filing e tax returns

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Current Feed Content e-Filing of Income Tax Return Presenation Posted: Sat, 20 Sep 2008 22:05:00 +0000 Dear Friends, By watching this slide show you will be aware of the issue involved in the e filing of the Income Tax Return like Mandatory for person process involved relevant circular related to e filing we are also helping to our reader /subscriber for problem in e filing registration in case of "Name error" free.More over our subscription is free.Get help now Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. e-FILING OF INCOME TAX RETURN:FILE ITR-V WITHIN 15 DAYS OF UPLOAD OF RETURN Posted: Sat, 20 Sep 2008 19:46:00 +0000 Dear Friends, In this post we will discuss a very important file regarding e filing of Income Tax Return ,which is Most important where return is e filed without digitally signed . Mandatory e-filing of Income Tax return E filing of Income tax return is mandatory for Firms required to get their accounts audited u/s 44AB of the income tax act. All Companies Due Date Of filing of Income Tax Return Due date for filing of income tax return for previous year 2007-08 assessment year 2008-09 is In case of person required to get their accounts to be audited -30th September,2008 In all other cases-31st July,2008 Points to be Noted As per Income Tax official site data as up to 31.07.2008 ,for AY 2008-09,bulk of e filed Income Tax return are filed voluntarily(97 %), due to benefits attached with e-filing of return. A large percentage of return are being filed without digital signature. Online vs Inline Many taxpayers has opted for e filing because they think by doing this they will get relief from standing in line to submit the tax return and prefer to be "online" rather than "inline". But will they actually eligible to get relief from standing in "Q" ? The answer is "No" ,The reason is that if you have not digitally signed your return,than creating your profile on e filing site, then uploading of the return to the site , is not enough. What more is required? If you have not signed your return digitally than there is one more process left after uploading the return that is print ITR-V verify & signed it and submit to the income tax department and get acknowledgment from them . File ITR-V with Income Tax Depart ITR-V should be filed with in fifteen days from uploading the return If we file ITR-V in 15 days then return will be treated as filed on date of uploading. If we have not filed the ITR-V with in 15 days than date of filing of ITR-V with the department, will be deemed date of filing of return. suppose If i have uploaded a Firm's( not digitally signed ) return on 20.09.2008 and if I file ITR-V within 15 days i.e upto 5.10.2008 then my date of return filing remains 20.09.08 even I have filed the ITR-V after the due date 30.09.2008 But if in the above case if I file ITR-V after the 15 days ,suppose on 10.10.2008 then my return filing date will be shifted to date of filing of ITR-V for all purposes ,means return will be treated as belated return as the deemed date of filing will be 10.10.2008 in this case. so keep these points in mind while e filing of return otherwise your all efforts will be of no use. Forget to file ITR-V ,what we should do now? of course most of you are aware of this rule but some of my friends after reading of this post will noticed their mistake.One of my blogger friends has also done mistake of not filing of ITR-V of their last year return and asked me some queries in this case which I think is also relevant for all readers also ,so I am giving it here under ----------------------------------------------------------------------------------------------- "We are a private limited company .We have submitted our Income Tax return for the AY 2007-08 by the e filing without using digital signature on 15.10.2007.Under this scheme we should have deposited ITR-V (verification form)with I.Tax Department within 15 days of e filing.But we failed to do so due to ignorance.Kindly answer the following question related to above what should we do now? what is the status of my return? will we get back our excess paid tax(refund order) will we have to pay any penalty or Intersest? B.K.Musaddi" On the basis of rules discussed above, point wise answer of his quires are given hereunder 1) WHAT SHOULD WE DO NOW? You should print out the ITR-V now and file it to the income tax department ,by doing this your deemed return filing date will be postponed to date of submission of ITR-V rather than date of uploading the return.(how to get print out ITR-V know from here) 2) WHAT IS THE STATUS OF OUR RETURN? Unless & until you file the the ITR-V,uploading of return without digital signature has no significance and treated as equal to non filing. As you fails to submit the ITR-V within in due date (last year date was 31.10.2007 & extended upto 15.11.2007 for efiling) and will file ITR-V,your return will be treated as belated return,you can not carry forward your losses to next year.(though delay can be condoned as per circular 8/2001 DT 16.5.2001 on fulfilling of certain condition) 3) WILL WE GET BACK OUR EXCESS PAID TAX (REFUND ORDER)? yes,you can get back your excess tax paid ,its your right and to claim excess refund first file ITR-V to the department.and then wait for return to be processed and confirm from department after three month and have a regular follow up after that until you refund order is being issued. 4) WILL WE HAVE TO PAY ANY PENALTY OR INTEREST? From your question ,It has been clearly mentioned by you that refund is due from Income Tax department ,if this is the case , there will no chance of Interest ,however Interest u/s 234B for non deposit of the advance tax may be imposed if you have failed to deposit advance tax on time .but this interest also have no relation with late filing.There is also no need to deposit now (interest on advance tax),department will work on it & if applicable deduct from your refund . On more thing as assessment year 2007-08 is completed , the ITO can impose penalty of 5000 rs u/s 271F.which can be waived of if assessee has a reasonable cause of late filing of return ,and I think you have a valid reason with you "that we have uploaded the return on time but we could not file the itr-V due to less knowledge of new system " on this reason ,ITO can give u relief "This process will be started only If ito imposes penalty on you, otherwise penalty is not automatic.(know more about Penalty for late filing of return from here) I think you have now all most all the answer. --------------------------------------------------------------------------------------------------- so friends ,if you have filed the return without digital signature and not filed your ITR-V till today ,then go and file it today itself .as the rule Late is better than never. please comment ,if you want to add some more points or you have different view than me.I have interprted the issue according to my knowledge and its my opinion regarding the issue Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. SUB PRIME CRISES-WHY LAHMAN BROS.,AIG,MERRILL LYNCH SUNKED? Posted: Fri, 19 Sep 2008 02:41:00 +0000 Dear Friends , These days friends you are reading headline that companies in financial sector daily sinking and filing application for bankruptcy and these companies are not like a "vijay di hatti" or small companies ,they have status of one of the first 100 in world in their respective fields .Stock market goes roller coaster these days and making record single day loss and single day gain in world ,moving up down as good as in 6-10 % range in a day (diff between low & high of the day).why this is happening ,Though there might be many reason behind it but one which we are discussing here is most discussed is "SubPrime Crises". Meaning of SubPrime :Meaning of sub prime commonly used where bank is landing a person at little bit higher rate than normal(prime) rate due to Loan to that person is little bit more risky than normal Person does not satisfy the condition for taking the loan less income than required Ratio of loan repayment /income is adverse Property involved is in area where rates of property is volatile and not stable Risk is high of repayment or some what speculative. In brief they are landing to a person who is not otherwise eligible as per normal banking condition at higher rates.It does not mean that they are landing to any body without checking any thing but with a knowledge that risk is there, and due to more risk involved , they charge more interest from the party.These Type of loan generally mortgaged by Property or other assets. If a lay man read this than he can also predict that the bank doing such practices will sooner or later have losses..........?but why the best brain of the world(so called) in US are unable to predict the crises. And Bank/companies which has never shown losses in their history of 140 years ,sank in one quarter losses.. Refinancing:Means bank giving loans directly to the customer,takes loan from other big company on the guarantee that they will pay back the money,as soon as it is received from the client. Securitization :simple meaning of the securitization is giving loans out of balance sheet and have more cash to give more loan by transfer the mortgaged loans to special purpose vehicles (SPY) created for this purpose by the big houses. After securitization of mortgage assets ,Loan given will not shown in balance sheet and after securitisation of loans banks have good capital adequacy ratio and solvency margins, can give more loan ,but servicing/default risk of all loan remains with the institute and does not transfer to the SPV. Step by step of reason of Crises The bank/companies which are giving loan at sub prime rates ,are small in the size. They have more specific information about the consumer and lend money to them on consideration other than financial . Then they have refinance their loans from the other big houses like Lahman ,Merrill lynch,AIG or other in the market With the money refinanced from the big company they gives more loan and so on They have given loan much more than what they have actually owned. Rates of property in USA is going south.And interest rates were going up. Some client which have Purchased property on loan for capital appreciation/or on the basis of some speculation like future increase in income , in the property was not able to return the loan Banks enforcing the foreclosures and taken the properties from the client or properties has been put to sale in the declining price market,Feeding more stock(property for sale) in the market and leads to further price fall Small companies collapses on default of some major customers as they are not able to manage cash flows. After default from customer they are unable to service the funds refinanced from big company. As I have explained above sub prime loans are more risky than normal ,this whole process of collapsing is so fast and have much cascading effect . The securitisation of laons also have a role as after securitization of laons companies have more clean balance sheet and one can not judge the Inherent risk involved in that due to less disclosures norms and other reasons. And we have now much longer list of casualties like Lahman Bros,Merill Lynch,AIG,Bear stearn,Fannie Mae and Freddie Mac...........and so on .This is not end of story more will come. and more reason which leads to the crises is securitization ,simple meaning of the securitization is giving loans out of balance sheet and have more cash to give more loan by transfer the mortgaged loans to special purpose vehicle (SPY) prepared for this purpose by the big houses. After securitization of mortgage assets ,Loan given will not shown in balance sheet and after than they have good capital adequacy ratio and solvency margins, can give more loan ,but servicing/default risk of all loan remains with the institute and does not transfer to the SPV. So ,In brief we can say bad practices have a bad results.... thanks for reading ,Now please give comment on the above. 