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Tuesday, January 31, 2017

AICPIN for the month of December 2016

with 1 comment
AICPIN for the month of December 2016

No. 5/1/2014- CPI
GOVERNMENT OF INDIA
MINISTRY OF LABOUR & EMPLOYMENT
LABOUR BUREAU

‘CLEREMONT, SHIMLA-171004
DATED: 31st January, 2017

Press Release

Consumer Price Index for Industrial Workers (CPI-IW)-December, 2016

The All-India CPI-IW for December, 2016 by 2 points and stood 275 (two hundred and seventy five). On 1-month percentage change, it decreased by (-) 0.72 per cent November and December, 2016 when compared with the decease of (-) 0.37 per cent between the same two months a year ago.

The maximum downward pressure to the change in current index came from Food group conuibuting (-) 2.74 percentage points to the total change. At item level, Arhar Dal, Gram Dal, Masur Dal, Urd Dal, Groundnut Oil, Muslard Oil, Chillies Green, Ginzer, Brinjal, Cabbage, Carrot, Cauliflower, French Beans, Gourd, Green Coriander Leaves, Methi, Palak, Peas, Potato, Radish, Tomato, Banana, Lemon, etc. are responsible for the decrease in index. However, this decrease checked by Rice, Wheal, Wheat Alta, Coconut OiL Fish Fresh, Goat Meat, Milk Snack Saltish, Cooking Gas, ESI Premium Contribution, Petrol, Flowe/Flower Garlands, Toilet Soap, etc., putting upward on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 2.23 per cent for December, 2016 as compared to 2.59 per cent for the pervious month and 6.32 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 0.67 per cent against 1.66 per cent of the previous month and 7.94 per cent during the corresponding month or the previous year.

At centre level, Rourkela reported the maximum decrease or 10 points followed by Vadodara (9 points), Nagpur and Lucknow (8 points each) and Amritsar, Varanasi and Monger Jamalpur (6 points each). Among others, 5 points decrease was observed in 7 centres, 4 points in 12 centres, 3 points in 9 centres, 2 points in 15 centres and 1 point in 10 centres. On the contrary, Quilon recorded maximum increase of 6 points followed by Ernakulam and Mundakkayam (3 points each). Among others, 2 points increase was observed in 4 centres and 1 point in 4 centres. Rest or the 7 centres indices remained stationary.

The indices or centres are above All-India Index and other 43 centres indices are below national average. The index or Vishakhapathnam centre remained at par with All-India Index. The next or CPI-IW fer the month of January, 2017 will be released on Tuesday, 28th February, 2017. The same will also be available on the office website www.labourbureaunew.gov.in

sd/-
(SHYAM SINGH NEGI)
DEPUTY DIRECTOR GENERAL

Authority: www.labourbureaunew.gov.in


Monday, January 30, 2017

7th CPC CGHS Subscription Rates

with 1 comment
Revision of rates of subscription under Central Government Health Scheme as per 7th CPC

No.S.11011/11/2016-CGHS(P)/EHS
Government of India
Ministry of Health and Family Welfare
EHS Section

Nirman Bhawan, New Delhi
Dated the 13th January, 2017

OFFICE MEMORANDUM

Sub: Revision of rates of subscription under Central Government Health Scheme due to revision of pay and allowances of Central Government employees and revision of pension/ family pension on account of implementation of recommendations of the Seventh Central Pay Commission.

In partial modification to this Ministry’s OM of even No. dated 9th January, 2017 on the subject mentioned above, the undersigned is directed to say that the revised rates will be effective from 1st February 2017 instead of 1st January, 2017.

2. Other contents of the above said OM will remain unchanged.

sd/-
(Sunil Kumar Gupta) 
Under Secretary to the Government of India

No. S.11011/11/2016 CGHS(P)/EHS 
Government of India
Ministry of Health and Family Welfare
EHS Section

Nirman Bhawan, New Delhi
Dated the 9th January, 2017

OFFICE MEMORANDUM

Sub: Revision of rates of subscription under Central Government Health Scheme due to revision of pay and allowances of Central Government employees and revision of-pension/ family pension on account of implementation of recommendations of the Seventh Central Pay Commission.

The undersigned is directed to refer to this Ministry’s OM No. S.11011/2/2008-CGHS(P) dated 20th May, 2009 vide which orders were issued revising the rates of monthly subscription for availing CGHS facility, as also the entitlement for free diet, entitlement of accommodation in private empanelled hospitals under CGHS, etc.

2. Consequent upon revision of pay on the basis of the implementation of the recommendations of the 7th Central Pay Commission, it has been decided to revise the rates of subscriptions, to be made by employees / pensioners, for availing benefits under the CGHS, with effect from 1st January, 2017. It has also been decided to revise the monetary ceiling limits for various entitlements of the beneficiaries for availing CGHS facilities.

3. In supersession of all earlier instructions, the following revisions are being made, in so far as it relates to the facilities mentioned below:

(A) Monthly Contributions for availing CGHS facility:
(B)       Entitlement    of wards in private hospitals empanelled   under CGHS:
(e) Monetary Ceiling for Free Diet:
The monetary ceiling for free diet for CGHS beneficiaries is revised to pay/ pension / family pension of Rs. 44,900/- per month.

(D) Monetary ceiling for free diet for beneficiaries suffering from TB or mental disease):
The monetary ceiling for free diet in case of beneficiary suffering from TB or Mental disease is revised to pay / pension / family pension of Rs. 69,700/- per month.

(E) Pay slab for determining the entitlement of Nursing Home facilities in Government / State Government / Municipal Hospitals:
The monetary ceiling for determining the entitlement of nursing home facilities in Central Government / State Government / Municipals Hospitals is revised to pay / pension / family pension Rs. 47,600/- per month and above.

(F) Monetary Ceiling for direct consultation with Specialists in Central Government /State Government /Municipal Hospitals:

The monetary ceiling for determining the entitlement for direct consultation with Specialists in Central Government / State Government / Municipal Hospitals will continue at the existing rates until revision of the same after consultation with Ministry of Finance.

(G) Pay slab for determining the entitlement of accommodation in AIIMS, New Delhi.
The revised entitlement, as per the pay drawn by the officials, is as follows:
4. It is clarified that the reference to pay in this order relates to the pay drawn in the level of pay.

