Cabinet approves modifications in the 7th CPC recommendations on pay and pensionary benefits
Dearness Allowance Allowance Committee 7th Pay Commission Income Tax exemption
4% Additional DA for TN State Government Employees from Jan 2017 Allowances Committee Report and Financial Expenditure Committee on 7th CPC Allowances : FM Press Note Income Tax exemption benefit on Housing Loan Interest (FAQ)

Posts Tagged ‘HRA’

7th Pay Commission Unions leaders to meet officials today for higher allowances

7th Pay Commission Unions leaders to meet officials today for higher allowances

New Delhi: Central government employees unions leaders today is likely to to meet top government officials for higher allowances.

The central government employees now get all allowances except dearness allowance at the old rates until the cabinet approval of higher allowances.

The the Committee on Allowances, headed by Finance Secretary Ashok Lavasa was constituted in June last year after the government implemented the recommendation of the 7th Pay Commission from January 1, 2016 in respect of basic pay and dearness allowances.

The 7th Pay Commission had recommended that of a total of 196 allowances, 52 be abolished altogether and 36 be abolished as separate identities by subsuming them in another allowance, which triggered resentment among central government employees that governments complied with formation of the Committee on Allowances.

The Committee on Allowances submitted its report to Finance Minister Arun Jaitley on April 27.

The 7th Pay commission had recommended abolition of or subsuming of allowances like acting, assisting cashier, cycle, condiment, flying squad, haircutting, rajbhasha, rajdhani, robe, shoe, shorthand, soap, spectacle, uniform, vigilance and washing.

It also recommended slashing the House Rent Allowance (HRA) from 30, 20 and 10 per cent to 24, 16 and 8 percent of the Basic Pay for Class X, Y and Z cities respectively.

The unions leaders of central government employees are pressing hard for immediate cabinet approval of higher allowances.

TST

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Be the first to comment - What do you think?  Posted by admin - May 16, 2017 at 5:41 pm

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Grant of House Rent Allowance (HRA) to Railway employees posted at S.A.S. Nagar Mohali at par with Chandigarh rates

Grant of House Rent Allowance (HRA) to Railway employees posted at S.A.S. Nagar Mohali at par with Chandigarh rates.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

RBE No.45/2017

No. E(P&A)II-2015/HRA-7

New Delhi, Dated : 12.05.2017.

The General Managers(P)/CAOs,
All Indian Railways
and Production Units etc.

Sub: Grant of House Rent Allowance (HRA) to Railway employees posted at S.A.S. Nagar Mohali at par with Chandigarh rates.

The question of grant of House Rent Allowance (HRA) at rates admissible in the classified city of Chandigarh (Y class) to the Railway employees posted at Mohali has been considered in Boards office in consonance with instructions of Ministry of Finance and the President is pleased to decide that the Railway employees whose place of duty falls within the limits of the notified area committee of S.A.S. Nagar Mohali shall be entitled to draw HRA at the rates admissible within the classified city of Chandigarh.

The grant of HRA under these orders shall be regulated in accordance with the conditions laid down in this Ministrys letter No. PC-66/HRA-1/21 dated 26.07.1967 as amended from time to time.

These orders shall take affect from the date of issue of this letter.

This issues with the concurrence of Finance Directorate of Railway Board.

Sd/-

(Salim Md. Ahmed)
Deputy Director/E(P&A)II,
Railway Board.

Source : indianrailways.gov.in

Be the first to comment - What do you think?  Posted by admin - May 15, 2017 at 10:44 am

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7th CPC HRA : Justification for Retaining the Existing Rates of 10%, 20% and 30%

7th CPC HRA – Justification for Retaining the Existing Rates of 10%, 20% and 30%

“How justified is the stand of 7th CPC to apply a factor 0.8 to suppress the quantum of allowances is beyond comprehension.”

HOUSE RENT ALLOWANCE

Housing accommodation is provided to a small segment of the Civil Servants. While the percentage of satisfaction is very high at the senior level Officers, Employees at the lower levels are to depend upon the market for a dwelling place. Of late recruitment at Gr B and C levels in Central Govt Offices is on the basis of an all India Examination and the regional recruitment which was in prevalence a decade back has been dispensed with. Once, recruited, he/she is perforce to be posted outside his/her home state making it necessary to search for a dwelling unit at the place of his/her posting and compete with those workers in the private sector whose salary levels in certain cases are phenomenally high. Housing in the country, despite introduction of various projects, tax concessions etc, continues to be a seller’s paradise. A simple scrutiny of the rate of increase in the cost of construction and the rates quoted by the property dealers, real estate agents and tenant facilitators will reveal the extent of escalation in rent over the last a decade.

In Para 8.7.14 the 7th CPC has made a bald statement that with the increase in Basic pay most of the employees will be able to afford rented houses as per their entitlement. The Chart given under Para 8.7.14 indicates the rent increases over a period between 2006-14. The rent is shown to have gone up by 118% by 2014. The Commission has sourced the house rent index figures from AICPI (IW). We have no hesitation to state that the Commission’s observation based upon the most unreliable data must be discarded. Even according to the said data, which only indicates the figures upto 2014, the registered increase was 118%. The progression between 2009 to 2014 from 136 to 168 gives an average increase of 22 points. This reads as much similar to the progression of the AICPI (IW) prepared by the Indian Labour Bureau Shimla, whose commodity prices have been adopted by the 7 CPC for minimum Wage computation.

