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Wednesday, November 26, 2014

Re intorduction of sale of Kisan Vikas Patra - Procedure Regarding

To view please Click Here.

Taxes you have to pay when you get a gift

By Parizad Sirwalla 

"The greatest gift that you can give to others is the gift of unconditional love and acceptance" - Brian Tracy. 

Having said that, let's accept that we all are equally pleased to receive worldly presents as well. And as we live in this materialistic world where gift exchanges are often in cash or kind, let us not forget about the taxman who keeps a close eye on all such transactions. 

While gifts from certain people or presents received on certain occasions are non-taxable, you will have to pay a cut to the taxman at other times. Here is what the Income Tax Act has to say on getting gifts. 

TAX-FREE PRESENTS 

Gifts received from certain specified relatives are not taxable. Here, according to the I-T Act, 'relatives' mean the spouse of the individual, siblings of self or spouse or parents, any lineal ascendant or descendant of the individual as well as the spouse and the spouses of all these persons. Also, if the gift is received by a Hindu Undivided Family (HUF), any member of the said family is regarded as a specified relative for the HUF. 

1. Gifts received on Marriage-Individuals receiving gifts on his / her marriage are not liable to pay tax on such gift whether received from relatives or non-relatives. However, the gifts received by the parents or other relatives of the individual getting married are not tax exempt.

2. Inherited Gifts - Any gift received under a will or by way of inheritance, or in contemplation of death of the payer is not taxable in the hands of the recipient. 

3. Gifts from specified institutions: A gift received from a specified local authority would not be taxable. Similarly, a gift received from a duly registered specified trust/ institution (e.g. registered religious or charitable trust) or from any specified fund / foundation/university / hospital or medical institution (e.g. the Prime Minister's National Relief Fund, the National Foundation for Communal Harmony, etc.) is not taxable. 

THE TAXABLE PRESENTS 

As per the I-T Act, cash or specified moveable property such as shares, securities, jewellery, paintings, sculptures, any work of art or immoveable property ( land, building or both) received by an individual or a HUF is considered taxable. 

1. Cash - If aggregate amount is equal to or less than Rs 50,000 then nothing is taxable. In case the value exceeds INR 50,000, the whole amount will be taxable. 

2. Immovable Property: 

TaxabilityImmovable property transferred without consideration Immovable property transferred for a consideration For the receiverWhere the stamp duty value of the property exceeds Rs 50,000, then such stamp duty shall be treated as income.Where the stamp duty value exceeds the consideration by more than Rs 50,000, then the differential amount shall be treated as income. 

3. Moveable property - The taxability is same as above except fair market value (FMV) is replaced by stamp duty. The FMV is determined as per the prescribed valuation rules. 

GIFTS RECEIVED FROM EMPLOYER 

Gift, voucher or token received by an employee or member of his household on ceremonial occasion or otherwise from the employer, is not taxable provided the value thereof is less than Rs 5,000 during a financial year. The ceremonial occasion could be birthday, anniversary of employee, festivals, etc. 

If the value of such gift/ voucher/ token is Rs 5,000 or more, the full amount is treated as taxable salary in the hands of employee. Further, any gift received in cash or convertible in money (cash cheque) from employer shall be fully taxable income in the hands of the employee. 

INCOME EARNED FROM GIFTS - CLUBBING PROVISIONS 

An important point to note is that even though the gift received may not be taxed in the hands of receiving individual, in view of the abovementioned exceptions, the income subsequently earned from such gift might be taxable either in the hands of the individual gifting the item or the person receiving it. For instance, any income arising from the asset transferred by an individual to his/ her spouse other than for adequate consideration is taxable income. Such income is then clubbed in the hands of spouse who gifted the asset. 

The bottom line then, in the joy of giving and receiving, lies in not forgetting about the tax implications. Some caution is advised as the section on 'gifts' under the Income Tax Act is a tricky one. 

(The author is Partner and National Head - Global Mobility Services, Tax, KPMG in India)

Source:-The Economic Times

Non-Functional upgradation for Officers of Organized Group A Services in PB-3 and PB-4

To view Department of Personnel and Training  OM No. AB.14017/30/2011-Estt.(RR) dated 25-11-2014 please Click Here.

