Wednesday, 9 July 2014

Proposal for Rs 1,000 minimum monthly pension approved: Government

Proposal for Rs 1,000 minimum monthly pension approved: Government

Government has approved minimum monthly pension of Rs 1,000 under Employees Pension Scheme 1995 (EPS-95) run by the retirement body Employees’ Provident Fund Organisation (EPFO), Parliament was informed today.

The decision of the government would immediately benefit 28 lakh pensioners including 5 lakh widows getting less than Rs 1000 as pension every month. In all, there are 44 lakh pensioners under the EPS-95 scheme.

“Yes, Government has approved mi”Yes, Government has approved minimum pension of Rs 1000 per month to the pensioners under the EPS-95,” Minister of state for Steel, Mines, Labour and Employment Vishnu Deo Sai said in a written reply to Lok Sabha.

According to the Minister, several representations have been received for enhancement of pension under EPS-95 and based on those, “government has approved minimum pension of Rs 1,000 to pensioners under the EPS-95.”

Earlier, Labour Minister Narendra Singh Tomar had discussed the proposal with trade unions on June 24 and assured the government will take a decision within two weeks.

As per the proposal, pensioners were to get the benefit with effect from April 1 this year. The government would have to provide an additional amount of around Rs 1,217 crore to ensure a minimum pension of Rs 1,000 for 2014-15.
A senior official said the new government did not want to provide this entitlement merely for one financial year and wanted this to be implemented for all times to come. That is why the proposal was reviewed.
The proposal was already approved by the UPA government for the current financial year but could not be implemented as it was not notified.

However a senior EPFO official, when contacted, said that the body has not yet received any notification or official order in this regard from the Labour Ministry.

According to him, the government could formally announce this entitlement in the forthcoming budget on Thursday.

Besides, the EPFO is also awaiting government’s approval for enhancing the wage ceiling for organised sector workers under EPFO ambit to Rs 15,000 per month from the existing Rs 6,500. This was also approved by the previous government but could not be notified due  to coming into force of the model code of conduct during that time.

The decision to increase basic wage ceiling to Rs 15,000 per month is expected to bring in 50 lakh more workers under the EPFO’s ambit.

The notification regarding the decision of the EPFO trustees to reduce administrative charges paid by employers to EPFO is also awaited. It was proposed to reduce administrative charges paid by employers to EPFO is also awaited. It was proposed to reduce administrative charges from 1.10 per cent of basic wage to 0.85 per cent.

Source : http://economictimes.indiatimes.com

Arun Jaitley May Double Tax Exemption in Maiden Budget

Arun Jaitley May Double Tax Exemption in Maiden Budget

Finance Minister Arun Jaitley is expected to double exemption limit on long-term financial savings to ease tax burden on the middle class in his maiden budget on Thursday, sources told NDTV. Currently, the income tax exemption limit on such savings is capped at Rs. 1 lakh.

Savings instruments such as housing loan repayment (principal), five-year and above tenure fixed deposits, provident funds (PFs) and life insurance policy premiums are some investment vehicles that qualify for tax exemption under Section 80C of the Income Tax Act.

If Mr Jaitley doubles the exemption limit to Rs. 2 lakh, high earners (taxable income above Rs. 10 lakh) will save Rs. 30,000 in taxes per year. Those in the mid-income category (taxable income Rs. 5-10 lakh) will save Rs. 20,000 in taxes, while individuals in the Rs. 2-5 lakh tax bracket will save Rs. 10,000 per year.

The move will incentivise domestic savings, which is an important source of low-cost funds for the government. Economists say this money could be utilised for infrastructure development, which is the top priority for the Modi government.

However, a Rs. 1 lakh hike in exemption limit will cost the government over Rs. 30,000 crore in foregone revenues. Mr Jaitley may have to compensate for the loss in revenue by hiking other taxes such as excise duty or import duty. The other option is to drastically hike the divestment target for this year from the current target of Rs. 36,925 crore.

Source: http://profit.ndtv.com/budget/arun-jaitley-may-double-tax-exemption-in-maiden-budget-585102

Recommendation of Department Related Parliamentary Standing Committee on Compassionate Appointment

Recommendation of Department Related Parliamentary Standing Committee on Compassionate Appointment – Regarding
Parliament Committee Matter
IMMEDIATE
No.4 1013/ 1/2013-lstt(D)
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training)
New Delhi-110001
Dated 8th July, 2014
OFFICE MEMORANDUM

Subject: Recommendation of Department Related Parliamentary Standing Committee on Compassionate Appointment – Regarding

The undersigned is directed to invite reference to this Department’s Office Memorandum of even number dated 25.3.20 13 and subsequent reminder dated 26.5.2014 on the above mentioned subject wherein all the Ministries/Departments were requested to furnish an annual report in the enclosed proforma latest by 30th April of every year, indicating the status of implementation of Government instructions on compassionate appointment as on 31st March of that year.

2. it is observed that the Ministries/Departments of Government of India and their subordinate/attached offices are furnishing the requisite information in a piecemeal and haphazard manner, compilation of which is a time consuming and difficult exercise for this Department.

3. In view of the above, the Ministries/Departments are requested to furnish the requisite information in a consolidated manner, including the information in respect of their subordinate/attached offices.

(Mukta Goel)
Director(E- I)

Implementation of One Rank One Pension scheme: Govt Statement on 08.07.2014 in Rajya Sabha

Implementation of One Rank One Pension scheme: Govt Statement on 08.07.2014 in Rajya Sabha

“The modalities for implementation were discussed with various stakeholders and are presently under consideration of the Government. It will be implemented once the modalities are approved by the Government.”

GOVERNMENT OF INDIA
MINISTRY OF  DEFENCE
RAJYA SABHA
QUESTION NO  168
ANSWERED ON  08.07.2014
Implementation of One Rank One Pension scheme

168 DR. T. SUBBARAMI REDDY
Will the Minister of DEFENCE be pleased to satate :-
(a) the status of implementation of One Rank One Pension scheme (OROP) for the ex-servicemen;
(b) whether orders have been issued to the concerned pension authorities for re-calculation of pension of ex-servicemen on the basis of OROP;
(c) if so, the details thereof; and
(d) if not, the reasons for the delay in implementing the scheme and by what time it is expected to be implemented covering all the ex-servicemen?
ANSWER

MINISTER OF STATE IN THE MINISTRY OF DEFENCE (RAO INDERJIT SINGH)
(a) to (d): The principle of One Rank One Pension for the Armed Forces has been accepted by the Government. The modalities for implementation were discussed with various stakeholders and are presently under consideration of the Government. It will be implemented once the modalities are approved by the Government.
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Source: RAJYA SABHA Q&A

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