Posts Tagged ‘HRA’

Budget 2017 – Expectations of the Salaried Class

Budget 2017 – Expectations of the Salaried Class

With the Union Budget 2017 just a couple of weeks away, there are expectations that the government will take some measures to help the common man, especially the salaried class, who has rallied behind the government’s decision on demonetization despite suffering a lot post the note ban.

Experts are also of the view that the upcoming Budget 2017 should provide some tax gain for the common people to soothe at least the cash ban pain.

Otherwise also, “there are only a few tax concessions available to individual tax payers. Most of the current set of tax benefits like medical reimbursement, conveyance allowance etc., at the present level, do not offer any real economic benefit to the individual tax payers.

Instead they only add to the administrative burden for the employers as claims made by the employees have to be reviewed and processed by them,” says Vikas Vasal, National Leader-Tax, Grant Thornton India LLP.

Thus, either these tax benefits should be substantially increased or they should be done away with and instead a special tax benefit like the erstwhile standard deduction be introduced. “This would simplify the tax law, reduce administrative burden and curtail unnecessary litigation associated with these tax concessions,” suggests Vasal.

In view of the above, here’s what to expect from the Budget 2017 for the salaried class:

1. Tax slab rates should be revised upwards

It is widely expected that there may be some upward revision in the income tax slabs to provide some relief to the common tax payers. What is making people more optimistic is the recent hint from Finance Minister Arun Jaitley himself that income tax slabs could further be increased, lowering the tax burden on taxpayers due to higher revenue being collected on account of cashless systems.

Some people are even expecting that the government should increase the current income tax exemption limit from Rs 2.5 lakh to Rs 4 lakh. However, the common expectation is that the exemption limit be raised from the current Rs 2.50 lakh per annum to Rs 3 lakh, while the subsequent slabs of 10 per cent, 20 per cent and 30 per cent should be applicable to annual income range of above Rs 3 lakh and up to Rs 10 lakh, above Rs 10 lakh and up to Rs 20 lakh and above Rs 20 lakh, respectively. If implemented, this will help alleviate the common man’s sufferings to some extent.

2. Reduction in tax rates

Salaried individuals are always at a loss when it comes to tax rates since they end up paying high amount of taxes when they fall into high salary brackets. Currently anyone who earns more than Rs. 10 lakh per annum pays 30% tax on the amount exceeding Rs. 10 lakh. Thus, he has to forgo a large portion of his income in taxes. Hence, apart from revision in tax slabs, change in tax rates would always be a welcome move.

“The IDS scheme of the government launched last year is expected to add a lot of tax revenues to the government coffers with almost Rs. 75,000 crore declared as black money. Considering a tax rate of 45%, almost Rs. 35,000 will be collected as taxes. These revenues are expected to help the government reduce the tax rates in the coming FY,” informs Vaibhav Sankla, Director, H&R Block India.

3. Higher deduction for interest paid on housing loan

Housing and the real estate sector are facing a lot of hardship. The recent media reports indicate that sales have declined substantially and the sentiment is quite low. It is a fact that the real estate sector is one of the key growth engines for a developing economy like India.

It provides large-scale employment to unskilled and semi-skilled workers in the country, which is a need of the hour, to boost employment opportunities for a large scale population. This sector also impacts a few of the critical sectors like cement, steel, logistics etc., which in turn are important for the overall growth of the GDP.

Also, “keeping in view the government’s agenda of providing housing for all, it is imperative that some tax concessions are provided in the Budget. One such option could be to increase the tax deduction for interest paid on housing loan from Rs 2 lakh to Rs 3 lakh. This will also provide an immediate boost to the banking services sector, which is flush with funds post demonetization and looking at avenues to lend money to the masses,” says Vasal.

Some tax experts also believe that people having a single home need to be allowed to deduct the entire amount paid as interest on home loan. Vaibhav Sankla, for instance, says that currently the home loan interest deduction is capped at Rs. 2 lakh per annum for self-occupied house property and deduction of actual interest paid is allowed for a second home that is given on rent or is deemed rented.

However, “nowadays buying a second home is not very common owing to high property prices. In such cases, home owners possessing a single home need to be allowed to deduct the entire amount paid as interest on home loan. This would be a welcome relief for salaried individuals since they do not have much scope for tax saving and moreover this is an expense-based deduction,” says Sankla.

4. Increase in deduction for insurance premium

The deduction under 80D is currently capped at Rs. 25,000 for self, spouse and dependent children. An additional deduction of Rs. 25,000 is available for parents and Rs. 30,000 if they are senior citizen parents. Hence the total deduction available under this section can go up to Rs. 55,000. A deduction for preventive medical expenses is also available up to Rs. 5,000 spent as a part of the overall deduction.

A deduction for the actual expenses made in this regard on medical insurance premiums will be a welcome move since insurance premiums are very high, especially when it comes to parents. The cap of Rs. 5,000 on preventive health check-up expenses should also be removed in budget 2017. It will help salaried individuals to save huge amounts in taxes.

5. Increase in deduction for education and childcare expenses

Childcare nowadays has become very expensive for parents, especially for those staying in metro cities. The maximum deduction for tuition fees permitted under Section 80C is Rs 1.5 lakh per financial year, with deductions eligible only for two children per assessee. Tuition fees generally constitute a very small portion of the entire education fees for the year. This deduction should be extended to other portions of the fees as well.

“Childcare in big cities also calls for daycare expenses, especially for working parents. The expenses many a time run into more than Rs 1-2 lakh per annum. These expenses should also form a part of deductions under Section 80C. This will provide another expense-based deduction to individuals and be a great move towards providing a deduction aimed at working parents,” says Sankla.

6. Deduction for rent paid where no HRA is paid by the organization

Generally, organisations pay HRA to employees in order to ease the burden of rent and there is an exemption available under the tax laws on HRA. However, there are instances when organisations do not include HRA in the salary components.

When HRA is not paid by the organization, salaried individuals are being allowed a deduction of Rs. 5,000 per month under Section 80GG from FY2016-17. This deduction should be increased to at least Rs. 10,000 for metro cities. This is because rent for a decent accommodation in metro cities has risen to this level and there is a need to increase the deduction so that salaried individuals get the benefit of this deduction.

7. Standard Deduction

There are many deductions/ exemptions like medical reimbursement, conveyable allowance, meal allowances etc. Employees actually incur much more cost and obtain very little tax benefit. To highlight, a family of four members will incur on an average, say, Rs 50,000 plus on general medical ailments. And if the family has senior/ailing households, then this expenditure for general hospital/doctor visits and medicines may be much higher.

