7th Pay Commission – Central Government Employees upset – No reference to CPC Anomalies by Jaitley in Budget 2017 – NJCA

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7th Pay Commission – Central Government Employees upset – No reference to CPC Anomalies by Jaitley in Budget 2017 – NJCA

Pessimism gripped central government employees with Finance Minister Arun Jaitley making no reference to the anomalies related to 7th Pay Commission in his Budget speech.

“Most of the central government employees were eagerly waiting for Finance Minister Arun Jaitley to make some announcement on minimum wages. But after Mr Jaitley’s speech ended without mentioning anything about the increase in the minimum wage, most of us were upset,” NJCA convenor Shiv Gopal Mishra said while speaking to India.com.

“Ab toh asha ki kiran kaheen naheen hai, sirf nirasha hee nirasha hai (We are losing hope. We can only see disappointment),” the leading unionist further added. NJCA has proactively been involved in talks with Centre, seeking revision of minimum salary from Rs 18,000 to Rs 26,000, among other demands.

Although Mishra indicated that the government may not backtrack on their stance over minimum salary, he claimed that the allowances would be hiked by April 1. “There are chances the government hikes the allowances from April 1. However, we would launch our protests against the government if they fail to revise the minimum salary,” he added.

The 7th Pay Commission was approved by Union Cabinet on July 1, 2016. The date of implementation was fixed as January 1, 2016. The central government employees were provided the hiked salaries from the month of July, along with arrears of six months. However, the hike was related only to the basic component of their pay. The increase in allowances was upheld, due to the anomalies raised by employee unions.

7th Pay Commission report affected nearly 47 lakh central government employees, along with 53 lakh pensioners. Implementation of the report has revised the minimum salary from Rs 7,000 to Rs 18,000. The maximum salary has been capped at Rs 2,50,000.

The total salary hike sanctioned through 7th Pay Commission is 23 per cent. However, the central government employees, so far, have received a hike of 14.3 per cent, which is related to the basic pay. The remaining 9 per cent of the hike is related to the allowances component.

Although the government has indicated that the allowance hike would be implemented by March, there is no word whether the central government employees would be provided arrears on allowances, akin to the manner in which they were provided on basic pay. Providing arrears to central government employees, keeping January 1, 2016 as the base, would create significant amount of burden on the exchequer.

Source: India

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New Benefits announced for NPS Subscribers in Union Budget 2017-18

New Benefits announced for NPS Subscribers in Union Budget 2017-18

In a bid to provide further impetus to the National Pension System (NPS), the following provisions have been introduced in the Finance Bill 2017 laid down in the Parliament today.
Tax-exemption to partial withdrawal from National Pension System (NPS)
The existing provision of section 10(12A)of the Income Tax Act, 1961 provides that payment from National Pension System (NPS) to a subscriber on closurer of his account or opting out shall be exempt up to 40% of total corpus at the time of withdrawal . The amount utilized for purchase of annuity is also tax exempt. At the time of normal exit, 40% of the total corpus is mandatorily required to be purchased for annuity. The subscriber has the option to use higher amount for purchase of annuity.
In order to provide further relief to the subscriber of NPS, it has been proposed to insert a new clause (12B) in the section 10 of Income Tax Act, 1961 to provide exemption on partial withdrawal not exceeding 25% of the contribution made by an employee in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act, 2013 and regulations made there under.
This benefit will be effective on partial withdrawal made by the subscriber after 1st April 2017.
Further, Contribution up to 20% of the Gross Income of the Self-employed individual (Individual other than salaried class) will be deductible from the taxable income under Section 80CCD (1) of the Income Tax Act, 1961, as against 10% earlier.
This is with a view to provide parity between a salaried employee and a self-employed.
This benefit will be available on contribution made by the self employed persons on or after 1st April 2017.
This increased limit for tax benefit will help the self-employed individuals, to save taxes on higher contribution in NPS and thereby properly plan for their old age income security.
Additional tax deduction on investment upto Rs. 50000/- under Section 80CCD (1B) will continue to remain the same for all NPS subscribers whether salaried or self-employed.

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Government is expected to announce higher allowances in March : Budget 2017

Government is expected to announce higher allowances in March : Budget 2017

The government is expected to announce higher allowances for 4.8 million central government employees and 5.2 million pensioners in March with a view to give a boost to its employees.

After Finance Minister Arun Jaitley on Wednesday in his Budget speech announced the reduction of the existing rate of taxation for salaried class with income ranging between Rs 2.5 lakh to Rs 5 lakh to 5% instead of 10%.

the Finance Minister also said in his budget that there would be zero tax liability for people getting income up to Rs 3 lakhs p.a. and the income tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs.

The Finance Ministry is hopeful for the announcement of higher allowances in March after the completion of five states assemblies’ poll process as the model code of conduct has come into effect from January 4, the sources in the Ministry told us on condition of anonymity.

They also said higher allowances under the 7th Pay Commission recommendations should implement which would give them some financial comfort, a step they had hoped might be taken to implement in April in new financial year.

The implementation is to come in April after nine to ten months of getting basic pay hike of the central government employees.

Sources, however, said the government had no plan to give allowances in arrears from August for the central government employees.

“There’s no arrears on allowances will be given to employees,” they confirmed.

The pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

So the government hiked the basic pay and referred hike in allowances other than dearness allowance to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination.

The ‘Committee on Allowances’ has finalized the report on the allowances in October, however the government gave extension the committee till February 22, 2017 to submit its report for getting normalized the cash crunch period.

After getting the report on the allowances, Finance Minister Arun Jaitley is expected to announce the higher allowances in mid-March.

TST

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INCOME TAX TABLE: BUDGET 2017-18

INCOME TAX TABLE: BUDGET 2017-18

Finance Minister Arun Jaitley today proposed to reduce the tax rate for income up to Rs 5 lakh from the existing 10 per cent to 5 per cent while imposing 10 per cent surcharge on income between Rs 50 lakh and Rs 1 crore.
Following is the table of impact on individual on tax proposals:

INCOME TAX RATE IMPACT

  1. (Individual Tax Payers) Up to Rs 2,50,000 NIL NIL Rs 2,50,001 to Rs 5,00,000 5% Rs 7,725 (Savings)
  2. (Senior Citizens 60 years but less than 80 years) Up to Rs 3,00,000 NIL NIL Rs 3,00,001 to Rs 5,00,000 5% Rs 2,575 (Savings) Rs 5,00,001 to Rs 10,00,000 20% Rs 7,725 (Savings)
  3. (Senior Citizens 80 years and above) Up to Rs 5,00,000 NIL NIL Rs 5,00,001 to Rs 10,00,000 20% Rs 7,725 (Savings) (Surcharge of 10 per cent on income of all individuals above Rs 50 lakh and less than Rs 1 crore and surcharge of 15 per cent on income above Rs 1 crore).

PTI

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Expected DA from Jan 2017: AICPIN for December 2016

AICPIN for December 2016 – Expected DA from Jan 2017

Expected DA Jan 2017

Consumer Price Index Numbers for Industrial Workers on Base 2001=100

CPI(IW) Base 2001=100 Monthly Index Letter – November 2016

JANUARY 2016 269
FEBRUARY 2016 267
MARCH 2016 268
APRIL 2016 271
MAY 2016 275
JUNE 2016 277
JULY 2016 280
AUGUST 2016 278
SEPTEMBER 2016 277
OCTOBER 2016 278
NOVEMBER 2016 277
DECEMBER 2016 275

Additional DA from Jan 2017, may be about to increase 2%.

The total DA from Jan 2017 is expected to rise 4%.

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Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income

A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income.

“Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation.”

Press Information Bureau
Government of India
Ministry of Finance

01-February-2017 14:11 IST

Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.

Finance Minister appeals to all citizens to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in this slab.

A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income

The Union Finance Minister Shri Arun Jaitley reduced the rate of taxation from existing 10 per cent to 5 per cent for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50 per cent of their existing liability.

While presenting the General Budget 2017-18 in the Parliament today, the Union Finance Minister Shri Jaitley said that the present burden of taxation is mainly on honest tax payers and salaried employees who are showing their income correctly. Therefore, post-demonetisation, there is a legitimate expectation of this class of people to reduce their burden of taxation. The Finance Minister further said that if a nominal rate of taxation is kept for lower slab, many more people will prefer to come within the tax net. The Finance Minister made an appeal to all the citizens of India to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5 lakhs.

The Union Finance Minister Shri Jaitley said that the Government is trying to bring within tax-net more people who are evading taxes. So, in order to expand tax net, it is decided to have a simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income upto Rs 5 lakhs other than business income. Also, a person of this category who files income tax return for the first time would not be subjected to any scrutiny in the first year unless there is specific information available with the Department regarding his high value transaction.

In his Budget Speech, the Finance Minister further said that in order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500, available only to assessees upto income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income upto Rs 3 lakhs per annum. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs. While the taxation liability of people with income upto Rs 5 lakhs is being reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The total amount of tax foregone on account of this measure is Rs 15,500 crore.

In order to make good some of this revenue loss on account of this relief, a surcharge of 10 per cent of tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore has been proposed. This is likely to give additional revenue of Rs 2,700 crore.

The Finance Minister said that the direct tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700 crore but after counting for revenue gain of Rs 2,700 crore for additional resource mobilisation proposal, the net revenue loss in direct tax would come to Rs 20,000 crore.

PIB

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Salient Features of Direct Tax Proposals in Union Budget 2017

Salient Features of Direct Tax Proposals in Union Budget 2017

The Union Budget 2017 was laid before the Parliament today by the Hon’ble Finance Minister of India. The salient features of Direct Tax proposals are summarised below:

I. Affordable Housing:

1. Three concessions in the scheme of Income Tax exemption for affordable housing:

(a) Area of 30 and 60 Sq.mtr. to be counted as carpet area and not built-up area;
(b) 30 Sq.mtr. only in 4 metropolitan city limits and 60 Sq.mtr. for the rest of the country;
(c) Completion period extended from 3 years to 5 years.

2. Tax on Notional rental income for builders to be calculated only after 1 year from the end of the year in which completion certificate is received.

3. Changes in Capital Gain taxation for immovable properties:

(a) Holding period reduce for computation of long term capital gain from three years to two years
(b) Base year for counting the cost of property shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property.

