Monday, 13 February 2017

Grant of Advances- 7th Central Pay Commission recommendations-Amendment to rules on Computer Advance to Railway servants

Grant of Advances- 7th Central Pay Commission recommendations-Amendment to rules on Computer Advance to Railway servants

Government of India (Bharat Sarkar)
Ministry of Railways (Rail Mantralaya)
(Railway Board)
No.I/11-Part I
PC-VII No : 15/2017

RBE No. 10/2017
No. F(E) Spl./2016/ADV.4/1(7th CPC)

The General Managers and FA&CAOs
All Indian Railways & Production Units
(As per standard list)

Subject: Grant of Advances- Seventh Central Pay Commission recommendations-Amendment to rules on Computer Advance to Railway servants.

Consequent upon the decision taken by the Government on the recommendations of Seventh Central Pay Commission, the Ministry of Finance vide their OM No. 12(1)/E.II(A)/2016 dated 07.10.2016 have amended the eligibility criteria in the existing provisions relating to the grant of Personal Computer Advance.

2. Amendment conditions of grant of Computer Advance are as follows:
AdvanceQuantumEligibility Criteria
Personal Computer Advanceƻ50,000/- or actual price of PC, whichever is lower.All Government Servants
The Computer Advance will be allowed maximum five times in the entire service.
The other terms and conditions governing the grant of Personal computer advance shall remain unchanged.

3. Further, Ministry of Finance in their ibid OM have also decided that the other interest bearing advances relating to Motor Car Advance and Motorcycle/Scooter/Moped Advance will stand discontinued.
4. The above mentioned OM of Ministry of Finance relating to grant of interest bearing advances will apply mutatis-mutandis to Railway employees also.

4.1 So far as the interest free advances are concerned, Bicycle and Warm clothing advances stands abolished for Railway employees also in terms of MoF’s decision.

4.2 Orders relating to other interest free advances will be issued separately by concerned Directorates.
5. Necessary Advance Correction Slip to the chapter XI of the Indian Railway Establishment Manual, Vol.I Revised Edition, 1989 will follow.

6. The revised orders are effective from 07.10.2016 i.e. the date of the issue of the aforesaid OM of the Ministry of Finance. Past cases where the advances have already been sanctioned under the provisions of earlier rules on the subject need not be reopened.

7. Please acknowledge receipt.

8. Hindi version will follow.
(A.C. Jain)
Dy. Director Finance (Estt.)
Railway Board

Enhancement of Maternity Leave - Lok Sabha Q&A

Enhancement of Maternity Leave - Lok Sabha Q&A


ANSWERED ON: 06.02.2017
Maternity Leave
Will the Minister of

LABOUR AND EMPLOYMENT be pleased to state:-

(a)whether the Government proposes to extend the time span of the compulsory paid maternity leave from 12 weeks to 26 weeks in private organizations;
(b)if so, the details thereof;
(c)whether the Government also proposes to amend section 4 of the Maternity Benefits Act, 1961, to ensure that women employed in various public sector undertakings receive the same benefit; and
(d)if so, the details thereof and if not, the reasons therefor?


(a) & (b): Yes, Madam. The Government has decided to enhance the paid maternity leave from existing 12 weeks to 26 weeks and an Amendment Bill in this regard was introduced in the Rajya Sabha. The Rajya Sabha has already passed the Bill on 11.08.2016. With regard to women workers covered under Employees’ State Insurance Act, 1948, such enhancement has already been effected by amending the ESI (Central) Rules,1950.

(c) & (d): There is no proposal to amend Section 4 of the Maternity Benefit Act, 1961. The benefits under this Act are already applicable and available to women employed in various public sector undertakings.


Budget 2017 - New Benefits announced for NPS Subscribers

Budget 2017 - New Benefits announced for NPS Subscribers



In a bid to provide further impetus to the National Pension System (NPS), the following provisions have teen introduced in the Finance bill 2017 laid down in the Parliament today.

1. Tax-exemption to partial withdrawal from National Pension System (NPS)

The existing provision of section 10(12A) of the Income Tax Act. 1961 provides payment from National Pension System (NPS) to a Subscriber on closure of his account or opting out shall be exempt up to 40% of total corpus at the time of withdrawl . The amount utilized for purchase of annuity is also tax exempt. At the time of normal exit. 40% of the total corpus is mandatorily required to be purchased for annuity. The subscriber has the option to use higher amount for purchase Of annuity.

