Tuesday, 31 January 2017

7th Pay Commission implementation to State Government Employees - Minister's reply in the Parliament


7th Pay Commission implementation to State Government Employees - Minister's reply in the Parliament

7th Pay Commission implementation - State Government employees are not covered within the terms of reference of the 7th central Pay Commission - Minister's reply in the Parliament

Smt.Nirmala Sitharaman in a written reply to a Member states that State Government employees are not covered within the terms of reference of the 7th central Pay Commission

While answering to a question in Parliament on 12th August 2014 regarding the employees working in State Government, Ministry of State for Finance Smt.Nirmala Sitharaman said that the State Government employees are not covered within the terms of reference of the 7th central Pay Commission.

She replied in written form to a question asked by a member that service conditions of State Government employees fall within the exclusive domain of respective State Governments. Therefore, State Government employees are not covered within the terms of reference of the 7th central Pay Commission.

Thus, the recommendations of Commission will not directly apply to State Government employees. Accordingly, it is not possible for the Central Government to indicate the financial burden on State Governments, if they decide to adopt the recommendation of the 7th Central Pay Commission in respect of their employees with or without modification.

She also added, the Central Government had sought the views of the State Governments and till the date of the constitution of the 7th Central Pay Commission on 28.2.2014, only 14 States had responded. These State Governments generally mentioned, inter-alia, that adoption of the recommendations of a Central Pay Commission by them in case of State Government employees adds to substantial financial burden
Since the decision to adopt the recommendations of the 7th Central Pay Commission in case of the State Government employees will exclusively concern respective State Government, the question of any assistance by the Central Government will not arise. However, the Terms of Reference of the 7th Central Pay Commission provide, inter-alia, that while making its recommendations, the Commission will also keep in view the likely impact of the recommendations on the finances of the State Governments, which usually adopt the recommendations with some modifications.

Income Tax Department (ITD) launches Operation Clean Money


Income Tax Department (ITD) launches Operation Clean Money

Income Tax Department (ITD) has initiated Operation Clean Money, today. Initial phase of the operation involves e-verification of large cash deposits made during 9th November to 30th December 2016. Data analytics has been used for comparing the demonetisation data with information in ITD databases. In the first batch, around 18 lakh persons have been identified in whose case, cash transactions do not appear to be in line with the tax payer's profile.

ITD has enabled online verification of these transactions to reduce compliance cost for the taxpayers while optimising its resources. The information in respect of these cases is being made available in the e-filing window of the PAN holder (after log in) at the portal https://incometaxindiaefiling.gov.in. The PAN holder can view the information using the link “Cash Transactions 2016” under "Compliance" section of the portal. The taxpayer will be able to submit online explanation without any need to visit Income Tax office. 

Email and SMS will also be sent to the taxpayers for submitting online response on the e-filing portal. Taxpayers who are not yet registered on the e-filing portal (at https://incometaxindiaefiling.gov.in) should register by clicking on the ‘Register Yourself’ link. Registered taxpayers should verify and update their email address and mobile number on the e-filing portal to receive electronic communication.

A detailed user guide and quick reference guide is available on the portal to assist the taxpayer in submitting online response. In case of any difficulty in submitting on line response, help desk at 1800 4250 0025 may be contacted. 

Data analytics will be used to select cases for verification, based on approved risk criteria.  If the case is selected for verification, request for additional information and its response will also be communicated electronically. The information on the online portal will be dynamic getting updated on receipt of new information, response and data analytics.

The response of taxpayer will be assessed against available information. In case explanation of source of cash is found justified, the verification will be closed without any need to visit Income Tax Office. The verification will also be closed if the cash deposit is declared under Pradhan Mantri Garib Kalyan Yojna (PMGKY).

The taxpayers covered in this phase should submit their response on the portal within 10 days in order to avoid any notice from the ITD and enforcement actions under the Income-tax Act as also other applicable laws.

PIB

IRS officers meet Dr Jitendra Singh, seek DoPT intervention

IRS officers meet Dr Jitendra Singh, seek DoPT intervention

A delegation of the Indian Revenue Service (IRS) officers met the Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances, Pensions, Atomic Energy and Space, Dr Jitendra Singh here today and sought intervention by Department of Personnel & Training (DoPT) for the clearance of backlog in promotions.

In a memorandum submitted by the members of delegation, it was pointed out that around 450 posts of Joint Commissioner / JAG level are lying vacant, but there are no officers eligible to be promoted because Recruitment Rules prescribe minimum residency of 5 years at Deputy Secretary level as eligibility criteria. Officers up to 2007 batch have already been promoted and therefore, they requested for relaxation of 9 months for gaining eligibility for the officers of 2017 batch who have been left out. The members of delegation sought Dr Jitendra Singh’s intervention so that the DoPT could take a holistic view of circumstances and grant relaxation for promotion to JAG / JC-IT.

Prominent IRS officers who led the delegation included Shri Rajesh Menon from Mumbai, Shri Anantharaman Aiyer from Delhi, Shri C.K. Singh and Shri B.K. Singh.

India Post Payments Bank will be a game changer for financial inclusion - Manoj Sinha


Press Information Bureau,
Government of India
Ministry of Communications & Information Technology
30-January, 2017 18:27 IST

India Post Payments Bank will be a game changer for financial inclusion - Manoj Sinha
IPPB branches launched in Ranchi & Raipur

IPPB-India-Post-Payments-Bank

Finance Minister, Shri Arun Jaitley and Minister of Communications Shri Manoj Sinha launched the operations of the India Post Payments Bank (IPPB) here today as two pilot branches at Raipur and Ranchi through video conferencing from Delhi.

Speaking on the occasion, Shri Jaitley said that about 650 IPPB branches will be opened by September this year and that will have a multiplier impact as far as banking in India is concerned. He said with IPPB, banking at the doorstep will no longer remain a mere slogan, but will become a reality due to huge postal network in the country. He said that financial Inclusion is critical for the socio-economic development of the country, but there are significant gaps in this area and a large proportion of country’s population remain unbanked or underbanked. IPPB will effectively leverage the ubiquitous post office network with its pan-India physical presence, long experience in cash handling and savings mobilization, backed by the ongoing project of IT-enablement, to bridge this gap in Financial Inclusion.

In his address, Minister of Communications Shri Manoj Sinha has commended the hard work done by the Department of Posts in setting up the India Post Payments Bank and hoped that both organizations will work in tandem to take the benefits of government schemes and financial services that are not easily available in rural areas to customers across the country and to the marginalized population in urban and rural areas alike. He said, the objective of IPPB will be public service rather than promoting commercial interests.

Secretary, Department of Posts, Shri B.V.Sudhakar said that the IPPB is widely expected to be a game changer for financial inclusion in the country as the USP of this initiative is doorstep banking, particularly in the rural areas.

As mandated by the RBI, the India Post Payments Bank (IPPB) would focus on providing basic financial services such as all kinds of payments; including social security payments, utility bill payments, person to person remittances (both domestic and cross-border), current and savings accounts up to a balance of Rs 1 lac, distribution of insurance, mutual funds, pension products and acting as business correspondent to other banks for credit products especially in rural areas and among the underserved segments of the society.

Set up us a 100% Government of India owned Public Limited Company under the Department of Posts, it will open around 650 branches in district HQ locations. All 1.55 lacs post offices including the 1.39 lac of the rural post offices will be mapped to the IPPB branch at the district headquarter and function as access points for IPPB. IPPB will usher in state of the art internet and mobile banking platforms, digital wallets and use innovative and emerging technologies to catalyse the shift from a cash dominant to a less cash economy.

While many other banks and financial institutions are working on the same theme, the USP of IPPB will be its ability to ease access and handhold the adoption of new age banking and payments instruments among citizen of all walks of life through the delivery by postmen and Grameen Dak sevaks, savings agents and other franchisees who will take banking to door steps. IPPB thus aspires to the most accessible, affordable and trusted bank for the common man with the motto - "No customer is too small, no transaction too insignificant, and no deposit too little".

Given 'in principle' approval by the RBI along with 10 other aspirants on 19th Aug 2015, IPPB received the cabinet’s approval on 1st June, 2016 and was incorporated as on 17th Sept, 2106. Today it became the second payments bank to launch its operations. Having got its final banking license from the RBI on the 20th Jan 2017 it has commenced operations in record time of 10 days in partnership with the Punjab National Bank, after obtaining all necessary approvals and registrations from the RBI, NPCI etc.

A commemorative stamp and a logo of the new bank were also launched on the occasion.

Monday, 30 January 2017

Recommendations of 7th CPC for employees of Bureau of Indian Standards (BIS)


Recommendations of 7th CPC for employees of Bureau of Indian Standards (BIS) approves by Shri Ram Vilas Paswan

7th-CPC-BIS-Employees

 Press Information Bureau,
Government of India
Ministry of Consumer Affairs,
Food & Public Distribution
30-January, 2017 15:01 IST

Shri Ram Vilas Paswan approves recommendations of 7th CPC for employees of Bureau of Indian Standards (BIS)

Shri Ram Vilas Paswan, Union Minister of Consumer Affairs, Food and Public Distribution, has given approval for applicability of revised pay scales to employees of Bureau of Indian Standards (BIS) as per recommendations of 7th CPC.

The Union Minister said "Approval given to Bureau of Indian Standards (BIS) for applicability of revised pay scales to its employees on recommendations of 7th CPC. Financial arrangements to provide new pay scales to the employees of BIS will be made from own resources of this organization."

