Finance Bill 2011-2012

Chapter I

Preliminary


Chapter II
Rates of Income Tax


Chapter III
Income Tax
Wealth Tax


Chapter IV
Customs
Excise


Chapter V
Service Tax

Chapter VI
Miscellaneous

Schedule

First Schedule
Second Schedule
Third Schedule
Fourth Schedule
Fifth Schedule
Sixth Schedule
Seventh Schedule
Eighth Schedule
Ninth Schedule
Tenth Schedule
Eleventh Schedule
Twelfth Schedule
Thirteenth Schedule
Statements of Objects and Reasons
Notes on Clauses
Memorandum Regarding Delegated Legislation

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Key Features of Budget 2011-2012

View Key Features of Budget 2011-2012

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Here are some major tax announcements 2011-2012

*Tax exemption limit raised to Rs 1.8 lakh, from Rs 1.60 lakh for individual tax papers.

*For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs 2.50 lakh.

*Citizens over 80 years to have exemption limit of Rs 5 lakh.

*Surcharge for companies cut to 5 per cent, from 7.5 per cent.

* A new revised income tax return form 'Sugam' to be introduced for small tax papers.

*Service tax retained at 10 per cent; duty exemptions to be withdrawn on various items.

*Net loss from direct tax proposals estimated at Rs 11,500 crore for the year.

*Excise and customs duty proposals to result in the net gain of Rs 7,300 crore.

*Standard rate of central excise (rpt) excise duty maintained at 10 per cent; No change in CENVAT rates.

*Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.

*Peak rate of customs duty maintained at 10 per cent in view of the global economic situation.

*Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent.

*Service tax widened to cover hotel accommodation above Rs 1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests.

*Service tax on air travel increased by Rs 50 for domestic travel and Rs 250 for international travel in economy class. On higher classes, it will be ten per cent flat.

source: Economic Times

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Highlights of the budget for 2011-12

Highlights of the budget for 2011-12 presented by finance minister Pranab Mukherjee in Parliament on Monday:
* Economy back to pre-crisis trajectory.
* Set pace for double digit growth.
* Total food inflaction declined to less than 9 percent in January.
* Could have performed better
* Cur rent account deficit at 2009-10 levels.

* Corruption a problem we have to fight collectively.
* Development needs to be more inclusive.
* Stronger fiscal consolidation needed.
* Setting tone for newer, vibrant economy.
* Economy has shown remarkable resilience to external and internal shocks.
* Women's self-help development panel to be set up.
* FIIs can invest $40 billion in corporate bonds.
* Rs.100 crore equity fund for microfinance companies.
* Mortgage risk guarantee fund to be created for economically weaker sections.
* Housing loan limit for priority sector lending raised to Rs 25 lakh.
* Agriculture growth key to development: Green Revolution waiting to happen in eastern region.
* Growth at 8.75% to 9.25% in 2011-12.
* Bills on insurance, pension funds, banking to be introduced.
* Gap between wholesale and retail prices not acceptable.
* Setting up independent debt management office; public debt management bill to be introduced in parliament.
* Seek Lord Indra's blessings for good monsoon
* Introduction of GST will improve compliance; bill in current session; setting up strong IT network for implementation.
* Expenditure has to be oriented towards production of goods and services.
* Government committed to retaining 51% stake in public sector enterprises.
* FDI policy being liberalised.

source: Hindusthan Times

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Tax Slabs – Personal Income Tax (FY: 2010-2011, AY: 2011-2012)

1) In Case of General Assesses:

Income Bracket Rate

0 to Rs. 1,60,000                                                    0 %

Rs. 1,60,001 to Rs. 5,00,000                                 10 %

Rs. 5,00,001 to Rs. 8,00,000                                 20 %

Above Rs. 8,00,000                                              30 %

2) In Case of Women Assesses:

Income Bracket Rate

0 to Rs. 1,90,000                                                     0 %

Rs. 1,90,001 to Rs. 5,00,000                                  10 %

Rs. 5,00,001 to Rs. 8,00,000                                  20 %

Above Rs. 8,00,000                                               30 %

3) In Case of Senior Citizens:

Income Bracket Rate

0 to Rs. 2,40,000                                                   0 %

Rs. 2,40,001 to Rs. 5,00,000                                  10 %

Rs. 5,00,001 to Rs. 8,00,000                                  20 %

Above Rs. 8,00,000                                               30 %

* On final tax amount, a surcharge of 3 %

**No surcharge above 10 lacs.

Exemptions:

1) 80 C Limit Unchanged (Rs. 1,00,000)

2) 80 CCF – Additional Rs. 20,000 on investments towards approved Infrastructure bonds

3) 80CCD:

Contribution to NPS and returns on NPS tax free, but withdrawal still taxable

4) 80 D

Mediclaim Premium on the Health of Investment limit

a) Self Spouse and Children Rs. 15,000

b) Parent/Parents Rs. 15,000

c) If Parent/ Parents Senior citizen Rs. 20,000

5) Section 80DD

Deduction under section 80DD

•Exemption given for Expenditure made for a disabled dependant towards Medical Treatment/Training/Rehabilitation. It also includes the LIC/Insurance premium paid towards maintenance of such dependant.

•Maximum deduction allowed is Rs. 50,000/- in case of normal disability and Rs. 1 Lakh in case of severe disability.

6) 80DDB

Deduction under section 80DDB

•Exemption given for expenditure incurred on specified disease or ailments such as cancer/aids.

•Maximum deduction allowed is Rs. 40,000/-. In case of Senior Citizens, maximum deduction allowed is Rs. 60,000/-

7) Section 80E

Deduction under section 80E

Deduction is allowed for repayment of interest component of Higher Education loan. All education after Class 12 is allowed, either vocational or Fulltime. But should be from a school/institute/university recognized by the government.

8 ) Section 80G

•Contribution to exempt charities – 25/50/75/100% depending on the charity and as per approval

•100% exemption on donation to political parties

9) 80U

Deduction under section 80U

•Deduction upto Rs. 50,000/- is allowed in case of Permanent Disability.

•In case of Permanent Disability exceeding 80%, maximum deduction allowed is Rs. 75,000/-.

10) Section 24(1)(vi)

•Housing loan interest.Maximum Investment Limit – Rs. 1,50,000 (for loans taken after 1 April 1999, for loans before that Maximum Investment Limit 30,000).

11) Superannuation – Any contribution made by a company to superannuation fund upto Rs. 1,00,000 tax free in the hands of the employee

12) Conveyance/Transport Allowance – Any Conveyance / Transport Allowance given to an employee is tax free upto Rs. 9,600 /- (No Supporting Bills required)

13) Medical Allowance – Any Medical Allowance given to an employee is tax free upto Rs. 15,000 /- (Supporting Bills required)

14) HRA – Any House Rent Allowance given to an employee is tax free upto the minimum value of the following conditions (subject to – when an employee can produce rent paid receipts from landlord for the period and if the employee has not availed of tax exemptions for home loan interest / principal repayment):

a) 50% of Annual Basic (40% of Annual Basic in case of non-metros)

b) Actual HRA received

c) Rent Paid – (10% of Annual Basic)

15) Professional Tax – Any Professional Tax deducted from an employee’s salary can be reduced from the annual salary income to arrive at taxable salary

16) Provident Fund – Provident Fund contributions (under section 80 C and subject to an overall investment limit of Rs. 1,00,000 ) deducted from an employee’s salary are tax exempt.

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The Black Hole - very interesting

by - Veerendra Porapur, System Administrator, Ranebennur MDG

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Issue of pensioner CGHS Cards to Central Government servants before retirement

Government of India

Ministry of Health and Family Welfare

Department of Health & Family Welfare

Nirman Bhawan, Maulana Azad Road

New Delhi 110 108

No: 37-1/2009-C & P/CGHS (P) Date: February 23, 2011

OFFICE MEMORANDUM

Subject: Issue of pensioner CGHS Cards to Central Government servants before retirement.

Central Government servants on their retirement from service are entitled to CGHS facility, if they retire from office Ministries I Departments I Offices covered by CGHS. For availing CGHS facility, if eligible, after retirement from service, pensioners are required to fill up the requisite form and deposit the appropriate amount [lump sum amount equivalent to one year’s contribution for availing CGHS facility for one year (which can be extended on an annual basis on payment of the appropriate contribution as applicable at the time of renewal) or pay in lump sum equivalent to ten years’ contribution for availing CGHS facility with life-time validity). The process of issuing of pensioner CGHS cards starts only after the Government servant retires from service and only after the Pension Pay Order (PPO) and Last Pay Certificate (LPC) are issued by the Ministry / Department I Office. The completion of the formalities takes two to three months, which puts pensioners in a problematic condition for getting treatment from the date on which they retire from service and the time when a pensioner CGHS card is issued to them.