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CHILD CARE LEAVE TWO YAER,MATERNITY LEAVE EXTENDED:SIXTH PAY COMMISSION Posted: Wed, 17 Sep 2008 03:57:00 +0000 A bonanza for women employee for sixth pay commission or for we can say for society as the women are the base of our society.This notification is effective from 01.09.2008.In this notification two benefit has given Maternity leave has been extended to 180 days up to two child Child care leave for 2 years second leave main feature is that ,women can take it at any time according to their will and as per their needs .The purpose of the leave is to rearing or look after of child or exams or sickness of childetc relates to child. this leave will be paid leave and can be taken with the maternity leave or with any type of leave. so in whole life women will have three year of paid leave if have two children and two and half year if have one. Now working women have enough time to entertain the children.The govt has rejected other recommenation by 6th cpc ,the recommenation of flexible timing for women. SIMPLE TAX INDIA No 13018/2/2008-Esstt(L) Govt Of India Ministry of Personnel, Public Grievances & Pensions {Department of Personnel & Training} New Delhi, the 11Th September,2008 OFFICE MEMORANDUM Subject:Recommendations of Sixth Central pay Commission relating to enhancement of the quantum of the Maternity Leave and Introduction of the Child Care Leave in respect of Central Government Employees. Consequent upon the decisions taken by the Government on the recommendation of the Sixth Pay Commission relating to Maternity Leave and Child care leave ,the President is pleased to decide that the existing provisions of the Central Civil Services (leave) rules,1972 will be treated as modified as follows in respect of civilian employees of the central Government: The existing ceiling of 135 days Maternity Leave provided in Rule43(1) of central civil services rules,1972 shall be enhanced to 180 days Leave of kind due and admissible(including commuted leave foe the period not exceeding 60 days and leave not due) that can be granted in continuation with Maternity Leave provided in rule 43(4)(b) shall be increased to 2 years. Woman employees having minor children may be granted Child Care Leave by an authority competent to grant leave ,for the maximum period of two years(I.e 730days) during their entireservices for taking care of up to two children whether for rearing or to look after any of their need like examination, sickness etc.Child care leave shall not be admissible if the child is eighteen years of the age or older. During the period of such leave ,the women employees shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. It may be availed of in more than one spell. Child Care Leave shall not be debited against the leave account .Child care Leave may also be allowed for the third year as leave not due (without production of medical certificate).It may be combined with leave of the kind due and admissible. These order shall take effect from 1st September,2008 In view of the paragraph 2 above ,a woman employee in whose case the period of 135 days of maternity leave has not expired on the said date shall also be entiled to the maternity leave of 180 days. Formal amendments to the Central Civil Services(leave) Rules,1972 are being issued separately. In so far as persons serving in the Indian Audit & Accounts Department are concerned ,these orders are issued in consultation with Comptroller & Auditor General of India. Hindi version will follow. -Sd- (Simmi.R.Nakra) Director(P&A) SIMPLE TAX INDIA Child Care Leave Notification download from here Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. MEDIA ENCLOSURE: http://sixthpaycommissionrevised.googlepages.com/leave.pdf SIXTH PAY COMMISSION FULL ARREARS TAXABILTY IN FY 2008-09 Posted: Mon, 15 Sep 2008 00:43:00 +0000 Dear Friends , In this post we discuss various aspects of the tax due of arrears received /allowed to the Govt employees in light of Income tax rules Arrears to be given on the basis of sixth pay commission Report As per sixth pay commission the report is applicable from 01.01.2006 but allowances are payable prospectively from 01.09.2008 expect DA(dearness allowance) Arrears Of Basic Pay,Grade pay and DA is admissible to be calculate from 01.01.2006 to 31.08.2008 ,but it is to paid 40% in Financial year 2008-09 and 60 % in Financial Year 2009-10. The same in the case of pensioners,arrears of diff,. between Basic Pension and DA is to be paid in two Installments ,first 40% in Financial Year 2008-09 and 60% in Financial year 2009-10,same in the case of family pensioners Arrears due to revised pension due to person retired after 01.01.2006 regarding Gratuity,Leave encashment,commuted Pension ,DCRG,is payable immediately. (A) SALARY and PENSION ARREARS Now is debatable point is whether all the arrears is to include in the Income of the Financial year 2008-09 irrespective of that 60% of the arrears are to be paid in Financial year 2009-10 relevant provision of the Income Tax act is given hereunder Salaries. 15.The following income shall be chargeable to income-tax under the head Salaries (a) any salary due from an employer or a former employer to an assessee in the previous year,whether paid or not; (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him; (c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year. [Explanation 1].For the removal of doubts, it is hereby declared that where any salary paid in advance is included in the total income of any person for any previous year it shall not be included again in the total income of the person when the salary becomes due. [Explanation 2.Any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from the firm shall not be regarded as salary for the purposes of this section.] In general term salary is taxable on the basis of these principal "due or paid ,which ever is earlier"The section 15 says that If salary is due to employee but not yet paid, it will be taxable in previous year. If salary is paid, though not due (like advance salary) is also taxable in the year of payment it self If salary is taxable in earlier year on the payment basis than it will not be again taxable on due basis or vice versa Meaning of Due :in simple terms ,when a person legally acquire a right to receive a payment ,means he can legally enforce payment of that amount than its becomes due or we can say when a employee has a right to receive and employer has obligation to pay than its becomes due but in sixth pay commission govt while issuing the order it self has mentioned that 60 % of the arrears will be paid in 2009-10 ,so that amount becomes due in the year 2009-10 as the right to receive of employee and obligation to pay of employers will arises in the financial year 2009-10 so on the basic of above ,can we conclude here that as the payment of 60 % arrears is neither received in the financial year of 2008-09 nor its become due in fy 2008-09 ,so it is not taxable in the F.year 2008-09? The answer is no,why? The reason is word "allowed "(given in the red above) in the section 15(b) ,is a hindrance to our conclusion given above. This word says that salary is taxable in the year, when the salary is "allowed" ,allowed means fixed ,and as per the govt order ,salary of the govt employee is to be fixed in the month of September,2008, Meaning of "allowed":The word ‘allowed’ is of wider connotation and any credit made in the employer’s account is covered thereby. The said expression in the legal terminology is equivalent to ‘fixed, taken into account, set apart, granted’. It takes in perquisites given in cash or in kind or in money or money’s worth and also amenities which are not convertible into money - CIT v. L.W. Russel [1964] 53 ITR 91 (SC). so as per law the full salary is taxable in fy 2008-09 including the 60 % arrears which is though due/paid in the year fy 2009-10 . Employers Responsibility to deduct TDS on salary:As per Income tax act ,all employers are responsible to deduct tax due on salary paid to the employee .so here employers responsibility is to deduct tax due on the salary in financial year. Related section:section 192 given hereunder 192. (1) Any person responsible for paying any income chargeable under the head Salaries shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year. please check words in red :at the time of payment",means employers responsibility to deduct TDS is arises only when payment is made and not when the salary due or allowed in a previous year,so as far as employer is concerned, relived from deducting any tax on the arrears of 60% ,as they are to be paid in FY 2009-10" So,now responsibility to pay taxes on arrears of 60% in fy 2008-09 ,lies with the employee it self ,but if we leave advance tax issue than ,all we have time upto 31st july 2009 ,to think over it and pay taxes on the arrears,by then who know Govt issue a special circular for non taxability of the the 60 % arrears in the Financial year 2008-09. So,the conclusion is that as per the prevailing income tax act/rules 60% arrears ,which is to paid in the Financial year 2009-10,is taxable and is to included in the income of the employees in the Financial year 2008-09 itself,unless govt gives a special relief in this regard.so same rule is applicable on pension also as they are also covered under salary definition under income tax act. Employee can take benefit u/s 89(1) for segregation of salary in relevant year ,we are preparing a calculator for calculation of rebate u/s 89(1) ,and publish in coming days (B)FAMILY PENSION Family pension is taxable under Income tax head "Income from other sources" ,so above rule is not applicable on the family pension arrears and so 60 % arrears will be taxable in the year of payment i.e in Financial year 2009-10 (C)GRATUITY:The Gratuity limit has been enhanced for 10 lacs from 3.5 lakhs,so those employee who has received their gratuity equal to upper limit of 3.5 lacks get arrears of it .the enhanced limit is for employees who retires on or after 01.01.2006.As per Income tax act ,any death cum retirement gratuity recived by an employee of the Central or State government or local authority is wholly exempted from the tax u/s 10(10)(i) (D)REVISED COMMUTATION ON ACCOUNT OF REVISED PENSION:Employees retired on or after 01.01.06 ,are eligible to get revised pension due to revision of pay and they can commute 40% increased amount of pension as per pension rules,For commutation on account of revised pension due to revision of pay by sixth pay commission from retrospective effect ,will be given on the basis of revised table given in the report.The table is less favorable to employee and based on 8% rate table of LIC.As per income tax act ,any commuted pension received by the Centeral,State govt or local authority employee is fully exempted u/s 10(10A)(i) please record your view,positive or negative & appeal to govt to give relexation READ MORE Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. TDS ON PAYMENT TO TRAVEL AGENT FOR AIR LINE TICKETS Posted: Sat, 13 Sep 2008 08:38:00 +0000 query before us is "whether tds should be deducted u/s 194C for payment made to travel agent for booking of airline tickets by a company for its employee(s)"? The following general conditions should be satisfied for a payment to qualify for deduction of tax u/s 194C 1.Payee:The contract should be entered by the following specific person Central governmentstate govt or Local authorityCent or State Corp. covered estb. under Cent./state actAny co-operative societyAny companyAny authority constituted In India under or b the law for town planning and other specific work as defined any societyany Trustany firmany University with specific conditionsSocieties register under the specific actsany firmany HUF?individual if turnover exceeding 40lacs or profession receipt exceeds 10lakh in immediate preceding yearfrom 01.06.2008 any AOP /BOI 2.payer Resident contractor payment to subcontractor by resident contractor 3.work contract between payer and payee for "carrying out any work" Including supply of labour for carrying out any work. So in general three basic genral condition should be fulfilled to make a payment eligible for deduction of tax at source u/s 194C.if any one of three content/condition is missing ,then section 194C will not be applicable. so where the contract is between contractor and Huf or individual for personal purpose it will not be covered under section 194C and tax will not be deductible. In this case of payment to travel agent for booking of airline tickets ,the contract is between individual and airline company though payment is made by the company so tds is not deductible. CBDT Clarificatary circulaor: CBDT has issued a detailed circular no 715 on tds u/s 194C,194I and 194J dated 8.8.1995 ,In which 34 question has been dealt .In this circular question number 6 relates to payment made to travel agent/airline for booking of tickets ,It has been clarified in the circular that notwithstanding the payment has been made by the payee list mentioned as above ,but the contract of purchasing the ticket is between individual passenger and the airline/travel agent ,so tax should not be deducted. the relevant part of the circular is reproduced here under for your ready reference "Question 6 : Whether payment under a contract for carriage of goods or passengers by any mode of transport would include payment made to a travel agent for purchase of a ticket or payment made to a clearing and forwarding agent for carriage of goods ? Answer : The payments made to a travel agent or an airline for purchase of a ticket for travel would not be subjected to tax deduction at source as the privity of the contract is between the individual passenger and the airline/travel agent, notwithstanding the fact that the payment is made by an entity mentioned in section 194C(1). The provision of section 194C shall, however, apply when a plane or a bus or any other mode of transport is chartered by one of the entities mentioned in section 194C of the Act. As regards payments made to clearing and forwarding agent for carriage of goods, the same shall be subjected to tax deduction at source under section 194C of the Act. hence the No tax should be deducted u/s 194C on payment made to travel agent/airline for booking of tickets.This rule is also applicable on other transport medium like rail booking also. One point is raised by Mr Vikas ,that wether TDS on commission payable to airline travel agent is deductible under section 194H? Ans:After carefully going through your point ,I note following Travel agent is working for commission Travel agent work as agent between airline company and passenger Travel agent either retain commission and transfer balance money to airline company or transfer full amount and get commission from airline. Now as per section 194 H section provides for deduction of tax at source on any income by way of commission or brokerage by the payer to payee The meaning of payer here is in my opinion is principle and payee agent while purchasing the air ticket the payer is airline company and payee is travel agent and person who is purchasing ticket is not payer as he is not paying any commission as such to the airline ticket so u/s 194 H in my opinion ,airline company is liable to deduct tax from the travel agent as they falls under the definition of payer and paying commission to the agent. circular no 619 dated 04.12.1991,para no -6(this relevant because the section 194H has been reintroduced again in 2001 but existed earlier also)says the following " 6. A question may raise whether there would be deduction of tax at source under section 194H where commission or brokerage is retained by the consignee/agent and not remitted to the consignor/principal while remitting the sale consideration. It may be clarified that since the retention of commission by the consignee/agent amounts to constructive payment of the same to him by the consignor/principal, deduction of tax at source is required to be made from the amount of commission. Therefore, the consignor/principal will have to deposit the tax deductible on the amount of commission income to the credit of the Central Government....................." so even the travel agent used to retain their commission from gross payment its airline responsibility to deduct and deposit tds from the commission so from the above ,it can be concluded or in my opinion the airline company is responsible for deducting tax u/s194H not the person who is purchasing the ticket as the commission is being paid by the airline company to travel agent not by the passenger. if you have different views then me ,let me know/add in comment section. Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. SIXTH PAY COMMISSION:GRATUITY ,LEAVE ENCASHMENT:EFFECTIVE DATE Posted: Fri, 12 Sep 2008 00:49:00 +0000 In sixth pay commission report some of the benefits are given from the date 01.01.2006 and balance are given from 01.09.2008 and from date of office memo publication and am trying to sum up the position in the post. Effective from 01.01.2006 Fitment of basic pension and basic pay in new scale ,the basic formula for fitment is 1.86 of old basic ,I have created calaculator for pay fixation as well as pension you can check them for details PAY CALCULATOR PENSION CALCULATOR New DA rates are also given from date 01.01.2006 rates arrears are also admissible for 1.01.06 — 0 % 1.07.06 — 2% 1,01.07 — 6 % 1.07.07 — 9 % 1.01.08 — 12% 1.07.08 — 16% Gratuity:Increased Rate of gratuity will be allowed to persons who are retired from from the job from 01.01.2006,if gratuity is already sanctioned to you ,it will be revised Minimum Pension:Normal & family pension has been fixed minimum at 3500Pm basic. effective date 01.09.2008 All allowances Increased from the 01.09.2008.and no arrears will be paid for them , the major allownces are TRANSPORT ALLWANCE:Campus restriction for grant of transport allownce has been removed now employee living in campus also eligible to get Transport allownceweEMPLOYEE DRAWING PAY/GRADEPAY A-1/A CLASS CITY(RS) OTHER PLACES GRADE PAY5400 & ABOVE IN NEW PAY BANDS &HAG AND CABINET SECT 3200+dA there on 1600+ da thereon old basic 4000 or more or new basic 7440 or more in pb-1 not covered in above one 1600+da there on 800+ da there on other less than old basic 4000 and 7440 ne pay 600+da there on 400 +da thereon House Rent Allwance:Revised classification of cities and towns on population criteria revised categories(old categories) HRA AS %of [BASIC PAY+GRADE PAY +MILITRY SERVICSE PAY (MSP*) +NPA*] *(IF APPLICABLE) 50 lakhs & above X New cat(earlier named as A-1) 30% 50-5 lakhs Y new name(earlier as A,B-1,B-2) 20% below 5 lakhs Z (earlier c or unclasified) 10% House Rent Allwance:Revised classification of cities and towns on population criteria revised categories(old categories) HRA AS %of [BASIC PAY+GRADE PAY +MILITRY SERVICSE PAY (MSP*) +NPA*] *(IF APPLICABLE) 50 lakhs & above X New cat(earlier named as A-1) 30% 50-5 lakhs Y new name(earlier as A,B-1,B-2) 20% below 5 lakhs Z (earlier c or unclasified) 10% Details of all allowances can be checked from here Miltary Service pay:Military service pay is allowed prospectively from 01.09.2008 ,no arrears allowed,however for fitment of basic pension of person who retires from job before 01.09.2008 ,the military pay also to be considered fo checking of 50 % of the minimum pay band . Enhanced maternity leave and child care leave of 2 year (check details from here) effective from 02.09.2008 Linkage of qualifying service for pension:Full minimum pension 50% of last pay drawn of acg of last ten month will be allowed if service is 20 year earllier the limit was 33 years ,the persons who retires after 01.01.2006 but before publication of OM (office memo published on 2.09.2008) will be governed by the old system means qualifying service rule remain 33 year . Commutation of pension:The Commuation table has been Changed and new table is not favourable to employee ,in this table recovery rate has been increased ,but good news is this will be applicable for person who retires after 02.09.2008 .employees who has retires after 01.01.2006 to to the date of office memo are continue to be governed by old rules.However if employee want to draw the enhanced commutation on account of pay revision it will be commuted according to new table means onl;y arrear part will be commuted at new rate and old commuation will be done at old commuation rate.In berif new recovery rate has been enhanced to 8%,it means you have taken a loan at a rate of 8 % for fifteen years required office memo is given in side bar under pay commission encyclopedia please comment Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. DEFENCE OFFICER & SIXTH PAY COMMISSION Posted: Mon, 08 Sep 2008 13:16:00 +0000 PRESS RELESE ON DEFENCE OFFICER (Sixth Pay Commission) 6TH PAY COMM ENCYCLOPEDIA DEFENCE RESOLUTION ENGLISH DEFENCE RESSO HINDI FITMENT CHART DEFENCE OFFICERS PAY SCALE TEACHERS PAY SCALE PAY CALCULATOR PENSION CALCULATOR SIXTH PAY PAY BAND ,PAY CALCUL EX (PDF) 6TH CPC REPORT 24.03.2008 (2.2 MB) ANNEXURE REPRT (24.03.08)(1.2MB) PRESS RELEASE 14.08.08 (31KB) CABINET RESSON 29.08.08(5.76MB) GAZETTE NOTIFI 29.08.2008 9pdf (5.26mb) PENSION RESOL 29.08.08 (240KB) PENSION OFFICE NOTE(02.09.08) PRESS RELEASE The Ministry of Defence has notified the new paybands along with grade-pay and Military Service Pay for Defence Forces Officers following the recommendations of the Sixth Central Pay Commission. (in Rs.) Post Pay Band Grade Pay Military Service Pay # Lieutenant / equivalent 15600-39100 5400 6000 Capt / equivalent 15600-39100 6100 6000 Major / equivalent 15600-39100 6600 6000 Lt. Col / equivalent 15600-39100 7600 6000 Colonel/equivalent @ 37400-67000 8700 6000 Brigadier/equivalent @ 37400-67000 8900 6000 Major Gen/equivalent 37400-67000 10000 Nil* Lt Gen / equivalent 37400-67000 12000 Nil Vice Chiefs and Army Cdr / equivalent 80000 (fixed) Nil Nil Service Chiefs 90000 (fixed) Nil Nil # No arears on account of Military Service Pay shall be payable. * The element of Military Service Pay shall be taken on account for purposes of fitment at the time of promotion from Brigadier/equivalent to Major General / equivalent. @ Colonels and Brigadiers to be placed in the Revised Pay Band IV (Rs. 37400-67000/-) The Ministry of Defence has notified the new paybands and other allowances on the basis of the recommendations of the Sixth Central Pay Commission for the Officers of the Armed Forces. The Sixth Central Pay Commission (CPC) was set up by the Government of India by Resolution No. 5/2/2006-E III (A) dated 5th October, 2006 as amended by Resolution No. 5/2/2006-E III (A) dated 07th December, 2006 and 5/2/2006-E III (A) dated 8th August, 2007. The Commission submitted its report on 24th March, 2008. The report covered among other things, matters relating to structure of emoluments, allowances and conditions of service of Armed Forces personnel. Government have given careful consideration to the recommendations of the Commission relating to these matters in respect of Officers of the Armed Forces and have decided that the recommendations of the Commission on the matters aforementioned in respect of these categories of Defence personnel shall be accepted without any material change as a package with the following modifications:- (i) Implementation of the revised pay structure of pay bands and grade pay, as well as pension, with effect from 01.01.2006 and revised rates of allowances (except Dearness Allowance/relief) with effect from 01.09.2008; (ii) Fitment in pay bands would be based on the multiplication factor of 1.86 instead of 1.74 recommended by Sixth Central Pay Commission; (iii) Payment of 40% of arrears in cash in the year 2008-09 and the remaining 60% in the year 2009-10; (iv) Increase in the rate of annual increment from 2.5% to 3%; (v) Grant of scale of Army Commanders (Rs 80,000 fixed) on non-functional basis to those Lt. Generals who are fit for promotion as Army Commanders, but overlooked due to lack of residual service of 2 years; (vi) In case of existing Major General/Lt. General, Military Service Pay (MSP) to be taken into account notionally for fixation of pay on 1.1.2006 with actual benefits being admissible prospectively; (vii) Grade pay of Major General/equivalent will be Rs. 10,000 and Lt. General/equivalent Rs. 12,000. (viii) Placement of Colonel/equivalent and Brigadier/equivalent in the revised Pay Band-4 of Rs. 37400 - 67000; (ix) Enhanced grade pay of middle level officers (from Capt./equivalent to Brig./equivalent) as suggested by Defence Services. (x) Removal of Campus restriction for grant of Transport Allowance; (xi) Grade pay to determine seniority of posts only within a cadre's hierarchy and not between various cadres; (xii) The rates of Special Forces Allowance for Army and Air Force to be equated with Navy's Marine Commando Allowance. The recommendation of the Sixth CPC relating to lateral shift of Defence Personnel to Central Para Military Forces would be examined separately. Government have not accepted the recommendations of Sixth CPC regarding following issues:- (a) Liberal 'severance package' for employees who want tQ leave service without pension with more than 15 years but less than 20 years service (b) There should only be three closed holidays for Government employees. (c) Flexi-hours for women employees and flexi-weeks for employees with disabilities. General principles of fixation of initial pay in the revised pay structure as on 1.1.2006, fixation of pay of employees recruited on or after 1.1.2006, rate of increment in the revised pay structure and date of increment will be as in the Government of India Notification No. GSR 622(E) dated 29th August, 2008. Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. MEDIA ENCLOSURE: http://simpletaxindia.webasyst.net/files/6cpc/ZmlsZT1NVEUz SIXTH PAY COMMISSION CALCULATOR REVISED NEW Posted: Sat, 06 Sep 2008 13:53:00 +0000 Now This calculator has been upgraded to include the cases where the old scale has been upgraded like in the case of teacher old scale 4500-6000 has been upgraded to 6500-10500.To use in the case of upgradation of the pay scale by the pay commission ,fill white option column with appropriate code corressponding to revised pay grade ,it should be between 8-36 ,In this cases only grade pay is to increased and pay will be fixed as per fitment table ,so don't think that calculator is wrong ,it corrects actually and as per new rules clarification given on 11.09.2008. HOW TO USE THIS CALCULATOR(INSTRUCTIONS) FILL YOUR PAY CODE IN YELLOW COLOUMN(ABOVE) ,TO KNOW YOUR CODE CHECK FROM THE TABLE GIVEN BELOW ,IN THIS TABLE ALL POSSIBLE BASIC PAY ARE GIVEN SO FILL CODE CORRSPONDING TO YOUR BASIC PAY(MINIMUM IS ONE AND MAXIMUM 666),iF YOUR INCRMENT DUE DATE IS 01.01.2006 THAN FILL BASIC CODE AFTER INCREMENT. FILL MONTH OF INCREMENT (1-12) NOW CHECK WHETHER YOU HAVE SELECTED CORRECT DETAILS OR NOT FROM "YOU HAVE SELECTED " DETAILS ,IF ITS MATCH WITH YOUR DETAILS THAN DONE IF NOT THEN SELECT YOUR CODE AGAIN IF YOU HAVE WRONLY ENTERED ANY OTHER COLOUMN THAN REFRESH THE PAGE IT WILL BE WORKING AGAIN CHECK YOUR DETAIL REPORT AN ERROR IN COMMENT OR MAIL ME AT guptarajin2002 at the rate yahoo.co.in Limitatations This calculator is for person who have joined before 1/1/2006 and has not retired up to 31.08.2008 ,for other it will show incorect calculation You can change basic pay in 2006,2007,2008 given under "you have selected " coloumn ,if required ,its shows incorrect pay in therse column when we enter basic more than three step ahead of end of pay scale.Means person pay is stagnant at end of scale. if your basic pay is not given in below table than you may try nearest basic pay ,but results will be suggestive only not correct. if promotion or higher scale has been given to the personbetween 1/06 to 8/08 than this calculator give correct calculation upto the date of of promotion. some post scales has been upgraded to higher sclaes ,to calculate arrers in such case fill white optional cell and select code from 8-36 given in below second chart. Other errors as and when reported by you. {code-}{ -----------------------old scale---------------------------------}{--old basic----}{-incre-}{-ql-}{-code} Code list if your scale has been revised/upgraded by the pay commission fill in white cell optional code (8-36) ,Leave blank if not applicable otherwise calculation will be incorrect Fno.1/1/2008-1C Government of India Ministry of Finance Department of Expenditure (implementation cell) ***** New Delhi,the 13th september,2008 Clarification 6:Procedure For placing employees in upgraded scales in the case of merger of scales /upgradations recommended by the Sixth CPC where all post in one or more pre revised scales are Mergedwitha higer pre-revised scale and given a common replacement scale/Grade pay,the suitability of the incubents need not to be assessed for granting them the higher replacement will autometically be granted the replacement pay scale/grade pay recommended by the commission.Their pay will be fixed in the accordance with the fitment table annexed to this department's OM of the even number dated 30.08.2008 similarly ,In the case of upgradtions recommended by the Pay Commission ,i.e, where all post in the particular grade have been granted a higher replacement pay scale /grade pay ,the suitability of the incubents need not be assessed for granting them the higher replacement scale/grade pay.The incumbents will autometically be granted the replacement pay sclae/grade pay recommended by the Commission.their pay in the pay band will be fixed with reference to their fitment table corresponding to the pre revised pay scale.however , the grade pay corresponding to the upgraded post will be granted. download full circular/notification from here ALLOWANCES AND OTHER RECOMMENDATION STATUS OF THE SIXTH PAY COMMISSION KNOW EFFECTIVE DATE OF GRATUITY ,FULL PENSION FROM 20YEARS SERVICE INCREMENT:all the running pay bands will have annual