4. Basket of financial instrument in which capital gain can be invested without payment of tax to be expanded.

5. For joint development agreement, the liability to pay capital gain tax will arise in the year in which project is completed.

6. For Andhra Pradesh capital, land belonging to owners as on 2.6.2014 to be exempted from capital gain if the same is offered under land-pooling mechanism.

II. Measures for stimulating growth:

1. Concessional withholding rate of 5 per cent. for interest received by foreign entities on loans given in India to be continued for another 3 years beyond 30.6.2017.

2. Start-ups to get two relaxations under the scheme of Income Tax holiday given last year.

(a) The condition of continuous holding of 51 per cent. voting rights to be relaxed as long as the original investment of promoter is not diluted.
(b) Exemption available for three years out of any 7 years from the date of establishment instead of 3 out of 5 years

3. The period of carry forward of MAT/AMT credit increased from 10 years to 15 years.

4. The corporate income tax to be reduced from 30% to 25% for companies with turnover upto Rs.50 crore in 2015-16. This will benefit 96% of existing 6.67 lakh companies. This will result into tax saving of 16.67% for these companies.

5. Deduction for provision for NPA of Banks to be increased from to 8.5% instead of 7.5% of profit.

6. In case of NPA of non-scheduled cooperative banks, interest to be recognised as income only when received.

III Promoting Digital Economy:

1. In the presumptive income tax for small traders, income to be taken as 6% of turnover which is received by digital or banking means.

2. Cash expenditure allowable to be reduced to Rs.10,000 from the existing Rs.20,000.

3. Cash transaction of above Rs.3 lakh not to be permitted. The penalty of equal amount to be levied in case of breach.

IV Transparency in Electoral Funding:

1. The cash donation to political parties from one person limited to Rs.2,000/-.

2. Electoral Bond to be introduced for facilitating donation to political parties from explained sources.

3. Political parties to file their return in time limit prescribed in the Income Tax Act.

V. Ease of Doing Business:

1. Domestic transfer pricing to be applied only if one of the two companies enjoys specified profit-linked deduction.

2. The audit limit for business entities opting for presumptive scheme to be increased from Rs.1 crore to Rs.2 crore.

3. Individuals and HUFs not required to keep books of accounts if their turnover is up to Rs.25 lakhs or income is upto Rs.2.5 lakhs.

4. Investment in Category 1 and 2 foreign portfolio investors registered with SEBI to be exempted from provisions of indirect transfer.

5. TDS of 5% not to be deducted for individual insurance agents if they certify their income to be below taxable limit.

6. Professionals in presumptive scheme to pay advance tax only in one instalment in March instead of four.

7. The time limit for revising a tax return reduced to 12 months. Also time limit for completion of scrutiny will be brought down to 12 months from Assessment Year 2019-20 onwards.

VI Personal Income Tax:

1. Personal income tax for people with income in the slab of 2.5 lakh to 5 lakh to be reduced to 5% instead of 10%. This will reduce their tax liability to half while all other tax payers above this slab will also be benefited in terms of lesser tax of Rs.12,500 per individual (revenue loss ofRs.15,500 crores).

2. Surcharge of 10% to be levied on individuals with income between Rs.50 lakhs to Rs.1 crore (revenue gain of Rs.2,700 crore).

VII. Miscellaneous:

1. TCS exemption for state transport corporation in respect of purchase of vehicles.

2. Income of Chief Minister’s relief fund exempt from tax.

3. Penalty on accountant, registered valuer and merchant banker for furnishing incorrect information.

4. In order to ensure timely filing of return and expeditious issue of refund, a fee shall be levied for delay in filing of return.

PIB

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Grant of paid holiday to employees on the day of poll – DoPT Orders

Grant of paid holiday to employees on the day of poll – DoPT Orders

General Election to the Legislative Assemblies of Goa, Manipur, Punjab, Uttarakhand and Uttar Pradesh, 2017 – Grant of paid holiday to employees on the day of poll – regarding

F.No.12/3/2016-JCA-2
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel & Training)
Establishment (JCA-2) Section

North Block, New Delhi
Dated 1st February, 2017

OFFICE MEMORANDUM

Subject: General Election to the Legislative Assemblies of Goa, Manipur, Punjab, Uttarakhand and Uttar Pradesh, 2017 – Grant of paid holiday to employees on the day of poll – regarding

The undersigned is directed to say that in connection with the General Elections to the Legislative Assemblies of the States of Goa, Manipur, Punjab, Uttarakhand and Uttar Pradesh, to be held during the months, of February and March, 2017, the guidelines, issued by this Department vide OM No. 12/ 14/99-JCA dated 10.10.2001, may be followed for closing of the Central Government Offices, including Industrial establishments in the above mentioned States the relevant portion of the OM as referred to above are reproduced here.

(i) The relevant organizations shall remain closed in the notified areas where general elections to the State Legislative Assembly are concerned scheduled to be conducted;

(ii)In connection with bye-election to Lok Sabha/ State Assembly, only such of the employees who are bona-fide voters in the relevant constituency should be granted special casual leave on the day of polling. Special Casual leave may also be granted to an employee who is ordinarily a resident of a constituency and registered as a voter but employed in any Central Government Organization/ Industrial Establishment located outside the constituency having a general/ bye-election.