Transfer and Posting in ASP Cadre.

Shri Prafulla Ku. Nanda, officiating Superintendent, PSD, Bhubaneswar is reverted to his substantive ASP Cadre and allotted to Sambalpur Region vide C.O. Memo No.ST/2-4(3)/2014 dated 21/11/2014. 

CS writes to CPMG on calling for assets/property returns from selective IP/ASP/PS Group-B Officers

No.AIAIPASP/Corr-1/35/2014
26/11/2014

To
         Shri Tilak De, IPoS
Chief Postmaster General
         Odisha Circle
Bhubaneswar-751001

Sub:- Submission of declaration of assets and liabilities by the public servant.

Respected Sir,

A kind reference is invited to Circle Office Letters No. Vig/3-2/2014 dated 10/11/2014 wherein selective IP/ASP/PS Group-B Officers have been asked to submit assets/property returns within 10 days.

In this connection the Govt. notification on Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and limits for exemption of Assets in Filing Returns) Rules, 2014 under the Lokpal and Lokayukts Act, 2013 dated 14/07/2014 may kindly be referred to. In the said rules on 14-07-2014, the forms in which information and annual returns are to be filed by every public servant were prescribed and the last date for filing revised declaration/annual returns as on 1st August, 2014 was scheduled to 15/09/2014.

Keeping in view the genuine concerns and apprehensions raised by some Ministries / Departments, Organizations and individuals about exacerbation of vulnerabilities of the public servants and also safety & security of the members particularly children of the public servant after filing such details, specifically of movable property, the Central Government has constituted a committee on 28/08/2014 to simplify the forms and process in which public servants shall make declaration of assets and liabilities and suggest changes therein as may be considered necessary. 

Further as per Department of Personnel and Training notification dated 8-9-2014 the last date for filing revised declaration/annual returns has been extended to 31/12/2014 basing on the amendment to Lokpal and Lokayukta ( Removal of Difficulties) Order, 2014.

In this matter, formal amendment to the Central Civil Services (Conduct) Rules is to be made in due course.

It appears to the Association that calling for assets/property returns from one IP, one ASP and selective Group-B Officers in the prescribed proforma for which a committee is set up to simplify the forms and suggest changes, and to enforce them to submit the same within 10 days prior to date fixed by the Government through amendment to Lokpal and Lokayukta (Removal of Difficulties) Order, 2014 is overreach of law. Even if some additional information have been sought for in the CO letter dated 10/11/2014 which are not coming under Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and limits for exemption of Assets in Filing Returns) Rules, 2014 under the Lokpal and Lokayukts Act.

This is an undue “harassment” to the concerned Officers. This will ultimately have a distressing effect on such officers. Therefore this Association protests such discriminate use of administrative power over the law.   

I, on behalf of this Association, request your good self to look into the matter personally for observance of Public Servants (Furnishing of Information and Annual Return of Assets and Liabilities and limits for exemption of Assets in Filing Returns) Rules, 2014 under the Lokpal and Lokayukts Act as per the rule and also handling of complaints as per the guidelines issued vide Department of Personnel & Training vide OM No.104/76/2011-AVD.I dated 18/10/2013 and 18/6/2014 and  the ambit of these enquiries should be limited to the verification of specific questions.

With profound regards,
Yours sincerely,

(Pitabasa Jena)
Circle Secretary

Inter-state council, planning and monitoring division & UIDAI to merge to replace plan panel

he new institution that will replace the Planning Commission is likely to be a combination of three key divisions, each headed by a secretary and placed under the umbrella of a more powerful planning ministry. These divisions include the inter-state council, planning and monitoring division and Unique Identification Authority of India (UIDAI), which, along with direct benefit transfer or DBT will have a critical role in implementing Prime Minister Narendra Modi's vision.

Senior government officials told ET that the government is considering consolidation of these divisions under the ministry of planning, presently headed by a minister of state with independent charge Rao Inderjit Singh, and a decision to this effect could be taken before the end of this year.

"The PM is of the view that the states should play a greater role in planning and hence the proposal is to move the inter-state council from home ministry to Yojana Bhawan to oversee development works of the state," an official said.