5. Pensioners have an option to get their CGHS pensioner card made by either making CGHS contribution on an annual basis (twelve months) or by making contribution for 10 (ten) years {120 (one hundred and twenty) months} for getting a pensioner CGHS card with life-time validity. It is clarified that:

(i) Contribution to be made by pensioners / family pensioners would be the amount that they were subscribing at the time of their retirement or at the time of death of the Government servant;

(ii) Pensioner beneficiaries, who have already obtained CGHS card with life time validity by paying a lump sum amount equivalent to 10 years’ contribution, will not be required to pay any additional amount as a result of the revision in the rates of contribution for availing CGHS facility;

(iii) Entitlement of pensioners / family pensioners, who have already deposited their contribution for life time CGHS facility, will not be changed.

(iv) Pensioners / family pensioners who are contributing to the CGHS on an annual basis and wish to continue to avail CGHS benefits will have to contribute at the revised rates up to the time of contribution needed to cover a period of a total of ten years from the time pensioner CGHS card was issued for the first time to them. The revised rate of contribution for the remaining period would be with reference to the level of pay that he / she would have drawn in the post held by him / her (at the time of his / her retirement / death) had he / she continued to be in service now but for his / her retirement/ death; and

(v) Any pensioner / family pensioner who is entitled to avail CGHS facility has not so far got his / her pensioner CGHS card made, the rate of contribution in such cases will be with reference to the level of pay that he / she would have drawn in the post held by him / her (at the time of his / her retirement / death) had he / she continued to be in service now but for his/ her retirement / death.

6. This issues with the concurrence of the Department of Expenditure vide their I.D. Note No. 18(1)/EV/2016, dated 24/11/2016.

7. Hindi version will follow.

sd/-
(Sunil Kumar Gupta)
Under Secretary to the Government of India

Authority: http://cghs.gov.in/

MoD action on BPMS’s representation on Seeking of Clarification regarding Option & Pay Fixation in 7th CPC

with 0 Comment
MoD once again issued a clarification orders with three illustrations of an employee shall be fixed who has been granted financial upgradation in MACP on 15.3.2016 in the grade pay of Rs.4200.

MoD action on BPMS’s representation on Seeking of Clarification regarding Option & Pay Fixation in 7th CPC

Office of the Controller General of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt – 110010
No.AT/II/2701/Orders
Dated: 05 Jan 2017
To
All PCsDA/CsDA
PCA(Fys)/All CsFA(Fys)
(Through NIC mail server

Subject:Representation of Defence Civilian Employees’ Federations regarding misinterpretation of RPR 2016 leading to incorrect pay fixation of employees.

A copy of MoD/D (Civ-I) ID No 11 (6)/2016-D(Civ-I) dated 07.12.2016 along with all its enclosures on the above subject is forwarded herewith. It is seen that MoD/D(Civ-I) has requested that the clarification on the subject from MoF/MoD(Fin) may be awaited. Accordingly, the instructions issued by MoD in para 2 of the MoD ID dated 7.12.2016 may be adhered to avoid any inconsistencies in the matter of pay fixation.

Jt CGDA (P&W) has seen.

(Vinod Anand)
Sr ACGDA (P&W)

The employee has exercised option 2 to fix the pay in the Pay Matrix after availing the increment dated 1.7.2016, in the old pay structure scale.
Option 2 is exercised by the employee to fix the pay in the new pay matrix after availing promotional upgradation under MACP Scheme that look place on 1.1.2016.
Option 2 is exercised by the employee to fix the pay in the pay matrix after availing promotion/MACP upgradation as on 15.3.2016


Authority: http://pcafys.nic.in/

Clarification on purchase of Air Tickets from Unauthorized Agents

with 0 Comment
Clarification on purchase of Air Tickets from Unauthorized Agents

OFFICE OF THE PRINCIPAL CONTROLLER OF ACCOUNTS (FYS)
10-A, S.K. BOSE ROAD, KOLKATA – 700 001.
No.T/1/72/Circular-36
Dated: 05.01.2017
To
The Secretary, OFB, ID-A, S.K. Bose Rd, Kol-01
All Sr. General Managers/All General Managers

Ordnance/ Equipments Factories.
All Group controllers & Branch AOs

Sub: Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air

Kindly refer to DoP&T letter No.31011/3/2015-Estt(A.lV) dated 18/02/2016 wherein it is mentioned under points 14 & 15 that Govt employees not entitled to travel by air, may travel by any airline. However, reimbursement in such cases shall be restricted to the fare of their entitled class of train/transport or actual expense, whichever is less. In all cases whenever a Govt servant claims LTC by air, he/she is required to book the air tickets either directly through the airlines or through the approved travel agencies viz M/s Balmer Lawrie & Co. Ltd/ M/s Ashok Tours & Travels Ltd/ IRCTC. Booking of tickets through any other agency is not permissible.

This is for your information, guidance and necessary action please.

Dy.Controller
Accounts(Fys)

Authority: http://pcafys.nic.in/

Clarification regarding timely payment of GPF final payment to the retiring Government Servant – DoPT

with 0 Comment
Clarification regarding timely payment of GPF final payment to the retiring Government Servant – regarding

No.3/3/2016-P&PW(F)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003
Dated 16th January 2017.

OFFICE MEMORANDUM

Subject: Clarification regarding timely payment of GPF final payment to the retiring Government servant – regarding

During review meetings held to evaluate the status of implementation of Bhavishya with Ministries/Departments, it was observed that GPF final payment in many cases is not being paid to the retiring Government servants immediately on retirement from service leading to payment of interest for the delayed period.

2. Rule 34 of General Provident Fund (Central Service) Rules clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment. The authority for the amount payable is to be issued at least a month before the date of superannuation, but payable on the date of superannuation. It may be noted that the requirement of submitting a written application by the retiring Govt. servant for GPF final payment has been dispensed with vide this Department’s Notification No.20(12)/94-P&PW (E) dated 15.11.1996 and notified under S.O NO.3228 dated 23.11.1996.

3. As per Rule 11(4) of GPF Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also. While interest for the first six months beyond retirement can be allowed by the PAO in the normal course, approval of Head of the accounts office is required for payment of interest beyond six months and that of Controller of Account/Financial Adviser beyond a period of one year.

4. To ensure timely final payment of GPF, and to avoid unnecessary financial burden on account of interest beyond retirement, it has now been decided that every case, in which payment of interest on General Provident Fund becomes necessary in terms of Rules 11(4) of GPF Rules, 1960, shall be put up for consideration to the Secretary of the Administrative Ministry/Department. In all such cases the Secretary of the Administrative Ministry/Department will fix responsibility at all levels to take appropriate action against the Government servant or servants who are found responsible for the delay in the payment of General Provident Fund.

5. This issues with the concurrence of the Ministry of Finance, Department of Expenditure, vide their 10 NO.187/EV/2016 dated 2th September 2016.