2. The employees detailed on election duty may also be permitted to remain away from their normal duties on polling day(s) as also on the days required for performing journeys which might be undertaken in order to perform such election duty

3. The above instructions may be brought to the notice of all concerned.

sd/-
(D.K.Sengupta)
Deputy Secretary to the Government of India

Click to view the order

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

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Shares of Railway PSEs – IRCTC, IRFC and IRCON to be listed

Shares of Railway PSEs – IRCTC, IRFC and IRCON to be listed

Consolidation, mergers and acquisitions of CPSEs to be encouraged, an integrated public sector ‘oil major’ soon

Pradhan Mantri Mudra Yojana budget target doubled to Rs. 2.44 lakh crores

Rs. 10,000 crores earmarked for recapitalisation of Banks, Need based additional allocation assured

While presenting the General Budget 2017-18 in Lok Sabha here today, the Union Finance Minister Shri Arun Jaitley has said that the shares of Railway Public Sector Enterprises (PSEs) like IRCTC, IRFC and IRCON will be listed in stock exchanges. The Government will encourage strengthening the CPSEs through consolidation, mergers and acquisitions and soon create an integrated public sector ‘oil major’, he added.
Stating that the Pradhan Mantri Mudra Yojana (PMMY) has proved an overwhelming success in extending funds for the deprived sections, Shri Jaitley doubled the budget target under the scheme to Rs. 2.44 lakh crores.
Easing the stressed legacy accounts of banks, Shri Jaitley earmarked Rs. 10,000 crores for recapitalisation of Banks in 2017-18 and assured need based additional allocation.
Stating that the disinvestment policy announced in the last budget will continue, Shri Jaitley further said that the Government will put in place a revised mechanism and procedure to ensure time bound listing of identified CPSEs on stock exchanges. This will foster greater public accountability and unlock the true value of these companies, he added.
Shri Jaitley said the CPSEs will be integrated across the value chain of an industry through consolidation, mergers and acquisitions. By these methods it will give them capacity to bear higher risks, avail economies of scale, take higher investment decisions and create more value for the stakeholders, he added. Possibilities of such restructuring are visible in the oil and gas sector. The Government proposes to create an integrated public sector ‘oil major’ which will be able to match the performance of international and domestic private sector oil and gas companies.
The Finance Minister said that the Exchange Trade Fund (ETF), comprising shares of ten CPSEs, has received overwhelming response in the recent Further Fund Offering (FFO). The Government will continue to use ETF as a vehicle for further disinvestment of shares. Accordingly, a new ETF with diversified CPSE stocks and other Government holdings will be launched in 2017-18, he added.
Shri Jaitley said that the focus on resolution of stressed legacy accounts of Banks will continue and the legal framework has been strengthened to facilitate resolution, through the enactment of the Insolvency and Bankruptcy Code and the amendments to the SARFAESI and Debt Recovery Tribunal Acts. In line with the ‘Indradhanush’ roadmap, an amount of Rs. 10,000 crore is provided for recapitalisation of Banks in 2017-18 and additional allocation will be provided, as may be required, he added.
Shri Jaitley said that the Pradhan Mantri Mudra Yojana has contributed significantly to funding the unfunded and the underfunded. He further said that the last year target of Rs.1.22 lakh crores was exceeded and for 2017-18, he proposes to double the lending target of 2015-16 and set it at Rs. 2.44 lakh crores. Priority will be given to Dalits, Tribals, Backward Classes, Minorities and Women, he added.
Shri Jaitley said that the Stand Up India scheme was launched by the Government in April 2016 to support Dalit, Tribal and Women entrepreneurs to set up green field enterprises and become job creators. Over 16,000 new enterprises have come up through this scheme in activities, as diverse as food processing, garments, diagnostic centres, etc, he added.

PIB

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Budget gives a major push to Digital Economy; proposes No Cash Transaction above Rs 3 lakh

No Cash Transaction above Rs 3 lakh – FM

Press Information Bureau
Government of India
Ministry of Finance

01-February-2017 13:57 IST

Budget gives a major push to Digital Economy; proposes No Cash Transaction above Rs 3 lakh

Government to launch schemes to promote BHIM app, Aadhar Enabled Payment System

Mission to be set-up to achieve a target of 2500 Cr digital transactions in 2017-18

Series of measures proposed to strengthen and regulate digital economy

In a bid to give a push to Digital Economy and weed-out corruption and black money, the Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley in his Budget Speech today said that the Government has decided that no transaction above Rs 3 lakh will be permitted in cash. Accepting a suggestion by Special Investigation Team on Black Money to ban cash transactions above Rs 3 lakhs, the Finance Minister has proposed an amendment to the Income-tax Act in the Finance Bill.

Presenting the General Budget 2017-18 in the Parliament, the Finance Minister said that the Government will launch two new Schemes to promote the usage of BHIM App i.e, Referral Bonus Scheme for individuals and a Cashback Scheme for merchants. BHIM App was launched to promote digital transactions and will unleash the power of mobile phones for digital payments and financial inclusion, The Finance Minister Shri Jaitley informed the House that 125 lakh people have adopted the BHIM app so far.