Revision of NPS, Minimum Wage, Fitment Formula, Allowances and Pension - GS COC Karnataka


Revision of NPS, Minimum Wage, Fitment Formula, Allowances and Pension - GS COC Karnataka

"The Staff Side (JCM) had demanded the fitment formula of 3.72 that is Rs 26000/ Rs 7000 as on 1st Jan 2014. Whatever angle we look the 7th CPC has cheated us on the minimum wage and fitment formula compared to the earlier pay commission this pay commission has given us the lowest wage hike of just 14% compared to last 40 years."

16th March Strike Importance

Dear Comrades,
The main demands of the Staff Side (JCM) which led to declaration of the 11th July strike is the revision of the NPS, minimum wage, fitment formula, allowances and pension cases etc. this is due to lowest wage hike of just 14% recommended by the 7th CPC.

Under the 7th Pay Commission slab - which was implemented ten years after the previous pay commission the salaries of the government employees saw a marginal rise of just 14% . The basic pay under the 7th CPC the minimum wage was increased to Rs 18,000 from Rs 7,000 (2.57 times) while the salary of the senior government officials has gone up to Rs 2.50 lakh from Rs 90,000(2.77 times).

The minimum wage was increased by 2.57 times but in actual terms this increase is of just Rs 2250/- in 7th CPC, while taking into account of 125% DA was merged this due to rising inflation and price rise already the CG employees wage factor was 2.25 time, that is basic of Rs 7000/- plus DA of 125% of Rs 8750 works out to Rs 15750/- , staff side had already demanded for a hike of more than three times which is Rs 26,000 per month.

Comparison of earlier wage hike we can observe that the fitment factor of 2.57 times is the lowest comparing to other pay commissions. If we make a study of earlier pay commission.

Pay CommissionYearMinimum wage oldMinimum wage revisedIncrease
2nd CPC1959Rs 55/-Rs 80/-1.45 times
3rd CPC1973Rs 80/-Rs 196/-2.45 times
4th CPC1986Rs 196/-Rs 750/-3.82 times
5th CPC1996Rs 750/-Rs 2550/-3.40 times
6th CPC*2006Rs 2550/-Rs 7000/-2.74 times
7th CPC *2016Rs 7000/-Rs 18000/-2.57 times

" The minimum qualification required at lower level appointments from the year 2008 has been revised from 8th pass to 10th pass (SSLC) as per the 6th CPC recommendations, hence the minimum wage should increase by 25% compared to earlier pay commissions.

The minimum wage has increased considerably due to price inflation from 4th CPC (1986) onwards the average wage hike is 3.32 times. During the period 1946 to 1972, the financial position of the Central Government was not that good. The financial position of the Central Government has been improving from the 4th CPC onwards that is from 1986 onwards, the pay fixation depends on the paying capacity of the Central Government. The revenue collection of the Central Government has increased especially from last few years. The revenue expenditure in respect of salaries of Central Government employees is just under 10% of the Central Government revenue. In respect of the many State Governments the revenue expenditure towards salaries is around 20%. Whereas the Central Government is spending just 10% of the revenue collection on salary head.

The wages of CG employees are determined based Dr. Aykroyd formula, the Staff Side (JCM) has calculated minimum wage as on 1st Jan 2014 as per the Dr. Aykroyd formula as Rs 26,000/- taking into market prices. Even if we adopt the retail prices of The Directorate of Economics & Statistics Department of Agriculture & Cooperation Ministry of Agriculture Government Of India New Delhi of the month of July 2016 the minimum wage works out to Rs 24,000/ which is 3.42 times increase. The 7th CPC has also adopted Dr. Aykroyd formula for the computation of the minimum wage and fixed at Rs 18000/- and thereafter the fitment formula is calculated.

CLICK HERE FOR MINIMUM WAGE DETAILS

RBI Circular: No Limit for Cash Withdrawal from ATMs from February 1

RBI Circular: No Limit for Cash Withdrawal from ATMs from February 1

Limits on Cash withdrawals from Bank accounts and ATMs - Restoration of status quo ante

RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2016-17/217
DCM (Plg) No. 2905/10.27.00/2016-17
January 30, 2017
The Chairman / Managing Director / Chief Executive Officer,
Public Sector Banks / Private Sector Banks / Foreign Banks,
Regional Rural Banks / Urban Co-operative Banks,
State Co-operative Banks / District Central Co-operative Banks

Dear Sir/Madam,
Limits on Cash withdrawals from Bank accounts and ATMs - Restoration of status quo ante

Please refer to our circular DCM (Plg) No.1226/10.27.00/2016-17 dated November 08, 2016 placing limits on Cash withdrawals from bank accounts and ATMs in the wake of withdrawal of Legal Tender Character of Specified Bank Notes (SBN) and subsequent circulars DCM (Plg) Nos.1256, 1274, 1317, 1437, 2142 and 2559 dated November 11, 14, 21, 28, December 30, 2016 and January 16, 2017 respectively, providing for relief and relaxations therefrom.

2. On a review of the pace of remonitisation, it has been decided to partially restore status quo ante as under:
Limits placed vide the circulars cited above on cash withdrawals from Current accounts/ Cash credit accounts/ Overdraft accounts stand withdrawn with immediate effect.

The limits on Savings Bank accounts will continue for the present and are under consideration for withdrawal in the near future.

Limits vide the circulars cited above placed on cash withdrawals from ATMs stand withdrawn from February 01, 2017. However, banks may, at their discretion, have their own operating limits as was the case before November 8, 2016, subject to 2 (ii) above.

3. Further, banks are urged to encourage their constituents to sustain the movement towards digitisation of payments and switching over of payments from cash mode to non-cash mode.

4. Please acknowledge receipt.
Yours faithfully,
(P Vijaya Kumar)
Chief General Manager
Authority: www.rbi.org.in
rbi-circular


Aadhar enabled Biometric Attendance System for marking attendance


Aadhar enabled Biometric Attendance System for marking attendance

"As per extant instructions, half-a-day's casual leave should be debited for each day of late attendance, but late attendance upto an hour, on not more than two occasions in a month, and for justifiable reasons may be condoned by the competent authority."

 Principal Controller of Defence Account; (Central Command),
Carriapa Road, Lucknow Cantt, Pin-226002

 Circular

No.AN/1A/1004/Misc/2017

Dated:27/01/2017
To
The CDA, RTC Lucknow
All Sub Offices
(under the organisation including lFAs)
All sections in main office

Sub:- Aadhar enabled Biometric Attendance System for marking attendance.

The Department of Personnel & Training vide letter No.11013/9/2014-Estt(A-III) dated 21st November 2014 (circulated vide Hqrs Office letter No. AN/III/3012/Misc/BAS dated 20.02.2015) has decided to use an AADHAR based Biometric Attendance System (AEBAS) in all offices of the Central Government, including attached/sub-ordinate offices in India.

Biometric Attendance System is only an enabling platform. There is no change in the instructions relating to office hours, late attendance etc. which will continue to apply. As per extant instructions, half-a-day’s casual leave should be debited for each day of late attendance, but late attendance upto an hour, on not more than two occasions in a month, and for justifiable reasons may be condoned by the competent authority. In addition to debiting Casual Leave(or Earned Leave, when no CL is available) disciplinary action may also be taken against government servants who are habitually late. Early leaving is also to be treated in the same manner as late coming.

Therefore, all the staff and officers will mark their attendance through AEBAS only. The manual attendance may be discontinued immediately.

GO(AN) has seen.
sd/-
(S.K.Gupta)
Sr. AO(AN)
Click to view the order

Authority: http://pcdacc.gov.in/

Regarding payment of Allowances to PS Group “B” officers whose grade pay has been up graded from Rs. 4800 to 5400.


Regarding payment of Allowances to PS Group “B” officers whose grade pay has been up graded from Rs. 4800 to 5400.
allowance-grade-pay-India-Post

No. 7-6/2016-PCC
Government of India
Ministry of Communications
Department of Posts
Dak Bhawan, Sansad Marg,
New Delhi - 110001
 Date : 11.01.2017
To
All the Heads of Circle
Office Memorandum

Sub : Regarding payment of Allowances to PS Group "B" officers whose grade pay has been up graded from Rs.4800 to 5400.

Attention is invited to G.S.R. 721 (E) and copy of Resolution published under no. 1-2/2016-IC dated 25.7.2016 by Ministry of Finance circulated vide DP Posts OM No. 7-2/216-PCC and Para 4 of Ministry of Finance, Department of Expenditure OM No. 1-5/2016-IC dated 29.07.2016 circulated vide DG Posts No. 7-2/2016-PCC dated 01.08.2016 regarding implementation of recommendation of 7th Central Pay Commission.

2. In this connection various Circles and Associations have sought clarification regarding payment of Transport and other allowances to the officials whose Grade Pay has been upgraded on the implementation of the recommendations of the 7th Central Pay Commission.

3. The matter has been examined in consultation with Implementation Cell, Department of Expenditure and the clarification given by the Department of Expenditure vide the ID Note No. 30-1/7(ii)/2016-IC (Pt) dated 9.1.2017 is as under :

"regarding admissibility of Transport Allowance and HRA to Superindentdent (Posts) as per up-graded Grade Pay of 5400 (PB-2) from GP 4800 w.e.f. 1.1.2016, consequent upon the up-gradation of post vide this Department notification dated 25.07.2016 of CCS (RP) Rule, 2016.

The issue has been examined by this Department. Accordingly, the Department of Posts is advised to reckon and pay the Allowances (other than DA) to Superindentdent (Posts) corresponding to their up-graded Post in re-revised pay structure w.e.f. 1.1.2016 at the existing rate under the terms and conditions prevailing in the pre-revised pay structure till the date of effect of allowances (other than Dearness Allowance) be notified by this Department”.