6. Hindi version will follow.

(Seema Gupta)
Director

Authority: http://www.pensionersportal.gov.in/

Friday, January 27, 2017

Interest Rate of General Provident Fund w.e.f. 1.1.2017 – Finmin Orders

with 0 Comment
Interest Rate of General Provident Fund w.e.f. 1.1.2017 – Finmin Orders

Resolution – accumulations at the credit of subscribers to the GPF and other similar funds – 2017, w.e.f. 1st January, 2017

(PUBLISHED IN PART I SECTION OF GAZETTE OF INDIA)
F.No.5(1)-B(PD)/2016
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)

New Delhi, Dated the 18th January, 2017

RESOLUTION

It is announced for general information that during the year 2016-2017, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8.0% (Eight per cent) w.e.f. 1st January, 2017 to 31st March, 2017. This rate will be in force w.e.f. 1st January, 2017. The funds concerned are:-

1. The General Provident Fund (Central Services)
2. The Contributory Provident Fund (India)
3. The All India Services Provident Fund
4. The State Railway Provident Fund
5. The General Provident Fund (Defence Services)
6. The Indian Ordnance Department Provident Fund
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund
9. The Defence Services Officers Provident Fund
10. The Armed Forces Personnel Provident Fund.

2. Ordered that the Resolution be published in Gazette of India.

sd/-
(Vyasan R.)
Deputy Secretary (Budget)


Authority: www.finmin.nic.in

Loans and Advances by the Central Government – Interest rates and other terms and conditions

with 0 Comment
Loans and Advances by the Central Government – Interest rates and other terms and conditions

F.No.5(3)-B(PD)/2016
Government of India
Ministry of Finance
Department of Economic Affairs

New Delhi, the 6th January, 2017

OFFICE MEMORANDUM

Subject:- Loans and Advances by the Central Government – Interest rates and other terms and conditions.

Reference this Ministry’s Office Memorandum F.No.5(3)-B(PD)2015 dated 3rd February, 2016 on the captioned subject.

2. The lending rates, categories and conditions prescribed in the aforesaid Office Memorandum have been reviewed. The revised rates of interest, categories and conditions as given in the Table below, would be applicable from 1st April, 2016 and till the time these are reviewed:

TABLE
Category of borrower & type of loan
Interest rate per cent per annum
1. State Governments (EAP Loan):
8.00
2. Union Territory Governments (with Legislature):

(i) Loans upto 1 year and EAP loan
8.00
(ii) Other Loans
8.50
3. Industrial and Commercial Undertakings in the Public Sector and Cooperatives: Loans for implemantation of VRS in sick PSUs



The terms and condition and conditions regarding eligibility of loan would remain the same as that of last year. If any specific request comes in future from any other financial institution/CPSE/Autonomous Body/Cooperative, it would be examined by the Budget Division, DEA on merits of that case.

3. The terms, including interest rate of loans to Foreign Governments may be settled in consultation with Budget Division. Terms for on-lending of funds under externally aided projects should be in accordance with the prescribed pattern. In case, deviation is considered necessary, Budget Division should be consulted.

4. The interest rates prescribed above assume timely repayments and interest payments and hence no further rebate in rates is to be allowed for timely payments.

5. OTHER TERMS AND CONDITIONS
(a) The loan sanctioning authority should meticulously follow the instructions contained in General Financial Rules, 2005 (GFR 2005), particularly, rules framed under Chapter 9 (II-LOANS) of
GFR, 2005, while sanctioning loans to various entities as stipulated therein.
(b) The instructions issued from time to time have been reviewed and are set out in the following paragraphs for facility of reference.

6. STATE GOVERNMENTS
In the case of loans to State Governments, the arrangements for payment of annual instalment of principal and interest will be as under:-
(a) Block loans for State Plan Schemes and other Plan loans for Centrally Sponsored Schemes:- These loans when drawn in instalments, will be consolidated and deemed to have been drawn as on 1st October in each year. The maturity period of the loans sanctioned for State Plans is 20 years, repayments being made in 20 annual equal instalments together with interest on the outstanding balance commencing from the following year, subject to consolidation under the award of Twelfth Finance Commission (TFC).

However, fifty per cent of these loans will enjoy a five year initial grace period, after which repayments of these loans will be effected in 15 annual equal instalments. The amounts annually payable(by way of principal and interest) would be recovered in 10 equal monthly instalments commencing 15th June, subject to debt waiver under the award of TFC.

(b) Other Loans:- The terms of repayment of these loans will be as laid down from time to time.

7. PUBLIC SECTOR PROJECTS
(A) For new installations or expansion of existing institutions:
(a) The terms and conditions of loans should be fixed with reference to the financial picture presented in the approved Project Report. (Once the pattern is settled, there should be no change except with the specific concurrence of this Department for reasons to be stated in writing).(b) The capital requirements of a project should include adequate provisions for interest payment on borrowings during the period of construction (as specified in the Project Report). The interest on loans due during the period of construction will be allowed to be capitalised to the extent of the provisions made for this purpose in the approved Project Report. In other words, while interest on loans advanced to an undertaking during the period of construction will be notionally recovered by allowing its capitalisation, the payment of interest should effectively commence after the construction period is over.

(c) The repayment of principal should ordinarily commence one year after the project commences production, the number of instalments being determined with reference to the financial projections and repaying capacity specified in the Project Report. Requests for further moratorium will be considered only in exceptional cases where the Project Report has specified any special circumstances that may necessitate a longer period of moratorium and has indicated clearly what staggering of repayment would be needed over the necessary break period. The period of loans sanctioned against capitalised interest during the period of construction may also be on the same terms and conditions as are applicable to loans provided for financing the project costs.

(d) A suitable period of moratorium subject to a maximum of five years from the date of drawal of the loans may be allowed for the repayment of instalments of principal, having regard to the nature of the project, the stage of construction etc. The period of moratorium should not, however, extend in any case, beyond two years from the date of project going into production, or in the case of programmes of expansion, beyond two years from the date of expanded project coming into operation.

(B) For meeting working capital requirements: The undertakings are expected to obtain their cash credit requirements from the State Bank of India/Nationalised Banks by hypothecating their current assets (such as stock of stores, raw materials, finished goods, work in progress, etc.) and where the entire working capital requirements cannot be raised in this manner by seeking a guarantee from Government. Accordingly, requests from Public Sector Undertakings for funds for meeting working capital requirements should be considered only to the extent the same cannot be had from the State Bank of India/Nationalised Banks.