Therefore, there is need to take a re-look at all such benefits and increase them substantially in line with the current economic reality. Same is the case with other tax benefits like travel allowance etc. Keeping this in view, there is need for a special tax benefit like the erstwhile standard deduction to be introduced the budget 2017.

Source: FE

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Be the first to comment - What do you think?  Posted by admin - January 17, 2017 at 7:55 am

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Admissibility of HRA in case of residing in Govt Guest House / Transit Facility

Admissibility of HRA in case of residing in Govt. Guest House / Transit Facility – CGDA Orders

CONTROLLER GENERAL OF DEFENCE ACCOUNTS
ULAN BATAR ROAD, PALAM, DELHI CANIT-10

No.AN/XII/18001/1/GH

To
All PCDA,CDA, PCA (FYS) Kolkata

Dated: 5th Jan 2017

Subject: Admissibility of HRA in case of residing in Govt. Guest House / Transit Facility
Reference: HQrs Office Important Circulars Xo.AX/XVIII/1/18001/GH dated 21.11.200 and AN/XIV/14153/III/HRA/CCA/Vol.-X dated 18.03.2011

Comprehensive guidelines have been issued on the subject vide HQrs Office Important Circular dated 21.11.2000, to regulate the stay of officials at Guest Houses/transit accommodations. Further, HQrs Office Circular dated 18.03.2011 clearly stipulates that those occupying Government accommodation are not eligible for HRA and that the officers staying in the Inspection Quarters/Bungalow etc. in the Headquarters of their posting will not be entitled to draw HRA for the penod during which they stay in the Inspection Quarters/Bungalow etc.

2. Despite this, HQrs office is in receipt of reference from PCDA/CDA asking for clarification on the subject matter.

3. It is therefore, reiterated that those residing in Government accommodation be it Inspection Quarter or Transit Facility or Guest House shall not be granted HRA as stipulated vide GOI, Ministry of Communications, in consultation with Ministry of Finance, vide their letter No.14-4/85-NB dated 26.11.1985. Action may be taken accordingly.

(Mustaq Ahmad)

Dy. CGDA (Admin)

Click to view the order

Authority: www.cgda.nic.in

Be the first to comment - What do you think?  Posted by admin - January 10, 2017 at 10:31 am

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Guidelines and instructions in the case of Husband and Wife both working for Central Government

Guidelines and instructions in the case of Husband and Wife both working for Central Government

What are all the regulations, Guidelines and instructions in the case of Husband and Wife both working for Central Government in the situations such as applying for House Building Advance, Medical Attendance Rules, Children Education Allowance, Leave Travel Concession Etc ?

How a married couple is treated in various Central Government service matters when both Husband and Wife are serving in Central Government?

The need to have a clarity on this subject gains much significance because treatment of them could differ in each law as each one would treat them according to the intention of the particular law.

For example, both are entitled to draw HRA even if they work in the same station, and live together but not provided with Government accommodation.

But when comes to Allotment of Quarters maintained by Government, only one residence will be provided to them except in the case of Judicial separation.

This article is a compilation of regulations in various service matters in respect of Husband and Wife when both are Central Government Employees.

HBA can be claimed by either of them. As per Rule 2 of HBA Rules, for the purpose of eligibility based on cost-ceiling of the house to be constructed, pay of both of them can be taken in to account. However, for the purpose of calculating the maximum amount of advance eligible under HBA, only the pay of the employee who prefers to avail HBA can be taken in to account.

Medical Attendance Rules

In non-CGHS areas, central government employees are covered by CS(MA) Rules which provide reimbursement of medical expenses incurred by the Central Government Employees. In the case of Both husband and wife working central government, to avoid double claim for same medical expenses, either Husband or Wife is permitted to make claims for self and entire family. The person who prefers to make claims under Medical Attendance Rules should be clearly mentioned in the joint declaration given by Both Husband and Wife in this regard. In the event of promotion, transfer, retirement, etc this declaration can be revised at any time. In the case of wife prefers to avail this concession for the entire family, she can either choose her parents or parents-in-law as dependents and prefer medical claim for them.

Children Education Allowance

As far as reimbursement of payment of tuition fees and hostel fees are concerned, either Husband or Wife can avail the benefit.
Family Planning Allowance

Either Husband or Wife may prefer to receive Family Planning Allowance. Since FPA is based on pay in pay band and grade pay, it will be beneficial if the employee drawing higher pay prefers to receive the same. In that case, there is no condition specified with regard to the employee who undergone family planning.

Leave Travel Concession

Husband

Wife

  1. His wife,
  2. His two surviving unmarried children or step children wholly dependent on him,
  3. His parents and/or step mother wholly dependent on him, whether or not residing with him and
  4. His unmarried minor brothers as well as unmarried, divorced, abandoned, separated from their husbands or widowed sisters residing with and wholly dependent him, provided their parents are either not alive or are themselves wholly dependent on him
  1. Her wife,
  2. Her two surviving unmarried children or step children wholly dependent on her,
  3. Her parents and/or step mother wholly dependent on her, whether or not residing with her and
  4. Her unmarried minor brothers as well as unmarried, divorced, abandoned, separated from their husbands or widowed sisters residing with and wholly dependent her, provided their parents are either not alive or are themselves wholly dependent on her

The above mentioned provision relating to family members can be separately declared and LTC for those members can be separately claimed by both Husband and Wife, subject to conditions that children will be eligible for the benefit in one particular block as members of the family of one of the parents only and that if husband or wife avails the facility as a member of the family of the other, he or she is not entitled for claiming the concession for self independently.

Travelling Allowance

Travelling Allowance allowed in the event of transfer of one or both of them simultaneously one of the spouses can prefer the claim and the other will be treated as member of family. In such situations only one lumpsum grant can be claimed.

If a husband or wife is transfered after 60 days of transfer of the spouse, but within 6 months, 50% of transfer grant is admissible. However, if both are entitled for reimbursement of cost of travel by personal car, if required they can travel seperatey and claim both of such travel expenses.

Family Pension

Either Husband or Wife is entitled for family pension in addition to own pay or pension, if the spouse dies.

In the case of demise of such husband /wife also, who was receiving family pension for the demise of his/her spouse, the child / children of the deceased parents should be granted two family pensions subject to certain limits prescribed. Please refer to Rule 54 (11), CCS (Pension) Rules in this regard.

House Rent Allowance

HRA will be paid to both husband and wife even if they work in the same station and did not avail Government Quarters. Even if one of them avails the Government residence in the same station where the other spouse is working, he/she will not be entitled for HRA.