How divorced those rates are from the reality in the market has been explained with facts and figures in our letter dated 10.12.2015 to the Chairman, Empowered Committee of Secretaries. Even if one bases the computation on such unreliable data, the hypothetical progression of the housing index by end of 2015 shall be 279-290 which warrant an increase by 136%.

Relating the index figures indicated in chart under Para 8.7.14 to the DA percentage as on 1.1.2016.(125%), the ratio obtaining both in H1 and H2 i.e. 123 to 260 (2014) and 126 to 268 (2014) are 2.11 and 2.13 respectively. If the same is calibrated to 125% as on 1.1.2016, the ratio shall be 2.64 and 2.66. This will necessitate raising the HRA to 33.13% in Metro Cities, 22% in Y Class Cities and 11.12% in Z class towns.
The hypothetical progression on average basis will also make it necessary to compensate housing expenses at 29.7% in Metro Cities and 19.74% in Y class Cities and 9.87% in Z class towns.

The Commission is on record to state that the house rent factor in AICPI (IW) is on an average 15.27. The 6th CPC has indicated the factor at 8.67 and has been on record to state that the factor is not uniform at all places. The rates between Metro cities and small towns vary violently. This apart the Commission has applied a factor of 0.8 to all allowances, which are not cost indexed on the specious plea that wages per- se has been increased. While the Basic wages registered a paltry rise of 14% over a period of ten years (1.4% per annum) how justified is the stand of 7th CPC to apply a factor 0.8 to suppress the quantum of allowances is beyond comprehension. The Commission has proceeded with the assumption that the grant of 30,20 and 10% of the determined basic pay was a full and perfect reimbursement of expenses incurred by the Government employees on housing, which is undoubtedly erroneous as could be evidenced from the observation of the 6th CPC itself. Even if all these untenable contentions of 7 CPC and the unreliable statistics are taken into account, still it is clear that in order to maintain the present compensation level, the commission ought to have maintained the status quo in respect of rates of HRA and should not have reduced it by the application of 0.8 factor. We, therefore, request for the reasons adduced above, that the HRA may be retained at the levels determined by 6th CPC i.e. 30, 20, and 10 per cent of Basic pay for X,Y, Z class of cities and towns respectively.

Source: http://nfaeehq.blogspot.in/

Be the first to comment - What do you think?  Posted by admin - May 12, 2017 at 10:14 pm

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Allowances Committee Report and Financial Expenditure

Allowances Committee Report and Financial Expenditure

Comrades,

The Central Government Civilian Employees numbering around 36 lakhs employees and Defence forces numbering around 15 lakhs are waiting for a long period for the allowances committee to submit its report and almost 10 months have passed , the allowances committee has not submitted its report so far , the patience of the Central Government Employees is almost over , the main demand of the CG employees is house rent allowance , the expenditure towards the HRA is just at 4.15 % of the total expenditure , the breakup of pay and allowances is pay including DA constitute about 80% and all allowances together constitute around 20% of the total expenditure, even if the 7th CPC recommendations are accepted the HRA expenditure shall be at just 9% of the total expenditure, even if the staff side demands of the HRA is accepted the total expenditure shall not cross 10%, let us examine the following facts.

The total expenditure towards pay & allowances for 36 lakhs Central Government employees for the year 2015-16 is Rs 1,50,028.57 ( in crore) , Out of the total expenditure of 1,50,028.57 crore, the percentage expenditure on Pay, Dearness Allowance (DA), House Rent Allowance (HRA) and other allowances are Pay Rs 55,162.69 crores (36.77%) , DA Rs 64,304.33 crores (42.68%) , allowances constitute Rs 30561.55 crores of which HRA Rs 6,225.14 crores ( 4.15% ) and. Transport Allowance constitute Rs 6186.05 crores and other allowances 16.22% respectively.

Out of the total expenditure of Rs 6,225.14 crore on HRA in 2015-16, the HRA expenditure for X class cities is Rs 2287.80 crore which is around 36.75% of the total expenditure on HRA.

Number of Sanctioned Posts is 36,49,468 and Number in Position is 32,28, 921 vacant posts is 4,20,547 , the Defence forces constitute around 15 lakhs with an Indian Army strength of 11 lakh.

Pay commission views : Para number 16.3

16.3 The increases in allowances relate to the following:

a) House Rent Allowance (HRA): This accounts for the principal increase in the expenditure on allowances since it is calculated as a percentage of the basic pay and the rise in basic pay based on recommendations of the Commission would be reflected as increased HRA. The expenditure on account of HRA is likely to go up from Rs.12,400 crore to Rs.29,600 crore, an increase of Rs.17,200 (138.71%). This figure also includes an expenditure of Rs.3,700 crore that is likely to occur on account of the expansion in coverage of HRA benefiting personnel serving in the CAPFs (this figures include all Central Government employees including Defence employees)

Hence the additional expenditure towards allowances will not financially impact the Central Government as already 70% of the 7th CPC expenditure has been borne out by the Government, only additional expenditure of just around 30% that is Rs 30,000 crores has to be met by the Central Government. even if 7th CPC report is fully implemented the expenditure towards pay and allowances shall not exceed 10% of the total revenue We hope the Government understands the sentiments of the Central Government employees and announce the revised allowances immediately after the arrival of the Honorable Finance Minister from his official tour to US and Russia, which he is expected to return from foreign assignments on 27th April 2017.