8. GENERAL REPAYMENT PERIOD
(A) (i) The period for repayment of loans for all parties other than State Governments should be fixed with due regard to the purpose for which they are advanced and it should be restricted to the minimum possible. Normally, no loan should be granted for a period exceeding 10 years. Where a longer period for repayment is sought, prior concurrence of the Budget Division in this Department will be necessary for fixing the period.
(ii) The repayment of a loan should normally commence from the first anniversary date of its drawal or on expiry of the period of moratorium, as the case may be. The recovery should ordinarily be effected in annual equal instalments of principal.
(iii) The period of repayment of working capital loans should preferably be restricted to two or three years. In no case, however, the period of these loans should exceed 5 years.

(B) Moratorium: Subject to exceptions made in respect of pubic sector projects, a suitable period of moratorium towards repayment might be agreed to in individual cases having regard to the project for which the loans are to be utilised. However, no moratorium shouldordinarily be allowed in respect of interest payment on loans. Ministries/Departments may with the approval of their Financial Advisers allow moratorium on repayment of principal wherever considered necessary upto a maximum period of 2 years.

(C) (i) Repayment before due date: Any instalment paid before its due date may be taken entirely towards the principal provided it is accompanied by payment towards interest due upto date of actual payment of instalment; if not, the amount of the instalment will first be adjusted towards the interest due for the preceding and current periods and the balance, if any, will alone be applied towards the principal. Where the payment of the instalment is in advance of the due date by 14 days or less, interest for the full period (half year or full year as the case may be) will be payable. If any State Government repays an instalment of a loan which is consolidated as on 1st October, in advance of the due date by more than 14 days the interest

(ii) Pre-payment premium: Prepayment premium of 0.25% on the loans with residual maturity of less than 10 years and 0.50% for the loans with residual maturity of 10 years and above, shall be charged. The provision does not apply to the loans to State/UT Governments.

(D) Penalty Clause: The loan sanctions/agreements should invariably include a penalty clause providing for levy of a penal rate of interest in the event of default in repayment of instalment(s) of principal and/or interest. The penal rate of interest should not be less than 2.50% above the normal rate of interest at which a loan is sanctioned.

(E) Defaults in repayment/interest payment:
(i) In the event of a default in repayment of loan/interest payment, the recovery of interest at penal rate may not be waived unless there are special reasons justifying a waiver. However, a decision in this regard will be taken by the Ministry of Finance (Budget Division) on the advise of Financial Adviser. Even in such cases, a minimum of 0.25% should be recovered from the defaulting party as penalty.

(ii) The penal rate of interest is chargeable on the overdue instalments of principal and/or interest from the due date of their payment to the date preceding the date of actual payment.

(iii) Whenever a fresh loan is to be sanctioned to a borrower who has earlier defaulted, the loan sanctioning authority must consider the question of recovery of defaulted dues. All releases to Public Sector Undertakings against budgeted outlays should be made only after adjusting the defaults, if any, pertaining to repayment of loans and interest. If for special and exceptional reasons such adjustments are not possible, specific orders of Secretary (Expenditure) should be obtained through Budget Division, before release of fresh loans, in relaxation of extant orders, in conformity
with this Division circular No.F.2 (190)-B(SD)/91, dated 15.10.1991.

(iv) Any defaults should ab-initio serve as a warning signal to the Ministries/ Departments for which curative action has to be taken immediately.

(v) Ministries/Departments need to critically review the financial position of the borrower, including defaulting CPSUs and wherever possible, should take immediate action to recover the money due to the Government.

(vi) In the case of defaulting CPSUs, there has to be a clear road map for restructuring of these CPSUs, as prolonged approval results in burgeoning of defaults.

(vii)Ministries/Departments are to ensure that these defaults do not become fiscally unsustainable.

(viii) Wherever Ministries/Departments are considering restructuring of a CPSU, it must be ensured that besides equity infusion, funds mobilisation, rescheduling of loans/interest payments, write off of dues, etc. should be formulated holistically. However, no request for waiver/postponement of instalments on any ground whatsoever will be accepted, except in cases of companies referred to BIFR or in respect of those companies which have incurred cash losses for last three years, in conformity with this Division circular No.F.2(165)-B(SD)/94, dated 06.10.1994.

(F) Requests for modification of terms of loans:
(i) Borrowers are required to adhere strictly to the terms settled for loans made to them and modifications of these terms in their favour can be made subsequently only for very special reasons. Requests for modification of terms may relate to increase in the period of a loan or of initial moratorium period towards repayment, or waiver of penal interest or reduction in or waiver of normal rate of interest. The procedure of dealing with requests for waiver of penal interest has already been dealt with in paragraph 8. Cases involving other modifications in repayment terms should be considered in consultation with the Budget Division in this Ministry. In referring such cases, the impact of the modifications on the estimates of repayment/interest which have gone into the Budget and Government’s resources position should be succinctly brought out by the administrative Ministry.

(ii) In examining proposals for modification of the period of the loan, the interest rate at which the loan was sanctioned should also be reviewed. In the case of a loan of which repayment has already commenced the revised rate of interest should be applied ab initio only to the residuary portion of the loan outstanding on the date of extension of its period.

(iii) Requests for waiver of recovery of normal interest (either for a specified period or for the entire period) on a loan which originally sanctioned at normal rate of interest, will attract the provisions of Rule 223 (1) of G.F.R.2005 and should be dealt with accordingly.

(G) Loans sanctioned at concessional rates:
(i) In cases where loans are to be sanctioned at a concessional rate, the instructions contained in Rule 223 (1) of G.F.R.2005 have to be observed. In such cases, payment of subsidy (to cover the concession viz. difference between normal rate and concessional rate) should be made conditional upon prompt repayment of principal and payment of interest thereon by the borrower.

(ii) In cases where loans are sanctioned interest free (e.g. loans to technical educational institutions for construction of hostels) prompt repayment should be made a condition for the grant of interest free loans. That is to say, the sanction letter in such cases should provide that in the event of any default in repayment, interest at rates prescribed by Government from time to time will
be chargeable on the loans.

(iii) Similarly, in the case of interest free loans to departmental canteens where subsidy is also provided to meet running expenses, the sanction letter should stipulate that in the event of any default in repayment, the defaulted dues would be recovered out of the subsidy payable.

(H) Miscellaneous: A standard form prescribed for issue of loan sanctions (Appendix-I) should ordinarily be followed.
(i) The date of drawal of a loan by the borrower will be date on which he received cash, cheque or bank draft from the Drawing and Disbursing Officer. It should be ensured that the time lag between the date of obtaining the cash/cheque/bank draft and its disbursement/delivery/despatch to the payee is reduced to the minimum. Where the cheque or bank draft is sent through post, the date of posting should be treated as the date of disbursement of the loan. The Drawing and Disbursing Officer should invariably intimate the date of payment to his Accounts Office to enable the latter to make a suitable note in his records.