increments in the form of three percent of total of pay in pay band and the corresponding grade pay.The variable pay increment for high performers in PB_3 increased to 4 % Payment of Arrears:40 % installment during current financial yera (2008-09) and the remaing 60% in the next financial year(2009-10) Dearness allownace:2001 series using linking factor 4.63 will be converted .according to this the rate will be Dearness Allowance after CPC approved: 1.01.06 — 0 % 1.07.06 — 2% 1,01.07 — 6 % 1.07.07 — 9 % 1.01.08 — 12% 1.07.08 — 16% Merger of DA with basic pay not recommended DA Installments continues to be sanctioned twice a year i.e in jan and july and jan DA will be given with the pay of march and july with september NPA: continues to Doctors ,no other post added for NPA ,rate remains 25 % example given below City Compensatory Allownace:abolished TRANSPORT ALLWANCE:Campus restriction for grant of transport allownce has been removed now employee living in campus also eligible to get Transport allownceweEMPLOYEE DRAWING PAY/GRADEPAY A-1/A CLASS CITY(RS) OTHER PLACES GRADE PAY5400 & ABOVE IN NEW PAY BANDS &HAG AND CABINET SECT 3200+dA there on 1600+ da thereon old basic 4000 or more or new basic 7440 or more in pb-1 not covered in above one 1600+da there on 800+ da there on other less than old basic 4000 and 7440 ne pay 600+da there on 400 +da thereon House Rent Allwance:Revised classification of cities and towns on population criteria revised categories(old categories) HRA AS %of [BASIC PAY+GRADE PAY +MILITRY SERVICSE PAY (MSP*) +NPA*] *(IF APPLICABLE) 50 lakhs & above X New cat(earlier named as A-1) 30% 50-5 lakhs Y new name(earlier as A,B-1,B-2) 20% below 5 lakhs Z (earlier c or unclasified) 10% No arrears of allownces except DA ,other allownce are applicable from 01.09.2008 Caretaking Allowance:increased to 10% of (basic plus grade pay) Inflation free allowances:Below given allowances shall autometically increased by 25 % when da rate goes up by 5o % Family Accomodation Allowance for CPMF personnel:payable @ the lowest rate of HRA for all CPMFs personnel who are not eligible for either rent free accomodation /Hra or CILQ Cycle,Washing,Cash handling,Special allowance,Night duty,Split Duty,allowances specific to different ministries/department/organisation are Doubled Uniform allowances:Post intial grant renewal grant Personnel,and officers in CPMFs/CPOs/RPF/IPS 14000 3000(PAYABLE AFTER EVERY THREE YEARS) COAST GAURD OFFICERS 16000 5000 KIT MAINTAIN ALL(IF EARLIER APPLICABLE) DOUBLE FROM EARLIER NA UNIFORM ALLOWANCES TO NURSES 500 RS PER MONTH NA Childeren Education allowance:and reimbursement of tuition fee has been mergered and maximum limit fixed to 1000 per month per child ,upto maximum 2 child Hostel Subsidy:upto maximum 3000 per month per child ,max two child Project Allowance:category Project allownce forpsot in the grade pay of rs 5400 and above Rs.1500Pm for other posts Rs.1000 Pm special compensatory (remort locality) allowancecategory Part-A Part-B Part-C Part-D forpsot in the grade pay of rs 5400 and above 2600 2100 1500 400 for other posts 2000 1600 1200 320 special compensatory (hill area)allowance /bad climate allownace/trible area allownace category bad climate/tribal area allowance Special Comopensatory (hill area allownace) forpsot in the grade pay of rs 5400 and above 400 pm 600 pm for other posts Rs240 pm. Rs 480 pm. Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. PENSION CACULATOR SIXTH PAY COMMISSION Posted: Wed, 03 Sep 2008 18:55:00 +0000 I have craeted a small use ful calculator for arrears of pension so try it and send feed back to me for improvement.fill only two fileds first code relating to your old pay scale or new pay pand given below(1 to 36 in yellow cells) and basic pension(without dp ,if merged with it as on 01.01.2004) as on 01.01.2006 and get your arrers calculation .The old age allwance has not been considered(new rate given below) ,more over commutation has no impact on arrears ,hence not considered. If you want to simple arrears calculation and your pension is not going to be fit at minimum of pay band that your arrears will jan .2006 to august 2008 Basic pension * 11.725135=arrears from 01.01.2006 to 31.08.2008 40% of arrears is to be given with September,2008 pension and balance in 2009-10 for exact calculation check calculator below FILL ONLY TWO YELLOW CELL(SELECT 1-36 CODE FROM ABOVE CHART)(LARGE VIEW) LARGE VIEWMinimum Pension: HOW TO USE THIS CALCULATOR OPEN SHEET "DETAIL" IF NOT OPENED BY DEFAULT FILL PAY SCALE CODE, 1-36 ,CORRESPONDING TO YOUR OLD FIFTH PAY SCALE,FROM CHART GIVEN BELOW OR FROM SHEET "CODE LIST" FILL YOUR BASIC PENSION AS ON 01.01.2006 EXCLUDING DP,DA,OR OTHER ALLOWANCE NOTHING ELSE REQUIRED ,CHECK YOUR CALCULATION IF YOUR AGE IS OLD THAN 80 THAN FILL DATE OF BIRTH COLUMN ALSO OTHER LEFT AS IT IS. THIS CALCULATOR WILL BE AVAILABLE FOR DOWNLOAD ON 08.09.2008 for download mail me guptarajin2002 at the rate yahoo.co.in Commission has recommended a minimum of 3330 rs pension except DA instead of earlier Basic plus DP. But further it has also qualify that basic pension should not be less than 50 % of the initial pay plus grade pay to be fixed corresponding to his old scale in which pensioner has retired basic start corresponding scale . As the govt has now enhanced the minimum basic pay +grade pay to 7000 from 6660 so new basic minimum pension should be 50 % of the basic pay i.e 50 % of 7000=3500 so in my opinion (NOW CONFIRMED)as explained above no pensioner will get less than 3500 basic pay as on 01.01.2006 The fixation as per this table will be subject to the provision that the revised pension, in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the prerevised pay scale from which the pensioner had retired. How to Fix new pension:Maximum of this will be your basic pension 2.26 of (old Basic pen ) 3500 rs(as explained above) 50 % of minimum( Basic + grade pay )of new pay band corresponding to pay scale from which the pensioner retires maximum pension 50% of highest pay i.e 50 % of 90000=45000 basic Maximum Family pension 30% of 90000 i.e 27000. so after calculation as above take maximum figure as your basic pension as on 01.01.2006 and then reduce the amount by commutation amount as earlier deducted from your old pension Family pension: Commission has not changed the % and retain the 30 % formula for the Family pension Now widow daughter is also eligible for pension Widow of the pension get family pension after remarriage also on certain conditions Minimum pension IS 3500 In case Normal and family pension both case certain % increase will be given on attaining the given age OTHER FEATURES The Commission recommends that linkage of full pension with 33 years of qualifying service should be dispensed with. Once an employee renders the minimum pensionable service of 20 years, pension should be paid at 50% of the average emoluments received during the past 10 months or the pay last drawn, whichever is more beneficial to the retiring employee. the Commission recommends that the maximum pecuniary limit of Rs.3.5 lakh on payment of gratuity should be raised to Rs.10 lakh. Government employees dying in harness, family pension may be paid at enhanced rates for a period of 10 years. the rates of exgratia may be doubled and raised to Rs.10 lakhs in cases of death occurring due to accidents in the course of performance of duty whether attributable to acts of violence by terrorists, anti-social elements etc. or otherwise and to Rs.15 lakhs in cases of death occurring due to enemy action in international war or border skirmishes or action against militants, terrorists, extremists in the border posts or on account of natural disasters, extreme weather conditions while on duty in the specified high altitude, inaccessible border posts, etc. Commission has recommended payment of pension equal to 50% of the average emoluments/last pay drawn on completion of 20 years of qualifying service. This will ensure that the willing employees leave the Government at a relatively younger age without waiting to complete 28 years of qualifying service that along with the weightage of 5 years, would entitle them for full pension under the extant rules. No further inducement is, therefore, required for employees who have completed 20 years of qualifying service in the Government. The revised pension, in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the prerevised pay scale from which the pensioner had retired. commuation table changed adopted @ 8% rate lic chart applicable for pensioners gets commutation after notification Medical facility extended to the dependent sons, the medical facilities should be continued in respect of dependent daughters irrespective of their age. The Commission, recommends that maximum allowable commutation of pension in case of Commissioned Officers should be increased to 50%. Similar dispensation should also be extended in case of PBORs who are presently allowed to commute 45% of their pension. Military service pay will be counted for fixation of pension The Commission, recommends the following revised rates of ex-gratia for families of Defence Forces personnel who die in harness in the performance of their bonafide official duties:- download PENSION RESOL 29.08.08 (240KB) download PENSION OFFICE NOTE(02.09.08) Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. MEDIA ENCLOSURE: http://simpletaxindia.webasyst.net/files/6cpc/ZmlsZT1NVEUw TEACHERS PAY SCALE AFTER GAZETTE NOTIFICATION Posted: Sat, 30 Aug 2008 13:03:00 +0000 Teachers old scale has been first revised/upgraded so the they will get the grade pay according to new revised pay scale they has been allotted ,the below table shows old pay scale ,revised pay scale and new pay band and grade pay applicable to different category of the teachers ALL PAY BANDS REVISED Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. PAY COMMISSION GAZETTE NOTIFICATION 29 AUGUST Posted: Sat, 30 Aug 2008 11:42:00 +0000 Dear Friends You can download Sixth pay commission Gazette Notification dated 29/08/2008 .you can download with out any rush because we are hosting these file independent of press beuro of India and on separate server so please download it from below link scroll down please do not click on the picture(link is given below) Internet explorer used please right click on the link and select "save target as " to download file smoothly download Gazette notification of sixth pay commission released on 29 august 2008(pdf)5.76mb) ALLOWANCES AND OTHER RECOMMENDATION STATUS OF THE SIXTH PAY COMMISSION KNOW EFFECTIVE DATE OF GRATUITY ,FULL PENSION FROM 20YEARS SERVICE INCREMENT:all the running pay bands will have annual increments in the form of three percent of total of pay in pay band and the corresponding grade pay.The variable pay increment for high performers in PB_3 increased to 4 % Payment of Arrears:40 % installment during current financial yera (2008-09) and the remaing 60% in the next financial year(2009-10) Dearness allownace:2001 series using linking factor 4.63 will be converted .according to this the rate will be Dearness Allowance after CPC approved: 1.01.06 — 0 % 1.07.06 — 2% 1,01.07 — 6 % 1.07.07 — 9 % 1.01.08 — 12% 1.07.08 — 16% Merger of DA with basic pay not recommended DA Installments continues to be sanctioned twice a year i.e in jan and july and jan DA will be given with the pay of march and july with september NPA: continues to Doctors ,no other post added for NPA ,rate remains 25 % example given below City Compensatory Allownace:abolished TRANSPORT ALLWANCE:Campus restriction for grant of transport allownce has been removed now employee living in campus also eligible to get Transport allownceweEMPLOYEE DRAWING PAY/GRADEPAY A-1/A CLASS CITY(RS) OTHER PLACES GRADE PAY5400 & ABOVE IN NEW PAY BANDS &HAG AND CABINET SECT 3200+dA there on 1600+ da thereon old basic 4000 or more or new basic 7440 or more in pb-1 not covered in above one 1600+da there on 800+ da there on other less than old basic 4000 and 7440 ne pay 600+da there on 400 +da thereon House Rent Allwance:Revised classification of cities and towns on population criteria revised categories(old categories) HRA AS %of [BASIC PAY+GRADE PAY +MILITRY SERVICSE PAY (MSP*) +NPA*] *(IF APPLICABLE) 50 lakhs & above X New cat(earlier named as A-1) 30% 50-5 lakhs Y new name(earlier as A,B-1,B-2) 20% below 5 lakhs Z (earlier c or unclasified) 10% No arrears of allownces except DA ,other allownce are applicable from 01.09.2008 Caretaking Allowance:increased to 10% of (basic plus grade pay) Inflation free allowances:Below given allowances shall autometically increased by 25 % when da rate goes up by 5o % Family Accomodation Allowance for CPMF personnel:payable @ the lowest rate of HRA for all CPMFs personnel who are not eligible for either rent free accomodation /Hra or CILQ Cycle,Washing,Cash handling,Special allowance,Night duty,Split Duty,allowances specific to different ministries/department/organisation are Doubled Uniform allowances:Post intial grant renewal grant Personnel,and officers in CPMFs/CPOs/RPF/IPS 14000 3000(PAYABLE AFTER EVERY THREE YEARS) COAST GAURD OFFICERS 16000 5000 KIT MAINTAIN ALL(IF EARLIER APPLICABLE) DOUBLE FROM EARLIER NA UNIFORM ALLOWANCES TO NURSES 500 RS PER MONTH NA Childeren Education allowance:and reimbursement of tuition fee has been mergered and maximum limit fixed to 1000 per month per child ,upto maximum 2 child Hostel Subsidy:upto maximum 3000 per month per child ,max two child Project Allowance:category Project allownce forpsot in the grade pay of rs 5400 and above Rs.1500Pm for other posts Rs.1000 Pm special compensatory (remort locality) allowancecategory Part-A Part-B Part-C Part-D forpsot in the grade pay of rs 5400 and above 2600 2100 1500 400 for other posts 2000 1600 1200 320 special compensatory (hill area)allowance /bad climate allownace/trible area allownace category bad climate/tribal area allowance Special Comopensatory (hill area allownace) forpsot in the grade pay of rs 5400 and above 400 pm 600 pm for other posts Rs240 pm. Rs 480 pm. Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. MEDIA ENCLOSURE: http://simpletaxindia.webasyst.net/files/6cpc/ZmlsZT1NVEE1 SIXTH PAY COMMISSION NEW PAY BAND IN GAZETTE NOTIFIACTION ON 29/08/2008 Posted: Sat, 30 Aug 2008 09:31:00 +0000 PRESS RELEASE OF CABINET APPROVAL IMPLEMENTATION OF THE RECOMMENDATIONS OF SIXTH CENTRAL PAY COMMISSION The Union Cabinet today gave its approval for implementation of the recommendations of the Sixth Central Pay Commission. The revised pay scales will come into effect from 1/1/2006 and revised rates of allowances from 1/9/2008. The Cabinet has also decided that arrears will be paid in cash in two instalments – first instalment of 40% during the current year (2008-09) and the remaining 60% in the next financial year (2009-10). 2. The Cabinet has broadly accepted the recommendations of Sixth CPC with some modifications in the wake of representations received from various sections/Associations of Central Government employees. The new system of four Pay Bands with 20 Grade Pays recommended by the Commission has been accepted with some minor modifications. 3. The minimum Basic Pay for a Government servant has been increased to Rs.7000 from Rs.6660 recommended by the Sixth CPC. Consequently, the total emoluments of an employee at the lowest level will exceed Rs.10,000 p.m., including allowances. 4. The other highlights of the Cabinet decision covering all Government employees including the Defence Forces are:- (i) Enhancement in the fitment in revised pay bands, which was recommended by the Sixth CPC to be based on multiplication factor of 1.74 to 1.86. This would result in increased emoluments for Government employees. (ii) Increase in the rate of annual increment from 2.5% to 3%. (iii) Removal of Campus restriction for grant of Transport Allowance. (iv) Increase in Transport Allowance at the lowest level to Rs.600 (from Rs.400 in A-1/A class cities recommended by the Sixth CPC) and Rs.400 (from Rs.300 in other cities recommended by the Sixth CPC). (v) At least three promotions have been assured for all Defence Forces’ personnel and civilian employees under the modified Assured Career Progression (ACP) Scheme. While the civilians would get it after 10, 20 and 30 years of service, the Defence Forces Jawans would get ACP in 8, 16 and 24 years. 5. For the Armed Forces personnel, the Commission, for the first time recommended a Military Service Pay (MSP). The Cabinet has increased the rate of MSP for PBORs to Rs.2000 from Rs.1000 recommended by the Commission. The Officers of the Defence Forces would get an MSP of Rs.6000 over and above their Pay. 6. The middle level officers of the Defence Forces namely Colonels and Brigadiers have been placed in the highest Pay Band of PB-4. 7. Senior Lt. Generals overlooked for promotion as Army Commanders due to lack of residual service would now get the grade of Army Commander (Secretary’s grade). In the case of existing Major Generals/Lt. Generals, MSP will be taken into account notionally for fixation of pay on 1/1/2006. 8. As replacement of the pay scale of Rs.24050-26000, a separate pay scale has been carved for DGPs, PCCFs, GM (Railways), members of the Boards of Income Tax, Customs & Central Excise, Postal and Ordnance Factories, among others, who were in this pre-revised scale. This would take them to the level of Rs.80000 in two years as against three years in the pre-revised scale. 9. Further, the IPS Pay Rules and the Indian Forest Service Pay Rules will be appropriately modified to provide in each State cadre one post of DGP and one post of PCCF at the apex level of Rs.80000 for heading their respective Forces. 10. Middle level Police and Civilian officers i.e. DIGs, Conservator of Forests, Scientists E & F, Superintending Engineers, Directors, Additional Commissioners of Income Tax and Central Excise and posts in equivalent grades have also been placed in PB-4. 11. Other salient decisions taken by the Cabinet are:- (i) The lower limits of Disability Pension for Defence personnel to be doubled from Rs.1550 to Rs.3100. War Disability Pension to be granted at 60%; (ii) The rates of Special Forces Allowance for Army and Air Force to be equated with navy’s Marine Commando Allowance; (iii) For the officers of Central Para Military Forces, all the posts of Additional DIG upgraded to DIG level by the Pay Commission to continue to be manned by the cadre officers of CPMFs; (iv) For the Railway employees who are in receipt of Running Allowance, this allowance will be taken into account while fixing their pay in revised pay bands; (v) Government has continued the present position of granting Group A scale to Group B officers after 4 years of service and these officers would be placed in PB-3 instead of PB-2 recommended by the Sixth CPC. This would benefit Group B officers of the Railways, Accounts Services, CSS, CSSS and DANICS & DANIPS. (vi) For Doctors, the Cabinet has approved promotions under the Dynamic ACP Scheme upto Senior Administrative Grade (Joint Secretary level) for Doctors with 20 years of service. Counting of Dearness Allowance (DA) on Non-Practicing Allowance (NPA) as on 01.01.2006 for fixing their pay in revised pay bands has also been approved; (vii) For the scientists, continuation of the existing system of grant of Special Pay of Rs.2000 p.m. to Scientists G on promotion and doubling of the amount to Rs.4000 p.m. in Departments of Space and Atomic Energy and Defence Research & Development Organisation (DRDO) has been recommended. 12. The financial implications in 2008-09 on account of the implementation of the recommendations of the Sixth Central Pay Commission as modified by the Cabinet will be around Rs.15700 crore on the Central Budget and Rs.6400 crore on the Railway Budget. 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ALLOWANCES AFTER GAZETTE NOTIFICATION:SIXTH PAY COMMISSION Posted: Sat, 30 Aug 2008 02:41:00 +0000 ALLOWANCES AND OTHER RECOMMENDATION STATUS OF THE SIXTH PAY COMMISSION KNOW EFFECTIVE DATE OF GRATUITY ,FULL PENSION FROM 20YEARS SERVICE INCREMENT:all the running pay bands will have annual increments in the form of three percent of total of pay in pay band and the corresponding grade pay.The variable pay increment for high performers in PB_3 increased to 4 % Payment of Arrears:40 % installment during current financial yera (2008-09) and the remaing 60% in the next financial year(2009-10) Dearness allownace:2001 series using linking factor 4.63 will be converted .according to this the rate will be Dearness Allowance after CPC approved: 1.01.06 — 0 % 1.07.06 — 2% 1,01.07 — 6 % 1.07.07 — 9 % 1.01.08 — 12% 1.07.08 — 16% Merger of DA with basic pay not recommended DA Installments continues to be sanctioned twice a year i.e in jan and july and jan DA will be given with the pay of march and july with september NPA: continues to Doctors ,no other post added for NPA ,rate remains 25 % example given below City Compensatory Allownace:abolished TRANSPORT ALLWANCE:Campus restriction for grant of transport allownce has been removed now employee living in campus also eligible to get Transport allownceweEMPLOYEE DRAWING PAY/GRADEPAY A-1/A CLASS CITY(RS) OTHER PLACES GRADE PAY5400 & ABOVE IN NEW PAY BANDS &HAG AND CABINET SECT 3200+dA there on 1600+ da thereon old basic 4000 or more or new basic 7440 or more in pb-1 not covered in above one 1600+da there on 800+ da there on other less than old basic 4000 and 7440 ne pay 600+da there on 400 +da thereon House Rent Allwance:Revised classification of cities and towns on population criteria revised categories(old categories) HRA AS %of [BASIC PAY+GRADE PAY +MILITRY SERVICSE PAY (MSP*) +NPA*] *(IF APPLICABLE) 50 lakhs & above X New cat(earlier named as A-1) 30% 50-5 lakhs Y new name(earlier as A,B-1,B-2) 20% below 5 lakhs Z (earlier c or unclasified) 10% No arrears of allownces except DA ,other allownce are applicable from 01.09.2008 Caretaking Allowance:increased to 10% of (basic plus grade pay) Inflation free allowances:Below given allowances shall autometically increased by 25 % when da rate goes up by 5o % Family Accomodation Allowance for CPMF personnel:payable @ the lowest rate of HRA for all CPMFs personnel who are not eligible for either rent free accomodation /Hra or CILQ Cycle,Washing,Cash handling,Special allowance,Night duty,Split Duty,allowances specific to different ministries/department/organisation are Doubled Uniform allowances:Post intial grant renewal grant Personnel,and officers in CPMFs/CPOs/RPF/IPS 14000 3000(PAYABLE AFTER EVERY THREE YEARS) COAST GAURD OFFICERS 16000 5000 KIT MAINTAIN ALL(IF EARLIER APPLICABLE) DOUBLE FROM EARLIER NA UNIFORM ALLOWANCES TO NURSES 500 RS PER MONTH NA Childeren Education allowance:and reimbursement of tuition fee has been mergered and maximum limit fixed to 1000 per month per child ,upto maximum 2 child Hostel Subsidy:upto maximum 3000 per month per child ,max two child Project Allowance:category Project allownce forpsot in the grade pay of rs 5400 and above Rs.1500Pm for other posts Rs.1000 Pm special compensatory (remort locality) allowancecategory Part-A Part-B Part-C Part-D forpsot in the grade pay of rs 5400 and above 2600 2100 1500 400 for other posts 2000 1600 1200 320 special compensatory (hill area)allowance /bad climate allownace/trible area allownace category bad climate/tribal area allowance Special Comopensatory (hill area allownace) forpsot in the grade pay of rs 5400 and above 400 pm 600 pm for other posts Rs240 pm. Rs 480 pm. Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. SIXTH PAY CALCULATION AFTER GAZETTE NOTIFICATION Posted: Sat, 30 Aug 2008 01:42:00 +0000 Dear viewer ,we have given below the pay calculation examples as given in the notification so these are authentic calculation & there is no doubt in them now what so ever so 100% correct so check them now ,revised pay bands also given as given in the gazette notification so fix your pay your self ,as the calculators given on the net are not updated so do it your self otherwise you have to face problems or there will be errors in your calculation we will add more example so please do visit us regularly. bunching benefit for every two stages new pay bands after gazette notification dated 29.08.2008 PAY FIXATION FOR MEDICAL OFFICER AND NPA CALCULATIONS ALLOWANCES AND OTHER RECOMMENDATION STATUS OF THE SIXTH PAY COMMISSION KNOW EFFECTIVE DATE OF GRATUITY ,FULL PENSION FROM 20YEARS SERVICE INCREMENT:all the running pay bands will have annual increments in the form of three percent of total of pay in pay band and the corresponding grade pay.The variable pay increment for high performers in PB_3 increased to 4 % Payment of Arrears:40 % installment during current financial yera (2008-09) and the remaing 60% in the next financial year(2009-10) Dearness allownace:2001 series using linking factor 4.63 will be converted .according to this the rate will be Dearness Allowance after CPC approved: 1.01.06 — 0 % 1.07.06 — 2% 1,01.07 — 6 % 1.07.07 — 9 % 1.01.08 — 12% 1.07.08 — 16% Merger of DA with basic pay not recommended DA Installments continues to be sanctioned twice a year i.e in jan and july and jan DA will be given with the pay of march and july with september NPA: continues to Doctors ,no other post added for NPA ,rate remains 25 % example given below City Compensatory Allownace:abolished TRANSPORT ALLWANCE:Campus restriction for grant of transport allownce has been removed now employee living in campus also eligible to get Transport allownceweEMPLOYEE DRAWING PAY/GRADEPAY A-1/A CLASS CITY(RS) OTHER PLACES GRADE PAY5400 & ABOVE IN NEW PAY BANDS &HAG AND CABINET SECT 3200+dA there on 1600+ da thereon old basic 4000 or more or new basic 7440 or more in pb-1 not covered in above one 1600+da there on 800+ da there on other less than old basic 4000 and 7440 ne pay 600+da there on 400 +da thereon House Rent Allwance:Revised classification of cities and towns on population criteria revised categories(old categories) HRA AS %of [BASIC PAY+GRADE PAY +MILITRY SERVICSE PAY (MSP*) +NPA*] *(IF APPLICABLE) 50 lakhs & above X New cat(earlier named as A-1) 30% 50-5 lakhs Y new name(earlier as A,B-1,B-2) 20% below 5 lakhs Z (earlier c or unclasified) 10% No arrears of allownces except DA ,other allownce are applicable from 01.09.2008 Caretaking Allowance:increased to 10% of (basic plus grade pay) Inflation free allowances:Below given allowances shall autometically increased by 25 % when da rate goes up by 5o % Family Accomodation Allowance for CPMF personnel:payable @ the lowest rate of HRA for all CPMFs personnel who are not eligible for either rent free accomodation /Hra or CILQ Cycle,Washing,Cash handling,Special allowance,Night duty,Split Duty,allowances specific to different ministries/department/organisation are Doubled Uniform allowances:Post intial grant renewal grant Personnel,and officers in CPMFs/CPOs/RPF/IPS 14000 3000(PAYABLE AFTER EVERY THREE YEARS) COAST GAURD OFFICERS 16000 5000 KIT MAINTAIN ALL(IF EARLIER APPLICABLE) DOUBLE FROM EARLIER NA UNIFORM ALLOWANCES TO NURSES 500 RS PER MONTH NA Childeren Education allowance:and reimbursement of tuition fee has been mergered and maximum limit fixed to 1000 per month per child ,upto maximum 2 child Hostel Subsidy:upto maximum 3000 per month per child ,max two child Project Allowance:category Project allownce forpsot in the grade pay of rs 5400 and above Rs.1500Pm for other posts Rs.1000 Pm special compensatory (remort locality) allowancecategory Part-A Part-B Part-C Part-D forpsot in the grade pay of rs 5400 and above 2600 2100 1500 400 for other posts 2000 1600 1200 320 special compensatory (hill area)allowance /bad climate allownace/trible area allownace category bad climate/tribal area allowance Special Comopensatory (hill area allownace) forpsot in the grade pay of rs 5400 and above 400 pm 600 pm for other posts Rs240 pm. Rs 480 pm. check revised calculator with arrears from here Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. ITAX RETURN FILING AFTER DUE DATE PENALTY Posted: Wed, 27 Aug 2008 10:44:00 +0000 Dear Friends, Now A days all tax