Central Government Health Scheme

While both alongwith their family members will be eligible for medical treatement under CGHS, the spouse drawing higher pay will contribute to the Scheme. The scheme does not cover the Parents of the non-contributing employee.

However, women employees can prefer to include her parents-in-law, instead of her parents, in the family for availing CGHS.

If both Husband and Wife prefer to contribute for CGHS, parents of both will be entitled for medical benefits under CGHS.

Allotment of Residence

For the purpose of allotment of residence status of each of Husband and Wife such as designation, pay/grade pay drawn, service experience etc will be considered independently. In other words, higher status of either of two can be taken into account for priority, higher grade of residence etc. In any case both Husband and wife are entitled for allotment of one residence only except in the event of judicial separation.

Transfer norms when Husband and wife are in Government service

Be the first to comment - What do you think?  Posted by admin - January 6, 2017 at 7:36 pm

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HRA should be paid @ 35, 25 and 15% of pay : Agitational Programme to be held from 05.12.2016 to 09.12.2016

Agitational Programme to be held from 05.12.2016 to 09.12.2016
“HRA should be paid @ 35, 25 and 15% of pay”

BHARATIYA PRATIRAKSHA MAZDOOR SANGH
(AN ALL INDIA FEDERATION OF DEFENCE WORKERS)
(AN INDUSTRIAL UNIT OF B.M.S.)
(RECOGNISED BY MINISTRY OF DEFENCE, GOVT. OF INDIA)

REF: BPMS/Cir/17th TC/ 11

Dated: 02.11.2016

To,
The President/General Secretary
Unions Affiliated to the Federation
& Office Bearers & Executive Committee Members
BPMS

Subject: Agitational Programme to be held from 05.12.2016 to 09.12.2016.

Dear Brothers and Sisters,
It is hoped that all of you are well and busy in accelerating trade union activities. Under the banner of Government Employees National Confederation, we continuously demanded for removal of anomalies related to pay fixation, bonus, income tax, recommendations of Pay Commissions but the Governments did not pay any heed to our genuine demands and it is leading discontentment amongst the employees. Therefore, Government Employees National Confederation has decided that all the constituent Federation of GENC will observe an agitation programme throughout the country from 05.12.2016 to 09.12.2016.

Being a constituent of GENC, this federation BPMS has decided that all the affiliated unions will organize agitation programme from 05.12.2016 to 09.12.2016 like Gate Meeting, Slogan Shouting, Dharna etc. On 09.12.2016 a memorandum should be submitted to their respective Heads of the establishment addressed to Hon’ble Prime Minister of India mentioning the following demands:

1. Minimum Pay should be fixed Rs 24,000/- and fitment formula should be 3.42 in place of 2.57.

2. Under MACP Scheme, 05 financial upgradation should be granted in promotional hierarchy in the service of 30 years.

3. Annual Increment should be @ 5% in place of 3%.

4. The Benchmark ‘very good’ should be abolished for granting of promotion, financial upgradation and annual increment.

5. The Grade pay of Group ‘C’ Rs 1900/- and Rs 2000/- should be merged and upgraded to Rs 2400/-.

6. HRA should be paid @ 35, 25 and 15% of pay.

7. New Pension Scheme should be scraped.

8. FDI should be scraped in Defence and Railway.

9. Bonus should be calculated on Rs 18,000/- in place of 7,000/- because minimum pay has been enhanced from 7,000/- to 18,000/-.

10. Income tax exemption limit (tax free income) should be extended to Rs 8,00,000/-.

11. The wards of employees died in harness should be guaranteed with 100% compassionate ground appointments.

Thanking you

Sincerely yours

(M P SINGH)
General Secretary

Copy to:
1 The General Secretary BMS, New Delhi
2 Shri K.N.Sharma, I/C BPMS, Lucknow For information
3 The Secretary General, GENC, Kanpur

Source: BPMS

Be the first to comment - What do you think?  Posted by admin - November 28, 2016 at 7:40 am

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7th Pay Commission: Higher allowances from January

7th Pay Commission: Higher allowances from January

New Delhi: The central government employees to get their higher allowances under the 7th Pay Commission recommendations from January next, the top Finance Ministry sources told today.

When asked whether the arrears would be paid too, they said, “Higher allowances will be paid with retrospective effect from August 2016 but the central government employees unions demanded for implementation of the allowances with retrospective effect from January 2016.”

“The central government employees unions wanted that House Rent Allowance (HRA) be fixed at range 10, 20 and 30 per cent of the basic linked to the classification of the town of posting when the Pay commission recommended 24%, 16% and 8% respectively of new pay matrix, the union also asked to enhance children education allowance of Rs 3,000 and hostel subsidy of Rs 10,000 with tax exempt.” the sources said.

The union also demanded inclusion of post-graduate and professional courses in children education allowance and to hike the ‘Fixed Medical Allowance’ to Rs 2,000 with Dearness Allowance Indexation,” they added.

The unions put their demands before the Committee on Allowances headed by Finance Secretary Ashok Lavasa, which met last Thursday.

The Union Cabinet cleared the recommendations of 7th Pay Commission in respect of the hike in basic pay and pension on June 29 but decision on its suggestions relating to allowances has been referred to the Committee on allowances as the pay commission had recommended abolition of 51 allowances and subsuming 37 others out of 196 allowances. So, there was resentment among employees over suggestions to scrap some allowances.

Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of Rs 500 and 1,000 banknotes, the Finance Ministry is likely to scale down the the higher allowances proposal.

“As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize and it is likely to implement from January next,” Finance Ministry sources revealed.

Until acceptance of higher allowances, the allowances are now paid according to the 6th Pay Commission recommendations.

TST

Be the first to comment - What do you think?  Posted by admin - November 23, 2016 at 10:14 pm

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Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation

Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation – reg.

NFIR
National Federation of Indian Railwaymen

No.I/5(C)/Pt.I

Dated: 04/11/2016

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub : Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation – reg.

Ref.: (i) NFIR’s PNM item No.40/2012
(ii) NFIR’s letter No. 1/5(c )/Part I dated 22/02/2016, 25/04/2016 & 01/08/2016
(iii) Railway Board’s Letter No.E(P&A)-II/2012/FE2/4 dated 31/10/2016.

With reference to reply received vide Board’s letter dated 31/10/2016, the Federation desires to convey as follows :

(a) NFIR vide agenda item No.40/2012- last para, had demanded that condition mentioned in para 3 in Railway Board’s letter No.E(P&A)II-99/HRA-2 dated 16.03/2000 should be waived off or withdrawn.