Comradely yours

(P.S.Prasad)
General Secretary

Source: http://karnatakacoc.blogspot.in/

Be the first to comment - What do you think?  Posted by admin - April 25, 2017 at 11:56 am

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Confederation: Mass Dharna in Front of Finance Ministers Office on 23.5.2017

 CIRCULAR DATED – 13.04.2017

URGENT / IMPORTANT

CONFEDERATION NATIONAL SECRETARIAT DECIDED TO INTENSIFY THE STRUGGLE
MASS DHARNA IN FRONT OF FINANCE MINISTER’S OFFICE
NORTH BLOCK, NEW DELHI
ON 23.05.2017 (TUESDAY 12 AM TO 04 PM)

NATIONWIDE DEMONSTRATION AT ALL IMPORTANT CENTRES ON SAME DAY

MORE THAN 2000 CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS WILL PARTICIPATE IN THE PROTEST DHARNA.

Demanding Honouring of assurance given by Group of Ministers including Finance Minister, settle the charter of demands submitted by Confederation, increase minimum pay and fitment formula, payment of revised allowances including HRA w.e.f 01.01.2016, implementation of option – I pension parity recommended by 7th CPC, Scrap New Contributory Pension Scheme and bring all employees appointed after 01.01.2004 under the purview of CCS (Pension) Rules 1972, Grant Civil Servant Status and revise the wages and allowances of Gramin Dak Sevaks, regularise all casual and contract workers, Revise pension of autonomous body pensioners and grant dearness relief due from 01.07.2016, withdraw “Very good” bench mark condition for MACP etc.

2nd PHASE OF AGITATION
HUMAN CHAIN OF CENTRAL GOVERNMENT EMPLOYEES & PENSIONERS
IN FRONT OF MAJOR CENTRAL GOVERNMENT OFFICES AT ALL IMPORTANT CENTRES THROUGHOUT THE COUNTRY DURING LUNCH HOUR ON 22.06.2017 (THURSDAY)

All affiliated organisations and COCs are requested to mobilise maximum number of employees & pensioners in the above two programmes. Detailed circular will be issued shortly.

Source: Confederation

Be the first to comment - What do you think?  Posted by admin - April 15, 2017 at 8:05 am

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7th Pay Commission: Government to implement soon on higher allowances, says unions

7th Pay Commission: Government to implement soon on higher allowances, says unions

New Delhi: Central government employees unions today said the government has promised that it will implement soon the ‘higher allowances‘ under 7th Pay Commission recommendations, with retrospective effect from August 2016.

A top union leader told that the employee representatives have sought an early finalisation of the ‘Committee on Allowances‘ report.

“We were promised in August, 2016 that the higher allowances (as per the 7th Pay Commission) would be given to us within four months, but we haven’t got its till now,” the union leader said.

Meanwhile, the ‘Committee on Allowances‘ has sought views from different ministries on 14 allowances, a PTI report said, citing sources.

These allowances include accidental allowance, outstation detention allowance, trip allowance, and ghat allowance.

The government in July last year had formed the ‘Committee on Allowances‘, headed by Finance Secretary Ashok Lavasa, for examination of the recommendations of 7th Pay Commission on allowances other than dearness allowance as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017.

Minister of State for Finance Arjun Ram Meghwal on March 10 had again clarified in Lok Sabha that the ‘Committee on Allowances‘ is yet to submit its report.

Meghwal added the ‘Committee on Allowances‘ is now in the process of finalising its report and the government would take a decision after the report is submitted.

Meghwal also explained why the ‘Committee on Allowances‘ has taken more time to finalise its report.

“The ‘Committee on Allowances‘ has taken more time than was initially prescribed in view of large number of demands received,” he clarified.

“The committee has received a large number of demands on allowances and even now receives demands in this regards. All the demands have been diligently examined,” the minister also said.

The ‘Committee on Allowances‘ is likely to finalise its views on house rent allowance (HRA) at its next meeting, reported PTI, citing sources.

The 7th Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on type of cities. The Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent, respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

Source: TST

Be the first to comment - What do you think?  Posted by admin - March 31, 2017 at 9:01 am

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Grievances of the Central Government Employees : NC JCM

Grievances of the Central Government Employees : NC JCM

NC JCM writes to the Cabinet Secretary to settle various issues, including revision of HRA

Grievances of the Central Government Employees – Secy./Staff Side writes to Cabinet Secretary

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/2017

Dated: March 29, 2017

The Cabinet Secretary,
Government of India,
Cabinet Secretariat,
Rashtrapati Bhawan,
New Delhi

Dear Sir,
Sub: Grievances of the Central Government Employees

Owing to serious discontentment on various retrograde recommendations of the VII CPC, there had been countrywide resentment among the Central Government Employees, and the Staff Side(JCM), under the aegis of the NJCA, had decided for an “Indefinite Countrywide Strike”, commencing from 6th July, 2016, which was deferred after negotiations with the GoMs, comprising of Hon’ble Minister for Home Affairs, Finance Minister, Railway Minister and State Minister for Railways, held on 30.06.2016, wherein it was assured that, demands of the Central Government Employees, viz. improvement in Minimum Wage and Fitment Formula, Rates of Allowances, Guaranteed Pension/Family Pension in lieu of NPS etc. would be resolved within a fixed time frame of four months, for which committees were constituted by the Government of India.

While substantial delay took place in setting-up of various committees itself, however, it is a matter of deep concern that, the committees have not yet finalized their reports despite lapse of more than eight months time.

The Staff Side had, at the very outset, opposed setting-up of Committee on Allowances, demanding upward revision and restoration of certain allowances which were recommended to be abolished by the 7th CPC, nevertheless, the government on the contrary constituted the said committee.