consultant ,business man,specially persons who has Earned salary income are in rush so that they can file their income tax return by due date to meet the deadline i.e 31 July 2008 .we also one of them.As you all may be aware that due date of filing of income tax return In case of person who are not liable to get their accounts audited is 31.07.2008 In case of person who liable to get their accounts audit is 30.09.2008 In first case person who has earned income from salary ,pension, interest income ,capital gain , house property and person owning small business and not liable to get their accounts audited are covered. So net shell every body is trying to meet the deadline ie 31.07.2008 ,I and you are also doing efforts in this direction ,but do you know what is the penalty if some one has not filed his return on time .................i.e 31st July 2008. any guesses.......... no guess ,I will tell you ,In fact there is no penalty as such for this fault ,absolutely no penalty ,do you believe ,I have said that there is no penalty on late filing of return as such.But this is the fact .Specific penalty for late filing of return is prescribed u/s 271F which is briefed here under "if a person failure to furnish return of income as required by section 139 before the end of relevant assessment year ,the assessing officer may impose a penalty of Rs 5000/-" so this section says end of relevant assessment year ,as for previous year 2007-08 , assessment year is 2008-09 and its end on 31.03.2009 ,means there is no liability for late filing of income tax return up to 31.03.2009 and after that assessing officer can impose a penalty of 5000,and that is also his power which he may or may not exercise. Now you would like to know why people are so much worried about the last date ,the reason is that as last date has been linked with various other section of the income tax act ,so it is significant in that manner . so I have given some impact of late filing of the Income tax return. Impact of late filing of Income tax return Interest u/s 234A:If there is tax due after deducting advance tax ,TDS and self assessment tax than interest will be applicable @1% per month and part thereof up to the date of filing of the return besides interest applicable u/s 234B or 234C.Means this interest is applicable only if there is any tax payable in your return . Loss of Interest on refund:You may loose interest on refund u/s 244A as delay in filing is attributable to assessee for the period by which you have filed late return. Audit Report:Person who are liable to get their accounts audited should get the audit report on or before the due date of filing return i.e 30.09.2008. Revised return :Late /belated return can not be revised . Not able to carry forward the losses under various heads:you are not able to carry forward following type of losses if file return after due date Speculation loss business loss excluding loss due to unabsorbed depreciation and capital exp on scientific research short term capital loss long term capital loss loss due to owning and maint. of horse races However there is no impact on following type of losses even if return is furnished after the due date loss from house property business loss on account of unabsorbed depreciation and capital expenditure on scientific research. so if you are ambit of the above three points then you should furnish your return up to 31.07.2008 or 30.09.2008 as the case may be without any penalty. Person who can afford to file late return If you have deposited your all tax or due taxes has been deducted by your employer and nothing is due or you are not claiming a Major amount as refund or you have no losses to be carried forward then you can fill return up to the end of the assessment year ie 31.03.2009 without any penalty. Person who should file return on time. If you have balance tax to be deposited or short fall of tax or huge amount of refund due to you or you have losses to be carried forwarded as explained above(though delay can be condoned as per circular 8/2001 DT 16.5.2001 on fulfilling of certain condition) then rush to the department asap so that return can be filled on time. NOTE:Friends the all things as explained above is to not encourage people to file voluntarily late return but only to inform taxpayers their liability so that they can take informed decision. related link Download ITR FORM with instructions in excel/pdf Download ITR 1-8 free efiling software by kdk software Free help for regsitartion ,name error on efiling retun portal Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. TDS u/s 194-J :Scope of Professional service extended Posted: Tue, 26 Aug 2008 03:29:00 +0000 After taking Clue from the success of IPL(Indian Premier league) and money involved in it ,as you have heard at the time of IPL is running that department is exploring the way how to collect or tax the event or under which provision they can be called but they find little provisions so now the department has extended the scope of the Services covered under section 194J and included the various persons involved in the games like players,umpires etc etc.No doubt this section will be applicable to all the sports but its clear that it has been added specially for the Indian Cricketers as they are earnings are too high to absorb by the Department.Even columnist & commentators have not been spared .Complete Notification is given here under SECTION 194JOF THE INCOME-TAX ACT, 1961-DEDUCTION AT SOURCE OF TAX – NOTIFIED PROFESSIONAL SERVICES In exercise of the powers conferred by clause (a) of the Explanation to section 194J of the Income Tax Act, 1961, Central Board of Direct Taxes hereby notifies the services rendered by following persons in relation to the sports activities as “Professional Services” for the purpose of the said section, namely: – Sports Persons, Umpires and Referees, Coaches and Trainers, Team Physicians and Physiotherapists, Event Managers, Commentators, Anchors and Sports Columnists. 2. This notification shall come into force with effect from the date of its publication in the Official Gazette. NOTIFICATION NO. 88/2008/F.NO. 275/43/2008-IT(B), DATED 21-8-08 Please comment Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. CA CLUB INDIA.COM MEET 23.08.2008,I ENJOYED IT Posted: Mon, 25 Aug 2008 12:27:00 +0000 This Saturday,I have privileged to attend a meet at Delhi ,organized By the CACLUBINDIA.com.Entries were on Invitation only.On receiving the invitation I was very thrilled but I was in two minds when my rail return ticket could not be confirmed,From our city the Journey is of 5 hours for Delhi. I have decided to go ,After attending the meet ,I am happy on my decision ,I have been rewarded for it with the warm welcome,good hosting,smiling charming CEO ,Vivek jain ,Love and affection & many more..and by two nice T-Shirts. Before I write some thing about Meet or the website ,I am telling you that CEO of the website ,Mr Vivek Jain is of just 26 and He is working for the welfare of the community at large for last eight year thorough various mediums,I am very impressed with his personality,One think more for Him that he is not qualified as CA but he has very good knowledge of the field.Deputy CEO of the Website CA Nikita is also ever charming and charismatic. Now about the website ,CA CLUB INDIA ,is a informal,Interactive community website for the finance professional like CA,CS.ICWA ,MBA and also good for students perusing these courses.Its a platform where we can share our view ,get other view ,read expert view and ask question to them ,can download useful file in excel and many more.Its a complete site for Finance Professional .Now it has a member strength of 82000 and alexa rating in India is around 1000..I wish them a success in the future........ Click on slide show to view slide & all the pictures,and guess my photo from all the photo ,and write about your guess in comment section ,clue is that my age is 33,so guess Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. SIXTH PAY COMMISSION PENSION CALCULATOR Posted: Sun, 24 Aug 2008 05:42:00 +0000 Dear Friends , The sixth pay commission has given pensioner very good increase in their pension ,so general pension fitment multiply factor is 2.26 of basic pension(updated) as per annex attached with the sixth pay commission report Minimum Pension: Commission has recommended a minimum of 3330 rs pension except DA instead of earlier Basic plus DP. But further it has also qualify that basic pension should not be less than 50 % of the initial pay plus grade pay to be fixed corresponding to his old scale in which pensioner has retired basic start corresponding scale . As the govt has now enhanced the minimum basic pay +grade pay to 7000 from 6660 so new basic minimum pension should be 50 % of the basic pay i.e 50 % of 7000=3500 so in my opinion (NOW CONFIRMED)as explained above no pensioner will get less than 3500 basic pay as on 01.01.2006 The fixation as per this table will be subject to the provision that the revised pension, in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the prerevised pay scale from which the pensioner had retired. How to Fix new pension:Maximum of this will be your basic pension 2.26 of (old Basic pen ) 3500 rs(as explained above) 50 % of minimum( Basic + grade pay )of new pay band corresponding to pay scale from which the pensioner retires maximum pension 50% of highest pay i.e 50 % of 90000=45000 basic Maximum Family pension 30% of 90000 i.e 27000. so after calculation as above take maximum figure as your basic pension as on 01.01.2006 and then reduce the amount by commutation amount as earlier deducted from your old pension FILL ONLY TWO YELLOW CELL(SELECT 1-36 CODE FROM ABOVE CHART)LARGE VIEW LARGE VIEW HOW TO USE THIS CALCULATOR OPEN SHEET "DETAIL" IF NOT OPENED BY DEFAULT FILL PAY SCALE CODE, 1-36 ,CORRESPONDING TO YOUR OLD FIFTH PAY SCALE,FROM CHART GIVEN BELOW OR FROM SHEET "CODE LIST" FILL YOUR BASIC PENSION AS ON 01.01.2006 EXCLUDING DP,DA,OR OTHER ALLOWANCE NOTHING ELSE REQUIRED ,CHECK YOUR CALCULATION IF YOUR AGE IS OLD THAN 80 THAN FILL DATE OF BIRTH COLUMN ALSO OTHER LEFT AS IT IS. THIS CALCULATOR WILL BE AVAILABLE FOR DOWNLOAD ON 08.09.2008 for download mail me guptarajin2002 at the rate yahoo.co.in Family pension: Commission has not changed the % and retain the 30 % formula for the Family pension Now widow daughter is also eligible for pension Widow of the pension get family pension after remarriage also on certain conditions Minimum pension IS 3500 In case Normal and family pension both case certain % increase will be given on attaining the given age OTHER FEATURES The Commission recommends that linkage of full pension with 33 years of qualifying service should be dispensed with. Once an employee renders the minimum pensionable service of 20 years, pension should be paid at 50% of the average emoluments received during the past 10 months or the pay last drawn, whichever is more beneficial to the retiring employee. the Commission recommends that the maximum pecuniary limit of Rs.3.5 lakh on payment of gratuity should be raised to Rs.10 lakh. Government employees dying in harness, family pension may be paid at enhanced rates for a period of 10 years. the rates of exgratia may be doubled and raised to Rs.10 lakhs in cases of death occurring due to accidents in the course of performance of duty whether attributable to acts of violence by terrorists, anti-social elements etc. or otherwise and to Rs.15 lakhs in cases of death occurring due to enemy action in international war or border skirmishes or action against militants, terrorists, extremists in the border posts or on account of natural disasters, extreme weather conditions while on duty in the specified high altitude, inaccessible border posts, etc. Commission has recommended payment of pension equal to 50% of the average emoluments/last pay drawn on completion of 20 years of qualifying service. This will ensure that the willing employees leave the Government at a relatively younger age without waiting to complete 28 years of qualifying service that along with the weightage of 5 years, would entitle them for full pension under the extant rules. No further inducement is, therefore, required for employees who have completed 20 years of qualifying service in the Government. The revised pension, in no case, shall be lower than fifty percent of the sum of the minimum of the pay in the pay band and the grade pay thereon corresponding to the prerevised pay scale from which the pensioner had retired. Medical facility extended to the dependent sons, the medical facilities should be continued in respect of dependent daughters irrespective of their age. The Commission, recommends that maximum allowable commutation of pension in case of Commissioned Officers should be increased to 50%. Similar dispensation should also be extended in case of PBORs who are presently allowed to commute 45% of their pension. Military service pay will be counted for fixation of pension The Commission, recommends the following revised rates of ex-gratia for families of Defence Forces personnel who die in harness in the performance of their bonafide official duties:- Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. SIXTH PAY COMMISSION -LEAVE ENCASHMENT Posted: Fri, 22 Aug 2008 17:07:00 +0000 Sixth pay commission recommends the following benefits regarding leave and its encashment benefits 5 day week will continue A(ll gazetted Holidays to go.....means no holidays any more but this recommendation not accepted by the cabinet Only three National Holidays:15 August,26 January ,2 October Instead of Gazetted Holidays restricted leaves has been increased to 8 from 2 HOD can declare two restricted leave for all the staff if there are some practical problems If such holidays are declared than restricted leave of every employee will be deducted 12 Casual leaves for physical disabled employees Teachers,Principals and Head Masters working in schools and Librarians, Laboratory Assistants and Watermen working in schools have been allowed the facility of half pay leave at par with the other central Govt employees commission suggests that staggered working hours should be for working women Women can come for late and can go late or come early and go early subject to that they must be present between 11 am to 4 pm.