(b) Federation also demanded that provision as mentioned in para 2 of the agenda item be made applicable to all categories of railway employees whether they belong to “Essential” or “other than Essential” categories.

It seems, the Railway Board have not examined the above issues with positive mind, taking ground reality into account with regard to availability of railway residential quarters, their condition for human occupation or otherwise. Due to total failure in maintenance of existing railway quarters on Zonal Railways, many quarters became totally outdated, unfit for occupation and overdue for demolition.

The main problem is that when the employee has vacated the quarters, he is denied HRA till the said quarter is physically occupied by another employee. This needs to be addressed.

Yours faithfully,
sd/-
(Dr. M.Raghavaiah)
General Secretary

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - November 8, 2016 at 8:35 am

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Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation

Railway Board circular on HRA when not accepting or surrender of Railway Residential Accommodation

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. E(P&A)-II/2012/F.E.2/4.

The General Secretary,
NFIR,
3, Chelmsford Road,
New Delhi – 110 055.

New Delhi, dated 31/10/2016.

Sub.: Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation – reg.

Ref: 1. NFIR’s letter No. 1/5(c )/Part I dated 22/02/2016.

2. NFIR’s letter No. 1/5(c )/Part I dated 25/04/2016.

I am directed to refer to your letters quoted above. The subject item (No. 40/2012) refers to admissibility of HRA in the event of non-acceptance or surrender of Railway residential accommodation. While this is governed by Railway Board’s letter No. E(P&A)-II/99/HRA-2 dated 16/03/2000; the Federation vide their letter No. 1/5(c) Pt. I dated 09/04/2012 had asked for review of the clause mentioned in Board’s letter ibid that HRA will not be admissible to railway employees for whom railway accommodation is specifically earmarked or to those employees, whose occupation of railway quarters is essential for easy accessibility during emergencies and efficient discharge of their duties etc. (“essential staff”).
2. Subsequently, as recorded in the PNM meeting held on 30-31 January, 2014, it was explained to the Federation that wherever there is a house earmarked the employee cannot be allowed HRA. Federation contended that administration cannot deny HRA when earmarked quarters are not fit for occupation and wanted that a clarification be issued in the matter.

3. The item was further discussed by the Federation with the Board on 15/07/2015 and it was recorded as “As decided in the earlier meeting, a clarification after reviewing the matter is to be issued. Official Side stated that they propose to issue instructions in consultation with Civil Engineering Directorate. Federation stated that while they do not understand the need for a consultation with the Civil Engineering in this case, they requested the clarification be issued quickly. It was agreed to do so. The item to be closed thereafter” .

4. Accordingly, the matter had seen referred to Land & Amenities Dte. who confirmed that instructions were in place (issued vide RB/L&A No. 009/2011 dated 19/09/2011 to all Zonal Railway, PUs etc.) regarding dismantling of condemned/abandoned quarters, and that quarters declared condemned are not made available for allotment.

5. In line with the assurance recorded at para 3 above, letter No. E(P&A)- II/2012/F.E.2/4 dated 12/10/2015 was issued to all Zonal Railway and Production Units etc. that before allotment of Railway quarters, it should be ensured that such quarters are fit for occupation. Copy of this letter was also endorsed to the Federation.

6. It is, therefore, submitted that the letter dated 12/10/2015 referred to had already been issued by the time minutes of the discussions on the item held with NFIR on 8th and 9th October, 2015 were finalized/received and this was also explained in the meeting with NFIR in 18/01/2016. There has, therefore, been no deliberate violation of the assurance given to the Federation.

7. As, in terms of extant instructions, quarters unfit for occupation are not to be allotted, the question of allowing HRA against such allotment does not arise, in general. Any violation of the extant instructions can be taken up with the concerned field formation for appropriate remedial action.

Download Railway Board Circular No.E(P&A)-II/2012/F.E.2/4 dated 31.10.2016

Be the first to comment - What do you think?  Posted by admin - November 5, 2016 at 4:44 pm

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7th CPC HRA : Allowance Committee Meeting Proposal for House Rent Allowance

7th CPC HRA : Allowance Committee Meeting Proposal for House Rent Allowance

7th-CPC-HRA

Sources said that the Allowance Committee Meeting has finalized a proposal on HRA. It will be finalized in the Meeting held on 25th October 2016. It is said that the proposed Meeting under the Chairmanship of DOPT Secretary (P) with the Secretary Staff Side, NC (JCM) is to firm up the view on various allowances pertaining to Department of Personnel & Training.

 

This Meeting is conducted as per the decision of Allowance Committee Meeting held on 1-9-2016. The meeting to finalize the allowances pertaining to DOPT has been scheduled to be held on 25th October 2016.

The Reliable Sources said that the Official Side are in the view of increasing HRA by 1 Stage to reach 30% , 20% and 10% .

 

The pay Commission recommended HRA at the rates initially from 24%, 16%, and 8 % and whenever DA reaches 50% it will be increased to 27%, 18% and 9% and Finally after DA reaches 100% the HRA will be revised to 30% , 20% and 10% for X,Y and Z cities respectively.

 

The NCJCM has demanded in its Memorandum submitted to the 7th Pay Commission that 60%, 40% and 20% HRA to be recommended for X,Y and Z cities.

 

The Pay Commission totally ignored this demand and recommended reduction of rates from Sixth CPC. Since it is Co related with DA , it will be increased after two stages to 30%, 20% and 10% after DA reaches 50% and 100%.

 

The sources said that now it is proposed to start the HRA rates initially from 27%, 18% and 9% and after DA reaches 50% the House Rent Allowance will be revised to 30%, 20% and 10% for X,Y and Z cities respectively.

 

Source : govtstaffnews.in

Be the first to comment - What do you think?  Posted by admin - October 24, 2016 at 8:27 am

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Not Revising HRA as per 7th CPC Recommendation is a big disappointment

Not Revising HRA as per 7th CPC Recommendation is a big disappointment…!

7th Pay Commission submitted its Recommendation in November 2016. House Rent Allowance is one of the very important recommendation expected by CG Employees among the most expected recommendations.

A Govt servant is spending one third of his salary for paying House Rent. Considering these expenses of CG Employees those who are living in big cities, Sixth CPC has recommended 10, 20 and 30% of the Basic pay as HRA. Accordingly, HRA has been paid for the past Eight Years and the Federation Demanded to increase this rates in 7th Pay Commission.