The Finance Minister Shri Jaitley also announced that Aadhar Pay, a merchant version of Aadhar Enabled Payment System, will be launched shortly. This will be specifically beneficial for those who do not have debit cards, mobile wallets and mobile phones. A Mission will be set-up with a target of 2,500 crore digital transactions for 2017-18 through UPI, USSD, Aadhar Pay, IMPS and debit cards. Banks have targeted to introduce additional 10 lakh new PoS terminals by March 2017. They will be encouraged to introduce 20 lakh Aadhar based PoS by September 2017.

Highlighting the Government’s strategy to clean the system through digital economy, Shri Jaitley said that it has a transformative impact in terms of greater formalisation of the economy and mainstreaming of financial savings into the banking system. This, in turn, is expected to energise private investment in the country through lower cost of credit. India is now on the cusp of a massive digital revolution, he added. The Finance Minister said that a shift to digital payments has huge benefits for the common man. The earlier initiative of the Government to promote financial inclusion and the JAM trinity were important precursors to the current push for digital transactions, the Finance Minister added.

In a bid to incentivize the digital transactions, the Finance Minister Shri Jaitley proposed that the presumptive income tax for small and medium tax payers whose turn-over is up to Rs 2 crore will be reduced from the present 8% of their turnover which is counted as presumptive income to 6% in respect of turnover which is received by non-cash means. This benefit will be applicable for transactions undertaken in the current year also, he added.

The Finance Minister also proposed to limit the cash expenditure allowable as deduction, both for revenue as well as capital expenditure, up to Rs 10,000. Similarly, the limit of cash donation which can be received by a Charitable Trust is being reduced from Rs 10,000/- to Rs 2000/-.

To promote cashless transactions, the Finance Minister in the Budget has proposed to exempt BCD, Excise/CV duty and SAD on miniaturised POS card reader for m-POS, micro ATM standards version 1.5.1, Finger Print Readers/Scanners and Iris Scanners. He also proposed to exempt parts and components for manufacture of such devices, so as to encourage domestic manufacturing of these devices.

To strengthen and regulate the digital economy, the Finance Minister has proposed to create a Payments Regulatory Board in the Reserve Bank of India(RBI) by replacing the existing Board for Regulation and Supervision of Payment and Settlement Systems. The Committee on Digital Payments constituted by the Department of Economic Affairs has recommended structural reforms in the payment eco system, including amendments to the Payment and Settlement Systems Act, 2007. The Government will undertake a comprehensive review of this Act and bring about appropriate amendments, Finance Minister added.

To strengthen the digital payment infrastructure and grievance handling mechanisms, the Finance Minister said in his Budget Speech that the focus would be on rural and semi urban areas through Post Offices, Fair Price Shops and Banking Correspondents. He added that steps would be taken to promote and possibly mandate petrol pumps, fertilizer depots, municipalities, Block offices, road transport offices, universities, colleges, hospitals and other institutions to have facilities for digital payments, including BHIM App. A proposal to mandate all the Government receipts through digital means, beyond a prescribed limit, is under consideration. The Government will strengthen the Financial Inclusion Fund to augment resources for taking up these initiatives, the Finance Minister added.

In his Budget Speech, the Finance Minister informed that increased digital transactions will enable small and micro enterprises to access formal credit. He said that the Government will encourage

SIDBI to refinance credit institutions which provide unsecured loans, at reasonable interest rates, to borrowers based on their transaction history.

The Finance Minister assured the House that the Government will consider and work with various stakeholders for early implementation of the interim recommendations of the Committee of Chief Ministers on digital transactions.

Shri Jaitley said that the Government is considering the option of amending the Negotiable Instruments Act to ensure that the payees of dishonoured cheques are able to realise the payments.

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Highlights of Union Budget 2017-18

Highlights of Union Budget 2017-18

1. All taxpayers above 5 lakh rupees to get benefit of 12,500 rupees across the board: FM
2. 10% Surcharge on individuals with income between 50 lakh to 1 Crore: FM
3. Surcharge of 10% for individuals earning between Rs 50 lakh- 1 crore; Surcharge for incomes > Rs 1 crore at 15% to continue: FM
4. A single one-page form for filing IT returns for taxable income up to 5 lakh rupees: FM
5. Tax on income from 2.5 lakh to 5 lakh reduced from 10 per cent to 5 per cent: FM
6. Time period of revising tax return to be reduced to 12 months: FM
7. Amendment to RBI Act proposed to enable electoral bonds: FM
8. Political parties will be entitled to receive donations in cheque or digital payment, every political party to file IT returns: FM
9. Long-term capital gains tax on immovable property to apply after 2 years, instead of 3 years now: FM
10. Maximum amount of cash donation a political party can receive to be 2000 rupees from any one source: FM
11. Computer emergency response team to be established Cyber security: FM
12. Rate of growth in advance tax in personal income tax in last 3 quarters of this financial year is as high as 34.8%: FM
13. Basic customs duty on LNG to be reduced from 5% to 2.5%: FM
14. Tax rate for companies with an annual turnover up to 50 crores to be reduced to 25%, to strengthen MSME sector: FM
15. To make MSMEs more viable, income tax for smaller companies to be reduced: FM
16. Profit linked deduction available to Startups for 3 years out of 5 years will be available for 3 years out of 7 years
17. Capital gains tax to be exempted,for persons holding land from which land was pooled for creation of state capital of Telangana: FM
18. Thrust in budget are affordable housing, promote digital economy, bringing transparency in political funding: FM
19. We are committed to make our taxation rate reasonable,our tax admin more fair & expand the tax base of the country: FM
20. Only 1.72 lakh people show income above Rs 50 lakh: FM
21. 1.5 crore people show income between Rs 2.5-5 lakh; 52 lakh people between between Rs 5-10 lakh; 24 lakh above Rs 10 lakh: FM
22. 5 special tourism zones,anchored on SPV, to be set up; Incredible India II campaign to be launched across the world: FM
23. Revenue Deficit target at 1.9% of GDP: FM
24. Govt to commemorate Champaran Satyagraha centenary: FM
25. Fiscal deficit pegged at 3.2 percent of GDP: FM
26. Aadhar-enabled payment system AadharPay to be launched: FM
27. Defence allocation of Rs 2.74 lakh crore: FM
28. Pradhan Mantri Kaushal Kendras to be extended to more than 600 districts across the country: FM
29. Total allocation for infrastructure in Budget for Better India stands at a record level Rs 3,96,135 crore in 2017-18: FM
30. State run companies like IRCON and IRCTC to be listed in markets: FM