It may be recalled that, it has been an established convention in the past also that, payment of the revised rates of the allowances is done w.e.f. the date of implementation of the report of the Central Pay Commission, but this time, unlike previous occasion, the Central Government Employees are still being paid House Rent Allowance, Transport Allowance etc. on the pre-revised rates.

It was being expected that, Committee on Allowances would complete its proceedings within the fixed timeframe and the CGEs would be paid allowances on the revised rates w.e.f. the date of implementation of the 7th CPC report, but unfortunately, it is being delayed inordinately, owing to which there is serious resentment brewing among the CGEs.

While Committee on Allowances also met on the previous day, i.e. 28.03.2017, and we were expected that it would finalize its recommendations in the said meeting, but on enquiring we have been made to understand that, the issue of revision of rates of HRA was even not discussed in the said meeting.

We, therefore, take this opportunity to apprise you that, unjustified and inordinate delay in finalizing the reports of the committees is not only breach of the assurance given to the Staff Side by the GoMs, but also creating an uncongenial atmosphere among the CGEs.

It would, therefore, be quite appropriate that, the issue may be considered with all seriousness as per assurance given to the Staff Side, and revision of the rates of the allowances, NPS, Minimum Wage and Fitment Formula and Pension/Family Pension, along with restoration of certain allowances abolished by the 7th CPC, be finalized without further loss of time in the larger interest of industrial harmony in the country.

With Kind Regards!

Yours faithfully,
sd/-
(Shiva Gopal Mishra)
Secretary

Source: www.ncjcmstaffside.com

Be the first to comment - What do you think?  Posted by admin - March 30, 2017 at 9:41 pm

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Admissibility of HRA in the event of non-acceptance/surrender of Railway residential accommodation

Admissibility of HRA in the event of non-acceptance/surrender of Railway residential accommodation

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

RBE No. 23/2017

No. E(P&A)II-2015/HRA-6

New Delhi, dated 16.03.2017.

The General Managers(P)/CAOs,
All Indian Railways
and Production Units etc.

Sub: Admissibility of HRA in the event of non-acceptance/surrender of Railway residential accommodation.

A reference from North Western Railway was received for clarification on the issue of admissibility of HRA in the event of non-acceptance/surrender of railway residential accommodation by a railway employee. The matter was examined and considered in this office in the light of policy guidelines on the issue in consultation with the Finance Directorate of Railway Board. In this connection, it is stated that the provisions of letter No. E(P&A)II-87/HRA-15 dated 16.05.1988 still hold good regarding admissibility of House Rent Allowance (HRA) in the event of non¬acceptance/surrender of Railway residential accommodation. However, refusal by a Railway servant of a quarter of a different class from that for which he is eligible shall not constitute refusal for the purpose of these orders unless he has the option to apply for accommodation of a class next below the one to which he is entitled by virtue of his emoluments and he refuses such accommodation when allotted on the basis of his application.

2. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

3. Please acknowledge receipt.

(Salim Md. Ahmed)
Deputy Director/E(P&A)II,
Railway Board.

Signed copy

Be the first to comment - What do you think?  Posted by admin - March 29, 2017 at 6:38 pm

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7th Pay Commission: Higher allowances to be proposed in this month

7th Pay Commission: Higher allowances to be proposed in this month

New Delhi: The Committee on Allowances will propose to increase allowances of central government employees, besides dearness allowance (DA) in this month.

DA is being paid to them with their pay packages.

The Committee on Allowances, under Finance Secretary Ashok Lavasa, was formed in July 2016 following protests by government employees over recommendations of the 7th Pay Commission on allowances.

The 7th Pay Commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.

The committee was initially given four months time to submit the report to Finance Minister Arun Jaitley.

Later, the Finance Minister extended the deadline for report submission to February 22, 2017.

The Committee on Allowances is yet to submit its report, the Minister of State for Finance Arjun Ram Meghwal said in Lok Sabha on March 10.

However, he said that the deliberations of the committee are in the final stages.

Besides the basic salary, a large portion of a central government employee’s salary is the house rent allowance (HRA); some changes are to be made in this category of the recommendations of the 7th Pay Commission on allowances,

“The Committee on Allowances has decided against reducing the house rent allowance (HRA). The 7th Pay Commission suggested bringing down the HRA to 24 per cent, 16 per cent and 8 per cent respectively depending on type of cities,” the Finance Ministry’s officials said.

The officials also said that the Committee on Allowances would suggest, the HRA is to be kept as it was under the Sixth Pay Commission at 30 per cent, 20 per cent, and 10 per cent respectively.

The Committee on Allowances is likely to remain constant the Transport Allowance for central government employees as 6th Pay Commission recommendations including Dearness Allowance(DA), the sources added.

So, the employees now get all allowances except dearness allowance, according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

The higher allowances most probably to implement from the month of April and the cabinet may give its nod in this month, the sources confirmed.

TST

Be the first to comment - What do you think?  Posted by admin - March 20, 2017 at 8:15 am

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Admissibility of HRA in the event of non-acceptance/surrender of Railway residential accommodation

Admissibility of HRA in the event of non-acceptance/surrender of Railway residential accommodation.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

RBE No.23/2017
New Delhi, dated 16.03.2017

No.E(P&A)II-2015/HRA-6

The General Managers(P)/CAOs,
All Indian Railways
and Production Units ect.

Sub: Admissibility of HRA in the event of non-acceptance/surrender of Railway residential accommodation.

