Saturday, 24 August 2019

CBDT issues clarification on eligibility of small Start-ups to avail tax holiday

Ministry of Finance
CBDT issues clarification on eligibility of small Start-ups to avail tax holiday
22 AUG 2019

The Central Board of Direct Taxes (CBDT) has clarified today that small start-ups with turnover upto Rs. 25 crore will continue to get the promised tax holiday as specified in Section 80-IAC of the Income Tax Act, 1961 (the ‘Act’), which provides deduction for 100 per cent of income of an eligible start-up for 3 years out of 7 years from the year of its incorporation.

CBDT further clarified that all the start-ups recognised by DPIIT which fulfilled the conditions specified in the DPIIT notification did not automatically become eligible for deduction under Section 80-IAC of the Act. A start-up has to fulfil the conditions specified in Section 80-IAC for claiming this deduction. Therefore, the turnover limit for small start-ups claiming deduction is to be determined by the provisions of Section 80-IAC of theAct and not from the DPIIT notification.
CBDT dispelled the confusion created by some media report claiming discrepancy that the I-T law was yet to reflect DPIIT’s higher turnover threshold of Rs. 100 crore. CBDT said thatthere was no contradiction in DPIIT’s notification dated 19.02.2019 and Section 80-IAC of the I.T. Act, 1961 because in para 3 of the said notification, it has clearly been mentioned that a start-up shall be eligible to apply for the certificate from the Inter-Ministerial Board of Certification for claiming deduction under Section 80-IAC of the Act, only if the start-up fulfils the conditions specified in sub-clause (i) and sub-clause (ii) of the Explanation of Section 80-IAC. Therefore, the turnover limit for eligibility for deduction under section 80-IAC of the Act, as per the DPIIT’s notification is also Rs. 25 crore.
It is further stated that Section 80-IAC contains a detailed definition of the eligible start-up which, interalia, provides that a start-up which is engaged in the eligible business shall be eligible for deduction, if (i) it is incorporated on or after 1st April 2016, (ii) its turnover does not exceed Rs. 25 crore in the year of deduction, and (iii) it holds a certificate from the Inter-Ministerial Board of Certification.

It was explained that this was the major reason as to why there was a wide difference between the number of start-ups recognised by the DPIIT and the start-ups eligible for deduction under section 80-IAC of the Act. It is pertinent to state that Section 80-IAC was inserted vide Finance Act, 2016 as an exception to the Government’s stated policy of phasing out profit-linked deduction for promoting small start-ups during their initial year of operation. Since the intention was to support the small start-ups, the turnover limit of Rs. 25 crore was considered reasonable for granting profit linking deduction.


EPFO - Central Board of Trustees (CBT) approved the proposal to recommend for amendment in Employees Pension Scheme (EPS) 1995


Central Board of Trustees (CBT) approved the proposal to recommend for amendment in Employees Pension Scheme (EPS) 1995

Ministry of Labour & Employment

CBT Approved Proposal to Recommend Amendment in EPS 1995
225th meeting of CBT held on 21st august, 2019 at Hyderabad

22 AUG 2019
In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the proposal to recommend for amendment in Employees' Pension Scheme (EPS) 1995 for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long pending demand of the pensioners.

The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar whose also Chairman CBT, while addressing the CBT expressed satisfaction that Employees' Provident Fund Organisation (EPFO) is settling more than 91 % claims of EPF members in online mode and lauded the efforts made to improve services for settlement of claims of family of deceased members and EPF call centre function 24 by 7.

He also appreciated the good governance strategy adopted by EPFO in saving of Rs.22 crores p.a. due to negotiating reduced OD charges increased FD interest and waiver of collection charges by SBI and further savings of Rs.50 lakhs p.a. due to reduction in collection charges by three banks and achievement of highest yield (8.55%) by Portfolio Managers since July 2015.

The Minister released the educative booklet on seasonal employees regarding special provision in EPS’1995 regarding eligibility of seasonal employees for pension. The contents of booklet brings out the Scheme provision that contributory service in any year, even if contributory period is less than a year is treated as full year of eligible service for seasonal employee and this will help dispel doubts in minds of members/employers.

The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs of employers by speedy and smooth resolution of grievances.

The Board approved the proposal for Selection and Performance Evaluation of next Custodian by the new Consultant which will be appointed on the basis of Report of Five Members’ Committee constituted by the CBT for the purpose.

In the matter of coupon default of IL&FS Ltd, the Board nominated three officers of Investment Division of EPFO to attend the Debenture - Holders’ Meeting that may be held in future and if need be, vote on behalf of the Central Board, EPF.

Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF) manufacturers through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI MF) till then and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing ETF manufacturers.

Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between Nifty 50 and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%.
Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from employer’s and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to M/s. CRISIL limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in redemption of ETFs, etc.
Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for Proposal (RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio Managers.

Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL bonds recommended by FIAC.

Consent for Transfer of Non- Convertible Debentures (NCDs) of GSPC to GSIL: EPFO has total investment of Rs.2300 Cr in GSPC NCDs. The Board approved the transfer of NCDs of GSPC to GSIL, a wholly owned subsidiary of Govt. of Gujarat and a better rated company which had made an offer to take over debt of GSPC with budgetary support of Government of Gujarat
Legal Entity Identifier Code (LEI) for participation in non- derivative markets by EPFO: In Nov’18, the Reserve Bank Of India (RBI) issued advisory to all eligible market participants in the Financial Markets to obtain LEI Code. The Board approved the nomination of the EPFO Officers as the authorized Officials to obtain LEI Code.

Withholding Investments in bonds of private sector companies: The CBT approved the decision to withhold any further investment in Private Sector Companies Bonds and to compulsorily consider one of the two required ratings necessarily from CRISIL, CARE, ICRA & India Ratings for investments in PSU Bonds category.

The Board ratified the decision of put option in NCDs of Tamil Nadu Power Finance Corporation and also approved put option in bond issued Kerala Finance Corporation & Tamil Nadu Power Finance and Infrastructure Dev. Corp. Ltd.

Shri Raghunathan, Employees' Representative on the Central Board, EPF appreciated the efforts of the Finance Investment & Audit Committee chaired by the Central Provident Fund Commissioner in finalizing the new Portfolio Managers for investing EPFO's corpus through a very transparent procedure. He further informed the Board that while SBI's Fund Management Arm has quoted 94% lesser than SBI PMS in the last mandate, UTI AMC has quoted 28% lesser. This would result in huge savings in portfolio management fees by EPFO.




50% Concession for Male senior citizens and 40% Concession for Lady senior citizens


The following facilities have been extended from time to time to Senior citizens:
(i) As per rules, male senior citizens of minimum 60 years and lady senior citizens of minimum 58 years are granted concession in the fares of all classes of Mail/ Express/ Rajdhani/ Shatabdi/ , Jan Shatabdi/ Duronto group of trains. The element of concession is 40% for men and 50% for women.

No proof of age is required at the time of purchasing tickets. However, they are required to carry some documentary proof as prescribed showing their age or date of birth and have to produce it if demanded by on-board ticket checking staff. Senior citizens can book reserved tickets across the reservation counters as well as through internet.

(ii) In the computerized Passenger Reservation System (PRS) there is a provision to allot lower berths to Senior Citizens, Female passengers of 45 years and above automatically, even if no choice is given, subject to availability of accommodation at the time of booking.

(iii) A combined quota of six to seven lower berths per coach in Sleeper class, four to five lower berths per coach each in Air Conditioned 3 tier (3AC) and three to four lower berths per coach in Air Conditioned 2 tier (2AC) classes (depending on the number of coaches of that class in the train) has been earmarked for senior citizens, female passengers 45 years of age and above and pregnant women.

(iv) Accommodation is also earmarked for senior citizens during specified hours on suburban sections by Central & Western Railways.

(v) Instructions exist for provision of wheel chairs at stations. This facility is provided, duly escorted by coolies (on payment) as per present practice. Moreover, Zonal Railways have also been advised to provide ‘Battery Operated Vehicles for persons with disability and Old Aged Passengers’ at Railway Stations on merit - whether free of cost through commercial publicity route or through ‘user pays’ route. In addition, passenger can book e-wheel chairs online through IRCTC portal

(vi) To help old and disabled passengers requiring assistance at the stations and to strengthen the existing services, ‘Yatri Mitra Sewa’ is being provided through IRCTC at major stations for enabling passengers to book wheel chair services cum porter services etc.

(vii) After departure of the train, if there are vacant lower berths available in the train and if any person with disability booked on the authority of handicapped concession or a senior citizen or a pregnant woman, who has been allotted upper/ middle berth, approaches for allotment of vacant lower berths, the on board Ticket Checking Staff has been authorized to allot the vacant lower berth to them making necessary entries in the chart.

(viii) Separate counters are earmarked at various Passenger Reservation System (PRS) centers for dealing with the reservation requisitions received from persons with disability, Senior Citizens, Ex. MPs, MLAs, accredited journalists and freedom fighters, if the average demand per shift not less than 120 tickets.
In case there is no justification for earmarking of an exclusive counter for any of these categories of persons including persons with disability or senior citizens, one or two counters depending upon the total demand are earmarked for dealing with the reservation requests for all these categories of persons.