Source: http://www.newsonair.com/

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Income tax reduced by 5% for Income upto Rs. 5 lakh: Budget 2017

Income tax reduced by 5% for Income upto Rs. 5 lakh: Budget 2017

Finance Minister announced in the budget speech for 2017-18 today in Lok Sabha, there were legitimate expectations of the salary class after demonetization to reduce the tax burden. He proposed reducing the present rate of income tax from 10 to 5 percent for the first slab of income from 2.5 lakhs to 5 lakh rupees

NEW INCOME TAX RATES 2017-18 (ASSESSMENT YEAR 2018-19)

Total Income Normal Rates of Income Tax
Up to Rs.2,50,000 to Rs.5,00,000 5%
  • All taxpayers above 5 lakh rupees to get benefit of 12,500 rupees across the board
  • 10% Surcharge on individuals with income between 50 lakh to 1 Crore
  • Surcharge of 10% for individuals earning between Rs 50 lakh- 1 crore; Surcharge for incomes > Rs 1 crore at 15% to continue
  • A single one-page form for filing IT returns for taxable income up to 5 lakh rupees
  • Tax on income from 2.5 lakh to 5 lakh reduced from 10 per cent to 5 per cent
  • Time period of revising tax return to be reduced to 12 months

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7th Pay Commission: Higher Allowances Likely After Union Budget 2017

7th Pay Commission: Higher Allowances Likely After Union Budget 2017

 

Global brokerage Morgan Stanley said that higher pay commission-related payouts could put pressure on government finances.

Some analysts are hopeful that the government will implement Seventh Pay Commission-related allowance hikes after the Budget 2017, which is scheduled for February 1. The Centre implemented the Seventh Pay Commission (CPC) pay hikes in September 16 and is expected to implement the allowance hikes in March after the state elections, domestic brokerage Religare said in a report. This will boost the income of one crore central government employees and pensioners, the brokerage added.

Another brokerage HSBC Securities says that “about 70 per cent of the Seventh Pay Commission recommendations (i.e. pay and pension) have already been accounted for in the FY17 Budget. The remaining item – the housing allowance – is likely to get implemented in FY18.”

“At worst, if the government is under pressure, this allowance can be pushed to the next year, as was done in the previous pay commissions. The housing allowance does not attract arrears,” HSBC Securities said.

Religare, however, said that implementation of the housing allowance portion of the Seventh Pay Commission as well as GST or Goods and Services Tax is expected to push up average inflation. Another global brokerage Morgan Stanley said that higher pay commission-related payouts could put pressure on government finances. “Trailing higher wage spending and further drain are expected as the government is likely to pay the higher allowances due as part of the Seventh Pay Commission wage hikes,” it said in a report.

The Union Cabinet had in June accepted the recommendation of Justice A K Mathur headed Seventh Pay Commission in respect of the hike in basic pay and pension but its suggestions relating to allowances were referred to a committee. The 7th Pay Commission examined a total of 196 existing allowances and, by way of rationalisation, recommended abolition of 51 allowances and subsuming of 37 allowances.

Source: NDTV

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AICPIN for the month of December 2016

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

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IRS officers meet Dr Jitendra Singh, seek DoPT intervention

IRS officers meet Dr Jitendra Singh, seek DoPT intervention

A delegation of the Indian Revenue Service (IRS) officers met the Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh here today and sought intervention by Department of Personnel & Training (DoPT) for the clearance of backlog in promotions.

In a memorandum submitted by the members of delegation, it was pointed out that around 450 posts of Joint Commissioner / JAG level are lying vacant, but there are no officers eligible to be promoted because Recruitment Rules prescribe minimum residency of 5 years at Deputy Secretary level as eligibility criteria. Officers up to 2007 batch have already been promoted and therefore, they requested for relaxation of 9 months for gaining eligibility for the officers of 2017 batch who have been left out. The members of delegation sought Dr Jitendra Singh’s intervention so that the DoPT could take a holistic view of circumstances and grant relaxation for promotion to JAG / JC-IT.