But the Commission in its recommendation reduced these rates to 8,16 and 24%. Though it has been justified with various reasons by 7th CPC, it disappointed the CG employees. Since CG Employees felt that only these reduced rates will be paid for next ten years, their demand to restore the old rates started gaining big support. As a result of this, all the Staff associations and Federations pressurized the Government to increase the rate of HRA and it was included in charter of 7th CPC demands.

Already the Government had wasted six months in the name of Empowered Committee to examine the 7th CPC Recommendations. Until now the report of this committee is not published.

The Cabinet gave its approval for the implementation of 7th CPC recommendations on 29th June 2016. It has been stated in that report that, a committee headed by Secretary, Finance will be Constituted to examine the Allowances and committee is given four-month time to submit its report. Till then the HRA will be paid as per Sixth CPC rates.

Meanwhile, Group of Ministers invited NJCA for a meeting to with draw the Indefinite Strike proposed to commence from 11th July, In that meeting, Increasing the percentage of HRA also discussed. The Government agreed to form a committee to examine the Allowances. It has been described as Government indirectly agreed to increase the HRA.

Implementation of 7th CPC recommendation was ensured by Gazette Notification issued on 25th July 2016. But there was no Change in the recommendation of HRA.

Till now the Central Government employees are wondering that why the Committee has been given four Months’ Time to examine the HRA. As well as the decision to continue the HRA in Sixth CPC is considered as big disappointment.

HRA plays a Major Role in pay hike. So the CG Staff feel that HRA would have been paid in Revised rates from this month onwards. Thereafter paying arrears for the Increased amount in HRA will become inevitable. Because there is no assurance that Revised rates of HRA will be given retrospective effect.

Be the first to comment - What do you think?  Posted by admin - August 18, 2016 at 10:39 am

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Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation

NFIR

No. I/5(C)/Part I

Dated: 01/08/2016

The Secretary (E),
Railway Board,
New Delhi

Dear Sir,

Sub: Admissibility of House Rent Allowance in the event of non-acceptance or surrender of railway residential accommodation-reg.

Ref: (i) NFIR’s PNM Item No. 40/2012.
(ii) Railway Board’s letter No. E(P&A)II-20121/F.E.2/4 dated 12/10/2015.
(iii) NFIR’s letterNo. I/5(c)/Part I dated 22/02/2016 & 25/04/2016.

******

During NFIR’s PNM meeting held with the Railway Board on 19th/20th May 2016 while discussing the subject matter under Item No. 40/2012, it was decided that a clarification in the matter will be issued. In the meeting the Official Side also agreed that the draft letter to be issued to the Railways, PUs etc will be shown to the Federation. Thereafter a period of over two months has passed, unfortunately draft instructions to be issued have not been sent to the GS/NFIR till date.
NFIR, therefore, requests the Railway Board to send draft instructions to the Federation for vetting and early return to enable the Board to issue instructions as per agreement.

Yours faithfully,
(Dr.M. Raghavaiah)

General Secretary

Copy to the Executive Director/PC-I, DFCC Building, Pragati Maidan, Metro Bhavan, Railway Board, New Delhi for information and necessary action please.

Copy to the General Secretaries of affiliated Unions of NFIR.
Media Centre/NFIR.
File No.40/2012 (PNM).

NFIR

Be the first to comment - What do you think?  Posted by admin - August 2, 2016 at 4:51 pm

Categories: Railways   Tags: , , ,

7th Pay Commission HRA & other allowances need be revised at the earliest – Confederation

7th Pay Commission HRA & other allowances need be revised at the earliest – Confederation

Confederation of Central Government Employees and Workers Karnataka State

The date of effect of allowances

Comrades,

The Central Government employees are always be cheated in respect of date of implementation of allowances especially on HRA , from past twenty years it is observed that these allowances are issued from a later date in 5th CPC case it was issued after 20 months , in case of 6th CPC it was issued after 32 months , in 7th CPC we hoped it will be issued in 7 months , but it was not the case , now it is likely to be issued only after 12 months . There by causing financial loss to the employees, the cost of living index is going up every month, but the allowances especially the HRA is not issued from the date of effect of the pay commission.

The following are the facts :

The Fifth Central Pay Commission was set up by the Government of India by Resolution No. 5(12)/E. III/93 dated 9th April, 1994. The Commission submitted on the 30th January, 1997. The revised allowances, other than dearness allowance, was effective from 1st day of August, 1997 instead of 1st January 1996.

 

The Government constituted the Sixth Central Pay Commission vide Resolution No. 5/2/2006-E.III(A) dated October 5, 2006. and Gazette Notification for implementation of 6th CPC was issued on 29th August 2008, all allowances were issued effective from 1st August 2008 instead of 1st January 2006.

In a resolution dated 28th February, 2014, Government of India has appointed the Seventh Central Pay Commission. The Gazette Notification for implementation of 7th CPC was issued on 25th July 2016 (without allowances) , all allowances are likely to be issued from 1st December 2016 instead of instead of 1st January 2016 after a committee headed by the Finance Secretary gives its report .

The present HRA and other allowances as per 6th CPC is totally insufficient, the cost of housing has gone up drastically and cost of living has gone up hence urgent need to revise the HRA and other allowances , we hope the Government to review the allowances at the earliest, so that the Central Government employees will get the enhanced allowances especially HRA from 1st July 2016 as per earlier practices.

Comradely yours

(P.S.Prasad)
General Secretary

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

Be the first to comment - What do you think?  Posted by admin - July 29, 2016 at 9:32 am

Categories: 7CPC, HRA   Tags: , , , , ,

Status of HRA and TA in 7th CPC Salary

Status of HRA and TA in 7th CPC Salary

The Government has decided to Constitute a committee to examine the 7th CPC Allowances. We cannot assume anything about the rates of Allowances until the Committee submit its report on Allowances.

Mainly the HRA and TA are one of the Main component of Salary.

So the government employees are disheartened by the Government decision to take time to decide on these allowances.

Already it has been reported that 7th CPC will be implemented in a staggered manner.

Now it is clear that, if the 7th Pay Commission come into force with immediate effect after publication of Gazette Notification, the HRA and TA will be paid at Sixth CPC rates in pre revised Scale. It means the amount of HRA and TA paid in Sixth CPC will continue for next few months. The Central staffs will be paid all the allowances in pre revised Scale up to the Committee decides on Allowances. It will take more than four months for Government to decide on HRA and TA.

So actual increase on account of 7th pay commission implementation will be 14.29 percent over Sixth CPC Basic + 125% DA. The increase in Basic Pay only will be reflecting in 7th CPC salary .