4. This may be brought to the notice of all concerned for necessary action.
(R.L. Patel)
Asst. Director General (GDS/PCC)
Click to view the order
Authority: India Post

Treatment of Military Service Pay(MSP) while fixing the pay of ex-servicemen re-employed on the Railways: Railway Board


Treatment of Military Service Pay(MSP) while fixing the pay of ex-servicemen re-employed on the Railways: Railway Board
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD
No.E(G)2013/EM 1-5
New Delhi, dated 16/01/2017
The General Secretary,
N.F.I.R.,
3, Chelmsford Road,
New Delhi - 110055.

Dear Sir,

Sub:  Applicability of Railway Services (Revised Pay) Rules, 2008 for persons re-employed in Railway service after retirement from Defence Forces - reg.

The undersigned is directed to refer to NFIR's letter-(No.II/35/Pt. XIII dated 23/11/2016 on the above subject and to state that as decided in the meeting with representatives of NFIR in the meeting held in ED/IR's room on 27/9/2016, reference has been made to DOP&T for seeking clarification, duly incorporating the-views of NFIR (copy enclosed). Their reply in the matter is awaited despite a reminder dated 4/1/2017.

Instructions have also been issued to GMs/Zonal Railways, Production Units etc. vide letter [No. E(G)/2013/EM 1-5 dated 15/12/2016] (copy enclosed) for strictly complying with the instructions contained in Board's  letter No. E(G)2013/EM 1-4 dated 24/7/2013 regarding treatment of Military Service Pay (MSP) while fixing the pay of ex-servicemen re-employed on the Railways.

DA: As above

Yours faithfully,
sd/-
for Secretary Railway Board
Source: NFIR

Exemption from passing the Typewriting Test - Implementation of instructions of DOPT


Exemption from passing the Typewriting Test - Implementation of instructions of DOPT

GOVERNMENT OF INDIA/BHARAT SARKAR
MINISTRY OF RAILWAYS/RAIL MANTRALAYA
(RAILWAY BOARD)
No.E(NG)I-2015/CFP/7
New Delhi, dated 16.01.2017
The General Managers (P)
All Zonal Railways & Production Umts.
(As per standard list)

Sub: Exemption from passing the Typewriting Test - Implementation of instructions of DOP&T issued vide their letter dated 22.04.2015.

Ministry of Personnel, Public Grievances and Pensions, Department of Personnel & Training, in their O.M. No.14020/2/91-Estt(D) dated 29.09.1992 had issued certain instructions/guidelines regarding exemption from passing the Typewriting Test. The same has been reiterated vide their O.M. No.14020/1/2014-Estt.(D) dated 22.04.2015.

2. Both the Federations viz. AIRF and NFIR have also raised this demand in the PNM forum. Accordingly, matter has been deliberated in consultation with concerned directorates and it has been decided by the Board to adopt the stipulations made in DOP&T's OMs ibid (copies enclosed) mutatis mutandis to persons appointed/promoted as Junior Clerks, Accounts Clerk against promotion quota, sports persons recruited against sports quota, those appointed on compassionate grounds, under Scouts & Guide and cultural quota, re-deployed medically unfit Railway servants on alternative posts re-deployed surplus staff and also physically handicapped railway servants, as per prevailing rules. The procedure of conducting of the typing test whether it is on manual type writer or on Personal Computer as contained in Board's letter No.E(NG)I-2004/CFP/8 dated 04.02.2011 will remain unaltered.

3. The above instructions will take effect from the date of issue of this letter. Cases already decided in the past need not be re-opened.

Please acknowledge receipt.

(MK Meena)
Deputy Director Estt. (N)
Railway Board

Sunday, 29 January 2017

Pay element relating to Running Staff after the recommendations of 7th CPC


Pay element relating to Running Staff after the recommendations of 7th CPC

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
RAILWAY BOARD

No.E(P&A)II-2015/RS-25
New Delhi, dated: 24.01.2017
The General Manager,
All Indian Railways
and Production Units.

Sub: Pay element relating to Running Staff after the recommendations of Seventh CPC.

It has come to notice that on some of the zonal railways add-on pay element of 55% is not being reckoned for calculation of emoluments for the purpose of retirement benefits for the running staff on the basic pay fixed in the 7th CPC pay structure. As per Rule 924 (iii) of IREM-I that is still valid, 55% of Basic Pay is recokoned as add-on pay element for calculation of pension and DCRG of the Running Sitff. It is therefore advised that calculation of retirement benefits of the running staff may be made as per extant Rule 924 (iii) of IREM-I on the revised basic pay in the 7th CPC.

2. This issues with the concurrence of the Finance Directoiate of the Ministry of Railways.

(Dhruv Singh)
Executive Director
Pay Commission-I
Railway Board
Source: NFIR

GST: Finance Minister may hike service tax to 16-18% in Budget


GST: Finance Minister may hike service tax to 16-18% in Budget

New Delhi: Finance Minister Arun Jaitley may hike service tax rate to 16-18 per cent from the current 15 per cent in the Budget, due on Wednesday, as a precursor to the Goods and Services Tax (GST) rollout.

The move, that will make flying, eating out, phone bills and a host of other services expensive, would be an attempt to take the rates closer to the proposed tax slabs for GST.

GST, which will subsume central and state levies like excise duty, service tax and VAT, is scheduled to be rolled out from July 1.

The tax slabs decided for the GST are 5, 12, 18 and 28 per cent and taking service tax closer to one of the slabs is a logical move in the Budget, tax experts said.

Tax experts say, Jaitley, who had in his previous budget hiked service tax rate by 0.5 per cent to 15 per cent, may raise the levy by at least one percentage point to 16 per cent.

Some others feel there could be different service tax rates with a lower 12 per cent for basic services and a higher 18 per cent for the rest.

Also, a higher service tax for April-June will help the government garner more revenue to meet expenses on schemes and programmes it may be planning to contain the impact of demonetisation.

A service tax rate closer to the GST rate will also help consumers avoid a greater price shock when the new national sales tax is rolled out.

While service tax until now is a central levy, it will be equally split between the Centre and states under the new GST regime. Most services, except essential ones like primary healthcare and basic education, will be covered by GST.

Service tax was budgeted to provide Rs 2.31 lakh crore in 2016-17, more than 14 per cent of the Centre’s total tax revenues of Rs 16.30 lakh crore.

This will be the third time that Jaitley will raise service tax rate. Service tax from June 1, 2015 was hiked from 12.36 per cent to 14 per cent. A 0.5 per cent Swachh Bharat Cess was levied on all services, taking the total incidence of service tax to 14.5 per cent from November 15, 2015.

In the last Budget, he imposed a Krishi Kalyan Cess at the rate of 0.5 per cent on all taxable services to take the levy to 15 per cent.

PTI

Government may make Aadhaar must for rail concession in Budget 2017


Government may make Aadhaar must for rail concession in Budget 2017

New Delhi: Government is contemplating to make Aadhaar or Unique Identification (UID) card mandatory to avail rail concession, and an announcement is likely to be made by Finance Minister Arun Jaitley while presenting the first combined General and Railway Budget on February 1.

The move will help the government in better targetting of benefits and check misuse of the facility, sources said.

The Railways provides concession on tickets to more than 50 categories of passengers which include senior citizens, students, research scholars, teacher, doctor, nurse, patients, sports people, unemployed youth, Arjun awardees among others.

At present, Railways is running a pilot project for senior citizens who are entitled for rail concessions.

The concessional tickets cost the Railways about Rs 1,600 crore in 2015-16, with the bulk being accounted for senior citizens.

As per the government data, over 100 crore Aadhaar cards have been issued so for covering bulk of India’s population.

The government has decided to end the 92-year-old practice of presenting a separate Railway budget and merged it with the General Budget.

Jaitley, according to sources, will contribute few pages of his Budget to programmes and schemes related to Indian Railways.

Although there will be a single budget, the Railways will continue to have autonomy as commercial undertaking and the existing financial arrangement will remain.

The Railways is expected to get exemption from payment of dividend to the Union government, a move which will help strengthening its finances.

The organisation will also get budget support to meet part of its capital expenditure and will be allowed to raise extra budgetary resources.

According to sources, Railways would continue to bear the expenditure on social and public service obligations.

It is also expected that Jaitley will present a separate statement of budget estimates and demand for grants for Railways in the General Budget.

There will also be a single Appropriation bill, including the estimates of Railways, to the Parliament.

PTI

Officers to face action for delay in GPF payments to retiring employees


Officers to face action for delay in GPF payments to retiring employees

New Delhi: Action will be taken against the officers concerned in cases of delay in processing payment of General Provident Fund (GPF) to retiring employees, the Centre has said.

The move comes after it was noticed that GPF final payment in many cases was not being made to the government servants immediately after retirement leading to payment of interest for the period delayed.

In an order, the Ministry of Personnel said in order to ensure timely final payment of GPF and to avoid unnecessary financial burden on account of interest, it has now been decided that every case, in which payment of interest on General Provident Fund becomes necessary beyond the date of retirement, shall be put up for consideration to the Secretary of the administrative ministry.

"In all such cases the Secretary of the administrative ministry or department will fix responsibility at all levels to take appropriate action against the government servant or servants who are found responsible for the delay in the payment of General Provident Fund," it said in the directive to all central government departments.

Senior Personnel Ministry officials also said there have been a few instances in which there were complaint of delay in giving final amount of GPF to the retiring employees.

Rules clearly provide that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make the payment.

The authority for the amount payable is to be issued at least a month before the date of superannuation, but payable on the date of superannuation, the rules say.