In order to provide further relief to the subscriber of NPS, it has been proposed to Insert a new clause (12B) in the section 10 of Income Tax Act, 1961 to provide exemption on partial withdrawal not exceeding 25% of the contribution made by an employee in accordance with the terms and conditions specified under Pension Fund Regulatory and Development Authority Act. 2013 and regulations made there under.

This benefit will be effective on partial withdrawal made by the subscriber after 1st April 2017.

2. Further, Contribution up to 20% of the Gross Income of the Self-employed Individual ( Individual other than salaried class) will be deductible from the taxable income under Section 8OCCD(1) of the Income Tax Act.1961, as against 10% earlier.

This is with a view to provide parity between a salaried employee and a self- employed.

This benefit will be available on contribution made by the self employed persons on or after 1st April 2017.

This increased limit tor tax benefit will help the self-employed individuals, to save taxes on higher contribution in NPS and thereby properly plan for their old age income security.

Additional tax deduction on investment upto Rs. 50000/- under Section 80CCD(1B) will continue to remain the same for all NPS subscribers whether salaried or self-employed.

Induction training of Engineering Degree/Diploma Holder Compassionate appointees - training period duration

Induction training of Engineering Degree/Diploma Holder Compassionate appointees - training period duration - reg.
National Federation of Indian Railwaymen
Dated: 08/02/2017
The Secretary (E),
Railway Board,
New Delhi

Kind attention D.G./Personnel

Dear Sir,
Sub: Induction training of Engineering Degree/Diploma Holder Compassionate appointees - training period duration - reg.

It has been brough to NFIR's notice that the candidates selected on compassionate ground for the post of Technicians III (Pay Matrix level 2) are being subjected to 3 years induction training although they possess Engineering Degree/Diploma qualification. Federation feels sad to mention that such technically qualified candidates are not even treated at par with the ITI certificate holders/act apprentices who are imparted only 6 months training prior to their absorption as Technician III, GP 1900/revised pay matrix level 2.

NFIR, therefore, requests the Railway Board to kindly review the extant policy and issue instructions to the Zonal railways, PUs, etc., (particularly South Western Railway) to offer the post commensurating with their technical qualification in higher grades pay/revised pay matrices on compassionate ground. When they are found suitable for Technician III post only, their, training period be limited 6 months as in vogue in the case of ITI certificate holders/act apprentices. Revised instructions on these lines may kindly be issued soon.

Yours faithfully,
(Dr. M. Raghavaiah)
General Secretary
Source: NFIR

Reckoning GP 4200/- PB-2 as entry grade pay for granting financial upgradation under MACPS to the Pharmacist category

Reckoning GP 4200/- PB-2 as entry grade pay for granting financial upgradation under MACPS to the Pharmacist category
National Federation of Indian Railwaymen
Affiliated to :
Indian National Trade Union Congress (INTUC)
International Transport Workers Federation (ITF)
No. IV/MACPS/09/Part 10
Dated: 07/02/2017
The Secretary (E),
Railway Board,
New Delhi.

Dear Sir,
Sub: Reckoning GP 4200/- PB-2 as entry grade pay for granting financial upgradation under MACPS to the Pharmacist category - reg.

Ref: (i) NFIR's letter No. IV/MACPS/09/Part 10 dated 30/08/2016 and 22/12/2016.
(ii) Railway Board's reply vide No. PC-V/2011/M/NFIR dated 24/01/2017

Federation does not agree with the view taken by the Railway Board by misinterpretation of the contents of DoP&T's OM dated 4th Feb 1992. In this connection, Federation once again cites below the facts which have been ignored by the Board while considering the demand:
  • It is true that vide para 2 of the said OM, while the DoP&T has laid down criteria for assessing the suitability of the incumbents of the posts due to revision of pay scales/upgradation, at the same time in sub-para 2 of the same OM, it has been clarified that  where the upgradation involves replacement scale without higher responsibilities or higher qualification but with higher eligibility of service, in such situation suitability may not be assessed.
  • It has been further clarified that those who fulfill the criteria of qualifying service, should be appointed to the upgraded post from the date on which they complete the qualifying service.
  • The condition stipulated in sub-para 2 of DoP&T's OM dated 4th Feb 1992 has been fulfilled by the Pharmacists who though recruited in GP 2800 have been appointed to GP 4200 (6th CPC) on completion of 2 years service in GP 2800/- (PB-1).
The plea taken by the Railway Board that the said OM of DoP&T is applicable for assessing the suitability of the incumbents, is therefore, misconceived, illogical and unjustified. On the other hand, the case of Pharmacists for granting MACP benefit is required to be dealt applying the provisions contained in the DoP&T's OM dated 4th Feb,1992.