(ii) In the case of loans sanctioned to parties other than State and Union Territory and Foreign Governments and Government Servants, the borrower should tender the amounts due on or before the due date, at the New Delhi Office/Main Office of the public sector bank accredited to the Ministry/ Department which sanctions the loan, in cash or by cheque or draft drawn on any scheduled bank in Delhi/New Delhi in favour of the said PSB Branch. The payment should be accompanied by a memorandum or challan in duplicate indicating (a) name of the loan sanctioning Ministry/Department; (b) No. and date of the loan sanction letter and the loan amount sanctioned; (c) amount due for payment separately for interest and principal and the head(s) of account to
which the dues are to be credited in the Government Accounts; and (d) due date of payment. The borrower should be asked to tender separate chequ Outstation loanees are required to arrange the dues through their bank ensuring that the memorandum/challan and the cheque/draft reaches the aforesaid PSB Branch in New Delhi by the due date.

(iii) Ministries/Departments are required to keep close watch on timely repayments of loans advanced by them and recovery of interest thereon. Rule 220 (1) (viii) of G.F.R. 2005 provides for a notice to be given to the borrowers a month in advance of the due date of payment of instalment of the principal and/or interest thereon. Such notices may be sent in the form given in Appendix II. The borrower should not however be given any advantage in the event of non-receipt of such a notice. Repayments/interest payments due from the loanees should also be reviewed at least quarterly, and where any default has occurred, a fresh notice should be served on the borrower to arrange payment with penal/higher rate of interest in the form set out in Appendix III.

(iv) Individual cases relating to terms and conditions of loans need not be referred to the Department of Economic Affairs (Budget Division) unless it is proposed to deviate from those laid down in
this Office Memorandum.

This issues with the approval of Finance Minister.

(Vyasan R)
Deputy Secretary (Budget)


Authority: www.finmin.nic.in

Streamlining the implementation of the NPS tor Central Govt Employees – NC JCM Staff Side

with 0 Comment
Streamlining the implementation of the NPS tor Central Govt Employees – NC JCM Staff Side

Meeting of the Committee constituted to suggest measures for streamlining the implementation of the NPS tor Central Govt Employees — Reg.

Shiva Gopal Mishra
Secretary
Ph: 23382286
National council (staff Side)
Joint Consultative Machinery for
Central Government Employees
13-C, Ferozshah Road, New Delhi-110001
E-Mail : nc.jcm.np@gmail.com
No. NC-JCM-2016/ Pension
Dated: January 20, 2017
The Secretary (Pension)
Chairman,
NPS Committee
Deptt. Of Pension & Pensioners’ Welfare
Floor, 1.0k Nayak
New Delhi

Sub:- Meeting of the Committee constituted to suggest measures for streamlining the implementation of the NPS tor Central Govt Employees — Reg.

Ref : Letter No 57/1/2016-P & PW(B) dated 16th January 2017

Sir,
Kindly refer to your aforementioned letter, At the outset we request you to kindly favour us with a copy of the Government Notification setting up the Committee to make suggestions 10 streamline the National Pension system For Central Government employees, This is needed for us to understand the scope and ambit of the functioning of the Committee.

The 7th CPC in their report in paras 10.3. 11 to 10.3.25 has enumerated the plethora of complaints received by it over the NPS and finally recommended t0 the Government to set up a Committee t0 look int0 those issues and address. However, we are constrained to believe from the reading of para 3 of the letter cited that the Committee is likely 10 have only a perfunctory consultation with the stakeholders on an important issue like this.

In any case, we give hereunder our views in the matter with the fervent hope that the Committee will consider it within the time constraints.

1.We are of the firm view that the Central Government employees as a whole must be fully excluded from the ambit of the defined contributory pension scheme for Otherwise it would create two classes amongst them, one making subscription; and another making no subscription but receiving a better pension and Other retirement
benefits.

2.There is no justification for thc Government to deduct pension contribution from the Central Government employees, even as per the recommendation or the 7th CPC they are provided with far lesser Minimum wage that what it should have been as per the norms of Dr. Aykroyd formula, approved by the 15th ILC and subsequent judgement of the Supreme Court.

3.This apart, we were assured by the Government during the Standing Committee meeting discussions held on 14.12.2007 that

“for employees who had entered with effect from . 1.1.2004 are not likely to be worse Off vis a vis the Current pension system in force as the replacement rate would match to the present one. Thus NPS is a win-win situation for employees and the Government”.

Without deviating even an iota from our firm position enumerated in No. I above, the least the Government must do to honour the assurance given earlier is to guarantee that all Central Govt. employees who arc recruited with effect from 1.12004 and have thus become mandatory subscribers to the NPS receive all benefits of pension, family pension and ocher retirement benefits as is provided for under the CCS(Pension) Rules applicable to the Central government employees who ure recruited prior to 1.1.2004.

To illustrate the point that the Central Government employees, who are recruited with effect from 1.1.2004 are provided with a paltry in the form of pension in total disregard to the assurance held out by the Government on 14.12.2007 we enclose herewith the details of pension entitlement computed in the case of a person, who was recruited 1.1.2004 and retired after 12 years of service in one Of the Ordnance factories under the Ministry or Defence. This person is being paid a paltry amount of Rs 960/— p.m. as pension from NPS, whereas after the implementation of the 7 CPC recommendations the minimum pension is Rs 9000/- DA p.m. with effect from 01-01-2016.

In fine, We feel that it would be better if the Committee could convene a meeting as is convenient to all its members so that a full-Fledged discussion could be held on this Vital issue which is of utmost importance to a large segment of employees recruited after 01-01-2004 whose number is increasing day by day.

Thanking you

Yours Sincerely
(Shiva Gopal Mishra)
Secretary

Source: http://ncjcmstaffside.com/

Instructions on sealed cover procedure – where Government servant has been acquitted but appeal is contemplated/pending – Dopt

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Instructions on sealed cover procedure – where Government servant has been acquitted but appeal is contemplated/pending – Clarification regarding

F.No.11012/6/2016-Estt.A-III
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training
Establishment A-III Desk
North Block, New Delhi
Dated: 19th January, 2017
OFFICE MEMORANDUM

Subject: Instructions on sealed cover procedure – where Government servant has been acquitted but appeal is contemplated/pending – Clarification regarding.

