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Monday, March 30, 2015

Transfer and Placement Committees in the Department of Posts for recommending transfers/postings of the officers/officials of the Department

To view Department of Posts(Personnel Division) Letter No.4-09/2011-SPG(Pt) dated 30-03-2015 please Click Here.

Amendment in Form 5 under Rule 59 of CSS (Pension) Rules, 1972.

To view please Click Here.

Contact details of Yoga instructors for Yoga Training Sessions being organized by DOPT.

To view please Click Here.

Directorate Letter to Circles on Recovery of public money involved in Loss and Fraud cases







































Source:-AIAIPASP, CHQ Blog

How to guard against these 5 tax evasion practices

By Chandralekha Mukerji, ET Bureau

March 31 marks the end of the tax-saving season and the beginning of the tax-filing season. Everyone will soon get busy collecting proofs of investment and try to minimise their taxoutgo. However, in the hurry to get maximum deductions, do not cross the thin line between tax-saving and taxevasion. The repercussions can be both monetary as well as legal. Here is a list of five common tax-evasion practices. Are you committing any of these mistakes? 

Submitting Fake Receipts 

Employees often submit false rent receipts for claiming HRA exemption.After it became mandatory to declare the PAN number of your landlord, fake receipts have come down to some extent. However, you still need not declare PAN if the rent is less than Rs 1 lakh per year. If you submit a false rent receipt under this section, you can get a tax notice under Section 271(1)(c) for furnishing of inaccurate particulars of income for which the minimum penalty is 100% of tax sought to be evaded and maximum 300%. "False medical bills and claiming LTA without actual travelling are also common.There have been cases where random investigation has happened and employees have been fired," says Sudhir Kaushik, CFO and co-founder, Taxspanner. Many also claim tax benefits under Section 80C by submitting fake insurance premium receipts. 

Claiming Both Hra & Housing Loan Benefits 

The salaried who have an HRA component and are also servicing a home loan often claim deductions for both -tax benefit under Sec 80C and Sec 24 for repay ment of housing loan and HRA benefits under Sec 10(13A) for rent paid.This is allowed under exceptional situations -when you, for some reason, are unable to stay at the property you own. "Dual claim is allowed when a person is staying in another city on rent while the property bought is in a different location," says Anil Rego, CEO of Right Horizons, a wealth management firm. If the two are in the same city , it will be difficult to convince the I-T department. 

Trying To Transfer Tax Burden 

People commonly transfer investments in the name of their spouse or children and invest in instruments generating taxable income to take advantage of the tax slabs. However, any income generated out of funds transferred to spouse or minor child is clubbed in the hands of the transferor and taxable. Showing rental income from joint property under only the non-working spouse's name is also tax evasion. "Proportionate income, as per the ownership percentage, should be added to the each of their incomes and tax will be levied on the same. If they flout this rule, interest for the period will be recovered and there is scope for penalty to be levied under section 271(1)(c)," says Arvind A Rao, a chartered accountant and certified financial planner. 

Not Reporting Loan Repayments 

Accepting cash or repayment of loans from friends and family in cash for amounts higher than Rs 50,000 and not reporting it is also evasion. 

Not Disclosing Interest Income 

Interest earned up to Rs 10,000 from bank savings is exempt from tax. However, avoiding TDS by misusing Forms 15G and 15H is an offence. Some try to split the amount in two or three accounts to misguide. However, that doesn't help as your PAN will still be the same.

Source:-The Economic Times

What central government employees can expect from the 7th Pay Commission


Sounds odd, but the highest paid Indian bureaucrat till 1959 was the railway board chairman and not the cabinet secretary. The top rail bureaucrat, who was earlier called chief commissioner of railways, drew a basic salary of Rs 3,250 per month, a smart 8.3% more than that of the cabinet secretary, the senior-most bureaucrat in India. But as the fortunes of Indian Railways dwindled over the years — its market share in freight movement has shrunk from 90% in 1950 to 30% now — the clout of the rail bosses and their corresponding rank and pay have also slipped.

Today, the railway board chairman and eight other top rail babus receive a salary equivalent to a government of India secretary, a scale which as many as 230 Indian Administrative Service (IAS) and 40 Indian Police Service (IPS) officers also draw. For good measure, the cabinet secretary now not only draws a higher salary than the railway board chairman, his superior rank comes with better perks including a bungalow at Prithviraj Road located in the heart of Lutyens' Delhi.