A reference from North Western Railway was received for clarification on the issue of admissibility of HRA in the event of non-acceptance/surrender of railway residential accommodation by a railway employee. The matter was examined and considered in this office in the light of policy guidelines n the issue in consultation with the Finance Directorate of Railway Board. In this connection, it is stated that the provisions of letter No.E(P&A)II-87/HRA-15 dated 16.05.1988 still hold good regarding admissibility of House Rent Allowance (HRA) in the event of non-acceptance/surrender of Railway residential accommodation. However, refused by a Railway servant of a quarter of a different class from that for which he is eligible shall not constitute refusal for the purpose of these orders unless he has the option to apply for accommodation of a class next below the one to which he is entitled by virture of his emoluments and he refuses such accommodation when allotted on the basis of his application.

2. This issues with the concurrence of the Finance Directorate of the Mininstry of Railways.

sd/-
(Salim Md.Ahmed)
Deputy Director/E(P&A)II,
Railway Board

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

Be the first to comment - What do you think?  Posted by admin - March 17, 2017 at 7:38 pm

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Service personnel are authorized to HRA, CILQ and FAA

Service personnel are authorized to HRA, CILQ and FAA

Service personnel are authorized to House Rent Allowance (HRA) / Compensation in Lieu of Quarter (CILQ) / Family Accommodation Allowance (FAA)

Accommodation facilities to Officers

Government has sanctioned construction of 1,76,065 Dwelling Units (DUs) for the Married Army officers / soldiers. Apart from construction of DUs, hiring of houses is also undertaken for Defence personnel to meet the deficiency of housing. In addition, Service personnel are authorized to House Rent Allowance (HRA) / Compensation in Lieu of Quarter (CILQ) / Family Accommodation Allowance (FAA).

Married Accommodation Project was approved in 2002 for providing approximately 2 lakh Dwelling Units (DUs) to serving defence personnel. Under this project DUs with improved specifications are being constructed. Besides, under Annual Major Works Programme (AMWP) residential accommodation projects are undertaken as per special needs from time to time.

47383 DUs of Phase-I completed. Out of 58250 DUs meant for Phase-II, 27268 DUs constructed & balance 30982 DUs are under construction. 70432 DUs are planned for Phase-III projects.

This information was given by Minister of State for Defence Dr. Subhash Bhamre in a written reply to Shri Kunwar Pushpendra Singh Chandel in Lok Sabha today.

Source: PIB

Be the first to comment - What do you think?  Posted by admin - March 11, 2017 at 1:37 pm

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Information on House Rent Allowance

Information on House Rent Allowance – CGDA

Office of the CGDA, Ulan Batar Road, Palam, Delhi Cantt – 10

No.AN/III/3012/Circular Vol-VII

Dated 03-03-2017

To,

All PCsDA/PCA (Fys)/PIFAs
CsDA/CsFA (Fys)/IFAs
(Through CGDA Website)

Subject: Information on House Rent Allowance-regarding.

Please find enclosed copy of Min. of Defence, Deptt. of Expenditures, ID No.11-1/2016-IC/Pt.II dated 23.02.2017 on the subject received through MoD/D (Civ-I).

  1. Ministry in their ID has stated that the committee on Allowances headed by the Finance Secretary and Secretary (Expenditure) has desired that the information relating to occupancy of Govt. Accommodation and the officers/officials HRA (not allotted Govt. accommodation) may be obtained.
  2. The information in the following format has been sought for by the Ministry.
Group Total number of employees Number of Officers/Officials residing in Government accommodation Number of Officers/Officials drawing HRA
A
B
C
Total
  1. It is therefore, requested that the information on the format in respect of officers and staff working in your organization (including sub offices under your jurisdiction) may please be furnished on the E-mail anIII.cgda@nic.in by 03.03.2017 to enable their HQrs. Office to render the compiled report to the Ministry.

Please accord top most priority.

(Mustaq Ahmad)
Dy.CGDA (AN)

Signed Copy

Be the first to comment - What do you think?  Posted by admin - March 4, 2017 at 6:27 pm

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Retention of the rates of HRA and date of effect of allowances should be from 1st January 2016 and revision of rates of Transport allowances, OTA and NDA apart from retention of many of the allowances

Cabinet Decision on 7th CPC Allowances only after 11th March 2017

“Retention of the rates of HRA and date of effect of allowances should be from 1st January 2016 and revision of rates of Transport allowances, OTA and NDA apart from retention of many of the allowances – COC Karnataka”.

Allowances

Comrades,
The media is debating that the allowances committee headed by Shri Ashok Lavasa Finance Secretary has submitted its report to the Hon’ble Finance Minister Arun Jaitleyji on 22nd or not. Comrades as you aware that this committee period has expired on 22nd February 2017, the question is that even if it has submitted its report to the Hon’ble Finance Minister Arun Jaitleyji it is confidential document all media creation on the HRA rates are not be believed, the actual truth will be known only after the assembly elections results of five states which will be declared on March 11.

The past experience is that even if the committee decides positively the union cabinet had turn down the recommendations of the committee, hence speculation is not correct, only after the union cabinet approves the recommendations of the committee, the new orders is issued.

The main demands of the CG employees is retention of the rates of HRA and date of effect of allowances should be from 1st January 2016 and revision of rates of Transport allowances, OTA and NDA apart from retention of many of the allowances.

Comrades instead of speculation it would be better we focus on the 16th March 2017 strike, which would put pressure on the Central Government to yield to our charter of demands.

