced tenure by one year prescribed for the grade.

2. Accordingly, a tentative list of Deputy Secretaries/ Directors/ Joint Secretaries (in-situ) who will be completing the prescribed tenure as on 01.07.2016 has been prepared and enclosed herewith (Annexure). The list includes 22 officers. The number of officers due for rotational transfer in Group ‘A’ (considering Cabinet Secretariat in group ‘A’) and group ‘B’ are equal.

3. The list at Annexure does not include officers within two years of superannuation as on 01.07.2016.
4. In terms of provisions contained in DOPT’s OM dated 16.07.2015 which, interalia, provides that officers serving in PMO and Cabinet Secretariat are exempted under RTP. Cabinet Secretariat is, hereby informed that the officers as indicated in the list are matured for transfer. Therefore, a decision on retention of such officers, keeping in view the willingness of the concerned officers, may please be intimated to this Department.

5. The officers concerned should also ensure that their data is complete in all respects in the web based cadre management system at www.cscms.nic.in. If the data is not complete, it may please be first got updated in the system.

6. Ministries/ Departments and officers concerned may check the information in the Annexure and bring to the notice of this Department if there is any discrepancy in the list by 06.06.2016. Ministries/ Departments are also requested to bring to the notice of this Department the names of Deputy Secretary/ Director/ Joint Secretary (in-situ) grade officers, who have completed the prescribed tenure but have been left out in the proposed list of rotational transfer.

7. In case no communication is received by the stipulated date i.e., 06.06.2016, the information as furnished in the list will be considered as final and further steps will be taken accordingly. The officers to be considered for rotational transfer will be finalized after correction of data, if any. Once the list is finalized, options will be sought from the officers concerned before issue of rotational transfer order.
(Raju Saraswat)
Under Secretary
To
1 All Ministries/Departments
2. All Deputy Secretaries! Directors! Joint Secretaries JS(in-situ) of CSS
3. Cabinet Secretariat, Rashtrpati Shavan, New Delhi

DoPT Circular

Retention of names on offer for Central Deputation under the Central Staffing Scheme for the year 2016


Retention of names on offer for Central Deputation under the Central Staffing Scheme for the year 2016- reg.
IMMEDIATE
No. 32/2016-E0 (MM.II)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
North Block, New Delhi
Dated the 25th May, 2016
To
1. The Chief Secretaries of the State Governments
(As per list enclosed)
2. All Cadre Controlling Authorities of Group ‘A’ Services
(As per list enclosed)

Sub: Retention of names on offer for Central Deputation under the Central Staffing Scheme for the year 2016- reg.

Sir/Madam,
Please refer to this Department’s D.O. letters of even number and No. 33/2016-EO (MM.II) both dated 17th December, 2015 regarding sponsoring of the names of eligible officers for appointment in the Government of India under the Central Staffing Scheme for the year 2016.

2. As per directions of the ACC, the names of officers, for being placed on offer are to be obtained from the State Governments/Cadre Controlling Authorities in two Branches.

3. It is, therefore, requested to kindly sponsor the names of officers to this office, for retention under the Central Staffing Scheme for the 2 nd tranche. Kindly give this circular wide publicity amongst the eligible officers under your administrative control. As far as possible the application may be forwarded by 31st July, 2016.

4. The applications of willing officers (including those pending from 1st tranche of 2016) may be forwarded to this Department after due scrutiny at the earliest. A copy of the D.O. letter dated 17th December, 2015 is enclosed with this letter.
Yours faithfully,
(Jagannath Srinivasan)
Deputy Secretary(MM)
DoPT Circular