Inter-state council, planning and monitoring division & UIDAI to merge to replace plan panel

Besides, the new government is keen on eventually linking Aadhaar with DBT platform, which will require greater synergy between the two, the official said, adding, "Hence, it has been decided to shift out DBT from finance ministry to the new institution." According to the official, who did not wish to be named, the third vertical or division will be a new one that will be responsible for long-term planning for the country as well as evaluation of flagship social sector schemes through an existing but much stronger programme evaluation organisation existing within the commission.

"While all the three divisions will be headed by a secretary, the government may rope in experts at the advisor level to strengthen the planning and monitoring division," the official added.

As per the proposal, the interstate council, which is headed by the prime minister, will be responsible for routing the state plans to finance ministry besides coordinating with central ministries on all developmental schemes of the states. However, the security issues that were being handled by the council will continue to be vested with the home ministry.

An email query sent to planning secretary Sindhushree Khullar did not elicit any response. Until last year, annual plans of the states were finalised by the Planning Commission after consultation with the finance ministry and the funds were routed through the commission. However, since the BJP-led NDA government, which took charge in May, decided to replace the institution with a new one, the work of allocation of funds to states has been moved to the finance ministry.

The UIDAI, which is an attached office of the Planning Commission, is responsible for generating Aadhaar or a unique identity for all by March 2015. Once the target is achieved, the government is thinking of making Aadhaar mandatory for doling out benefits under its social security schemes through a DBT platform and hence it has decided to move DBT out of finance ministry to the commission for better synergy and coordination between the two.

Source:-The Economic Times

UPU News:- UN Women and UPU signal intent to work together

The Universal Postal Union and UN Women have announced their intention to explore common avenues to empowering women within the postal sector, at the UPU and elsewhere.

“With a strong partner like UN Women at our side, the UPU will do its part to ensure that gender equality is increased both within and outside its walls,” said UPU Director General Bishar A. Hussein.
“We are committed to seeing more women take up senior positions at the UPU’s International Bureau,” said Hussein. “We will be guided by the principles of professionalism, merit and qualifications,” he added.
For her part, UN Women Executive Director Phumzile Mlambo-Ngcuka said: “Without a doubt, our partnership with UPU can cement a commitment to greater gender equity in employment and supply chains in a sector that has tremendous reach and penetration in rural areas and across the world. This is a win for the Post and for women worldwide.”

Empowerment

Empowering women to be economically active and independent is crucial to reducing poverty throughout society.
“Women are able to make positive changes in their lives and societies when they participate in economic activities. With a livelihood and an income of their own, women have increased status, can provide for their families and become empowered in other parts of their lives as well, such as making decisions about education, housing, food choices, and medical care,” said Mlambo-Ngcuka.   
The first joint project under the new agreement will be a study on how well the postal network serves the financial needs of women worldwide. The results – including recommendations on expanding access to postal financial services – are expected in early 2015. 
“The postal network is already helping more than a billion people access basic financial services worldwide, so it is well positioned to help even more women become economically empowered,” Hussein said.
The lack of equal wages for equal work and that one in three women is affected by physical or sexual violence during their lifetime are among the issues being highlighted during this year’s International Day for the Elimination of Violence against Women. This is marked annually on November 25.
In 2010, the UN General Assembly created UN Women as the entity for gender equality and empowerment of women.

Tuesday, November 25, 2014

Government launches 'Swachh Bharat Kosh' to channelise public funds

The government today launched the 'Swachh Bharat Kosh', a fund that will be utilised to build toilets in schools, rural and urban areas to achieve the objective of cleanliness across the country. 

The fund would seek "channelisation of philanthropic contributions and Corporate Social Responsibility ( CSR) funds", according to the guidelines issued by the government. 

"The Kosh will be used to achieve the objective of improving cleanliness levels in rural and urban areas, including in schools. It may also be enabled to bring out innovative/unique projects and girl toilets will be the priority area to start with," the guidelines said. 

It said the Prime Minister himself will acknowledge contributions of over Rs 1 crore made by individuals and of over Rs 20 crore by corporates. 

The Kosh will be set up by the Ministry of Finance and will be managed by a Governing Council headed by Expenditure Secretary. Its functioning will be monitored on quarterly basis by the Finance Minister and by the Prime Minister from time-to-time. 