Prominent IRS officers who led the delegation included Shri Rajesh Menon from Mumbai, Shri Anantharaman Aiyer from Delhi, Shri C.K. Singh and Shri B.K. Singh.

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Income Tax Department (ITD) launches Operation Clean Money

Income Tax Department (ITD) launches Operation Clean Money

Income Tax Department (ITD) has initiated Operation Clean Money, today. Initial phase of the operation involves e-verification of large cash deposits made during 9th November to 30th December 2016. Data analytics has been used for comparing the demonetisation data with information in ITD databases. In the first batch, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer’s profile.

ITD has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources. The information in respect of these cases is being made available in the e-filing window of the PAN holder (after log in) at the portal https://incometaxindiaefiling.gov.in. The PAN holder can view the information using the link “Cash Transactions 2016” under “Compliance” section of the portal. The taxpayer will be able to submit online explanation without any need to visit Income Tax office.

Email and SMS will also be sent to the taxpayers for submitting online response on the e-filing portal. Taxpayers who are not yet registered on the e-filing portal (at https://incometaxindiaefiling.gov.in) should register by clicking on the ‘Register Yourself’ link. Registered taxpayers should verify and update their email address and mobile number on the e-filing portal to receive electronic communication.

A detailed user guide and quick reference guide is available on the portal to assist the taxpayer in submitting online response. In case of any difficulty in submitting on line response, help desk at 1800 4250 0025 may be contacted.

Data analytics will be used to select cases for verification, based on approved risk criteria.  If the case is selected for verification, request for additional information and its response will also be communicated electronically. The information on the online portal will be dynamic getting updated on receipt of new information, response and data analytics.

The response of taxpayer will be assessed against available information. In case explanation of source of cash is found justified, the verification will be closed without any need to visit Income Tax Office. The verification will also be closed if the cash deposit is declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY).

The taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the ITD and enforcement actions under the Income-tax Act as also other applicable laws.

PIB

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7th Pay Commission implementation to State Government Employees – Minister’s reply in the Parliament

7th Pay Commission implementation to State Government Employees – Minister’s reply in the Parliament

7th Pay Commission implementation – State Government employees are not covered within the terms of reference of the 7th central Pay Commission – Minister’s reply in the Parliament

Smt.Nirmala Sitharaman in a written reply to a Member states that State Government employees are not covered within the terms of reference of the 7th central Pay Commission

While answering to a question in Parliament on 12th August 2014 regarding the employees working in State Government, Ministry of State for Finance Smt.Nirmala Sitharaman said that the State Government employees are not covered within the terms of reference of the 7th central Pay Commission.

She replied in written form to a question asked by a member that service conditions of State Government employees fall within the exclusive domain of respective State Governments. Therefore, State Government employees are not covered within the terms of reference of the 7th central Pay Commission.

Thus, the recommendations of Commission will not directly apply to State Government employees. Accordingly, it is not possible for the Central Government to indicate the financial burden on State Governments, if they decide to adopt the recommendation of the 7th Central Pay Commission in respect of their employees with or without modification.

She also added, the Central Government had sought the views of the State Governments and till the date of the constitution of the 7th Central Pay Commission on 28.2.2014, only 14 States had responded. These State Governments generally mentioned, inter-alia, that adoption of the recommendations of a Central Pay Commission by them in case of State Government employees adds to substantial financial burden

Since the decision to adopt the recommendations of the 7th Central Pay Commission in case of the State Government employees will exclusively concern respective State Government, the question of any assistance by the Central Government will not arise. However, the Terms of Reference of the 7th Central Pay Commission provide, inter-alia, that while making its recommendations, the Commission will also keep in view the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications.

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India Post Payments Bank will be a game changer for financial inclusion – Manoj Sinha

Press Information Bureau,
Government of India
Ministry of Communications & Information Technology

30-January, 2017 18:27 IST

India Post Payments Bank will be a game changer for financial inclusion -Manoj Sinha
IPPB branches launched in Ranchi & Raipur

 

IPPB-India-Post-Payments-Bank

Finance Minister, Shri Arun Jaitley and Minister of Communications Shri Manoj Sinha launched the operations of the India Post Payments Bank (IPPB) here today as two pilot branches at Raipur and Ranchi through video conferencing from Delhi.

Speaking on the occasion, Shri Jaitley said that about 650 IPPB branches will be opened by September this year and that will have a multiplier impact as far as banking in India is concerned. He said with IPPB, banking at the doorstep will no longer remain a mere slogan, but will become a reality due to huge postal network in the country. He said that financial Inclusion is critical for the socio-economic development of the country, but there are significant gaps in this area and a large proportion of country’s population remain unbanked or underbanked. IPPB will effectively leverage the ubiquitous post office network with its pan-India physical presence, long experience in cash handling and savings mobilization, backed by the ongoing project of IT-enablement, to bridge this gap in Financial Inclusion.

In his address, Minister of Communications Shri Manoj Sinha has commended the hard work done by the Department of Posts in setting up the India Post Payments Bank and hoped that both organizations will work in tandem to take the benefits of government schemes and financial services that are not easily available in rural areas to customers across the country and to the marginalized population in urban and rural areas alike. He said, the objective of IPPB will be public service rather than promoting commercial interests.