The Centre had in 1996 dispensed with the requirement of submitting a written application by the retiring government servant for GPF final payment.

As per the rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also.

PTI

Saturday, 28 January 2017

7th Pay Commission: In 70 years, senior government officials salary hiked from Rs 2,000 to Rs 2.50 lakh


7th Pay Commission: In 70 years, senior government officials salary hiked from Rs 2,000 to Rs 2.50 lakh


7th CPC salary hike


The 7th pay commission has recommended a 14.27% increase in the basic pay of government employees.
1. In the last 70 years, the government has announced 7 pay commissions.
2. In 1947, govt officials lowest salary was Rs 55 per month.
3. The 7th pay commission has recommended a hike of 14.27 pc in govt employees salary.
In the last 70 years, the Central government has announced seven central pay commissions. The 7th pay commission has recommended a 14.27 per cent increase in the basic pay of govt employees.

In 1947, after India's Independence, the lowest salary of a central government employee was Rs 55 per month while the senior most officials took home a salary of Rs 2000 per month. After the 6th pay commission, the monthly salary of senior government officials rose to Rs 90,000 with the lowest salary being Rs 7000 per month.

Central Pay Commission's previous recommendations:
Central Pay Commission's previous recommendations

Following was the salary slabs of government employees in different pay commissions:

 salary slabs of government employees

 The government employees' salaries saw a significant rise with the 7th pay commission. Now, after the 14.27 per cent increase in basic salary, the lowest salary has been increased to Rs 18,000 from Rs 7,000 while the salary of senior government officials has gone up to Rs 2.50 lakh from Rs 90,000.

In the last 70 years, the Centre has increased the minimum salary of its employees from Rs 55 to Rs 18,000 per month - a hike of 32,727 per cent.

Whereas the salary of senior officials has seen a quantum jump of 12,500 per cent in the same period, from Rs 2,000 per month to Rs 2.50 lakh.

Source: Indiatoday

Revision of rates of subscription under Central Government Health Scheme as per 7th CPC


Revision of rates of subscription under Central Government Health Scheme as per 7th CPC

No.S.11011/11/2016-CGHS(P)/EHS
Government of India
Ministry of Health and Family Welfare
EHS Section
Nirman Bhawan, New Delhi
Dated the 13th January, 2017
OFFICE MEMORANDUM

Sub: Revision of rates of subscription under Central Government Health Scheme due to revision of pay and allowances of Central Government employees and revision of pension/ family pension on account of implementation of recommendations of the Seventh Central Pay Commission.

In partial modification to this Ministry’s OM of even No. dated 9th January, 2017 on the subject mentioned above, the undersigned is directed to say that the revised rates will be effective from 1st February 2017 instead of 1st January, 2017.

2. Other contents of the above said OM will remain unchanged.
sd/-
(Sunil Kumar Gupta)
Under Secretary to the Government of India
Tel. 23061986
No. S.11011/11/2016 CGHS(P)/EHS
Government of India
Ministry of Health and Family Welfare
EHS Section
Nirman Bhawan, New Delhi
Dated the 9th January, 2017
OFFICE MEMORANDUM

Sub: Revision of rates of subscription under Central Government Health Scheme due to revision of pay and allowances of Central Government employees and revision of-pension/ family pension on account of implementation of recommendations of the Seventh Central Pay Commission.

The undersigned is directed to refer to this Ministry’s OM No. S.11011/2/2008-CGHS(P) dated 20th May, 2009 vide which orders were issued revising the rates of monthly subscription for availing CGHS facility, as also the entitlement for free diet, entitlement of accommodation in private empanelled hospitals under CGHS, etc.

2. Consequent upon revision of pay on the basis of the implementation of the recommendations of the 7th Central Pay Commission, it has been decided to revise the rates of subscriptions, to be made by employees / pensioners, for availing benefits under the CGHS, with effect from 1st January, 2017. It has also been decided to revise the monetary ceiling limits for various entitlements of the beneficiaries for availing CGHS facilities.

3. In supersession of all earlier instructions, the following revisions are being made, in so far as it relates to the facilities mentioned below:

(A) Monthly Contributions for availing CGHS facility:

Sl. No. Corresponding   levels in the  Pay Matrix  as per 7th CPC     Contribution (Rs. Per month)
1 Level: 1 to 5  250
2 Level: 6   450
3 Level: 7 to 11  650
4 Level: 12 & above   1000

(B)       Entitlement    of wards in private hospitals empanelled   under CGHS:
Sl. No. Corresponding   Basic Pay drawn  by the officer  in 7th CPC per month       Ward  entitlement
1 Up to  Rs. 47,600/-  General
2 Rs. 47,601/-  to Rs. 63,100/- Semi-Private
3 Rs. 63,101/-  and above     Private

(e) Monetary Ceiling for Free Diet:
The monetary ceiling for free diet for CGHS beneficiaries is revised to pay/ pension / family pension of Rs. 44,900/- per month.

(D) Monetary ceiling for free diet for beneficiaries suffering from TB or mental disease):
The monetary ceiling for free diet in case of beneficiary suffering from TB or Mental disease is revised to pay / pension / family pension of Rs. 69,700/- per month.

(E) Pay slab for determining the entitlement of Nursing Home facilities in Government / State Government / Municipal Hospitals:
The monetary ceiling for determining the entitlement of nursing home facilities in Central Government / State Government / Municipals Hospitals is revised to pay / pension / family pension Rs. 47,600/- per month and above.

(F) Monetary Ceiling for direct consultation with Specialists in Central Government /State Government /Municipal Hospitals:
The monetary ceiling for determining the entitlement for direct consultation with Specialists in Central Government / State Government / Municipal Hospitals will continue at the existing rates until revision of the same after consultation with Ministry of Finance.

(G) Pay slab for determining the entitlement of accommodation in AIIMS, New Delhi.

The revised entitlement, as per the pay drawn by the officials, is as follows:
Sl . No. Corresponding   Basic Pay drawn  by the  officer  in 7th   CPC per month   Ward  entitlement
1 Up to Rs. 63,100/-       General
2 Rs. 63,101/-  to Rs. 80,900/- Private
3 Rs. 80,901/-  and above  Deluxe/Private

4. It is clarified that the reference to pay in this order relates to the pay drawn in the level of pay.

5. Pensioners have an option to get their CGHS pensioner card made by either making CGHS contribution on an annual basis (twelve months) or by making contribution for 10 (ten) years {120 (one hundred and twenty) months} for getting a pensioner CGHS card with life-time validity. It is clarified that:
(i) Contribution to be made by pensioners / family pensioners would be the amount that they were subscribing at the time of their retirement or at the time of death of the Government servant;

(ii) Pensioner beneficiaries, who have already obtained CGHS card with life time validity by paying a lump sum amount equivalent to 10 years’ contribution, will not be required to pay any additional amount as a result of the revision in the rates of contribution for availing CGHS facility;

(iii) Entitlement of pensioners / family pensioners, who have already deposited their contribution for life time CGHS facility, will not be changed.

(iv) Pensioners / family pensioners who are contributing to the CGHS on an annual basis and wish to continue to avail CGHS benefits will have to contribute at the revised rates up to the time of contribution needed to cover a period of a total of ten years from the time pensioner CGHS card was issued for the first time to them. The revised rate of contribution for the remaining period would be with reference to the level of pay that he / she would have drawn in the post held by him / her (at the time of his / her retirement / death) had he / she continued to be in service now but for his / her retirement/ death; and

(v) Any pensioner / family pensioner who is entitled to avail CGHS facility has not so far got his / her pensioner CGHS card made, the rate of contribution in such cases will be with reference to the level of pay that he / she would have drawn in the post held by him / her (at the time of his / her retirement / death) had he / she continued to be in service now but for his/ her retirement / death.
6. This issues with the concurrence of the Department of Expenditure vide their I.D. Note No. 18(1)/EV/2016, dated 24/11/2016.

7. Hindi version will follow.
sd/-
(Sunil Kumar Gupta)
Under Secretary to the Government of India
Authority: http://cghs.gov.in/

TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS on approved Provident and Superannuation Funds as per Income-Tax Act

income-tax-deduction-2017


TDS on payment of accumulated balance under recognised provident fund and contribution from approved superannuation fund

Ministry of Finance has issued a circular about details of TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS ON PAYMENT OF ACCUMULATED BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTRIBUTION FROM APPROVED SUPERANNUATION FUND:

    The   trustees of a Recognized Provident Fund, or any person   authorized   by the regulations of the Fund   to  make payment of  accumulated   balances due   to  employees, shall   in   cases where sub-rule(1) of Rule 9 of Part A of the Fourth Schedule   to the Act applies, at the time   when the accumulated   balance due to an employee is paid, make therefrom   the deduction specified in Rule 10 of Part A of the Fourth Schedule to the Act.

The accumulated balance is treated as income chargeable under the head “Salaries”.

Where any contribution   made by an  employer,  including   interest on  such  contributions,  if any, in  an approved Superannuation Fund is paid to the employee,  tax on the  amount so paid shall be deducted by the trustees of the Fund  to the extent provided in Rule 6 of Part B of the Fourth Schedule to the Act. TDS should be at the average rate of tax at which, the employee was liable to be taxed during the preceding three years or during the period, if that period is less than three years, when he was member of the fund.

The deductor shall remain liable to deduct tax on any sum paid on account of returned contributions (including interest, if any)  even if a fund or part of a fund ceases to be an approved Superannuation fund.