Nobody can say that 7th CPC gives 23.45% increase in Pay and Allowance for CG employees at least for some time.

Be the first to comment - What do you think?  Posted by admin - July 2, 2016 at 10:21 pm

Categories: 7CPC, Allowance, HRA   Tags: , , , , , ,

House Rent Allowance (HRA) Calculations after implementation of 7th CPC

House Rent Allowance (HRA) Calculations after implementation of 7th CPC

 The Union Cabinet finally cleared the 7th Central Pay Commission for implementation on the 29th of July 2016. The Report which recommended a hike in salaries and pension for employees and pensioners, will be implemented from 1st January 2016. After taking into account dearness allowance at the prevailing rate, the salary, pension to all central government employees and pensioners will increase by at least 14.29 % as on January 2016, and could go up to 23 % in upper categories.

 

 The union cabinet approved the recommendations of the 7th CPC on pay and pension but proposals for allowances was deferred and announced a committee under the finance secretary. The committee will analyse the allowances to be implemented or scraped. So the allowances like HRA, TA etc. will continue at existing rates for now.

 

 Regarding the HRA at present, it is 30 % for class X cities, 20% for Y cities, and 10% for Z class cities. However, in the 7th CPC report it was recommended that the HRA should paid at the rate of 24%, 16% and 8% of the new basic pay for X, Y and Z category of cities respectively. The commission had recommended a rise in HRA when the DA crosses 50% to 27%, 18% and 9% and further increase to 30%, 20% and 10% when the DA crosses 100%.

 

 Now the allowances including HRA will be kept under the newly formed committee, there will be a huge confusion when calculating allowances including the HRA. On what basis will the HRA be calculated if the new recommendations are implemented?

 

 For example,

6th CPC Pay in the pay band Grade Pay Basic Pay HRA @30% 7th CPC Basic pay HRA @ 24%
Rs.13690 Rs.4200 Rs.17890 Rs.5367 Rs.46200 Rs.11088
Rs.10000 Rs.2000 Rs.12000 Rs.3600 Rs.30840 Rs.7464

 

Let us wait and see for the government orders regarding the calculations!!!!

Be the first to comment - What do you think?  Posted by admin - at 8:34 am

Categories: 7CPC, HRA   Tags: , , , , ,

Percentage of HRA in 7th pay commission after cabinet approval

Percentage of HRA in 7th pay commission after cabinet approval

 

The Pay commission has recommended HRA should be rationalized by using the factor 0.8 which is used for rationalising the percentage based allowances. The 7th CPC recommended 24 percent, 16 percent and 8 percent of the Basic Pay for Class X, Y and Z cities respectively. The Commission also recommended that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

 

The cabinet committee reviewed the recommendations on Allowances and they are not able to give a decision over the Allowances. Hence the Union Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. And it is said that the Committee will complete its work in a time bound manner and submit its reports within a period of 4 months.

 

In the press release issued by government said the following

 

” The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances. The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.”

 

Since the House Rent Allowance also listed among one of these 196 Allowances, the status HRA is not clear now. The existing rates of HRA is 30%, 20% and 10% for class X, Y and Z respectively. Whether these existing rates of HRA will be paid based on revised pay or pre revised pay..? It needs to be clarified when implementation of 7th pay commission is in process.

 

Source: http://www.gservants.com/

Be the first to comment - What do you think?  Posted by admin - June 30, 2016 at 10:34 am

Categories: 7CPC, HRA   Tags: , , , ,

Comparison of 7th Pay Commission and 6th CPC Pay excluding HRA

NFIR has compared 7th Pay Commission pay and 6th CPC pay excluding revision in HRA. It has concluded that at lower levels only marginal increase in pay has been provided by 7th Pay Commission and that for certain levels no increase or negative increase in pay has been recommended by 7th Pay Commission

Comparison of 7th Pay Commission and 6th CPC Pay excluding HRA – NFIR provides data that shows that increase in pay by way of revision pay proposed by 7th pay commission from the Level 1 to 6 is marginal and from Level 7 there is no increase

During  discussions  with the Hon’ble  MR and the Board (CRB,  FC,  MS) on 23rd December 2015, the NFIR  General Secretary  has expressed that there is all-round  unhappiness on 7th CPC recommendations as in many cases the ‘Take  Home Pay’  is either very marginal  or less than  what  is  received  by the  employee  now.

The  Federation  also  disputed  the estimated financial  implications  (Rs.28,500 crores)  and said that the estimated  expenditure  has been exaggerated.  It was also brought to the notice of the MR the retrograde recommendations  of 7th CPC,  while the case of Railway employees  of various categories  was not dealt adequately and the Railway  Ministry  has unfortunately  not apprised the inadequacies of Grades Pay and Pay Band of 6th CPC to the Chairman,  7th CPC.

TableII  indicates  6th  CPC minimum pay in GP+  Pay Band without  HRA.

Table-II  (a)  gives 7th CPC  minimum  pay  without   HRA  (staff  in occupation   of Railway quarters are not entitled for HRA).

[A comparison  of Table-II with Table-II (a) shows minus  ‘Take  Home Pay’   for employees of Level- I  to Level-6 of Pay Matrix and equally  marginal  increase to those  in Level-7,  8 & 9 of Pay Matrix. Again  in Level- 10 the ‘Take  Home  Pay’  will be less than the present amount. Overall position  will be either “minus” or “marginal increase”.  The Income Tax deduction would further worsen.]

TABLE- II VI th CPC pay at the minimum of the Pay bands without HRA as on 01/01/2016

Pay Band

GP

PAY

DA

HRA

TR/ALL

GROSS

PF

PTAX

CGIS

DED

NET

PB-I

5200-20200

1800

7000

8750

0

1350

17100

840

150

30

1020

16080

PB-I

5200-20200

1900

7730

9663

0

1350

20643

928

200

30

1158

19485

PB-1

5200-20200

2000

8460

10575

0

3600

24635

1015

200

30

1245

23390

PB-I

5200-20200

2400

9910

12388

0

3600

28298

1189

200

30

1419

26878

PB-I

5200-20200

2800

11360

14200

0

3600

31960

1363

200

30

1593

30367

PB-11

9300-34800

4200

13500

16875

0

3600

33975

1620

,200

30

1850

32125

PB-Il

9300-34800

.   4600

17140

21425

0

3600

42165

2057

200

30

2287

39878

PB-Il

9300-34800

4800

18150

22688

0

3600

44438

2178

200

60

2438

42000

PB-Il

9300-34800

5400

20280

25350

0

7200

52830

2434

200

60

2694

50136

PB-Ill

15600-39100

5400

21000

26250

0

7200

54450

2520

200

120

2840

51610

PB-I11

15600-39100

6600

25350

31688

0

7200

64238

3042

200

120

3362

60876

PB-111

15600-39100

7600

29500

36875

0

7200

73575

3540

200

120

3860

69715

TABLE-II (a) VII th CPC pay at the minimum of the level without HRA as on 01/01/2016