Secretary, Department of Posts, Shri B.V.Sudhakar said that the IPPB is widely expected to be a game changer for financial inclusion in the country as the USP of this initiative is doorstep banking, particularly in the rural areas.

As mandated by the RBI, the India Post Payments Bank (IPPB) would focus on providing basic financial services such as all kinds of payments; including social security payments, utility bill payments, person to person remittances (both domestic and cross-border), current and savings accounts up to a balance of Rs 1 lac, distribution of insurance, mutual funds, pension products and acting as business correspondent to other banks for credit products especially in rural areas and among the underserved segments of the society.

Set up us a 100% Government of India owned Public Limited Company under the Department of Posts, it will open around 650 branches in district HQ locations. All 1.55 lacs post offices including the 1.39 lac of the rural post offices will be mapped to the IPPB branch at the district headquarter and function as access points for IPPB. IPPB will usher in state of the art internet and mobile banking platforms, digital wallets and use innovative and emerging technologies to catalyse the shift from a cash dominant to a less cash economy.

While many other banks and financial institutions are working on the same theme, the USP of IPPB will be its ability to ease access and handhold the adoption of new age banking and payments instruments among citizen of all walks of life through the delivery by postmen and Grameen Dak sevaks, savings agents and other franchisees who will take banking to door steps. IPPB thus aspires to the most accessible, affordable and trusted bank for the common man with the motto – “No customer is too small, no transaction too insignificant, and no deposit too little”.

Given ‘in principle’ approval by the RBI along with 10 other aspirants on 19th Aug 2015, IPPB received the cabinet’s approval on 1st June, 2016 and was incorporated as on 17th Sept, 2106. Today it became the second payments bank to launch its operations. Having got its final banking license from the RBI on the 20th Jan 2017 it has commenced operations in record time of 10 days in partnership with the Punjab National Bank, after obtaining all necessary approvals and registrations from the RBI, NPCI etc.

A commemorative stamp and a logo of the new bank were also launched on the occasion.

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Aadhar enabled Biometric Attendance System for marking attendance

Aadhar enabled Biometric Attendance System for marking attendance

“As per extant instructions, half-a-day’s casual leave should be debited for each day of late attendance, but late attendance upto an hour, on not more than two occasions in a month, and for justifiable reasons may be condoned by the competent authority.”

Principal Controller of Defence Account; (Central Command),
Carriapa Road, Lucknow Cantt, Pin-226002

Circular

No.AN/1A/1004/Misc/2017

Dated:27/01/2017

To
The CDA, RTC Lucknow
All Sub Offices
(under the organisation including lFAs)
All sections in main office

Sub:  Aadhar enabled Biometric Attendance System for marking attendance.

The Department of Personnel & Training vide letter No.11013/9/2014-Estt(A-III) dated 21st November 2014 (circulated vide Hqrs Office letter No. AN/III/3012/Misc/BAS dated 20.02.2015) has decided to use an AADHAR based Biometric Attendance System (AEBAS) in all offices of the Central Government, including attached/sub-ordinate offices in India.

Biometric Attendance System is only an enabling platform. There is no change in the instructions relating to office hours, late attendance etc. which will continue to apply. As per extant instructions, half-a-day’s casual leave should be debited for each day of late attendance, but late attendance upto an hour, on not more than two occasions in a month, and for justifiable reasons may be condoned by the competent authority. In addition to debiting Casual Leave(or Earned Leave, when no CL is available) disciplinary action may also be taken against government servants who are habitually late. Early leaving is also to be treated in the same manner as late coming.

Therefore, all the staff and officers will mark their attendance through AEBAS only. The manual attendance may be discontinued immediately.

GO(AN) has seen.

sd/-
(S.K.Gupta)
Sr. AO(AN)

Click to view the order

Authority: http://pcdacc.gov.in/

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RBI Circular: No Limit for Cash Withdrawal from ATMs from February 1

RBI Circular: No Limit for Cash Withdrawal from ATMs from February 1

Limits on Cash withdrawals from Bank accounts and ATMs – Restoration of status quo ante

RESERVE BANK OF INDIA
www.rbi.org.in

RBI/2016-17/217

DCM (Plg) No. 2905/10.27.00/2016-17

January 30, 2017

The Chairman / Managing Director / Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks,
Regional Rural Banks / Urban Co-operative Banks,
State Co-operative Banks / District Central Co-operative Banks

 Dear Sir/Madam,

Limits on Cash withdrawals from Bank accounts and ATMs – Restoration of status quo ante

Please refer to our circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 placing limits on Cash withdrawals from bank accounts and ATMs in the wake of withdrawal of Legal Tender Character of Specified Bank Notes (SBN) and subsequent circulars DCM (Plg) Nos.1256, 1274, 1317, 1437, 2142 and 2559 dated November 11, 14, 21, 28, December 30, 2016 and January 16, 2017 respectively, providing for relief and relaxations therefrom.

2. On a review of the pace of remonitisation, it has been decided to partially restore status quo ante as under:

Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.

The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.

Limits vide the circulars cited above placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to 2 (ii) above.

3. Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode.

4. Please acknowledge receipt.

Yours faithfully,
(P Vijaya Kumar)
Chief General Manager

Authority: www.rbi.org.in

RBI Circulr 2017

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