Source: Indian Railways

Pension Adalat to be held on 23.08.2019 - MHRD


Pension Adalat to be held on 23.08.2019

No.A .440 11 /26/20 16-E.IV
Government of India
Ministry of Human Resource Development
Department of Higher Education
EIV Section
Room No.235, 'C' Wing, Shastri Bhawan,
New Dellhi, the 21st August, 2019

Subject: Pension Adalat to be held on 23.08.2019. -reg.

The undersigned is directed to refer to Department of Pension & Pensioners' Welfare DO No.I / 12/2019-P&PW(G) dated 28.06.2019, OM No. 1/12/2019-P&PW(E) dated 05.07.2019 and this Ministry's OM of even no. dated 23.07.2019 on the above mentioned subject and to say that this Ministry had widely circulated the holding of Pension Adalat on 23.08.2019 for quick redressal of the grievances of pensioners within the framework of extant policy guidelines.

2. As regards the pensioners of the Core Secretariat of this Ministry is concerned, no case has been acknowledged for discussion in Pension Adalat on 23.08.2019 till date. All other cases have been transferred to their respective Ministries/ Divisions/ Organisations for appropriate action.

3. At present, this Ministry has received no request representation of the pensioners for redressal. As such, it is not feasible for this Ministry to hold Pension Adalat on 23.08.2019.

Source: MHRD

Issue of OPD Medicines for CGHS beneficiaries going abroad

Issue of OPD Medicines for CGHS beneficiaries going abroad

No.1-40/2019-CGHS/ C&P/DIR/CGHS
Government of India
Ministry of Health and Family Welfare
Department of Health & Family Welfare
Directorate General of CGHS

Nirman Bhawan, New Delhi 110 011
Dated the 19th August , 2019

Subject: Issue of OPD Medicines for CGHS beneficiaries going abroad

With reference to the above subject the undersigned is directed to draw attention to Circular No 4-20/2003-C&P Section dated the 28th April, 2005 vide which guidelines were issued for supply of OPD Medicines for upto ‘6’ months to CGHS beneficiaries, who are going to stay abroad and to state that the matter has been reviewed by this Ministry and it is now decided in modification of the earlier guidelines that hereinafter, Chief Medical Officer I/C of concerned CGHS Wellness Centre is empowered for issue of OPD medicines for upto six months to the CGHS beneficiaries visiting abroad, subject to submission of the following documents:
(a) Copy of valid CGHS Card.
(b )Valid prescription for six months.
(c) Documentary Proof of going abroad like ticket, visa etc.
(Dr. Atul Prakash)
Director, CGHS
Source: Confederation

Transmission of e-PPO (PDF & XML) to the authorized banks in fresh pension cases

CPAO/ IT&Tech/ Master Data/ 14 Vol-III/P.F./2018-19/77
Office Memorandum

Subject:- Transmission of e-PPO(PDF & XML) to the authorized banks in fresh pension cases.

e-PPO project has been started for issuing electronic PPO to pensioners and to digitize the whole pension processing. The e-PPO system aims at online processing of pension cases and movement of online data from Head of Office (HoO) to Pay & Accounts Office (PAO) to CPAO to Bank for fresh as well as revision of pension cases. In this system, all the stakeholders i.e. HOO, PAO, CPAO and Banks would perform their respective work online. The main objective of this exercise is to put in place seamless transmission of pension electronically from head of office to banks for payment of pensions.

At present, pension cases in respect of central civil pensioners are being processed online through PFMS and e-PPO (XML & PDF file) is being forwarded by the Pay & Accounts Offices to CPAO.
It has now been decided to send the e-PPO (XML & PDF file] to the banks for consuming the data in their system after updating their pension software as per requirement. The physical PPO booklet along with the SSA in fresh pension cases will continue to be sent to all the banks as a parallel run till the system stabilizes.

It is also clarified that details given in Physical Booklet of PPO will be sacrosanct and supersede in case any mismatch or discrepancy arises between the data of PDF and XMI, file of e-PPO.

(Md. Shahid Kamal Ansari)
(Dy, Controller of Accounts)

LTC - Change of Home Town while availing LTC-Army Officers

LTC claims

Message Title: Change of Home Town while availing LTC-Army Officers

Message : CGDA Office vide their letter No. AT/IV/4462/Claim/III dated 17/07/2019 have clarified to accept change of Home Town in respect of Army Officers at par with Defence Civilians, and for making the similar provisions of Defence Civilians at Rule 190(5) (ii) TR applicable to Army Officers also. Hence, such cases will be regulated as under:
a. Home town once declared will be treated as final, and the same will be referred to while admitting Home Town LTC claims.
b. In case any change is to be notified through Part II orders and Home Town LTC claim submitted for the changed Home Town, the sanction of Head of Department, or if the officer himself is the Head of Department then sanction of MoD will invariably be enclosed with LTC claim.
c. The change of Home Town is permissible in exceptional circumstances and the change will not be made more than once in the entire service of the officer.

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