2. The Ministry of Health & Family Welfare has received representations from retired Central Government servants and from officials due for retirement within the next few months with the request that the policy regarding issue of pensioner CGHS cards be simplified so that they are in a position to get the pensioner CGHS card a day after their retirement from service.

3. The matter has been examined by the Ministry of Health & Family Welfare in consultation with CGHS and it has been decided that the following course of action will be taken in respect of officials who are entitled to avail CGHS facility after his I her retirement from Government service:

(i) All Ministries I Departments will, alongwith pension papers, give the application for issue of pensioner CGHS cards to the official three months before the due date for retirement of the official;

(ii) The official, if he / she is interested in availing CGHS facility after his I her retirement, will:

a. Fill up the form for issue of pensioner’s card;

b. affix stamp sized photographs of the family members entitled to avail CGHS facility in the proforma for issue of pensioner’s card;

c. enclose Demand Draft I Pay Order for the appropriate amount with reference to his I her decision to get CGHS card with life-time validity (the amount will be equal to ten years’ contribution) or with validity for one year (the amount will be equal to one year’s contribution). For obtaining the card in Delhi, the Demand Draft I Pay Order will have to be made payable to “Pay & Accounts Officer (CGHS), payable at Delhi” and for obtaining card in a CGHS city outside Delhi, the Demand Draft I Pay Order will have to be made payable to “Additional Director or Joint Director (as the case may be) of the CGHS city, payable in that city”;

(iii) The Ministry I Department will add a certificate of pay, grade pay, etc., drawn by the applicant to the application form and also mention the entitlement of ward (Private ward I Semi-Private Ward / General Ward) at the time of retirement of the official;

(iv) The Ministry I Department will forward the application complete in all respects to the Additional Director in the concerned CGHS city after verifying the particulars furnished by the applicant six weeks before the date of retirement of the official;

(v) CGHS pensioner cell in the concerned CGHS city will initiate action to get the pensioner card prepared;

(vi) The validity of the pensioner card will start from a date after the last day of service of the official;

(vii) If the beneficiary, while in service, has been issued plastic card, then the beneficiary identification number (Ben ID No.) will not be changed at the time of preparation of pensioner card and the same Ben ID number will be carried forward in the pensioner card;

(viii) The pensioner card will be handed over to the retired official only after the date of superannuation I retirement from service; and

(ix) Before the pensioner CGHS card is issued to the beneficiary, the plastic CGHS cards issued to all the members of the family will be surrendered

4. AIr Ministries / Departments are requested to give wide publicity to the contents of these instructions.

Director

[R Ravi]

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Mamata Banerjee announced a number of measures for the welfare of Railway employees in her budget speech

Railway Employees’ Welfare, Recruitment and Training

The Minister for Railways, Mamata Banerjee announced a number of measures for the welfare of Railway employees in her budget speech in Parliament today. They are as follows:-

1. Expand the scope of Liberalised Active Retirement Scheme for Guaranteed Employment for safety category staff by enhancing the existing criteria of grade pay from Rs. 1800/- to Rs. 1900/-.

2. Considering the Indian family structure and values, extending medical facilities to both dependent father and mother of railway employees.

3. Increasing the scholarship for the girl child of gangmen and group ‘D’ employees to Rs.1200 per month for higher education.

4. Setting up of a Railway Vidyalaya Prabandhan Board (RVPB) to improve quality of education to children studying in 269 railway schools. The Board will draw up a plan for improving the physical and educational infrastructure of these schools to be implemented in a time frame of three years.

5. To provide 20 Road Medical Vans in remote and inaccessible areas for railway employees for easy access to medical facilities.

6. 20 hostels for children of railway employees have been commissioned and another 20 would be set up next year.

7. Undertaking of restructuring of all cadres in the Railways to afford adequate promotional opportunities to the officers and staff.