LEVEL

PAY

DA

HRA

TR/ALL

GROSS

PF

PTAX

CGIS

DED

NET

GROSS DIFF

NET DIFF

1

18000

0

0

1350

19350

2160

200

1500

3860

15490

2250

-590

2

19900

0

0

1350

21250

2388

200

1500

4088

17162

608

-2323

3

21700

0

0

3600

25300

2604

200

1500

4304

20996

665

-2394

4

25500

0

0

3600

29100

3060

200

1500

4760

24340

803

-2538

5

29200

0

0

3600

32800

3504

200

1500

5204

27596

840

-2771

6

35400

0

0

3600

39000

4248

200

2500

6948

32052

5025

-73

7

44900

0

0

3600

48500

5388

200

2500

8088

40412

6335

534

8

47600

0

0

3600

51200

5712

200

2500

8412

42788

6763

789

9

53100

0

0

7200

60300

6372

200

2500

9072

51228

7470

1092

10

56100

0

0

7200

63300

6732

200

5000

11932

51368

8850

-242

11

67700 –

0

0

7200

74900

8124

200

5000

13324

61576

10663

700

12

78800

0

0

7200

–   86000

9456

200

5000

14656

71344

12425

1629

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - May 30, 2016 at 7:32 pm

Categories: 6CPC, 7CPC   Tags: , , , , , , ,

NFIR compares 7th pay commission pay matrix and 6th pay commission pay

NFIR compares 7th pay commission pay matrix and 6th pay commission pay

NFIR compares 7th pay commission pay matrix and 6th pay commission pay including HRA – NFIR concludes that net benefit is marginal at Level-1, and minus  at Level–2. When taking income tax deduction in to account pay increase at higher levels will also be minimal During  discussions  with the Hon’ble  MR and the Board (CRB,  FC,  MS) on …

NFIR compares 7th pay commission pay matrix and 6th pay commission pay including HRA – NFIR concludes that net benefit is marginal at Level-1, and minus  at Level–2. When taking income tax deduction in to account pay increase at higher levels will also be minimal

During  discussions  with the Hon’ble  MR and the Board (CRB,  FC,  MS) on 23rd December 2015, the NFIR  General Secretary  has expressed that there is all-round  unhappiness on 7th CPC recommendations as in many cases the ‘Take  Home Pay’  is either very marginal  or less than  what  is  received  by the  employee  now.

The  Federation  also  disputed  the estimated financial  implications  (Rs.28,500 crores)  and said that the estimated  expenditure  has been exaggerated.  It was also brought to the notice of the MR the retrograde recommendations  of 7th CPC,  while the case of Railway employees  of various categories  was not dealt adequately and the Railway  Ministry  has unfortunately  not apprised the inadequacies of Grades Pay and Pay Band of 6th CPC to the Chairman,  7th CPC.

As  desired  vide  note  dated  23/12/2015,  the  Federation   furnishes  the  following  details  as Annexures to this letter.

(a) Table I   gives   the  position   of  6th   CPC   minimum   pay   in  Pay  Band   &  Grade   Pay (PB-I   to PB-3) as on 01/01/2016.

(b) Table-I  (a) explains  the 7th CPC minimum pay from Level-1 to Level-12  of the Pay Matrix . A comparison  of Table-I  with Table-I (a)  reveals that the net benefit is marginal at Level-1, minus  at Level2.

However,  there  may be substantial  increase   from Level- 7  and above.  If Income Tax deduction  takes place, the increase will fall.

6th And 7th CPC Pay Comparison Table

TABLE-1                                               VI th CPC pay at the minimum of the Pay bands as on 01/01/2016

GP PAY DA HRA TR/ALL GROSS PF PTAX CGIS DED NET
PB-I 5200-20200 1800 7000 8750 2100 1350 19200 840 150 30 1020 18180
PB-I 5200-20200 1900 7730 9663 2319 1350 21062 928 200 30 1158 19904
PB-I 5200-20200 2000 8460 10575 2538 3600 25173 1015 200 30 1245 23928
PB-1 5200-20200 2400 9910 12388 2973 3600 28871 1189 200 30 1419 27451
PB-II 9300-34800 4200 13500 16875 4050 3600 38025 1620 200 30 1850 36175
PB-II 9300-34800 4600 17140 21425 5142 3600 47307 2057 200 30 2287 45020
PB-II 9300-34800 4800 18150 22688 5445 3600 49883 2178 200 60 2438 47445
PB-II 9300-34800 5400 20280 25350 6084 7200 58914 2434 200 60 2694 56220
PB-III 15600-39100 5400 21000 26250 6300 7200 60750 2520 200 120 2840 57910
PB-III 15600-39100 6600 25350 31688 7605 7200 71843 3042 200 120 3362 68481
PB-III 15600-39100 7600 29500 36875 8850 7200 82425 3540 200 120 3860 78565

TABLE-

(a) VIIth CPC pay at the minimum of the Pay Matrix level as on 01/01/2016

LEVEL I PAY DA HRA TR/ALL GROSS PF PTAX CGIS DED NET GROSS DIFF NET DIFF
1 18000 0 4320 1350 23670 2160 200 1500 3860 19810 4470 1630
2 19900 0 4776 1350 26026 2388 200 1500 4088 21938 2715 -216
3 21700 0 5208 3600 30508 2604 200 1500 4304 26204 5335 2276
4 25500 0 6120 3600 35220 3060 200 1500 4760 30460 6350 3009
5 29200 0 7008 3600 39808 3504 200 1500 5204 34604 7240 3629
6 35400 0 8496 3600 47496 4248 200 2500 6948 40548 9471 4373
7 44900 0 10776 3600 59276 5388 200 2500 8088 51188 11969 6168
8 47600 0 11424 3600 62624 5712 200 2500 8412 54212 12742 6768
9 53100 0 12744 7200 73044 6372 200 2500 9072 63972 14130 7752
10 56100 0 13464 7200 76764 6732 200 5000 11932 64832 16014 6922
11 67700 0 16248 7200 91148 8124 200 5000 13324 77824 19306 9344
12 78800 0 18912 7200 104912 9456 200 5000 14656 90256 22487 11691

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - at 7:24 pm

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New form to claim tax rebate on LTA, HRA

New form to claim tax rebate on LTA, HRA

NEW DELHI: The income tax department has come out with a standard Form 12BB for salaried taxpayers to claim tax deduction on leave travel allowance concession (LTALTC), house rent allowance (HRA) and interest paid on home loans.