As per section 192A of the Act, w. e. f. 01.06.2015 the trustees of the EPF Scheme 1952 framed under section 5 of the EPF & Misc. Provisions Act, 1952 or any person authorized under the scheme to make payment of accumulated balance due to employees, shall, in a case where the accumulated balance due to an employee participating in a recognized provident fund is includible in his total income owing to the provisions of Rule 8  of Part A of Fourth Schedule not being applicable at the time of payment of accumulated balance due to the employee, deduct income tax thereon @ 10% if the amount of such payment or aggregate of such payment exceeds Rs 50,000/-. In case the employee does not provide his/her PAN No., then the deduction will have to be made at maximum marginal rate.

Check the Circular

GST will not lead to job losses at central excise dept, assures Jaitley


GST will not lead to job losses at central excise dept, assures Jaitley

New Delhi: Ahead of the rollout of GST, Finance Minister Arun Jaitley today sought to address concerns of job loss from reduced work of central excise and service tax officials, saying they should have no insecurity as enough work and opportunities will be available to them in the new indirect tax regime.

"I see no reason really for disquiet for the simple reason (that) opportunities which are available to people in service and the matter of policy and constitutional guarantee are all protected," he said at the Investiture Ceremony 2017 and International Customs Day 2017 organised by CBEC here.

Only the nature of activity will change because there will be one national sales tax replacing an array of central and state levies like excise duty, service tax and VAT.

"Important changes and evolutions which take place are never put on the back burner" just because the people who conduct the activity would now have to work in an altered form and environment, he said.

"The number of people required, the kind of opportunity will remain unchanged except that the nature of activity itself changes," he said.

GST, he said, has for last several yeas been considered as a larger part of policy consensus in India and an important taxation reform that will lead to the economic integration of the country.

"Once it takes place you have a situation where taxes (that) are levied by the state (and) by Centre (will) all be integrated into one and therefore resulting in one assessment.

"Multiple systems on assessment which is there at present will evolve into a newer kind of system," he said.

He was responding to Central Board of Excise and Customs (CBEC) Chairman Najib Shah’s remarks drawing his attention to "the rising disquiet in the cadre", saying there were human resource issues in the service.

Jaitley said the revenue to be collected is going to expand and there will be expansion of economic activity as well.

"Therefore even though you have two parallel machineries which could now be converging into similar kind of activities and shared responsibility, I think the future will stand witness to the fact that there will be adequate amount of opportunities to be created and therefore the kind of disquiet in service, the kind of personal pressure I see on you should reduce as there is no real occasion for a fear of this kind or a sense of insecurity for anyone in this service," he said.

The Finance Minister said change and evolution are an integral part of any economic order, and they are never held back because the nature of responsibility is going to change.

"This is an ongoing process it will continue and we will all have to adjust ourselves with this particular change. I can only assure you that there is no reason for disquiet, you can go and have a comfortable sleep tonight,” he told the revenue officials.

Revenue Secretary Hasmukh Adhia told the officers that they will have enough work to do under GST.

The Indian Revenue Service (Customs and Central Excise) Officers Association has asked the government to protect the sanctity of their service amid attempts by officers of state government VAT departments to equate themselves with IRS (Customs and Central Excise) officers.

PTI

Friday, 27 January 2017

Budget may bring good news for salaried people

Budget may bring good news for salaried people
Budget 2017 Good News


New Delhi: Every year when the Union finance minister presents the Budget speech, the ‘salaried people’ looks to him with expectations for reducing their tax liability.

It is possible that there would be some moves in this regard in the coming one.

The salaried people could get some relief as finance minister Arun Jaitley is likely to raise the minimum income threshold for paying personal income tax for those below 60 years of age to Rs 3 lakh a year from Rs 2.5 lakh at present and the deduction limit under Section 80C to Rs 2 lakh in the Union Budget for 2017-18, multiple sources told The Sen Times.

Currently the tax exemption slab is at Rs 2.5 lakh for individuals below 60 years, while deduction under Section 80C is Rs 1.5 lakh.

Union Finance Minister Arun Jaitley raised the personal income tax exemption limit from Rs 2 lakh to Rs 2.50 lakh on July 11, 2014 in the Union Budget for 2014-15.

Jaitley may also raise section 80C deductions limit to Rs 2.0 lakh, the sources said.

This move aimed at boosting household savings. The hike in deductions limit for investments by individuals in financial instruments to Rs 2.0 lakh would come as a sigh of relief for the salaried people blatting high inflation.

Investments under Section 80C up in popular tax saving instruments such as the general provident Fund, public provident fund, NPS, national savings scheme, unit-linked insurance plans and equity-linked savings schemes are not taxed up to the allowed threshold.

Section 80C was introduced by the UPA government in 2005-06 with a limit of Rs 1 lakh but UPA government did not revised it since then. Jaitley raised it up to Rs 1.5 lakh in the Union Budget for 2014-15.
Deduction on payment of income tax on interest paid on loans for self occupied houses may be also raised to Rs 2.5 lakh from Rs 2.0 lakh, the sources added.

Union Finance Minister will present the Union Budget on Wednesday.

TST

Clarifications on implementation of GAAR provisions under the Income Tax Act, 1961


Clarifications on implementation of GAAR provisions under the Income Tax Act, 1961

The General Anti Avoidance Rule (GAAR) provisions shall be effective from the Assessment Year 2018-19 onwards, i.e. Financial Year 2017-18 onwards. The necessary procedures for application of GAAR and conditions under which it shall not apply, have been enumerated in Rules 10U to 10UC of the Income-tax Rules, 1962.The provisions of General Anti Avoidance Rule (GAAR) are contained in Chapter X-A of the Income Tax Act, 1961.

Stakeholders and industry associations had requested for clarifications on implementation of GAAR provisions and a Working Group was constituted by Central Board of Direct Taxes (CBDT) to examine the issues raised. Accordingly, CBDT has issued the clarifications on implementation of GAAR provisions today.

Amongst others, it has been clarified that if the jurisdiction of FPI is finalized based on non-tax commercial considerations and the main purpose of the arrangement is not to obtain tax benefit, GAAR will not apply. GAAR will not interplay with the right of the taxpayer to select or choose method of implementing a transaction. Further, grandfathering as per IT Rules will be available to compulsorily convertible instruments, bonus issuances or split / consolidation of holdings in respect of investments made prior to 1st April 2017 in the hands of same investor. It has also been clarified that adoption of anti-abuse rules in tax treaties may not be sufficient to address all tax avoidance strategies and the same are required to be tackled through domestic anti-avoidance rules. However, if a case of avoidance is sufficiently addressed by Limitation of Benefits (LoB) provisions in the tax treaty, there shall not be an occasion to invoke GAAR.

It has been clarified that if at the time of sanctioning an arrangement, the Court has explicitly and adequately considered the tax implications, GAAR will not apply to such an arrangement. It has also been clarified that GAAR will not apply if an arrangement is held as permissible by the Authority for Advance Rulings.

Further, it has been clarified that if an arrangement has been held to be permissible in one year by the PCIT/CIT/Approving Panel and the facts and circumstances remain the same, GAAR will not be invoked for that arrangement in a subsequent year.

The proposal to apply GAAR will be vetted first by the Principal Commissioner of Income Tax / Commissioner of Income Tax and at the second stage by an Approving Panel headed by a judge of High Court. The stakeholders have been assured that adequate procedural safeguards are in place to ensure that GAAR is invoked in a uniform, fair and rational manner.

Government is committed to provide certainty and clarity in tax rules. Further clarifications, if any, on doubts of stakeholders regarding GAAR implementation, will also be provided.

PIB

Review of CSSS officers in the Grade of Personal Assistant under FR 56 (j) and Rule 48 of CCS(Pension) Rules, 1972


Review of CSSS officers in the Grade of Personal Assistant under FR 56 (j) and Rule 48 of CCS(Pension) Rules, 1972
Reminder
No. 25/9/2016-CS-II(C)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi-11 0003
Dated: 25th Jan, 2017
OFFICE MEMORANDUM

Subject: Review of CSSS officers in the Grade of Personal Assistant under FR 56 (j) and Rule 48 of CCS(Pension) Rules, 1972-reg.

The undersigned is directed to refer to this Department's D.O. letter No. 3/8/2015-CS.1 (D) dated 26.02.2016 and subsequent reminders dated 08.11.2016, 29.11.2016 and 23.12.2016 vide which all the cadre units of CSSS were requested to furnish the inputs in the format annexed therewith with respect to the officers who in the opinion of Ministry/Department, are covered under extant provisions of FR 56 (j)/Rule 48 of CCS(Pension) Rule, 1972. However, the inputs sought in respect of PA Grade are still awaited from several Ministries/Departments.

2. It is, therefore, once again requested to all the defaulting cadre units to furnish the requisite information in respect of PA Grade who are due to review under the provisions of FR 56U) to this Department within a week positively.
(Pradeep A)
Under Secretary to the Government of India
Tel: 24623157
To
Under Secretaries of all defaulting Cadre units of CSSS
Read More

GST - 70,000 Tax Officials warn of non-cooperation movement


GST - 70,000 Tax Officials warn of non-cooperation movement

Opposing some recent decisions taken by GST Council, various indirect tax officials' associations today decided to start non-cooperation movement.

To start with, the employees associations will not celebrate international customs day on Friday. Besides, they will observe 'black day' by wearing black badges on Martyrs' Day, i.E. January 30, as per minutes of meeting held among their representatives here.

The associations said that their members are "highly disappointed" and feel "cheated" over the decisions taken by Finance Minister Arun Jaitley-led GST Council in its meeting on January 16.

The Council had agreed to give states the powers to levy tax on economic activity within 12 nautical miles of territorial waters and to administer 90 per cent of the tax payers under Rs 1.5 crore annual turnover.