The undersigned is directed to refer to this Department’s O.M. No. 22011/4/91-Estt.A dated 14.09.1992 issued in the light of the Judgement dated 27.08.1991 of the Hon’ble Supreme Court in the case of Union of India v/ s K.V. Jankiraman etc. (AIR 1991 SC 2010). References have been received seeking clarification with regard to the course of action in cases where the Government servant is acquitted by trial court but an appeal against the judgment is either contemplated or has been filed. This issue has been examined in the light of various court judgements including Bank of India and another vs. Degala Suryanarayana, Appeal (Civil) 3053-54 of 1997, (1999) 5 SCC 762 in consultation with Department of Legal Affairs and it is clarified as following:

i. Where the recommendation of DPC has been kept in sealed cover solely on account of pendency of the criminal case, the sealed cover may be opened in case of acquittal of the Government servant provided it has not been stayed by a superior court.

ii. In the order of promotion a mention may however be made that the promotion is provisional subject to the outcome of appeal that may be filed against, the acquittal of the Government servant. The promotion thus will be without prejudice to the action that may be taken if the judgement of the trial court acquitting the Government servant is set-aside.

iii. In case on appeal the Government servant stands convicted, following action will be taken:

a. The provisional promotion shall be deemed non est, and the Government servant shall stand reverted;

b. In case of the Government servant being sentenced to imprisonment exceeding 48 hours, he will be deemed to be  under suspension in terms of rule 10(2)(b) from the date of conviction;

c. Action under rule 19 (i) of the CCS(CCA) Rules, 1965, read with OM No. 11012/11/85-Estt (A) dated the 11th November, 1985 and 4th April, 1986 shall be taken.

2. All Ministries/ Departments are requested to bring the aforesaid instructions to the notice of all concerned and take action accordingly.

3. Hindi version will follow.

(Mukesh Chaturvedi)
Director (E)

Authority: http://dopt.gov.in/

Ceiling on IT for salaried persons should be raised to Rs.7.5 lakh: AIBEA to Jaitley

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Ceiling on IT for salaried persons should be raised to Rs.7.5 lakh: AIBEA to Jaitley

The ceiling on Income Tax for salaried persons should be raised upwardsto Rs 7.5 lakh with exclusion of fringe benefits like housing,medical and educational facilities.

The IT rate above Rs 7.5 lakh and upto Rs 12 lakh shall be 10 per centand above Rs 12 lakh upto Rs 20 lakh 20 per cent and Rs 20 lakh andupto Rs 25 lakh it should be 25 per cent, All India Bank Employees’Association ( AIBEA) General Secretary C H.Venkatachalam said while submitting suggestions for consideration in next budget being finalized bythe Central government.

In a letter to Finance Minister Arun Jaitley, Mr Venkatachalam said theIncome Tax slab for rich individuals should be raised significantly. Forannual incomes between Rs 25 lakh and Rs 1 crore, tax rate should be 35 per cent and for annual Income above Rs 1 crore, it should be 40 percent.

He said Uniform tax rates for goods should be introduced throughout the country and adequate compensation should be paid to the state governments by the Centre for such introduction, for the revenues that would be affected by such move.

On the banking Sector, the AIBEA leader suggested to the Minister that the rate of interest on Savings Bank deposits shall have to be revised upwardly by atleast 2 basis points and the interest on fixed deposits shall be exempted from the purview of IT.

The banks should extend agriculture loan at the rate of 2 per cent per annum ( simple) and the banks should extend education loan at concessional rate of interest to the poorer sections of the people, at the rate of 5 per cent per annum (simple) with interest subvention.

Mr Venkatachalam also said in the letter that all private sector banks should be brought under the public sector, government should hold full control of public sector banks with 100 per cent equity holding and shall not disinvest its shareholding.

Wilful default of bank loans should be declared as a criminal offence through suitable amendment to law and the RBI should publish the list of defaulters every six months with updates, who owe to the banks more than Rs 1 crore.

Mr Venkatachalam also said Fast track courts shall have to be vested with more powers to recover the bad loans and stringent laws should be enacted to ensure more recovery.

Laws should be amended to confiscate the assets of the directors in case of default by a company, in which they are directors, the top AIBEA leader suggested to Mr Jaitley.

There should be expansion of Public Sector banks and to that effect, morebranches should be opened in unbanked and rural areas, he said, adding that the merger of Associate/Subsidiary Banks of SBI with State Bank of India should be abandoned, as this would adversely affect the regional economy of the states in which the Associate/Subsidiary Banks are operating and in such areas of operations, they perform better than the SBI.

On the Rural sector, the AIBEA General Secretary suggested Mr Jaitley to ensure minimum civic amenities, the Panchayati Raj institutions should be strengthened with adequate budgetary allocations, education among rural children should be made compulsory through more enrolments in the government schools.

On Agriculture, he said, the investment in agriculture shall have to be made both by the Central and the state governments through increase in budgetary allocations, lands acquired by the banks in Settlement of loans by the small and marginal famrers must be returned to the original owners on repayment of installments on the basis of similar deals in respect of commercial companies.

Touching Education, Mr Venkatachalam said education to children should be made compulsory and the government schools should be recruited with qualified teachers to provide worthy education and added Child Labour Act should be amended so that the children should not be made to work even in ‘family run’ business. National Health Policy should be adopted and there should be National drug policy and prices of life-savings and essential drugs should be controlled, he mentioned on Health Care.

On prices, Agricultural Market Produce Committees (APMC) Act should be repealed and abolished, as these compels and forces the farmer to sell his produce to middlemen in authorized Mandis ( Markets). Farmers should be allowed to sell their products directly in the market without intermediaries/wholesalers/middlemen,he added.

On Labour Laws, Mr Venkatachalam urged the Minister that the judgement of Supreme Court be implemented to ensure ”equal pay for equal work” at all private and public sector establishments, the Contract Labour ( Regulation & Abolition) Act, 1970, should be amended to absorb the contract workers in permanent employment of the ‘principal employer’ if contract labour is abolished by the government.

On Public Sector Units, he said budgetary allocation should be made to all the sick, revivable and potentially viable public sector units, appointments of Chiefs of Public Sector Units that are remaining vacant should be expedited and massive investments in Public Sector should be made to make concerted efforts to generate public employment.

All Foreign Trade Agreements (FDA), Bilateral Investment Treaties (BITs), Double Taxation Avoidance Agreements (DTAAs) should be reviewed comprehensively in country’s economic interest as through these treaties and agreements, the black money stashed away are ploughed into India as FDI the AIBEA leader said and added that FDI in Public Sector Units, LIC, Private Sector banks, Services, Defence should not be allowed and such policy decisions should be scrapped.