Comradely yours
(P.S.Prasad)
General Secretary

Source: http://karnatakacoc.blogspot.in/

Be the first to comment - What do you think?  Posted by admin - February 28, 2017 at 9:59 am

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Central Government employees two greatest expectations from the Allowance Committee report…!

Central Government employees two greatest expectations from the Allowance Committee report…!

“Answers have not yet been found for the two big questions that are troubling the Central Government employees over the Allowance Committee report.”

Reports continue to pour in that the committee on allowances constituted under the chairmanship of Finance Secretary Ashok Lavasa is all set to submit its revision report on the recommendations given by the Seventh Pay Commission on the allowances that are being given to the Central Government employees.

There are no confirmed reports of the exact date on which the report would be submitted. The information available now come from unconfirmed and unauthorized sources. The news media claimed that the NJCA leaders were going to meet Finance Secretary Ashok Lavasa today. The federation has not yet given any confirmed information.

Nearly 50 percent of the salary increment has not yet been given to the Central Government employees. Only the Basic Pay have been revised; all the other allowances, including the HRA, continue to remain the same and are being calculated as per the 6th CPC.

The Central Government had, on 25.07.2016, published authorized Notification declaring that the recommendations of the Seventh Pay Commission are going to be implemented. Only the revised pay is being given from August onwards. Only the salary arrears are due from January 01.01.2016 onwards are being issued.

House Rent Allowance (HRA) is a very important allowance being given to Central Government employees. For the past 10 years, HRA for Central Government employees is being calculated on the basis of the population of the town or city where they are employed. The towns and cities are classified as X, Y, and Z, based on the population, and a HRA of 30, 20, and 10 percent respectively are given to them. The Seventh Pay Commission had reduced it to 24, 16, and eight percent.

Normally, the allowances are calculated from the day when the new Pay Commission recommendations get implemented.

Here are the answers to the two questions that keep troubling the Central Government employees:

1. What percentage of HRA has the Allowance Committee report recommended?

2. From which will the revised HRA be implemented, or, will it be given retrospective effect?

Source: 90paisa.blogspot.in

Be the first to comment - What do you think?  Posted by admin - February 23, 2017 at 10:58 pm

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Seventh Pay Commission: Talks On Allowance Today, Report Likely Soon

Seventh Pay Commission: Talks On Allowance Today, Report Likely Soon

The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension but its suggestions relating to allowances were referred to the committee.

The panel headed by Finance Secretary Ashok Lavasa to review Seventh Pay Commission allowances is expected to soon submit its report to the government. Shiv Gopal Mishra, the convenor of National Joint Council of Action (NJCA), a joint body of unions representing central government employees, said talks in this matter are in the final leg. The employee union body will be meeting the panel members today on the issue of Housing Rent Allowance or HRA related to Seventh Pay Commission.

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

The committee on allowances was initially given a time of four months to submit its report to the finance minister. Till a final decision is taken, all existing allowances are being paid at the Sixth Pay Commission rates.
The Seventh Pay Commission had recommended that HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new Basic Pay, depending on type of cities.

The Seventh Pay Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent respectively when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent.

Typically, in case of housing allowance, arrears are not paid.

Allowances form a significant chunk of government employees’ salary. Some analysts had earlier said that implementation of the housing allowance portion of the Seventh Pay Commission as well as GST or Goods and Services Tax could push up average inflation.

“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 had said in an earlier report.

The Cabinet had also decided to constitute two separate committees to suggest measures for streamlining the implementation of National Pension System (NPS) and to look into anomalies likely to arise out of implementation of the Commission’s Report.

Source: NDTV

Be the first to comment - What do you think?  Posted by admin - February 22, 2017 at 2:00 pm

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7th Pay Commission: Government all set to clear revised allowances for central staff from April 1

7th Pay Commission: Government all set to clear revised allowances for central staff from April 1

The 7th Central Pay Commission (CPC) recommended HRA of 24% of the basic pay for those cities with population over 5 million.

New Delhi, Feb 18: The Union Government is all set to clear revised allowances for the central government staff, precisely after a year of the implementation of the 7th Pay Commission. As per reports, one year after the implementation of the new pay and pension scheme, as recommended by the 7th central pay commission, the central government employees might have something to rejoice about after the assembly elections in 5 states are over. Reportedly, the revised allowances are likely to be effective from April 1. (ALSO READ: Committee on Allowances likely to raise HRA to 30 per cent)

House rent allowances (HRA) accounts for about 60% of the total allowances bill, as The Financial Express stated and according to the revised allowance scheme, the employees, mostly in the metropolitan cities are expected to receive greater HRA than the 7th Pay Commission actually recommended. The 7th Central Pay Commission (CPC) recommended HRA of 24% of the basic pay for those cities with a population over 5 million. But the revised HRA which is being looked at by the Finance Secretary-led panel is 30%. Notably, in the 6th Pay Commission, the HRA was at 30% as well for the cities with more than 5 million people. A draft of the cabinet note for implementation of the revised allowance is expected to be circulated soon.

As per reports, the financial implication of these revised allowances will be in line with the Central Pay Commission’s estimate of around Rs. 29,300 crores, which shall also include the railways, in the first year. The panel led by the Finance secretary is also reviewing the CPC’s recommendation regarding allowances. The pay panel has also recommended scrapping of 52 benefits while merging 36 already existing benefits.

Notably, there has been only an additional allocation of Rs. 4,500 crore in the Budget for allowances and it has been assumed that the Railways will bear Rs 7,600 crore of expenditure. But as per sources stated by FE, still, the additional allocation which will be required from the General Budget could be somewhere around Rs. 17,000 crores.