"We feel that the biggest tax reform of the century should have been in conformity with the principles of responsibility and authority going together and also in conformity with the Constitutional design. We feel that the decision shall weaken the Centre's ability to ensure its revenues.

"The decision will not only adversely affect the career of revenue officers but it is not in national interest. We oppose the decisions taken by GST Council and requests for deferment and review of above inappropriate and incorrect decisions," as per the minutes of meeting of steering committee of associations representing Group A, B and C employees of Central Board of Excise and Customs (CBEC).

The decision came after a meeting of representatives of Indian Revenue Service (Customs and Central Excise), All India Association of Central Excise Gazetted Executive Officers, All India Central Excise Inspectors' Association and All India Central Excise and Service Tax Ministerial Officers Association, comprising 70,000 personnel, here, office bearers said.
According to them, the decision taken by GST Council in its January 16, meeting will not only weaken the Centre but also adversely affect the Indian economy and revenue collection but also national security.

They have decided to request authorities concerned to take immediate necessary action to resolve the issues and to defer the unjustified decision of GST Council taken under pressure of state VAT officers.

"We feel that if the above genuine demands in national and revenue interest are not considered then this disciplined service will be forced to initiate non-cooperation movement following Gandhian methods of Satyagraha," the associations said.

The Goods and Services Tax (GST) is likely to be rolled out from July 1, as against April 1 decided earlier by the government.

PTI

Representation of Defence Civilian Employees Federations regarding misinterpretation of RPR 2016 leading to incorrect pay fixation of employees

MoD once again issued a clarification orders with three illustrations of an employee shall be fixed who has been granted financial upgradation in MACP on 15.3.2016 in the grade pay of Rs.4200.

MoD action on BPMS's representation on Seeking of Clarification regarding Option & Pay Fixation in 7th CPC
Office of the Controller General of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt - 110010
No.AT/II/2701/Orders
Dated: 05 Jan 2017
To
All PCsDA/CsDA
PCA(Fys)/All CsFA(Fys)
(Through NIC mail server

Subject: Representation of Defence Civilian Employees Federations regarding misinterpretation of RPR 2016 leading to incorrect pay fixation of employees.

A copy of MoD/D (Civ-I) ID No 11 (6)/2016-D(Civ-I) dated 07.12.2016 along with all its enclosures on the above subject is forwarded herewith. It is seen that MoD/D(Civ-I) has requested that the clarification on the subject from MoF/MoD(Fin) may be awaited. Accordingly, the instructions issued by MoD in para 2 of the MoD ID dated 7.12.2016 may be adhered to avoid any inconsistencies in the matter of pay fixation.
Jt CGDA (P&W) has seen.
(Vinod Anand)
Sr ACGDA (P&W)
The employee has exercised option 2 to fix the pay in the Pay Matrix after availing the increment dated 1.7.2016, in the old pay structure scale.


Option 2 is exercised by the employee to fix the pay in the new pay matrix after availing promotional upgradation under MACP Scheme that look place on 1.1.2016.



Option 2 is exercised by the employee to fix the pay in the pay matrix after availing promotion/MACP upgradation as on 15.3.2016


Click to view the order
Authority: http://pcafys.nic.in/

General Budget 2017-18 - NFIRs proposals for consideration


General Budget 2017-18 - NFIR's proposals for consideration
NFIR
National Federation of Indian Railwaymen
3, Chemlmsford Road, New Delhi - 110 055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)
No.IV/Budget/Part III
23.01.2017
Shri Arun Jaitley,
Hon'ble Minister of Finance,
North Block, New Delhi.

Dear Sir,

Sub: General Budget 2017-18 - NFIR's proposals for consideration

The National Federation of Indian Railwaymen (NFIR) requests the Hon'ble Finance Minister to consider its proposals listed below for inclusion in the General Budget 2017-18 to be presented in Parliament in February, 2017.
1. The Income Tax exemption limit for Central Government Employees may be raised to atleast Rupees Six Lakhs
2. The Income Tax exemption limit for senior citizens may be raised to Rs.7.5 lakhs and for those Senior Citizens above 75 years age, the exemption be allowed up to Rs.10 lakhs.
3. Transport Allowance presently paid to the Central Government Employees may be exempted from the purview of Income Tax.
4. Fixed Medical Allowance to the retired Central Government Employees may be revised to not less than Rs.2,000/- Per month.
5. Grant House Rent Allowance at the rate of 30%, 20% & 10% of 7th CPC Pay to the Central Government Employees working at Cities/Towns classified as 'X' 'Y' & 'Z' respectively with back date.
6. Contract Labour performing jobs of perennial nature be granted wages at par with the regular employees performing similar jobs.
7. Child Care Leave for women employees be revised upwardly.
8. Pension parity be granted all those pre 1.1.2016 Pensioners of Central Government.

Proposals - Railway Specific

9. Additional funds be allocated for augmenting Railway Training Institutes and Railway Community Halls, Recreation Clubs etc'.
10. More funds may be provided for construction of new quarters in the Railways and for maintenance of Railway colonies.
11. Training Allowance for Trainers in Railways Training Institules may be enhanced to 30% of pay in lieu of the existing 15%.
12. Separate Rest Rooms for Women Railway Employees at different locations be sanctioned to enable them to stay when they visit on railway duties.
13. Additional Road Mobile Medical Vans may be approved for providing medical treatment to the railway employees and their families living at remote places and jungle stations.
sd/-
(Dr. M.Raghavaiah)
General Secretary
Source: NFIR

Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air


Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air

To
The Secretary, OFB, ID-A, S.K. Bose Rd, Kol-01
All Sr. General Managers/All General Managers
Ordnance/ Equipments Factories.
All Group controllers & Branch AOs

Sub: Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air

Kindly refer to DoP&T letter No.31011/3/2015-Estt(A.lV) dated 18/02/2016 wherein it is mentioned under points 14 & 15 that Govt employees not entitled to travel by air, may travel by any airline. However, reimbursement in such cases shall be restricted to the fare of their entitled class of train/transport or actual expense, whichever is less. In all cases whenever a Govt servant claims LTC by air, he/she is required to book the air tickets either directly through the airlines or through the approved travel agencies viz M/s Balmer Lawrie & Co. Ltd/ M/s Ashok Tours & Travels Ltd/ IRCTC. Booking of tickets through any other agency is not permissible.

This is for your information, guidance and necessary action please.
Dy.Controller
Accounts(Fys)
Authority: http://pcafys.nic.in/

Clarification regarding timely payment of GPF final


Clarification regarding timely payment of GPF final

No.3/3/2016-P&PW(F)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003
Dated 16th January 2017.
OFFICE MEMORANDUM

Subject: Clarification regarding timely payment of GPF final payment to the retiring Government servant - regarding

During review meetings held to evaluate the status of implementation of Bhavishya with Ministries/Departments, it was observed that GPF final payment in many cases is not being paid to the retiring Government servants immediately on retirement from service leading to payment of interest for the delayed period.

2. Rule 34 of General Provident Fund (Central Service) Rules clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment. The authority for the amount payable is to be issued at least a month before the date of superannuation, but payable on the date of superannuation. It may be noted that the requirement of submitting a written application by the retiring Govt. servant for GPF final payment has been dispensed with vide this Department’s Notification No.20(12)/94-P&PW (E) dated 15.11.1996 and notified under S.O NO.3228 dated 23.11.1996.

3. As per Rule 11(4) of GPF Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also. While interest for the first six months beyond retirement can be allowed by the PAO in the normal course, approval of Head of the accounts office is required for payment of interest beyond six months and that of Controller of Account/Financial Adviser beyond a period of one year.

4. To ensure timely final payment of GPF, and to avoid unnecessary financial burden on account of interest beyond retirement, it has now been decided that every case, in which payment of interest on General Provident Fund becomes necessary in terms of Rules 11(4) of GPF Rules, 1960, shall be put up for consideration to the Secretary of the Administrative Ministry/Department. In all such cases the Secretary of the Administrative Ministry/Department will fix responsibility at all levels to take appropriate action against the Government servant or servants who are found responsible for the delay in the payment of General
Provident Fund.

5. This issues with the concurrence of the Ministry of Finance, Department of Expenditure, vide their 10 NO.187/EV/2016 dated 2th September 2016.

6. Hindi version will follow.
(Seema Gupta)
Director
Authority: http://www.pensionersportal.gov.in/

Thursday, 26 January 2017

Enhancement of pension under the Swatantrata Sainik Samman Pension Scheme, 1980 in respect of freedom fighter and their eligible dependents-Clarification on Dearness Allowance


Enhancement of pension under the Swatantrata Sainik Samman Pension Scheme, 1980 in respect of freedom fighter and their eligible dependents-Clarification on Dearness Allowance-regarding

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II, BHIKAJI CAMA PLACE,
NEW DELHI-110066
PHONES : 26174596, 26174456. 26174438

CPAO/IT&Tech/Freedom Fighter /1 (Vol-X)/2016-1 7 /238
23.01.2017
Office Memorandum

Subject:- Enhancement of pension under the Swatantrata Sainik Samman Pension Scheme, 1980 in respect of freedom fighter and their eligible dependents-Clarification on Dearness Allowance-regarding.

Reference is invited to OM No. CPAO/IT&Tech/Freedom Fighter/2016-17/132 dated-08.09.2016 on enhancement of pension under Swatantrata Sainik Samman Pension Scheme, 1980 in respect of freedom fighters and their eligible dependents and FFR Division, Ministry of Home Affairs letter No 45/06/2016-FRP) dated 28.10.2016 (both copies enclosed) whereby the existing Dearness Relief system based on All India Consumer Price Index for Industrial workers, which was hitherto applied to freedom fighter pensioners on annual basis, was discontinued and replaced by the Dearness Relief system applicable to Central Government employees twice a year.