NFIR, therefore, requests the Railway instructions to the Zones etc., allowing MACP endorsed to the Federation.
Yours faithfully,
(Dr. M.Raghavaiah)
General Secretary

Copy to the Executive Director,PC-I, Railway Board, DFCC Building, Metro Bhavan, Pragati Maidan, New Delhi for information and necessary action please.
Copy to the General Secretaries of the Affiliated Unions of NFIR.

Source: NFIR

New Income Tax Rates And Deductions Applicable From April 1, 2017

New Income Tax Rates And Deductions Applicable From April 1, 2017

With some tinkering in the income tax rates for 2017-18, Finance Minister Arun Jaitley reduced the tax rate for income between Rs. 2.5 lakh and Rs. 5 lakh to 5 per cent in the Union Budget, while adding a surcharge of 10 per cent on tax for income between Rs. 50 lakh and Rs. 1 crore.

Although the basic income tax exemption limit remains the same at Rs. 2.5 lakh, there are many exemptions available in the Income Tax Act, which can substantially reduce your tax liability.

One needs to plan from the beginning of the next financial year to take maximum benefit of the income tax deductions available.

Here are the new income tax slabs for taxpayers:

General categorySenior citizensSuper senior citizens
(Up to 60 years of age)(60-80 years)(Above 80 years)
Up to Rs. 2.5 lakhNilUp to Rs. 3 lakhNilUp to Rs. 5 lakhNil
Rs. 2,50,001-Rs. 5 lakh5%Rs. 3,00,001-Rs. 5 lakh5%Rs. 5,00,001-Rs. 10 lakh20%
Rs. 500,001-Rs. 10 lakh20%Rs. 5,00,001-Rs. 10 lakh20%Above Rs. 10 lakh30%
Above Rs. 10 lakh30%Above Rs. 10 lakh30%
# Surcharge of 10% for income between Rs. 50 lakh and Rs. 1 crore
# Surcharge of 15% for income above Rs. 1 crore
# Rebate of up to Rs. 2,500 for taxable salary up to Rs. 3.5 lakh
# Education and higher education cess of 3%
Here are the some of the deductions available for FY2017- 18: 

House Rent Allowance under Section 10 (13A) of the Income Tax Act

House Rent Allowance, commonly known as HRA, makes up a major chunk of a salaried individual’s total pay. HRA is partly exempted from tax. If you are staying in your own house or not paying any rent, your HRA will be completely taxable. However, those who stay with their parents can also claim HRA benefits by paying rent to their parents.

The amount which is allowed for exemption under HRA is calculated as minimum of:

1) Rent paid annually minus 10 per cent of basic salary plus dearness allowance
2) Actual HRA received
3) 40 per cent of basic and dearness allowance (50 per cent in case of metro cities)

Deductions under Section 80C
Section 80C of the Income Tax Act provides various provisions under which an individual can get deduction benefits up to Rs. 1.5 lakh. Employees’ Provident Fund (EPF), Public Provident Fund (PPF), Sukanya Samriddhi Account, National Savings Certificate and tax-saving fixed deposits are some of the investment options that offer benefits under Section 80C. The premium paid for life insurance plans, National Pension Scheme (NPS) and tax-saving mutual funds (ELSS) also qualify for deduction under Section 80C.
Further, one can claim tuition fees paid for up to two children, principal repayment on home loan, stamp duty and registration cost on the house bought as deduction under Section 80C.

Deductions under Section 80CCD(1B)
Introduced in Budget 2015-16, Section 80CCD (1B) provides deduction up to Rs. 50,000 for investment in NPS Tier 1 account. This deduction is over and above the deduction available in Section 80C. An individual in 30 per cent tax bracket can save up to Rs. 15,450 of tax by investing Rs. 50,000 in NPS.