The Government has, reportedly, enough leg space, thanks to the demonetisation move and the extra taxes the people had to pay under the income disclosure schemes. But according to experts, the Budget assumptions were based on optimistic estimates of nominal GDP growth for financial year 17 (FY17) and thus for FY18.

Many have been complaining about the delay in the decision of allowances to the government employees, with some claiming the formation of the panel led by the Finance Secretary as a delaying tactic itself. But this has helped to boost the spending of the government in various programmes by around Rs. 36,000 crores in FY17.

Be the first to comment - What do you think?  Posted by admin - February 20, 2017 at 6:09 pm

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Allowance Committee may submit its report on 20th February 2017

Allowance Committee may submit its report on 20th February 2017

Federation Leaders associated with National Council JCM are keep telling that Allowance Committee might submit its report on 20th February 2017. The CG Staff are already very much upset over the Government’s deliberate attempt to delay the payment of Allowances by constituting many committees. Because the payment of revised Allowances is considered will impact the Governments Exchequers.

Lot of Committees formed and Meetings held after the Notification issued for implementation of 7th CPC Recommendations. But there is no any fruitful outcome from these meetings. No sign of making decisions which satisfy the Central government employees.

Had the Allowance like HRA is paid in revised rates from the date of Notification ie 25th July 2016, it seems more beneficial than waiting for the subcommittee reports. Because if revised allowances are not given retrospective effect, it will be a huge loss for Central Government Servants.

Reports suggests that the Allowance Committee may submit its report on 20th February 2017 and it will be notified with effect from 1st April 2017. Federation sources told that It is unacceptable and we will fight it out until the revised allowances implemented with effect from 1.1.2016

Be the first to comment - What do you think?  Posted by admin - February 18, 2017 at 6:11 pm

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Arrears on Allowances including HRA and Transport Allowance is going to be rejected – Confederation

Confederation: Arrears on Allowances including HRA and Transport Allowance is going to be rejected

ARREARS ON ALLOWANCES INCLUDING HRA AND TRANSPORT ALLOWANCE IS GOING TO BE REJECTED:

Now it has become clear that the Government has constituted the Allowance Committee headed by Finance Secretary, mainly to delay the implementation of enhanced allowances and finally deny the arrears by implementing the revised allowance either from 01-01-2017 or from 01-04-2017. The four months time fixed for the Allowance Committee is already extended to six months upto 22-02-2017. Reserve Bank Governor, Dr. Urjit Patel had hinted to the media that the burden of payment of arrears during this financial year will not be there, meaning that Government may not give retrospective effect to the revised allowances. The RBI Governor, Dr. Urjit Patel made the following observations, which is published in the RBI website.

“The extension of two months given to the Ministry of Finance to receive the notification on higher allowances under the Pay Commission’s award could push its fuller effect into the next financial year rather than this financial year”.

Further, the Allowance Committee has not held any negotiation with the JCM Staff Side. It just heard the views of the staff side. The request of the JCM staff side to hold one more meeting with staff side NJCM was not favourably considered by the Finance Secretary, who is the Chairman of the Allowance Committee. No indication is given as to whether the percentage of HRA recommended by 7th CPC will be enhanced to 30%, 20% and 10%. The fate of other allowances are also the same. Unless NJCA take a firm stand and negotiate with the Government by reviving the indefinite strike, the employees will be placed in a desperate and helpless situation, if Government is allowed to unilaterally declare the HRA and other allowances, without retrospective effect from 01-01-2016, and also without much modification, thereby denying crores of rupees as arrears.

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

Be the first to comment - What do you think?  Posted by admin - at 5:40 pm

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New Income Tax Rates And Deductions Applicable From April 1, 2017

New Income Tax Rates And Deductions Applicable From April 1, 2017

With some tinkering in the income tax rates for 2017-18, Finance Minister Arun Jaitley reduced the tax rate for income between Rs. 2.5 lakh and Rs. 5 lakh to 5 per cent in the Union Budget, while adding a surcharge of 10 per cent on tax for income between Rs. 50 lakh and Rs. 1 crore.

Although the basic income tax exemption limit remains the same at Rs. 2.5 lakh, there are many exemptions available in the Income Tax Act, which can substantially reduce your tax liability.

One needs to plan from the beginning of the next financial year to take maximum benefit of the income tax deductions available.

Here are the new income tax slabs for taxpayers:

General category Senior citizens Super senior citizens
(Up to 60 years of age) (60-80 years) (Above 80 years)
Income Tax Income Tax Income Tax
Up to Rs. 2.5 lakh Nil Up to Rs. 3 lakh Nil Up to Rs. 5 lakh Nil
Rs. 2,50,001-Rs. 5 lakh 5% Rs. 3,00,001-Rs. 5 lakh 5% Rs. 5,00,001-Rs. 10 lakh 20%
Rs. 500,001-Rs. 10 lakh 20% Rs. 5,00,001-Rs. 10 lakh 20% Above Rs. 10 lakh 30%
Above Rs. 10 lakh 30% Above Rs. 10 lakh 30%
# Surcharge of 10% for income between Rs. 50 lakh and Rs. 1 crore
# Surcharge of 15% for income above Rs. 1 crore
# Rebate of up to Rs. 2,500 for taxable salary up to Rs. 3.5 lakh
# Education and higher education cess of 3%

Here are the some of the deductions available for FY2017-18: 

House Rent Allowance under Section 10 (13A) of the Income Tax Act

House Rent Allowance, commonly known as HRA, makes up a major chunk of a salaried individual’s total pay. HRA is partly exempted from tax. If you are staying in your own house or not paying any rent, your HRA will be completely taxable. However, those who stay with their parents can also claim HRA benefits by paying rent to their parents.