(its a suggestion) Maternity leave has been Increased to 180 days from 135 days. Two year more leave is also allowed for child care in continuation of maternity leave. Leave encashment for Defence personal has been de linked from number of yers served now they can get leave encashment upto 300 days without linking with number of years severed Women officers in army are also allowed 6 months maternity leave earlier it was two months The Commission recommends that while no change may be made in the maximum number of EL that can be accumulated and encashed, whether in service or at the time of retirement/leaving the Government, however, the number of EL encashed while in service should be excluded from the overall ceiling of encashment of 300 days EL allowed at the time of retirement. Earned Leave and Half Pay Leave should be considered for encashment of leave subject to the overall limit of 300 days. The provisions relating to encashment of Earned Leave shall continue unchanged. Half Pay Leave will be encashable at the rate equal to half the amount of leave salary payable during Earned Leave without any reduction being made on account of pension payable. To make up the shortfall in Earned Leave, no commutation of Half Pay Leave shall be permissible. other related pages SIXTH PAY CALCULATION AFTER GAZETTE NOTIFICATION Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. PAY CALCULATOR :SIXTH PAY COMMISSION Posted: Thu, 21 Aug 2008 01:38:00 +0000 Dear friends , I have collected some use ful calculators from net for calculation of the arrears of sixth pay commission .As per pay commission report allowances and Military pay will be given prospectively and other difference will be given to you we have created a new calculator revisde on 16.09.2008 here How to calculate New Pay as per approval by the cabinet,Its very simple ,infact they have given us noting but increase in allowance and grade pay plus increase in terminal benefit.suppose you have basic as on 1.1.06 as 10000 so u are getting 50% DP (5000) and 24% DA on (basic+DP i.e 10000+5400=15000) =3600 so total of basic plus Dp plus DA is =10000+5000+3600=18600 and what the commission/cabinet has done just give a formula of new basic as old basicX1.86=18600 and merged the DP and DA(24%) as on 1.01.06 means just arithmetic calculation noting else so in most of the case if you want to know your new basic pay as per cabinet approval just add you old basic plus dp plus da as on 01.01.2006 noting else .and to know your grade pay just check what is correspondent scale/pay band you have been given against your old pay scale and take the grade pay accordingly . so new basic pay can be calculated as follows as on 01.01.2006 old basic plus old dp plus old da as on 01.01.2006=new basic pay as per cabinet approval or old basic pay X1.86=new basic pay as per cabinet approval rounded to multiple of 10 so your arrears would be month from 01.01.2006 multiply by grade pay for which you are eligible and DA (to be announced) on new basic pay and on grade pay ,allowances are given prospectively from 01.09.2008 so no arrears calculation for allowances. read the complete press release by the cabinet IMPLEMENTATION OF THE RECOMMENDATIONS OF SIXTH CENTRAL PAY COMMISSION -------------------------------------------------------------------------------- The Union Cabinet today gave its approval for implementation of the recommendations of the Sixth Central Pay Commission. The revised pay scales will come into effect from 1/1/2006 and revised rates of allowances from 1/9/2008. The Cabinet has also decided that arrears will be paid in cash in two instalments – first instalment of 40% during the current year (2008-09) and the remaining 60% in the next financial year (2009-10). 2. The Cabinet has broadly accepted the recommendations of Sixth CPC with some modifications in the wake of representations received from various sections/Associations of Central Government employees. The new system of four Pay Bands with 20 Grade Pays recommended by the Commission has been accepted with some minor modifications. 3. The minimum Basic Pay for a Government servant has been increased to Rs.7000 from Rs.6660 recommended by the Sixth CPC. Consequently, the total emoluments of an employee at the lowest level will exceed Rs.10,000 p.m., including allowances. 4. The other highlights of the Cabinet decision covering all Government employees including the Defence Forces are:- (i) Enhancement in the fitment in revised pay bands, which was recommended by the Sixth CPC to be based on multiplication factor of 1.74 to 1.86. This would result in increased emoluments for Government employees. (ii) Increase in the rate of annual increment from 2.5% to 3%. (iii) Removal of Campus restriction for grant of Transport Allowance. (iv) Increase in Transport Allowance at the lowest level to Rs.600 (from Rs.400 in A-1/A class cities recommended by the Sixth CPC) and Rs.400 (from Rs.300 in other cities recommended by the Sixth CPC). (v) At least three promotions have been assured for all Defence Forces’ personnel and civilian employees under the modified Assured Career Progression (ACP) Scheme. While the civilians would get it after 10, 20 and 30 years of service, the Defence Forces Jawans would get ACP in 8, 16 and 24 years. 5. For the Armed Forces personnel, the Commission, for the first time recommended a Military Service Pay (MSP). The Cabinet has increased the rate of MSP for PBORs to Rs.2000 from Rs.1000 recommended by the Commission. The Officers of the Defence Forces would get an MSP of Rs.6000 over and above their Pay. 6. The middle level officers of the Defence Forces namely Colonels and Brigadiers have been placed in the highest Pay Band of PB-4. 7. Senior Lt. Generals overlooked for promotion as Army Commanders due to lack of residual service would now get the grade of Army Commander (Secretary’s grade). In the case of existing Major Generals/Lt. Generals, MSP will be taken into account notionally for fixation of pay on 1/1/2006. 8. As replacement of the pay scale of Rs.24050-26000, a separate pay scale has been carved for DGPs, PCCFs, GM (Railways), members of the Boards of Income Tax, Customs & Central Excise, Postal and Ordnance Factories, among others, who were in this pre-revised scale. This would take them to the level of Rs.80000 in two years as against three years in the pre-revised scale. 9. Further, the IPS Pay Rules and the Indian Forest Service Pay Rules will be appropriately modified to provide in each State cadre one post of DGP and one post of PCCF at the apex level of Rs.80000 for heading their respective Forces. 10. Middle level Police and Civilian officers i.e. DIGs, Conservator of Forests, Scientists E & F, Superintending Engineers, Directors, Additional Commissioners of Income Tax and Central Excise and posts in equivalent grades have also been placed in PB-4. 11. Other salient decisions taken by the Cabinet are:- (i) The lower limits of Disability Pension for Defence personnel to be doubled from Rs.1550 to Rs.3100. War Disability Pension to be granted at 60%; (ii) The rates of Special Forces Allowance for Army and Air Force to be equated with navy’s Marine Commando Allowance; (iii) For the officers of Central Para Military Forces, all the posts of Additional DIG upgraded to DIG level by the Pay Commission to continue to be manned by the cadre officers of CPMFs; (iv) For the Railway employees who are in receipt of Running Allowance, this allowance will be taken into account while fixing their pay in revised pay bands; (v) Government has continued the present position of granting Group A scale to Group B officers after 4 years of service and these officers would be placed in PB-3 instead of PB-2 recommended by the Sixth CPC. This would benefit Group B officers of the Railways, Accounts Services, CSS, CSSS and DANICS & DANIPS. (vi) For Doctors, the Cabinet has approved promotions under the Dynamic ACP Scheme upto Senior Administrative Grade (Joint Secretary level) for Doctors with 20 years of service. Counting of Dearness Allowance (DA) on Non-Practicing Allowance (NPA) as on 01.01.2006 for fixing their pay in revised pay bands has also been approved; (vii) For the scientists, continuation of the existing system of grant of Special Pay of Rs.2000 p.m. to Scientists G on promotion and doubling of the amount to Rs.4000 p.m. in Departments of Space and Atomic Energy and Defence Research & Development Organisation (DRDO) has been recommended. 12. The financial implications in 2008-09 on account of the implementation of the recommendations of the Sixth Central Pay Commission as modified by the Cabinet will be around Rs.15700 crore on the Central Budget and Rs.6400 crore on the Railway Budget. download above press release in word 31kb press release on implementation 6th pay commission Full Download:6th CPC Report | Annex other major recommandation by sixth pay commission Military pay Full Download:6th CPC Report | Annex OTHER HIGHLIGHTS # National Holidays - 3(NOT ACCEPTED BY CABINET) # Gazette Holidays to be canceled(NOT ACCEPTED BY CABINET) # Pay hike will be implemented from January 01, 2006 # Maternity Leave : 6 Months # HRA in A-1 Cities - 30% (Unchanged) # HRA in A, B, B-1 Cities - 20% # HRA other cities 10% # Increase in Transport Allowance at the lowest level to Rs.600 (from Rs.400 in A-1/A class cities recommended by the Sixth CPC) and Rs.400 (from Rs.300 in other cities recommended by the Sixth CPC). #Max grauity limit 10 lacs from 3.5 lacs # Half pay leave will be accounted towards leave en cashment if at the retirement earned leave is less than 300 Full pension 50% if service is of 20years All Increments in July month on age 80 pensioner will get extra 20% and on 85 get 30% and on 100 get 100 % more pension Maternity Leave 180 days Full Download:6th CPC Report | Annex The new calculators may have some errors which we be rectified as early as possible in the mean time subscribe our free email service so that you can be notified as and when new calculator is available.this files are excel mecro based and first calculator will open a web page also just ignore the web page opened by the file Enter your email address: Delivered by FeedBurner SIXTH PAY CALCULATION AFTER GAZETTE NOTIFICATION SIXTH PAY COMMISSION PENSION CALCULATOR DOWNLOAD COST OF INFLATION INDEX 1981 TO 2009 DOWNLOAD FREE TAX CALCULATOR FROM AY 1995-2009-10 DOWNLOAD FREE CHALLAN 280-281-282-283 DOWNLOAD TDS RATE 2007-08 & 2008-09 FY DOWNLOAD HRA CALCULATOR Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. MEDIA ENCLOSURE: http://simpletaxindia.googlepages.com/6thpaycommisionimplementation.doc SIXTH PAY COMMISSION CALCULATOR REVISED Posted: Tue, 19 Aug 2008 15:26:00 +0000 Full Download:6th CPC Report | Annex Recommendation given by 6thCPC has been approved by the by the cabinet on 14.08.2008 the Detail of approval press notification is given hereunder for your read reference IMPLEMENTATION OF THE RECOMMENDATIONS OF SIXTH CENTRAL PAY COMMISSION -------------------------------------------------------------------------------- The Union Cabinet today gave its approval for implementation of the recommendations of the Sixth Central Pay Commission. The revised pay scales will come into effect from 1/1/2006 and revised rates of allowances from 1/9/2008. The Cabinet has also decided that arrears will be paid in cash in two instalments – first instalment of 40% during the current year (2008-09) and the remaining 60% in the next financial year (2009-10). 2. The Cabinet has broadly accepted the recommendations of Sixth CPC with some modifications in the wake of representations received from various sections/Associations of Central Government employees. The new system of four Pay Bands with 20 Grade Pays recommended by the Commission has been accepted with some minor modifications. 3. The minimum Basic Pay for a Government servant has been increased to Rs.7000 from Rs.6660 recommended by the Sixth CPC. Consequently, the total emoluments of an employee at the lowest level will exceed Rs.10,000 p.m., including allowances. 4. The other highlights of the Cabinet decision covering all Government employees including the Defence Forces are:- (i) Enhancement in the fitment in revised pay bands, which was recommended by the Sixth CPC to be based on multiplication factor of 1.74 to 1.86. This would result in increased emoluments for Government employees. (ii) Increase in the rate of annual increment from 2.5% to 3%. (iii) Removal of Campus restriction for grant of Transport Allowance. (iv) Increase in Transport Allowance at the lowest level to Rs.600 (from Rs.400 in A-1/A class cities recommended by the Sixth CPC) and Rs.400 (from Rs.300 in other cities recommended by the Sixth CPC). (v) At least three promotions have been assured for all Defence Forces’ personnel and civilian employees under the modified Assured Career Progression (ACP) Scheme. While the civilians would get it after 10, 20 and 30 years of service, the Defence Forces Jawans would get ACP in 8, 16 and 24 years. 5. For the Armed Forces personnel, the Commission, for the first time recommended a Military Service Pay (MSP). The Cabinet has increased the rate of MSP for PBORs to Rs.2000 from Rs.1000 recommended by the Commission. The Officers of the Defence Forces would get an MSP of Rs.6000 over and above their Pay. 6. The middle level officers of the Defence Forces namely Colonels and Brigadiers have been placed in the highest Pay Band of PB-4. 7. Senior Lt. Generals overlooked for promotion as Army Commanders due to lack of residual service would now get the grade of Army Commander (Secretary’s grade). In the case of existing Major Generals/Lt. Generals, MSP will be taken into account notionally for fixation of pay on 1/1/2006. 