8. Recruitment process has already been set in motion for filling the vacancies of about 1.75 lakh in Group ‘C’ and Group ‘D’ posts. Steps have also been taken to fill up about 13,000 posts in Railway Protection Force. These mega recruitment drives will cover the backlog of SC/ST and physically handicapped quota.

9. For the first time, the Ministry is inducting 16,000 ex-servicemen by end of March 2011. More than 1200 ex-servicemen in Railway Protection Force are being recruited.

10. A Training centre is proposed to be started at Kharagpur to enhance skills of frontline staff in dealing with the customers. Multi-disciplinary training centres would be set up at Dharwad, Kolkata and Pune including an exclusive international centre at Agra. A new basic training centre at Kurseong is proposed to cater to the needs of North East Frontier Railway including Darjeeling-Himalayan Railway.

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Highlights of the Railway Budget for 2011-12

* No hike in passenger fare and freight rates.

* Earnings for 2010-11 set to exceed Rs.1 lakh crore.

* A separate sports cadre to be created.

* Highest ever Plan outlay of Rs. 57, 630 crore proposed for Railways.

* Rs.10,000 crore to be raised through railway bonds.

* Scholarship for Girl child of Group-D railway employees increased to Rs.1200 per month.

* Recruitment for 1.75 lakh vacancies of Group ‘C’ and ‘D’ including to fill up backlog of SC/ST initiated, 16,000 ex-servicemen to be inducted by March 2011.

* Medical facilities extended to dependent parents of the Railway employees.

* Decided to set-up rail-based industries.

* Passing through a difficult phase; 97 percent increase in expenditure in 2010-11 due to implementation of Sixth Pay Commission report.

* Loss of Rs.3,500 crore in 2010-11.

* Ten-year backlog of 1.75 lakh jobs being addressed; 16,000 ex-servicemen to be given jobs in railways.

* Safety first priority; accident rate has come down.

* Anti-collision device, successful in North West Frontier Railway, to be extended to three more zonal railways.

* Railways always been a soft target but law and order a state subject. If railways are blocked in one region, this has a snowballing effect in other parts of the country.

* Will add 180 km of rail lines in 2011-12.

* All-India security helpline set up.* New Durantos to be run on Allahabad-Mumbai, Pune-Ahmedabad, Sealdah-Puri, Secunderabad-Visakhapatnam, Madurai-Chennai routes, among others.

* Rail linkage to Gujarat from Delhi-Mumbai freight corridor.

* Integrated suburban network to be set up in Mumbai, Chennai, Ahmedabad and other cities; suburban system of Hyderabad to be strengthened.

* Mumbai suburban system's EMU coaches to be increased from nine to 12.

* Pradhan Mantri Rail Vikas Yojna to be launched.

* Industrial park to be set up in Nandigram, West Bengal.

* Railways to set up factory in Jammu and Kashmir.

* To set up Metro coach factory at Singur, West Bengal.

* First coach from Rae Bareli factory to roll out in next three months.

* Work on wagon factory in Orissa to begin after land is acquired.

* Manipur capital Imphal to be soon connected to railway network.

* Centre for excellence in software to be set up at Darjeeling.

* Fund to be created for socially desirable projects.

* Central Organistaion for Project Implemtaiton created; will create accountability for nonperformance.

* 20 additional hostels for children of railway employees to be set up.

* Work on upgrading 442 stations to be completed by March 31.

* Decision to start pilot projects to give shelter to homeless people living along the tracks in Mumbai.

* Multi-purpose smart card to be introduced for all-India travel.* Airport-like trolleys to be provided at more stations.

* 56 new Express Trains, 3 new Shatabdis and 9 Duronto trains to be introduced.

* Upgraded class of air conditioned travel to be introduced shortly.

* To adopt modern technology through centres of academic excellence.

* 2011-12 declared ‘Year of Green Energy’ for Railways.

* Age for senior citizen's concession reduced to 58 from 60.

* Concession for physically handicapped and gallantry award winners for travel in Rajdhani and Shatabdi expresses.

* 50 percent concession for mediapersons with families to be increased from once to twice a year.

* AC Double Decker services on Jaipur-Delhi and Ahmedabad-Mumbai routes.

* New Super AC Class to be introduced.