Deduction of interest on housing loan (Section 24B)
Buying a house is among several other things an individual wants to do during his or her lifetime. The income tax rules also incentivise the same. Under Section 24B of the Income Tax Act, interest paid up to Rs. 2 lakh on housing loan and up to Rs. 30,000 on home improvement loan is allowable as deduction from your taxable income.

The government has however cut down tax benefits borrowers enjoyed on properties let out on rent. As per current tax laws, for properties rented out, a borrower could deduct the entire interest paid on home loan after adjusting for the rental income. On the other hand, borrowers of self-occupied properties get Rs. 2 lakh deduction on interest repayment on home loan.

However, according to the proposed change in Budget 2017, on rented properties, the borrower can only claim deduction of up to Rs. 2 lakh per year after adjusting for the rental income. And the amount above Rs. 2 lakh can be carried forward for eight assessment years.

Since the interest component of home loan repaid in initial years is higher, experts say that the borrower may not be able to fully adjust the interest paid as deduction even in subsequent years.

Deduction under Section 80EE
Under Section 80EE, an additional deduction of Rs. 50,000 is available over and above the limit of Section 24B on interest paid on home loans if the person is buying a house for the first time (the person must not own any other residential property on the date of sanction of loan). However, to avail the benefit of this section the value of the property must be below Rs. 50 lakh and the loan amount should not exceed Rs. 35 lakh. Further, the property must be bought after April 1, 2016.

Deduction under Section 80D

Premium paid for medical/health insurance for self, spouse, children and parents qualify for deduction under this Section. On can claim deduction of Rs. 25,000, if he is below 60 years of age, and Rs. 30,000 if he is above 60 years of age, towards medical insurance premium paid for self, spouse and children. Further, additional deduction of Rs. 25,000 is available if one has bought medical insurance for his parents. This deduction can go up to Rs. 30,000 if parents are above the age of 60 years.

Deduction under Section 80DD
If a tax payer has dependent parents, spouse, children or siblings who are differently-abled, then he can claim deductions up to Rs. 75,000 for expenses on their maintenance and medical treatment under this section. This deduction can increase to Rs. 1.25 lakh in case of severe disability.

Deduction under Section 80DDB
Under this section, one can claim deduction of Rs. 40,000 for treatment of certain diseases for self and dependents. The deduction can go up to Rs. 60,000 if the tax payer is above 60 years of age and if he is above 80 years of age, then the deduction amount is up to Rs. 80,000.

Deduction under Section 80E
According to the provisions of Section 80E, a taxpayer can claim deduction for interest paid on education loan for him, spouse or children. There is no upper limit on the amount of deduction. However, the loan must have been taken from a financial institutional or approved charitable institution and for full-time higher education.

Source: NDTV

INCOME TAX FAQ : What are allowances? Are all allowances taxable?

INCOME TAX FAQ : What are allowances? Are all allowances taxable?

​What is considered as salary income?
​​​ section 17​​ of the Income-tax Act defines the term 'salary'. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary.

What are allowances? Are all allowances taxable?
Allowances are fixed periodic amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. E.g., Tiffin allowance, transport allowance, uniform allowance, etc.
There are generally three types of allowances for the purpose of Income-tax Act ;taxable allowances, fully exempted allowances and partially exempted allowances.​

My employer reimburses to me all my expenses on grocery and children's education. Would these be considered as my income?
​Yes, these are in the nature of perquisites and should be valued as per the rules prescribed in this behalf.​​
During the year I had worked with three different employers and none of them deducted any tax from salary paid to me. If all these amounts are clubbed together, my income will exceed the basic exemption limit. Do I have to pay taxes on my own?

​Yes, you will have to pay self-assessment tax and file the return of income.​

Even if no taxes have been deducted from salary, is there any need for my employer to issue Form-16 to me?
​​Form-16 is a certificate of TDS. In your case it will not apply. However, your employer can issue a salary statement.​

Is pension income taxed as salary income?
​Yes. However, pension received from the United Nations Organisation is exempt.​​

Is Family pension taxed as salary income?
​No, it is taxable as income from other sources.​

​If I receive my pension through a bank who will issue Form-16 or pension statement to me- the bank or my former employer?
​​The bank.​