Source: http://www.aibea.in/

Secretary staff side/JCM writes to Shri Rajnath Singh about the demands of Central Government Employees

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Secretary staff side/JCM writes to Shri Rajnath Singh about the demands of Central Government Employees

Shiva Gopal Mishra 
Secretary
Ph: 23382286
National council (staff Side) 
Joint Consulative Machinery for 
Central Government Employees 
13-C, Ferozshah Road, New Delhi-110001 
E-Mail : nc.jcm.np@gmail.com
No.NC-JCM-2016/7th CPC
Dated: January 17, 2017
Shri Rajnath Singh,
Hon’ble Home Minister,
North Block
New Delhi

Dear Sir,
We solicit your kind reference to the discussion the Staff Side delegation had with you and your esteemed colleagues in the Cabinet – Hon’ble Finance Minister, Railway Ministers – on 3oth June 206 and subsequently with your good self on 6th July 2016. In the light of the assurance held out for reconsideration of the minimum wage and multiplication factor through the setting up of a high level committee within a time frame of four months, the National JCA had deferred the strike action which was to commence from 11.07.2016.

We had been patiently waiting for a meaningful discussion in the matter ever since then. Not only there had been any worthwhile or meaningful discussions thereafter but no settlement was also brought about till today though more than six months have been elapsed.

The National JCA met yesterday (17-01-2017) and almost all members expressed extreme disappointment over the turn of events. However, they felt that a meeting with your good self must be sought to sort out the issue amicably.

We shall therefore be grateful if you can indicate a date and time convenient to you, so that the undersigned along with Dr. M Raghaviah, the Leader of Staff Side, JCM could call on you with a view to explore reaching an agreement. Incidentally, we feel that it must be our responsibility to convey to you that the Central Govt Employees throughout the country are extremely critical of the fact that the Government had not found it possible to accept even a single issue taken up the Staff Side, JCM after the 7th CPC submitted its recommendations to the Government.

This apart, the CG Pensioners numbering presently more than the working employees are aggrieved of the fact that the one and only recommendation of the 7th CPC which was in their favour i.e. option No.1 have been recommended to be rejected by the Pension Department to the Government.

Expecting a communication for an early meeting and thanking you.

Sincerely Yours,
sd/-
(Shiva Gopal Mishra)
Secretary(Staff Side)
National Council(JCM)

Source: http://ncjcmstaffside.com/

General Budget 2017-18 – NFIR’s proposals for consideration

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Grant House Rent Allowance at the rate of 30%, 20% & 10% of 7th CPC Pay to the Central Government Employees working at Cities/Towns classified as ‘X’ ‘Y’ &’Z’ respectively with back date.

General Budget 2017-18 – NFIR’s proposals for consideration

NFIR
National Federation of Indian Railwaymen
3, Chelmsford Road, New Delhi-110 055
Affiliated to :
IndIan National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)

No.IV/Budget/Part III
23.01.2017
Shri Arun Jaitley,
Hon’ble Minister of Finance,
North Block, New Delhi.

Dear Sir,
Sub: General Budget 2017-18 – NFIR’s proposals for consideration

The National Federation of Indian Railwaymen (NFIR) requests the Hon’ble Finance Minister to consider its proposals listed below for inclusion in the General Budget 2017-18 to be presented in Parliament in February, 2017.

1. The Income Tax exemption limit for Central Government Employees may be raised to atleast Rupees Six Lakhs

2. The Income Tax exemption limit for senior citizens may be raised to Rs.7.5 lakhs and for those Senior Citizens above 75 years age, the exemption be allowed up to Rs.10 lakhs.

3. Transport Allowance presently paid to the Central Government Employees may be exempted from the purview of Income Tax.

4. Fixed Medical Allowance to the retired Central Government Employees may be revised to not less than Rs.2,000/- Per month.

5. Grant House Rent Allowance at the rate of 30%, 20% & 10% of 7th CPC Pay to the Central Government Employees working at Cities/Towns classified as ‘X’ ‘Y’ &’Z’ respectively with back date.

6. Contract Labour performing jobs of perennial nature be granted wages at par with the regular employees performing similar jobs.

7. Child Care Leave for women employees be revised upwardly.

8. Pension parity be granted all those pre 1.1.2016 Pensioners of Central Government.

Proposals – Railway Specific

9. Additional funds be allocated for augmenting Railway Training Institutes and Railway Community Halls, Recreation Clubs etc’.

10. More funds may be provided for construction of new quarters in the Railways and for maintenance of Railway colonies.

11. Training Allowance for Trainers in Railways Training Institules may be enhanced to 30% of pay in lieu of the existing 15%.

12. Separate Rest Rooms for Women Railway Employees at different locations be sanctioned to enable them to stay when they visit on railway duties.

13. Additional Road Mobile Medical Vans may be approved for providing medical treatment to the railway employees and their families living at remote places and jungle stations.

(Dr. M.Raghavaiah)
General Secretary

Source: NFIR

Tuesday, January 24, 2017

TRUST SHALL NOT BE BETRAYED - CONFEDERATION

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TRUST SHALL NOT BE BETRAYED - CONFEDERATION

"Unfortunately, the NDA Government and the Group of Ministers consisting of Sri Rajnath Singh, Hon'ble Home Minister, Sri Arun Jaitley, Hon'ble Finance Minister, Sri Suresh Prabhu, Hon'ble Railway Minister who gave assurance on 30th June 2016 that Minimum wage and Fitment formula will be increased and a High Level Committee will be Constituted with a time - frame of four months, have given least concern for the above observations of the Apex Court. Now seven months are almost over. Further there is no guarantee that Allowance Committee will increase the percentage of HRA recommended by 7th CPC."

"TRUST SHALL NOT BE BETRAYED"

7th Central Pay Commission has quoted in para - 1.29 of " Foreword ", the following observations of the Supreme Court in the case of Bhupendranath Hazarika and another Vs State of Assam and others (reported in 2013 (2) Sec 516).

"It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair. A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness ; then only the concept of good governance can be concretized. We say no more."

Unfortunately, the NDA Government and the Group of Ministers consisting of Sri Rajnath Singh, Hon'ble Home Minister, Sri Arun Jaitley, Hon'ble Finance Minister, Sri Suresh Prabhu, Hon'ble Railway Minister who gave assurance on 30th June 2016 that Minimum wage and Fitment formula will be increased and a High Level Committee will be Constituted with a time - frame of four months , have given least concern for the above observations of the Apex Court. Now seven months are almost over. Further there is no guarantee that Allowance Committee will increase the percentage of HRA recommended by 7th CPC. Instead there is every chance, to deny retrospective effect from 01.01.2016 to the revised allowances and it may be implemented prospectively from 01.01.2017 or 01.04.2017, thus denying the eligible arrears for one year or more. It has become certain that the Option-1 for pensioners recommended by 7th CPC, which is the one and only favourable recommendation, stands rejected. Orders on abolition of Advances including Festival advance and imposing "very good " condition for MACP are issued unilaterally .