The amount which is allowed for exemption under HRA is calculated as minimum of:

1) Rent paid annually minus 10 per cent of basic salary plus dearness allowance

2) Actual HRA received

3) 40 per cent of basic and dearness allowance (50 per cent in case of metro cities)

Deductions under Section 80C

Section 80C of the Income Tax Act provides various provisions under which an individual can get deduction benefits up to Rs. 1.5 lakh. Employees’ Provident Fund (EPF), Public Provident Fund (PPF), Sukanya Samriddhi Account, National Savings Certificate and tax-saving fixed deposits are some of the investment options that offer benefits under Section 80C. The premium paid for life insurance plans, National Pension Scheme (NPS) and tax-saving mutual funds (ELSS) also qualify for deduction under Section 80C.

Further, one can claim tuition fees paid for up to two children, principal repayment on home loan, stamp duty and registration cost on the house bought as deduction under Section 80C.

Deductions under Section 80CCD(1B)

Introduced in Budget 2015-16, Section 80CCD (1B) provides deduction up to Rs. 50,000 for investment in NPS Tier 1 account. This deduction is over and above the deduction available in Section 80C. An individual in 30 per cent tax bracket can save up to Rs. 15,450 of tax by investing Rs. 50,000 in NPS.

Deduction of interest on housing loan (Section 24B)

Buying a house is among several other things an individual wants to do during his or her lifetime. The income tax rules also incentivise the same. Under Section 24B of the Income Tax Act, interest paid up to Rs. 2 lakh on housing loan and up to Rs. 30,000 on home improvement loan is allowable as deduction from your taxable income.

The government has however cut down tax benefits borrowers enjoyed on properties let out on rent. As per current tax laws, for properties rented out, a borrower could deduct the entire interest paid on home loan after adjusting for the rental income. On the other hand, borrowers of self-occupied properties get Rs. 2 lakh deduction on interest repayment on home loan.

However, according to the proposed change in Budget 2017, on rented properties, the borrower can only claim deduction of up to Rs. 2 lakh per year after adjusting for the rental income. And the amount above Rs. 2 lakh can be carried forward for eight assessment years.

Since the interest component of home loan repaid in initial years is higher, experts say that the borrower may not be able to fully adjust the interest paid as deduction even in subsequent years.

Deduction under Section 80EE

Under Section 80EE, an additional deduction of Rs. 50,000 is available over and above the limit of Section 24B on interest paid on home loans if the person is buying a house for the first time (the person must not own any other residential property on the date of sanction of loan). However, to avail the benefit of this section the value of the property must be below Rs. 50 lakh and the loan amount should not exceed Rs. 35 lakh. Further, the property must be bought after April 1, 2016.
Deduction under Section 80D

Premium paid for medical/health insurance for self, spouse, children and parents qualify for deduction under this Section. On can claim deduction of Rs. 25,000, if he is below 60 years of age, and Rs. 30,000 if he is above 60 years of age, towards medical insurance premium paid for self, spouse and children. Further, additional deduction of Rs. 25,000 is available if one has bought medical insurance for his parents. This deduction can go up to Rs. 30,000 if parents are above the age of 60 years.
Deduction under Section 80DD

If a tax payer has dependent parents, spouse, children or siblings who are differently-abled, then he can claim deductions up to Rs. 75,000 for expenses on their maintenance and medical treatment under this section. This deduction can increase to Rs. 1.25 lakh in case of severe disability.
Deduction under Section 80DDB

Under this section, one can claim deduction of Rs. 40,000 for treatment of certain diseases for self and dependents. The deduction can go up to Rs. 60,000 if the tax payer is above 60 years of age and if he is above 80 years of age, then the deduction amount is up to Rs. 80,000.
Deduction under Section 80E

According to the provisions of Section 80E, a taxpayer can claim deduction for interest paid on education loan for him, spouse or children. There is no upper limit on the amount of deduction. However, the loan must have been taken from a financial institutional or approved charitable institution and for full-time higher education.

Source: NDTV

Be the first to comment - What do you think?  Posted by admin - February 13, 2017 at 12:47 pm

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Grant of House Rent Allowances at Chandigarh rates to Central Government Employees Posted

No.2/2/2016-E.II(B)
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, 3rd February, 2017

OFFICE MEMORANDUM

Subject: Regarding grant of House Rent Allowances at Chandigarh rates to Central Government Employees Posted at S.A.S. Nagar Mohali.

The undersigned is directed to refer to this Department’s O.M.No.2(37)/E.II(B)/93 dated 13.10.1993 regarding grant of House Rent Allowances (HRA) to the Central Government Employees posted within the limits of the Notified Areas of S.A.S.Nagar Mohali at par with Chandigarh.

2. References have been received from various Ministries/Departments regarding the rates of HRA admissible at S.A.S.Nagar Mohali. The matter has been considered and it has been decided with the approval of the competent authority that the special dispensation allowed to S.A.S.Nagar Mohali for grant of HRA at par with Chandigarh allowed vide the O.M. dated 13.10.1993, shall continue to be admissible further.

3. Hindi version is attached.

sd/-
(A.Bandyopadhyay)
Under Secretary to the Government of India

Authority: http://finmin.nic.in/

Be the first to comment - What do you think?  Posted by admin - February 7, 2017 at 7:06 am

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