Are retirement benefits like PF and Gratuity taxable?
​​In the hands of a Government employee Gratuity and PF receipts on retirement are exempt from tax. In the hands of non-Government employee, gratuity is exempt subject to the limits prescribed in this regard and PF receipts are exempt from tax, if the same are received from a recognised PF after rendering continuous service of not less than 5 years.​

Are arrears of salary taxable?
​​​​Yes. However, the benefit of spread over of income to the years to which it relates to can be availed for lower incidence of tax. This is called as relief u/s 89​ of the Income-tax Act.​​

​Can my employer consider relief u/s 89 for the purposes of calculating the TDS from salary?
​​Yes, if you are a Government employee or an employee of a PSU or company or co-operative society or local authority or university or institution or association or body. In such a case you need to furnish Form No. 10E to your employer. ​​

​My income from let out house property is negative. Can I ask my employer to consider this loss against my salary income while computing the TDS on my salary?
​Yes, however, losses other than losses under the head 'Income from house property' cannot be set-off while determining the TDS from salary.​​

​Is leave encashment taxable as salary?
​​It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of non-Government employee leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.​

​Are receipts from life insurance policies on maturity along with bonus taxable?​

As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax. However, following receipts would be subject to tax:

Any sum received under sub-section (3) of section 80DD; or
Any sum received under Keyman insurance policy; or

Any sum received in respect of policies issued on or after April 1st, 2003, in respect of which the amount of premium paid on such policy in any financial year exceeds 20% (10% in respect of policy taken on or after 1st April, 2012) of the actual capital sum assured; or

Any sum received for insurance on life of specified person (issued on or after April 1st 2013) in respect of which the amount of premium exceeds 15% of the actual capital sum assured.
*Any person who is -
i) A person with disability or severe disability specified under section 80U​; or
ii) suffering from disease or ailment as specified in the rule made under section 80DDB.
Following points should be noted in this regard:
Exemption is available only in respect of amount received from life insurance policy.
Exemption under section 10(10D)​ is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.

Amount received on the death of the person will continue to be exempt without any condition.​


Central government jobs about 2.83 lakh estimated by 2018

Central government jobs about 2.83 lakh estimated by 2018
As per the budget documents, the workforce of the central government establishments would be 35.67 lakh in 2018

New Delhi: Nearly 2.83 lakh central government jobs are estimated to be generated by next year. This projection has been made in the Union Budget for 2017-18 presented last week by finance minister Arun Jaitley.

As per the budget documents, the workforce of the central government establishments would be 35.67 lakh in 2018, about 2.83 lakh more than the actual head count of 32.84 lakh in 2016. The home ministry will add 6,076 more personnel to take its strength to 24,778 in 2018. About 1.06 lakh more workforce will be added in police departments to take the total head count to 11,13,689 by next year.
The strength of police departments under the central government is 10,07,366, as per the 2016 data. There will be an estimated increase of 2,109 persons in the external affairs ministry as against its actual strength of 9,294 in 2016, it said.

In newly created ministry of skill development and entrepreneurship, the government has estimated to add 2,027 jobs by 2018. Its actual strength in 2016 was 53 only. Minister of state for personnel, public grievances and pensions Jitendra Singh on Sunday said the additional workforce will help in providing more citizen-centric governance.

“The central government is trying to emphasise more on employability of our youths rather then employment. That is why the skill development ministry has been started. It will train more youths to become entrepreneur and be job-ready in changing scenario. “The projection of additional workforce will help in providing more citizen centric governance,” he said.

There would be an estimated 1,045 more staff in 2018 in the ministry of civil aviation from its actual strength of 1,141 in 2016. In the department of posts, there would be 20,442 more workforce from its strength of 4,48,840.

The ministry of environment, forest and climate change will add 2,165 more jobs in next year to take its strength to 5,094. An estimated 91 people will be part of the workforce in the minority affairs ministry in 2018, in addition to its actual strength of 169 in 2016.

The mines ministry will have 1,351 more jobs to take its strength to 9,481 and the department of space will have an estimated 17,894 personnel, 3,068 more than its strength of 14,826. The personnel ministry will have 2,367 more personnel in 2018 than its actual strength of 8,443 in 2016. Whereas, the ministry of water resources, river development and Ganga rejuvenation will have a workforce of 11,407 in 2018, 3,632 more than its actual strength of 7,775 in 2016.


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