The implementation of the projects/activities would be carried out by the existing institutions at the state, district, and sub district level and no new institutions would be created. 

On October 2, Prime Minister Narendra Modi had launched the country's biggest-ever cleanliness drive that is expected to cost over Rs 62,000 crore. The objective of the drive is to achieve a Clean India by the year 2019, the 150th year of the birth anniversary of Mahatma Gandhi

The guidelines said specific suggestions regarding creation of assets, coming from donors making contributions of more than Rs 10 crore, may also be considered by the ministries. 

Source:-The Economic Times

UPU News:- International Day for the Elimination of Violence against Women


The United Nations is raising public awareness today of all forms of violence against women and girls across the globe. 

The UN Secretary General Ban-Ki moon is encouraging the world to go 'orange' between now and Human Rights Day on December 10 as a sign of support. 

"Break the silence. When you witness violence against women and girls, do not sit back. Act," urges Ban-Ki moon. 

Monday, November 24, 2014

KVP is a perfect small savings scheme, Arun Jaitey should ignore all criticism: Expert

By Dhirendra Kumar

The Kisan Vikas Patra (KVP), which post offices are now offering for sale after a hiatus of a few years, is a simple and an accessible savings instrument that provides reasonable returns and absolute safety. But that's not what you'll hear from the investments and business commentariat. 

The general opinion of investment advisors seems to be that the KVP is a useless savings medium as it has no tax break and thus, offers poor post-tax returns. It is also said to encourage black money. In order to illustrate how poor the KVP's post-tax returns are, practically every one of these analyses calculates the same for people in the highest tax bracket. One also reads how bank fixed deposits or fixed maturity mutual funds are better alternatives. 

It's as if no one in this country is in the lower two tax brackets or below the tax thresh old. Or that KVP is meant as a sav ings instrument purely for the upper middle-class and above. 

I think we need to step back and consider just how difficult it is for the target audience of KVP to access safe and convenient sav ings mechanisms. You go to a post office and buy a certificate worth somewhere between Rs 1,000 and Rs 50,000 and 100 months later, the ` post office gives you double the , amount. KVP is easy to understand and access. Given that it's being sold by the post office, its safety is also easy to understand. 

Each of these points is crucial. 

Just the fact that its returns are expressed in terms of `double your money in 100 months' is a great thing. It's puzzling to watch analye sts who try to `explain' KVP by cal culating its per annum returns so x that it can be compared with fixed y deposits. A far better way of acs tually making this comparison t would be to calculate how many w months it would take for money to double in an FD. If you don't ap preciate that months-to-double is s a better way of explaining returns x to a depositor an annualised per centage, then you probably haven't understood how people actually think about money. 

The other bugbear of KVP is supposed to be that it's a way of parking and transferring black money. 

This is probably true, but it's also irrelevant. Recently, it appears to have become fashionable to talk about black money in absolutes. 

Since some of the usage of KVP will undoubtedly be in black money, some commentators claim that it's unacceptable. This is, at best, a hypocritical point of view. There is no part of the formal financial system that cannot be used to handle unaccounted income with sufficient effort. To completely eliminate black money, you will pretty much have to abolish money or abolish taxation. 

The question is not whether KVP will facilitate the handling of black money, but what is the balance between the legitimate and illegitimate uses of KVP. 

Here, I'm afraid that those who think that KVP is nothing more than a Rs 50,000 currency note have been spending too much time in the company of those who use it as such, and not enough with those who use it as a way of investing five or ten thousand rupees safely. When I read news about crime, I find that practically every criminal uses cars and cellphones. 

Is that a good reason to ban motor vehicles and mobile telephony? 

In fact, Jaitley should resist the urge to have tight KYC (know your customer) norms for KVP. If you give the post office clerk an excuse to reject the small depositor's ration card as proof of identity, he'll do it just to reduce his workload. Given how things actually work in our country, those who want 2,000 KVP certificates as a way to store Rs 10 crore will manage to get their way, but the Rs 10,000 depositor who needs financial inclusion will be driven away by this KYC nonsense. We've seen this happen in every other part of their financial system, but hopefully, schemes like KVP and JDY ( Jan Dhan Yojana) shouldn't suffer from the same problem.

The writer is CEO at Value Research

Source:-The Economic Times