2. Now, FFR Division, Ministry of Home Affairs has clarified vide its letter No. 45/06/2016-FF (P) dated-09.01.2017 (copy enclosed) that 2% Dearness Allowance w.e.f. 01.07.2016 announced recently for Central Govt. pensioners and employees will not be applicable for the Central Freedom Fighter Pensioners whose pension have been revised/enhanced w.e.f. 15.08.2016 subsequent to the effective date of the 2% Dearness Allowance which is 01.07.2016. However, next Dearness Allowance due from 01.01.2017 and subsequent Wks will be applicable for the Central Freedom Fighter Pensioners.
3. Heads of CPPCs of all the banks are advised to take necessary action as per above instructions.

4. This issues with the approval of Competent Authority.
(Vijay Singh)
Sr. Accounts Officer (IT & Tech)
Ph. No.011-26166758
Order Copy

Filing of Immoveable Property Returns under Rule 16(2) of AIS(Conduct) Rules, 1968


Filing of Immoveable Property Returns under Rule 16(2) of AIS(Conduct) Rules, 1968

No. 11017/02/2017-AlS-II
Government of India
Ministry of Personnel, PG & Pensions
Department of Personnel & Training
North Block, New Delhi,
Dated the 23rd January, 2017
The Chief Secretaries of All States/UTs

Subject: Filing of Immoveable Property Returns under Rule 16(2) of AIS(Conduct) Rules, 1968.

Sir,
I am directed to refer to this Department’s D.O. No. 6(1)/2014-E0(PR) dated 22.12.2016, wherein instructions regarding online filing of Immovable Property Returns under rule 16(2) of AIS(Conduct) Rules, 1968 were issued. In this regard, it is reiterated that all members of the All India Services shall continue to file Immoveable Property Returns (IPR) as on 1st January and latest by 31st January under rule 16(2) of AIS(Conduct) Rules, 1968. Accordingly, the same may please be brought to the notice of all concerned for strict compliance.

2. This issues with the approval of Competent Authority.
(Rajesh Kumar Yadav)
Under Secretary (Services)
Tele: 011-23094714

7th Pay Commission unhappiness - BSF, Army Pay Parity remains Elusive


7th Pay Commission unhappiness - BSF, Army Pay Parity remains Elusive
7thpaycommission

7th Pay Commission - Nearly two weeks after soldiers from several central paramilitary forces went public with their grievances, documents reveal the stark disparity between the Indian Army and the Border Security Force (BSF).

Salary documents provided by the BSF, reveal there is a difference ranging from 2.5% to 48%, after the 7th Pay Commission was implemented, between pay scales of the BSF and the Army.

They show that a head constable in the BSF earns Rs.25,500 a month - Rs.3,700 less than his Army counterpart. A deputy commandant earns Rs.1,700 less than a major in the Army, a commandant draws Rs.7,200 less than a colonel, and a deputy inspector general of the BSF draws Rs.8,500 less than a brigadier in the Army. The biggest disparity is between the second-in-command (2IC) of the BSF and a Lt. Colonel of the Army-a pay gap of Rs.37,900.

"This debate has been going on for the last 50 years. But there has been no resolution as yet to bring the BSF and the Army on a par as far as salaries are concerned. The line of duty and combat is the same for both forces, but there is a major distinction," said a senior BSF officer on condition of anonymity.

While the home ministry is silent on the matter, the BSF bill of 1968, which was discussed in the Rajya Sabha in 1968, had argued that "the BSF in its functioning has all the disadvantages of the police and the Army without their corresponding advantages. This is a matter which needs looking into and remedial steps taken to redress balance in favour of the BSF with regard to leave, travel concessions, housing, education, allowance, etc."

Source: Livemint

Budget 2017 - ECs Order could bring Cheer to Central Government Employees


Budget 2017 - EC's Order could bring Cheer to Central Government Employees

Budget 2017 will be keenly watched by millions of CG employees, after waiting patiently for months over hike in allowances as recommended by the 7th Pay Commission.

A new development on Monday could still raise hopes for about 47 lakh Central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces, despite the model code of conduct.

The Election Commission of India (EC) said in its order issued on Monday that the budget cannot have promises that are aimed at the five states that could give an electoral edge.

"The Commission hereby directs that in the interest of free and fair elections and in order to maintain level playing field during elections, no State specific schemes shall be announced in the National Budget which may have the effect of influencing the electors of the five poll going States in favour of the ruling party(ies)," the EC said.

“It may be ensured that in the Budget Speech, the Government's achievements in respect of said five States will also not be highlighted in any manner,” the poll panel added.

In other words, the present government could take a call on raising allowances as proposed by the 7th CPC since the decision would have a pan-India effect and not necessarily be seen as luring voters of the five states. So, the model code of conduct need not come as a hurdle.

Money has not been seen as a constraint given that the tax collections have remained buoyant this year and the government also made adequate provisions (Rs. 70,000 crore) for implementing the 7th CPC proposals in Budget 2016.

"The Government announced that the second income disclosure scheme (IDS II) will run till March 31. We continue to estimate that it will net the fisc about Rs1000bn/0.7% of GDP of additional taxes. This should allow Finance Minister Jaitley to hold the FY18 fiscal deficit at 3.5% of GDP - same as FY17's - and at the same time fund the 7th Pay Commission and recapitalize PSU banks, without cutting back on public capex," BofA Merrill Lynch had said in a note a few weeks ago.

Source: IBtimes

Loans and Advances by the Central Government - Interest rates and other terms and conditions


Loans and Advances by the Central Government - Interest rates and other terms and conditions

F.No.5(3)-B(PD)/2016
Government of India
Ministry of Finance
Department of Economic Affairs

New Delhi, the 6th January, 2017
OFFICE MEMORANDUM

Subject:- Loans and Advances by the Central Government - Interest rates and other terms and conditions.

Reference this Ministry's Office Memorandum F.No.5(3)-B(PD)2015 dated 3rd February, 2016 on the captioned subject.

2. The lending rates, categories and conditions prescribed in the aforesaid Office Memorandum have been reviewed. The revised rates of interest,categories and conditions as given in the Table below, would be applicable from 1st April, 2016 and till the time these are reviewed:

TABLE

Category of borrower & type of loanInterest rate per cent per annum
1. State Governments (EAP Loan):8.00
2. Union Territory Governments (with Legislature):
(i) Loans upto 1 year and EAP loan8.00
(ii) Other Loans8.50
3. Industrial and Commercial Undertakings in the Public Sector and Cooperatives: Loans for implemantation of VRS in sick PSUs10.00
The terms and condition and conditions regarding eligibility of loan would remain the same as that of last year. If any specific request comes in future from any other financial institution/CPSE/Autonomous Body/Cooperative, it would be examined by the Budget Division, DEA on merits of that case.

3. The terms, including interest rate of loans to Foreign Governments may be settled in consultation with Budget Division. Terms for on-lending of funds under externally aided projects should be in accordance with the prescribed pattern. In case, deviation is considered necessary, Budget Division should be consulted.

4. The interest rates prescribed above assume timely repayments and interest payments and hence no further rebate in rates is to be allowed for timely payments.

5. OTHER TERMS AND CONDITIONS

(a) The loan sanctioning authority should meticulously follow the instructions contained in General Financial Rules, 2005 (GFR 2005), particularly, rules framed under Chapter 9 (II-LOANS) of
GFR, 2005, while sanctioning loans to various entities as stipulated therein.

(b) The instructions issued from time to time have been reviewed and are set out in the following paragraphs for facility of reference.

6. STATE GOVERNMENTS

In the case of loans to State Governments, the arrangements for payment of annual instalment of principal and interest will be as under:-

(a) Block loans for State Plan Schemes and other Plan loans for Centrally Sponsored Schemes:- These loans when drawn in instalments, will be consolidated and deemed to have been drawn as on 1st October in each year. The maturity period of the loans sanctioned for State Plans is 20 years, repayments being made in 20 annual equal instalments together with interest on the outstanding balance commencing from the following year, subject to consolidation under the award of Twelfth Finance Commission (TFC).

However, fifty per cent of these loans will enjoy a five year initial grace period, after which repayments of these loans will be effected in 15 annual equal instalments. The amounts annually payable(by way of principal and interest) would be recovered in 10 equal monthly instalments commencing 15th June, subject to debt waiver under the award of TFC.

(b) Other Loans:- The terms of repayment of these loans will be as laid down from time to time.

7. PUBLIC SECTOR PROJECTS

(A) For new installations or expansion of existing institutions:

(a) The terms and conditions of loans should be fixed with reference to the financial picture presented in the approved Project Report. (Once the pattern is settled, there should be no change except with the specific concurrence of this Department for reasons to be stated in writing).(b) The capital requirements of a project should include adequate provisions for interest payment on borrowings during the period of construction (as specified in the Project Report). The interest on loans due during the period of construction will be allowed to be capitalised to the extent of the provisions made for this purpose in the approved Project Report. In other words, while interest on loans advanced to an undertaking during the period of construction will be notionally recovered by allowing its capitalisation, the payment of interest should effectively commence after the construction period is over.

(c) The repayment of principal should ordinarily commence one year after the project commences production, the number of instalments being determined with reference to the financial projections and repaying capacity specified in the Project Report. Requests for further moratorium will be considered only in exceptional cases where the Project Report has specified any special circumstances that may necessitate a longer period of moratorium and has indicated clearly what staggering of repayment would be needed over the necessary break period. The period of loans sanctioned against capitalised interest during the period of construction may also be on the same terms and conditions as are applicable to loans provided for financing the project costs.