Taxpayers will have to furnish to their employers proof of travel in Form 12BB for claiming LTALTC benefits. In case of HRA, the Central Board of Direct Taxes (CBDT) requires employees to furnish details like name, address and PAN number of the landlord if the aggregate rent paid exceeds Rs 1 lakh a year.

For claiming deduction of interest on home loan, the name, address and PAN of the lender will have to be furnished. Evidence of investment or expenditure will have to be provided for claiming tax deduction under Chapter VI-A.

Chapter VI-A pertains to allowable deductions under Section 80C, Section 80CCC, Section 80CCD as well as other sections like 80E, 80G and 80TTA.

The CBDT, in the same order, also extended the time limit for depositing tax deducted at source (TDS) on transfer of immovable property from 7 to 30 days. Also, the due date for filing quarterly TDS returns in Form 24Q, 26Q and 27Q was extended by 15 days.

The amended rules will be applicable from June 1, 2016, the CBDT said. Under section 80C, a deduction of Rs 1.5 lakh can be claimed from total taxable income if invested spent in employee’s share of PF contribution, life insurance, etc.

Source : Economic Times

Be the first to comment - What do you think?  Posted by admin - May 9, 2016 at 8:03 am

Categories: IT Exemption   Tags: , , ,

Government provides fund for pay commission implementation in Budget

Government provides fund for pay commission implementation in Budget

Central Government provided the fund of excess Rs 28,300 crore for the implementation of Seventh Pay Commission recommendations on Monday in the Budget estimates of fiscal 2016-17, presented by the Finance Minister Arun Jaitley.

The government has provided a fat allowances bill of Rs 88,932 crore in the Budget, almost as much as the total basic pay bill of Rs 90,598 crore for one crore central government employees, including pensioners.

According to the budget estimates of 2016-17, the total pay bill has increased by Rs 28,300 crore to Rs 90,598 crore in the next financial year as compared to Rs 62,230 crore in 2015-16.

The allowances bill has gone up by Rs 37,000 crore, taking the amount to Rs 88,932 crore in next fiscal.

The total provision towards pay, allowances and travel expenses of central government employees has been to the tune of Rs 1,83,935 crore in the next fiscal as against the Rs 1,18,248 crore in this financial year.

The government has made provisions as per the recommendations of the Seventh Pay Commission, though the actual disbursement would depend on the suggestions of the empowered committee of secretaries which has been constituted for the implementation of the Pay Commission recommendations.

The Pay Commission had calculated the total impact of the increase in salaries and allowances at Rs 1.02 lakh crore of which it had estimated the increase in pay to be at Rs 39,100 crore and allowances at Rs 29,300 crore. In percentage terms, the overall increase according to the Pay Commission was about 23.5% where the increase in pay was 16% and the allowances at 63%.

The significant jump in allowances could be on account of house rent, which has been recommended at 24% of the basic pay, besides others. The minimum pay as per the pay panel report was set at Rs 18,000 and the maximum at Rs 2.25 lakh for secretary-level officers. Accordingly, the house rent allowance (HRA) for secretaries would be more than Rs 56,000.

However, this is not the first time that allowances bill is likely to be as much or more than the pay bill. In 2014-15, the salary bill as per actual expenditure was Rs 53,371 crore while the allowances was Rs 76,613 crore.

Inputs with TNN

Be the first to comment - What do you think?  Posted by admin - March 2, 2016 at 7:37 pm

Categories: 7CPC   Tags: , , , ,

House Rent Paid : 80GG has also been raised to 60,000 from 24,000

House Rent Paid : 80GG has also been raised to 60,000 from 24,000 

The limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.

Certain Tax Reliefs announced for small tax payers and others

While presenting the General Budget 2016-17 in Lok Sabha here today, the Union Finance Minister Shri Arun Jaitley said that the taxation is a major tool available to Government for removing poverty and inequality and this has to be cautiously exercised. But, he would like to give relief to small tax payers, the Finance Minister added.

Thus the ceiling of tax rebate under Section 87A of IT Act has been proposed to be raised to Rs. 5,000 from Rs. 2,000 for individuals with income less than Rs. 5 lakhs. He said that above 2 crore tax payers would get a relief of Rs. 3,000. The limit of deduction of house rent paid under section 80GG has also been raised to Rs. 60,000 from the existing Rs. 24,000 per annum to give relief to employees who live in rented houses.

Under the presumptive taxation scheme under Section 44AD of the Income tax Act, the limit of turnover or gross receipts has been raised to two crore rupees from the exiting one crore rupees to benefit about 33 lakh small business people. It frees a large number of such assesses in the MSME category from the burden of maintaining detailed books of account and getting audit done.

The presumptive taxation scheme is to be now extended to professionals with gross receipts up to Rs. 50 lakh with the presumption of profit being 50% of the gross receipts.

Be the first to comment - What do you think?  Posted by admin - March 1, 2016 at 4:32 pm

Categories: IT Exemption   Tags: , , , , , ,

Grant of House Rent Allowance to Railway Employees Posted to New Zones/New Divisions: Railway Board orders

Railway Board decision on House Rent Allowance – Orders Issued

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.E(P&A)II-98/HRA-6

RBE No: 20/2016
New Delhi, dated 17/02/2016

The General Manager/CAO’s
All Indian Railways & Production units.

Sub : Grant of House Rent Allowance to Railway employees posted to new Zones/new Divisions – Regarding.

Attention is invited to the instructions contained in Board’s letters of even number dated 9.3.2004, 9.8.2005, 9.8.2006, 12.12.2007, 24.10.2008, 10.12.2009 , 01.07.2013 and 24.07.2014 on the above subject.

2. The matter has been considered by the Board subsequent to issue of letter No. E(G)2009 QR 1-2 dated 20.10.2014 and it has been decided that railway employees posted to ECR and NWR may be allowed house rent allowance upto 31.12.2015 on the same terms and conditions laid down in the letter of even number dated 09.03.2004 ibid and as amended/clarified from time to time.

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

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

Source: NFIR

Be the first to comment - What do you think?  Posted by admin - February 22, 2016 at 10:24 am

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