Meanwhile, the Indian Revenue Service (IRS), a 5,541 officers-strong cadre responsible for collecting direct taxes in India, now claims that IRS should get better pay and perks than IAS. The entry-level salary for all Group A Central services is the same now, but thanks to two more increments and faster promotions, IAS maintains an edge over others. The basis for this claim? "Today, IRS — not IAS — is the revenue collector for the government. So, it's logical that that the edge given to IAS should be given to us," says Jayant Misra, Income-Tax commissioner and general secretary of IRS Association. In a 58-page-long memorandum to the 7th Central Pay Commission (CPC), which is now examining a pay hike for Central government employees, the IRS Association argued that the primary reason for higher pay to the Indian Civil Service (ICS) of the British era and its successor service, IAS, was that they were revenue collectors. But now, the dynamics have changed, they claim.
What central government employees can expect from the 7th Pay Commission
IRS has argued that the net direct tax collection has grown 9.35 times between 2000-01 and 2013-14, an impressive piece of statistics in the backdrop of only 5.4 times expansion of GDP during the corresponding period. Also, the cost of revenue collection in India is one of the lowest in the world, which according to IRS officers is yet another reason for demanding a good deal from the CPC. For every Rs 100 they collect, the tax department spends merely 57 paisa. In percentage terms, the cost of revenue collection in India is 0.57% as against 1.58% in Japan, 1.35% in France, 1.17% in Canada and 1.05% in Australia.

Welcome to the behind-the-scenes manoeuvring before the Big Sarkari Pay Hike. With a new pay scale for 36 lakh Central government employees, and also pensioners, likely to come into effect from January 1, 2016, the officers and non-gazetted staff of various services have been lobbying hard to get a good deal from the 7th CPC. Unlike in the private sector, the pay hike in government is a once-in-10-years-affair, making every CPC, right from the first that submitted its report in 1947, a hugely powerful agency. No doubt, government employees have to undergo an annual appraisal process called Annual Performance Appraisal Report (APAR), but that exercise is important only for promotion, and not for any pay hike. Government employees do get a regular hike in dearness allowance, a measure meant for offsetting inflationary pressure on their earnings, but at the end of the day it is the CPC that fixes the bureaucrats' pay for 10 long years.

That's precisely why officers and staff of every service can't afford to ignore the CPC. Constituted in February 2014 under the chairmanship of retired Supreme Court judge Ashok Kumar Mathur, the 7th CPC has an economist and two bureaucrats as its members. Most of the employees' associations have already had at least one round of talks with the Commission. And some are waiting for Round II.

The Ripple Effects

A cursory glance at the memorandum submitted by IPS Central Association on behalf of Indian Police Service (IPS) will throw light on the importance attached to a pay commission. The 137-page memorandum, a copy of which was reviewed by ET Magazine, is well designed and comparable to any standard report prepared by a global consultancy firm. PV Rama Sastry, an Inspector General of Police at National Investigation Agency (NIA) and secretary of IPS Central Association says the memorandum is the result of intense in-house research, factoring in the macro environment of growth, development, equity and justice vis-a-vis the role of a police officer. Though Sastry is the spokesperson of 4,720 IPS officers, the memorandum prepared by his team encompasses the role and needs of 30 lakh police personnel across India out of which 10 lakh come under the gamut of the pay commission. As the CPC recommendations are often accepted by the state governments as well, the remaining 20 lakh police personnel too may eventually benefit.

The IPS memorandum has quoted a number of reports to suggest that the tough life of a cop justifies the demand for a fatter hike. For example, it has quoted articles published in two journals — Global Journal of Medicine and Public Health and International Journal of Pharma and Bio-Sciences — to conclude that one of two cops in India suffers from sleep disturbances and anxiety whereas chances of cardiovascular problems increase by 38% after a person joins as a police officer. Among other demands (see What it Expects), IPS wants better life and health insurance cover, an overtime allowance and also a new perk called allowance for "un-social" hours (for duty between 8 pm and 6 am).
What central government employees can expect from the 7th Pay Commission
Railway officers too cite round-the-clock work demands as a reason for better salary. "A railway officer may be called to join duty any time during the night. The pressure always remains as it's a 24x7 work," says RR Prasad, an Indian Railway Personnel Service officer and secretary general of Federation of Railways Officers' Association. The Indian Railways is a gigantic organisation with over 13 lakh employees, 16,000 of whom are officers. Both the officers and staff associations have made their representations to the 7th CPC. The officers want non-gazetted staff to get their dues but they demand the proportion of the pay of the lowest and the highestpaid employee should increase from current 1:12 to 1:18.