(d) A suitable period of moratorium subject to a maximum of five years from the date of drawal of the loans may be allowed for the repayment of instalments of principal, having regard to the nature of the project, the stage of construction etc. The period of moratorium should not, however, extend in any case, beyond two years from the date of project going into production, or in the case of programmes of expansion, beyond two years from the date of expanded project coming into operation.

(B) For meeting working capital requirements: The undertakings are expected to obtain their cash credit requirements from the State Bank of India/Nationalised Banks by hypothecating their current assets (such as stock of stores, raw materials, finished goods, work in progress, etc.) and where the entire working capital requirements cannot be raised in this manner by seeking a guarantee from Government. Accordingly, requests from Public Sector Undertakings for funds for meeting working capital requirements should be considered only to the extent the same cannot be had from the State Bank of India/Nationalised Banks.

8. GENERAL

REPAYMENT PERIOD

(A) (i) The period for repayment of loans for all parties other than State Governments should be fixed with due regard to the purpose for which they are advanced and it should be restricted to the minimum possible. Normally, no loan should be granted for a period exceeding 10 years. Where a longer period for repayment is sought, prior concurrence of the Budget Division in this Department will be necessary for fixing the period.

(ii) The repayment of a loan should normally commence from the first anniversary date of its drawal or on expiry of the period of moratorium, as the case may be. The recovery should ordinarily be effected in annual equal instalments of principal.

(iii) The period of repayment of working capital loans should preferably be restricted to two or three years. In no case, however, the period of these loans should exceed 5 years.

(B) Moratorium:
Subject to exceptions made in respect of pubic sector projects, a suitable period of moratorium towards repayment might be agreed to in individual cases having regard to the project for which the loans are to be utilised. However, no moratorium should ordinarily be allowed in respect of interest payment on loans. Ministries/Departments may with the approval of their Financial Advisers allow moratorium on repayment of principal wherever considered necessary upto a maximum period of 2 years.

(C) (i) Repayment before due date:
Any instalment paid before its due date may be taken entirely towards the principal provided it is accompanied by payment towards interest due upto date of actual payment of instalment; if not, the amount of the instalment will first be adjusted towards the interest due for the preceding and current periods and the balance, if any, will alone be applied towards the principal. Where the payment of the instalment is in advance of the due date by 14 days or less, interest for the full period (half year or full year as the case may be) will be payable. If any State Government repays an instalment of a loan which is consolidated as on 1st October, in advance of the due date by more than 14 days the interest.
(ii) Pre-payment premium: Prepayment premium of 0.25% on the loans with residual maturity of less than 10 years and 0.50% for the loans with residual maturity of 10 years and above, shall be charged. The provision does not apply to the loans to State/UT Governments.

(D) Penalty Clause:
The loan sanctions/agreements should invariably include a penalty clause providing for levy of a penal rate of interest in the event of default in repayment of instalment(s) of principal and/or interest. The penal rate of interest should not be less than 2.50% above the normal rate of interest at which a loan is sanctioned.

(E) Defaults in repayment/interest payment:
(i) In the event of a default in repayment of loan/interest payment, the recovery of interest at penal rate may not be waived unless there are special reasons justifying a waiver. However, a decision in this regard will be taken by the Ministry of Finance (Budget Division) on the advise of Financial Adviser. Even in such cases, a minimum of 0.25% should be recovered from the defaulting party as penalty.
(ii) The penal rate of interest is chargeable on the overdue instalments of principal and/or interest from the due date of their payment to the date preceding the date of actual payment.

(iii) Whenever a fresh loan is to be sanctioned to a borrower who has earlier defaulted, the loan sanctioning authority must consider the question of recovery of defaulted dues. All releases to Public Sector Undertakings against budgeted outlays should be made only after adjusting the defaults, if any, pertaining to repayment of loans and interest. If for special and exceptional reasons such adjustments are not possible, specific orders of Secretary (Expenditure) should be obtained through Budget Division, before release of fresh loans, in relaxation of extant orders, in conformity
with this Division circular No.F.2 (190)-B(SD)/91, dated 15.10.1991.

(iv) Any defaults should ab-initio serve as a warning signal to the Ministries/ Departments for which curative action has to be taken immediately.

(v) Ministries/Departments need to critically review the financial position of the borrower, including defaulting CPSUs and wherever possible, should take immediate action to recover the money due to the Government.

(vi) In the case of defaulting CPSUs, there has to be a clear road map for restructuring of these CPSUs, as prolonged approval results in burgeoning of defaults.

(vii)Ministries/Departments are to ensure that these defaults do not become fiscally unsustainable.

(viii) Wherever Ministries/Departments are considering restructuring of a CPSU, it must be ensured that besides equity infusion, funds mobilisation, rescheduling of loans/interest payments, write off of dues, etc. should be formulated holistically. However, no request for waiver/postponement of instalments on any ground whatsoever will be accepted, except in cases of companies referred to BIFR or in respect of those companies which have incurred cash losses for last three years, in conformity with this Division circular No.F.2(165)-B(SD)/94, dated 06.10.1994.

(F) Requests for modification of terms of loans:
(i) Borrowers are required to adhere strictly to the terms settled for loans made to them and modifications of these terms in their favour can be made subsequently only for very special reasons. Requests for modification of terms may relate to increase in the period of a loan or of initial moratorium period towards repayment, or waiver of penal interest or reduction in or waiver of normal rate of interest. The procedure of dealing with requests for waiver of penal interest has already been dealt with in paragraph 8. Cases involving other modifications in repayment terms should be considered in consultation with the Budget Division in this Ministry. In referring such cases, the impact of the modifications on the estimates of repayment/interest which have gone into the Budget and Government’s resources position should be succinctly brought out by the administrative Ministry.

(ii) In examining proposals for modification of the period of the loan, the interest rate at which the loan was sanctioned should also be reviewed. In the case of a loan of which repayment has already commenced the revised rate of interest should be applied ab initio only to the residuary portion of the loan outstanding on the date of extension of its period.

(iii) Requests for waiver of recovery of normal interest (either for a specified period or for the entire period) on a loan which originally sanctioned at normal rate of interest, will attract the provisions of Rule 223 (1) of G.F.R.2005 and should be dealt with accordingly.

(G) Loans sanctioned at concessional rates:
(i) In cases where loans are to be sanctioned at a concessional rate, the instructions contained in Rule 223 (1) of G.F.R.2005 have to be observed. In such cases, payment of subsidy (to cover the concession viz. difference between normal rate and concessional rate) should be made conditional upon prompt repayment of principal and payment of interest thereon by the borrower.

(ii) In cases where loans are sanctioned interest free (e.g. loans to technical educational institutions for construction of hostels) prompt repayment should be made a condition for the grant of interest free loans. That is to say, the sanction letter in such cases should provide that in the event of any default in repayment, interest at rates prescribed by Government from time to time will be chargeable on the loans.

(iii) Similarly, in the case of interest free loans to departmental canteens where subsidy is also provided to meet running expenses, the sanction letter should stipulate that in the event of any default in repayment, the defaulted dues would be recovered out of the subsidy payable.

(H) Miscellaneous: A standard form prescribed for issue of loan sanctions (Appendix-I) should ordinarily be followed.

(i) The date of drawal of a loan by the borrower will be date on which he received cash, cheque or bank draft from the Drawing and Disbursing Officer. It should be ensured that the time lag between the date of obtaining the cash/cheque/bank draft and its disbursement/delivery/despatch to the payee is reduced to the minimum. Where the cheque or bank draft is sent through post, the date of posting should be treated as the date of disbursement of the loan. The Drawing and Disbursing Officer should invariably intimate the date of payment to his Accounts Office to enable the latter to make a suitable note in his records.

(ii) In the case of loans sanctioned to parties other than State and Union Territory and Foreign Governments and Government Servants, the borrower should tender the amounts due on or before the due date, at the New Delhi Office/Main Office of the public sector bank accredited to the Ministry/ Department which sanctions the loan, in cash or by cheque or draft drawn on any scheduled bank in Delhi/New Delhi in favour of the said PSB Branch. The payment should be accompanied by a memorandum or challan in duplicate indicating (a) name of the loan sanctioning Ministry/Department; (b) No. and date of the loan sanction letter and the loan amount sanctioned; (c) amount due for payment separately for interest and principal and the head(s) of account to which the dues are to be credited in the Government Accounts; and (d) due date of payment. The borrower should be asked to tender separate chequ Outstation loanees are required to arrange the dues through their bank ensuring that the memorandum/challan and the cheque/draft reaches the aforesaid PSB Branch in New Delhi by the due date.

(iii) Ministries/Departments are required to keep close watch on timely repayments of loans advanced by them and recovery of interest thereon. Rule 220 (1) (viii) of G.F.R. 2005 provides for a notice to be given to the borrowers a month in advance of the due date of payment of instalment of the principal and/or interest thereon. Such notices may be sent in the form given in Appendix II. The borrower should not however be given any advantage in the event of non-receipt of such a notice.
Repayments/interest payments due from the loanees should also be reviewed at least quarterly, and where any default has occurred, a fresh notice should be served on the borrower to arrange payment with penal/higher rate of interest in the form set out in Appendix III.

(iv) Individual cases relating to terms and conditions of loans need not be referred to the Department of Economic Affairs (Budget Division) unless it is proposed to deviate from those laid down in this Office Memorandum.

This issues with the approval of Finance Minister.
sd/-
(Vyasan R)
Deputy Secretary (Budget)
Click to view the order
Authority: www.finmin.nic.in

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