8. As replacement of the pay scale of Rs.24050-26000, a separate pay scale has been carved for DGPs, PCCFs, GM (Railways), members of the Boards of Income Tax, Customs & Central Excise, Postal and Ordnance Factories, among others, who were in this pre-revised scale. This would take them to the level of Rs.80000 in two years as against three years in the pre-revised scale. 9. Further, the IPS Pay Rules and the Indian Forest Service Pay Rules will be appropriately modified to provide in each State cadre one post of DGP and one post of PCCF at the apex level of Rs.80000 for heading their respective Forces. 10. Middle level Police and Civilian officers i.e. DIGs, Conservator of Forests, Scientists E & F, Superintending Engineers, Directors, Additional Commissioners of Income Tax and Central Excise and posts in equivalent grades have also been placed in PB-4. 11. Other salient decisions taken by the Cabinet are:- (i) The lower limits of Disability Pension for Defence personnel to be doubled from Rs.1550 to Rs.3100. War Disability Pension to be granted at 60%; (ii) The rates of Special Forces Allowance for Army and Air Force to be equated with navy’s Marine Commando Allowance; (iii) For the officers of Central Para Military Forces, all the posts of Additional DIG upgraded to DIG level by the Pay Commission to continue to be manned by the cadre officers of CPMFs; (iv) For the Railway employees who are in receipt of Running Allowance, this allowance will be taken into account while fixing their pay in revised pay bands; (v) Government has continued the present position of granting Group A scale to Group B officers after 4 years of service and these officers would be placed in PB-3 instead of PB-2 recommended by the Sixth CPC. This would benefit Group B officers of the Railways, Accounts Services, CSS, CSSS and DANICS & DANIPS. (vi) For Doctors, the Cabinet has approved promotions under the Dynamic ACP Scheme upto Senior Administrative Grade (Joint Secretary level) for Doctors with 20 years of service. Counting of Dearness Allowance (DA) on Non-Practicing Allowance (NPA) as on 01.01.2006 for fixing their pay in revised pay bands has also been approved; (vii) For the scientists, continuation of the existing system of grant of Special Pay of Rs.2000 p.m. to Scientists G on promotion and doubling of the amount to Rs.4000 p.m. in Departments of Space and Atomic Energy and Defence Research & Development Organisation (DRDO) has been recommended. 12. The financial implications in 2008-09 on account of the implementation of the recommendations of the Sixth Central Pay Commission as modified by the Cabinet will be around Rs.15700 crore on the Central Budget and Rs.6400 crore on the Railway Budget. download above press release in word 31kb press release on implementation 6th pay commission Full Download:6th CPC Report | Annex calculator is available here SIXTH PAY COMMISSION CALCULATOR REVISED NEW Full Download:6th CPC Report | Annex OTHER HIGHLIGHTS # National Holidays - 3 # Gazette Holidays to be canceled(NOT ACCEPTED BY CABINET # Pay hike will be implemented from January 01, 2006 # Maternity Leave : 6 Months # HRA in A-1 Cities - 30% (Unchanged) # HRA in A, B, B-1 Cities - 20% # HRA other cities 10% # Increase in Transport Allowance at the lowest level to Rs.600 (from Rs.400 in A-1/A class cities recommended by the Sixth CPC) and Rs.400 (from Rs.300 in other cities recommended by the Sixth CPC). #Max grauity limit 10 lacs from 3.5 lacs # Half pay leave will be accounted towards leave en cashment if at the retirement earned leave is less than 300 Full pension 50% if service is of 20years All Increments in July month on age 80 pensioner will get extra 20% and on 85 get 30% and on 100 get 100 % more pension Full Download:6th CPC Report | Annex The new calculators may have some errors which we be rectified as early as possible in the mean time subscribe our free email service so that you can be notified as and when new calculator is available.this files are excel mecro based and first calculator will open a web page also just ignore the web page opened by the file Enter your email address: Delivered by FeedBurner SIXTH PAY CALCULATION AFTER GAZETTE NOTIFICATION SIXTH PAY COMMISSION PENSION CALCULATOR DOWNLOAD COST OF INLATION INDEX 1981 TO 2009 DOWNLOAD FREE TAX CALCULATOR FROM AY 1995-2009-10 DOWNLOAD FREE CHALLAN 280-281-282-283 DOWNLOAD TDS RATE 2007-08 & 2008-09 FY DOWNLOAD HRA CALCULATOR Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. MEDIA ENCLOSURE: http://india.gov.in/govt/studies/report.zip COST INFLATION INDEX NOTIFIED FY 2008-09 Posted: Tue, 19 Aug 2008 01:23:00 +0000 SECTION 48, EXPLANATION (V) OF THE INCOME-TAX ACT, 1961 - NOTIFIED COST INFLATION INDEX FOR FINANCIAL YEAR 2008-09 NOTIFICATION NO. 86/2008, DATED 13-8-2008 In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to seventy-five per cent of the average rise in the Consumer Price Index for the Financial Year commencing from the 1st day of April, 2007 and ending on the 31st day of March, 2008 for the urban non-manual employees, hereby specifies the Cost Inflation Index for the Financial Year commencing from the 1st day of April, 2008 and ending on the 31st day of March, 2009 and for that purpose further makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes number S.O.709(E), dated the 20th August, 1998, namely:- In the said notification, in the Table, after serial number 27 and the entries relating, thereto, the following serial number and entries shall be inserted, namely :— “28 2008-09 582” Below Text is a presentation(PPT) click to see next slide DOWNLOAD PRESENTATION IN PDF (164KB) DOWNLOAD COST OF INLATION INDEX 1981 TO 2009 DOWNLOAD FREE TAX CALCULATOR FROM AY 1995-2009-10 DOWNLOAD FREE CHALLAN 280-281-282-283 DOWNLOAD TDS RATE 2007-08 & 2008-09 FY DOWNLOAD HRA CALCULATOR Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. MEDIA ENCLOSURE: http://simpletaxindia.googlepages.com/share-s-income-tax.pdf eTDS RETURN WITH LESS THAN REQUIRED PAN SOLUTION (OFFICIAL WORD) Posted: Tue, 12 Aug 2008 18:10:00 +0000 As you may aware of that that its mandatory to give details of pan of deductee in etds return .CBDT has increased the % by press release on 12.02.2008 applicable from 01.04.2008,now the present % required are given under... For form 24q (etds return for salary mandatory pan limit will be 95% increased from 90% For Form 26q and form 27eq(e-TCS) mandatory pan limit will be 85% increased from 70% earlier. but due to these minimum % pan ,its impossible for some deductor to file the return ,as the deductee has not either have a pan or has not submitted the same to the deductor or intimate the incorrect pan not accepted by fvu..so many return are laying pending specially in case of small return where in absolute term there is only 2-3 pan are missing but as % they are 20-30 % ...I have also suggested in these cases to fill wrong pan and then revise the return latar on ,which seems to be not logically right to many but we have no option at that time and no official word on this issue was existed but now on 11 august2008 some official words are given on tin-nsdl site and i have reproduced the notice here under.Though this notice has not bearing the stamp of issuing authority but as it has been issued on NSDL website which is official site for e management of taxes by department ,so it is as good as a circular issued by CBDT.(feed reader u have to visit the blog to read the notice) ********************************************* Procedure for filing TDS returns with insufficient deductee PAN As per instructions issued by the Central Board of Direct Taxes (CBDT), it is mandatory for deductors to file TDS/TCS statements with a threshold limit of Permanent Account Number (PAN) of deductees. To facilitate deductors who face problem in filing TDS returns because of insufficiency of PAN of the deductees and also to accommodate the deductees who have intimated their PAN, the Income Tax Department (ITD) has specified the following procedure for filing TDS/TCS returns: Deductors can file a return containing deductee records which meets the specified threshold limit of PAN quoting, i.e., a deductor can file a return containing deductee details who have provided valid PAN. It can subsequently file a correction return with details of remaining deductees. E.g. as below: Suppose a challan payment of Rs.1,00,000/- has been made for non-salary TDS against 100 deductees each with TDS of Rs.1,000/-. Under the existing procedure the deductor will have to quote at least 85 PAN failing which his return will be rejected. If there are only 50 deductees whose PAN is available and the deductor attempts to file a return with details of 100 deductees with PAN of only 50 deductees, the return will automatically be rejected at present. However, if he files a return with challan amount of Rs. 1,00,000/- and with details of 50 deductees with PAN, with deductee total of Rs.50,000/-, the return will be accepted. It means the deductor can furnish the details relating to such deductees whose PANs are available. The deductor can later file correction returns with other details of remaining deductees with the same challan details, i.e., the challan amount should be the amount deposited (in this case Rs. 1,00,000/-). The return will be accepted so long as the TDS total of incremental deductees is less than or equal to the balance of Rs.50,000/-. ********************************************** From this notice, it is very much clear that we should go for incomplete return and give the deductee detail as much as we can give,and wait for balance information ,and as soon as we have all the party /dseductee's pan in our hand revise the etds return. This issue is very beneficial to many but this will not help the tax people to implement the minimum pan % condition in etds return as people tend to give half information and will reluctant to revise the return .but for genuine cases its a relief which is necessary. I have some point regarding the new instruction In some cases its will create a very funny situation suppose if a tds return has only one deductee and that's pan is also not available that as per direction above person will fill only challan detail and no deductee detail will be filled. Person who's return has been accepted once without full detail will be relectant to file the revise return. If person is not able to collect the pan details of all the assessee with in the assessment year ,in that case can he revise the return after the assessment year. In my opinion its better to have a some information rather than nil information means earlier if persons pan is missing ,in etds return we are giving name address etc of the deductee in etds return by which Assessing officer can verify the tax through etds return and can give due credit of tax deducted in assessment of the deductee ,now the AO has no record of those person who has not submitted their pan to the deductor Overall I can say it is good step or we can say a relief but in my opinion it should be temporary so that time schedule for discontinuation of TDS certificate may be met and we can live and progress further in e-management of taxes. Please comment. Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. BOOK ON EFILING AND E ERA OF TAXES -A REVIEW Posted: Sun, 10 Aug 2008 13:31:00 +0000 Recently, I came across a book entitled “All about efiling” written by CA Rekha Dhamankar. The book (running into 350+ pages) covers almost all types of electronic filing done by any professional chartered accountant or a company secretary. This includes – Income-tax Returns, including e payments of taxes; Filing under MCA 21; e-TDS returns, including correction returns and handling discrepancies pointed out by NSDL; Central Excise and Service Tax returns; and Maharashtra VAT returns. Besides, the book also elaborately covers the topic of digital signatures, which is quite interesting and useful and a must-know for any professional. The language of the book is quite simple and lucid and easy to understand. Inclusion of screen shots from softwares/ websites makes this book a useful tool as a referencer while doing efiling. The author has taken pain-staking efforts to handle almost every possible practical problem in efiling and provide solution for the same. At a price of Rs. 300/-, it could add value to your book-shelf and provide much needed assistance in the newly started efiling era. The book, however, does not cover some specialized efiling jobs such as import/ export related filings or filings by listed companies. But as these jobs are specialized and not handled during day-to-day working by common practitioners, there is not much to loose on that count. CA Milind Sangoram AVAILABLE ON MOST OF THE LEADING STORES FOR MORE DETAILS CONTACT Dhamankar and Khandewale, Chartered Accountants 11/A-1, Swaroop Society, 130, Erandwane, Pune - 411004. Phone/ Fax - 020 25469683 e-Mail - dkca@eth.net / tin1323@vsnl.net Related issues: ITAX RETURN FILING AFTER DUE DATE PENALTY e-FILLING REGISTRATION NAME ERROR PROBLEM SOLUTION EPAYMENT FROM OTHERS BANK ACCOUNT ALLOWED FREE EFILING SOFTWARE FOR ITR 1-8 HOW TO DEPOSITE ONLINE INCOME TAX INCONSISTENCY IN QTRLY ETDS/ETCS STATEMENT FILE YOUR SERVICE TAX RETURN ONLINE KNOW YOUR IP ADDRESS KNOW DEALERS DETAIL BY TIN (VAT) NUMBER OR BY NAME... HOW CAN I KNOW (PRINT ITR-V) AFTER E FILLING HOW TO PAY SERVICE/EXCISE TAX ONLINE ELECTRONIC KNOW YOUR SERVICE TAX NUMBER /CODE GET ONE DAY GRACE ,PAY SERVICE TAX ELECTRONICLY(on... use E-seva by ICAI(Institute of chartered accounta... FREE SOFTWARE FOR ETDS-ETCS RETURN Register for form 26as (pan login)& VIEW YOUR TAX DEPOSITED DEDUCTED ONLINE Dear Friends, Pls add my email address guptarajin2002 at the rate in your address book so that mail comes in inbox instead of spam folder.you can also contribute to this blog send your idea/articles in reply to this mail. FeedBurner delivers the world's subscriptions wherever they need to go. Publish a feed for text or podcasting? You should try FeedBurner today. Click here to tell your friends/colleagues about this