Request of the JCM National Council Staff side Secretary to give one more opportunity to present it's case before the Allowance Committee is not conceded by the Finance Secretary, who is the Chairman of the Committee. The request of the JCM Staff side to modify the Terms of Reference of Anomaly Committee is also not yet considered by the Department of Personnel and Training. The Committee constituted for New Pension Scheme is only for streamlining the NPS by making some cosmetic changes as recommended by 7th CPC and not for considering the demand of the JCM Staff side to scrap NPS. Not even a single demand of the staff side submitted to Cabinet Secretary on 10th December 2016, requesting modifications in the recommendations of 7th CPC is settled by the Government.

The All India Conference of the Confederation of Central Government Employees & Workers held in August 2016 at Chennai had taken a decision to request all constituents of NJCA to revive the indefinite strike , if Government is not ready to honour it's commitment before 30th October 2016.  The AIC had further decided that, in case NJCA is not ready to revive the deferred indefinite strike, then Confederation should organise independent trade union action including strike. Confederation strongly feels that there in no meaning in waiting indefinitely for Government's decision. We cannot cheat the employees like NDA Government. As no consensus decision could be taken in NJCA, Confederation had decided to  go for one day strike and organised country wide demonstrations, mass dharnas and massive Parliament March. Strike notice for one day strike on 15th February 2017 was served on 28th December 2016. Due to announcement of assembly elections in five states by Election Commission of India and 15th February being a polling day, the strike was postponed to 16th March 2017.

Intensive campaign and mobilisation is going on in full swing all over the country. About 13 to 15 lakhs Central Government employees will participate in the strike, with the full support and solidarity of about 34 lakhs pensioners, Central Trade Unions, independent Federations of State Government employees, Bank and Insurance employees and other public sector employees.

After reviewing the participation of employees in the one day strike, Confederation shall explore the possibility of declaring higher form of trade union action including indefinite strike .

M. KRISHNAN 
Secretary General
Confederation 
Mob & WhatsApp : 09447068125
Email : mkrishnan6854@gmail.com

Source: http://confederationhq.blogspot.in/

Income Tax Rates FY 2016-17 (AY 2017-18) - Finmin Orders

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Income Tax Rates FY 2016-17 (AY 2017-18) - Finmin Orders

CIRCULAR NO : 01/2017
F.No.275/192/2016-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
North Block, New Delhi
Dated the 2nd January, 2017

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2016-17 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

Reference is invited to Circular No.20/2015 dated 02.12.2015 whereby the rates of deduction of income-tax from the payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961 (hereinafter ‘the Act’), during the financial year 2015-16, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2016-17 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.

2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2016:
As per the Finance Act, 2016, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2016-17 (i.e. Assessment Year 2017-18) at the following rates:

2.1 Rates of tax
A. Normal Rates of tax:

B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

Benefits of Debit Card Activation - FAQ

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Benefits of Debit Card Activation - FAQ

QUESTION 1. Why it is important to have active debit cards?
ANSWER: Debit Card makes your payments much more convenient and secure through an electronic payment facility directly from your bank account. Debit card can be used for purchases online or at shops by directly debiting your Bank account. Debit cards can also be used to withdraw cash from an ATM.

QUESTION 2: How is a customer benefited by debit cards?
ANSWER: Major benefits to customers are
  • It is more convenient to carry a small, plastic card instead of a bulky Cheque book or a large amount of cash.
  • Easy to obtain: Once you open an account most institutions will issue you a debit card upon request.
  • Convenience: Purchases can be made using a chip-enabled terminal or by swiping the card rather than filling out a paper cheque.
  • Safety: You don't have to carry cash or a Cheque book. Debit cards are protected by a four digit pin number that you set yourself. This pin is needed to make any purchase with your debit card.
  • Readily accepted: When out of town (or out of the country), debit cards are usually widely accepted (make sure to tell your financial institution you’re leaving your city; to not have an interruption in service).
  • It’s a Cash Card Too: Debit cards still have the ability to give you cash, you can take them to an ATM and use them there to withdraw the cash.

Insurance: National Payment Corporation of India has introduced Insurance cover in case of accidental death or permanent disablement of Rs 1 Lac for Non-Premium cards (RuPay Classic) and Rs 2 Lac for Premium cards (RuPay Platinum) to eligible RuPay card holders. The RuPay Insurance programme will continue for financial year 2016-17, i.e. from April 01, 2016 to March 31, 2017.

QUESTION 3: Can I use my debit card if I have not used it for long?
ANSWER: Yes. It may however require activation. Please check the forwarding letter that came with your debit card. Please check your Bank website.

QUESTION 4: How do I generate a PIN ?
ANSWER: Banks provide PIN by mail, which is either dispatched by bank to the cardholder address. Some banks also offer Green Pin facility online. Banks also facilitate change of PIN to suit your requirements.

QUESTION 5: What are the recent steps taken for promoting debit card payments?
ANSWER: Some of the recent initiatives towards popularizing Debit card usage are:
  • MDR (Merchant Discount Rate) which a merchant (Shopkeeper) pays the Bank for POS transaction are reduced to zero on debit cards till 31th, December 2016.
  • Excise duty payable on acquisition of POS machine which was earlier 16.5% has been waived till 31st March 2017.

QUESTION 6: What should you do if a shop asks you for an additional amount for use of your debit card?
ANSWER:As per the norms prescribed by card networks, shops should not ask for any additional amount called surcharge or convenience fee. You can refuse to pay an additional amount for use of your card and register complaint to your bank on its website or otherwise.

QUESTION 7: Can one refuse to pay additional amount as banks have waived their chargeson one of debit cards till 31st December 2016.
Answer: Although all banks have waived MDR up to Dec 31, 2016, customers are not required to pay additional amount even after that if demanded by the shopkeeper, as this is to be paid by the shopkeeper.

QUESTION 8: Why should Merchant encourage card use?
ANSWER: Merchant are benefitted to encourage debit card transaction as: 
  • Cost of Digital transaction is lower than handling Cash.
  • Deposition of cash in bank is not required as the amount will be automatically credited to account.
  • Credit History is created for the merchant which will help him in taking more support from banks and other financial initiatives of government time to time.
  • Manual reconciliation is not required at merchant side. He can always refer to his account.
  • Accepting payment cards can enable merchants to increase their revenues
  • Increased sales: Cards enable consumers to make quicker and easier payments. 
  • Better customer service: Electronic payments offer customers more flexible payment options - faster checkout times for customers and a more efficient way of paying. Also, innovations such as Equated Monthly Instalment (EMI) payments, allow consumers the ability to purchase and take possession.


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