To be sure, a formula towards pay parity has been the hallmark of the last few pay commissions. A government entry-level peon now gets a monthly pay of Rs 14,000, if dearness allowance is factored in. Similarly, a mid-level government driver's monthly salary, including allowances, is Rs 30,000, at least two times that of his counterpart in a private sector company. And that's why the salary gap between the lowest and highest paid government servant has drastically decreased over the last three decades.

The pay commissions have also reduced the disparity among the officers of various services. Till the late 1980s, an IAS officer used to receive a salary that's 25% higher than that of a Group A service officer. Today, the pay for all officers, at least at the entry level, is same. But IAS and Indian Foreign Service (IFS) officers still maintain an edge over others as their empanelment process (a step to get higher posts) is much faster.

Balancing Act

An IPS officer can become a joint secretary to government of India only two years after an IAS of the same batch can reach that level. Similarly, there has been a nine-yearlong gap in joint secretary empanelment between IAS and IRS, something many services claim is a continuation of the British legacy. Today, IAS officers at the level of deputy secretary and director at the Centre constitute about only 13% of the total officers. But as the hierarchy goes up, the percentage of IAS vis-a-vis others also rises. For example, 75% joint secretaries to government of India belong to IAS and IFS, and the percentage of IAS and IFS goes further up to 95 in case of government of India secretaries.
"The edge that the IAS has must continue. Why will a person join the IAS after quitting a job in HSBC Bank if that edge is missing? IAS officers have work experiences at Tehsil, sub-divisions, district, state and Central government levels. We interact with the political executives at all levels. IAS should remain a premium service," says Sanjay R Bhoosreddy, a joint-secretary-ranked officer and secretary to IAS (Central) Association.

On its part, the Indian Economic Service (IES) which has a cadre strength of 511 officers, represented in 55 Central government departments, has demanded parity in pay, perks and promotions of all services, including IAS, so that the "officers deliver what they have been employed for rather than fret over their pay and promotion prospects".

The question is how far the 7th CPC will go in changing the pay and associated service conditions like empanelment and promotions. IAS officers have pulled out a 1991 Supreme Court judgement (Mohan Kumar Singhania and Others vs Union of India and Others) where it was said that other services should not approach the pay commissions and attempt to change the rules of career progressions and push for a case for parity with the premier service. But other services are continuing their demand for pay parity and also for the creation of more departments where the IAS can't dictate. At present, only three major ministries — railways, external affairs and post — are not headed by IAS but run by their own cadres. Now, IPS wants a new department of internal security headed by a cop and IRS wants a separate direct tax department headed by a taxman.

Will the 7th CPC venture into such nuances? Or will it, like the past few pay commissions have, adopt a simple formula of Multiplier 3 under which the basic salary is hiked by three times or more depending on the economic health of the nation. If that is the case, it won't be too hazardous to make a prediction: A secretary to government of India will get a basic monthly salary (excluding DA) of Rs 2.4 lakh (current basic salary multiplied by three) and the cabinet secretary Rs 2.7 lakh from January 1, 2016. And, yes, perks, DA and other allowances will be extra.

Source:-The Economic Times

Should you buy Sukanya Samriddhi Yojana?


The launch of Sukanya Samriddhi Yojana (SSY) by the government for the girl child has sparked considerable interest given its tax benefit and interest rate higher than Public Provident Fund. The SSY offers 75 basis points (bps) higher than the 10-year government bond as against 25 bps by the PPF. For 2014-15, the interest rate for PPF is 8.7% while the SSY offers 9.1%.

But, wealth planners believe subscribers should put money in this product along with an investment in equity products. This is because interest rates could fall in the future. Given that the investors are investing for a period of 10 years or more, a combination of equitymutual funds and SSY will generate better returns.

"Depending on their risk profile, investors could use SSY along with a combination of equity mutual funds/child funds to meet long-term asset allocation goals for their girl child," saysVishal Dhawan, chief financial planner at Plan Ahead Wealth Advisors.

Should you buy Sukanya Samriddhi Yojana?

Source:-The Economic Times

Change in Account Opening Form and Introduction of new KYC Form for CBS Post Offices.

To view the Account Opening Form please Click Here.

To view new KYC Form for CBS Post Offices please Click Here. 

Friday, March 27, 2015