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Releasing Industrial Dearness Relief using orders available on DPE Website

No. 36-04/2008-Pen(T)

Government of India

Ministry of Communications & IT

Department of Telecommunications

----

New Delhi, dated the 24th Nov, 2010

To All Controller / Joint Controller of Communications Accounts,

DoT Cell.

Subject: Releasing Industrial Dearness Relief using orders available on DPE Website.

it has come to the notice of this office that orders for releasing Dearness Relief on IDA pension are not being regularly received in various offices of CCA, resulting in delay in payment of Dearness Relief to pensioners.

2. The matter has been considered in this office and it has been decided that CCAs may download these orders from DPE Website and act accordingly. These orders are available under the url http://dpe.nic.in/newgl/glch4bindex1.htm.

s/d

(S.P.Singh)

Director (Estt.)

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Performance-based incentive for Central Govt staff from next FY

Employees belonging to 62 of central government departments could may receive performance-based incentive, over and above their existing salaries, from as early as the next financial year. The incentive will be based on the department’s scorecard in meeting yearly targets committed by their respective secretaries and ministers as part of the results-framework documents (RFD) system.

The committee of secretaries looking into performance-based incentive for government employees is said to have already zeroed in on a formula that offers a secretary-level officer an incentive up to 40% of the basic salary, provided his department has met 100% RFD targets. A scorecard of 70% and less in meeting RFD targets would however attract zero incentive. However, no penalty will be imposed on the non-performing officers.

The secretaries’ panel, headed by the Cabinet secretary, has already completed three crucial meetings and is looking to finalise its recommendations in time to enable performance-linked salaries in the coming financial year.For a secretary-level officer, the incentive is proposed to be 15% of cost savings (budgeted expenditure minus actual expenditure) by the department multiplied by its composite score less 70, divided by 30.

The incentive will be higher with each passing year. In other words, secretary of a department that meets 100% RFD targets for a year would get 20% performance-based incentive in the first three years, 30% in the next three years and 40% between the sixth and ninth year. A 70% scorecard would however attract no incentive.

For a joint secretary, the incentive will be sum of 30% of departmental composite score and 70% of divisional composite score. Since the incentive will be paid from cost savings of the department resulting from improved performance, there will be no extra burden on the exchequer. The government, incidentally, is not in favour of penalising the non-performing officers.

The reasoning being that not getting any incentive, or absence of recognition, would be punishment enough for the under-performers. With the committee of secretaries also planning to lay down the condition that performance-linked incentive will accrue to only those departments that have submitted RFDs for two consecutive years, the key five departments of PMO , home, finance, defence, external affairs who are still not covered by the RFD system will not qualify for the incentive.

Source: Economic Times

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Enhancement of Pension Under EPS, 1995

The Central Government constituted an Expert Committee for review of the Employees’ Pension Scheme, 1995. The Expert Committee considered the various demands of pensioners including enhancement of pension under the Employees’ Pension Scheme, 1995. The Expert Committee has submitted its report to the Central Government on 05.08.2010 and recommendations are presently under examination/consideration of the Central Board of Trustees of the Employees Provident Fund Organization.

This information was given by Shri Mallikarjun Kharge, Minister for Labour And Employment in a written reply to a question in the Rajya Sabha today.

Increase in Interest Rate on EPF

For the financial year 2010-2011, 9.5% rate of interest on EPF has been recommended by the Central Board of Trustees, Employees’ Provident Fund [CBT(EPF)] in the 190th meeting held on 15.09.2010 based on the funds available in the interest suspense account. The Ministry of Labour & Employment has forwarded the recommendation of CBT to the Ministry of Finance (Department of Financial Services) for approval.

This information was given by Shri Mallikarjun Kharge, Minister for Labour And Employment in a written reply to a question in the Rajya Sabha today.

Source: PIB

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Raise income tax exemption limit to Rs 3 lakh: Survey

NEW DELHI: The government must increase the personal income tax exemption limit to at least Rs 3 lakh from Rs 1.6 lakh at present in the upcoming Budget for giving relief to taxpayers from high inflation, majority of CEOs surveyed by industry body Assocham has said.

"In view of the unprecedented inflation particularly the food inflation, the government must increase the personal income tax exemption limit from the existing Rs 1.6 lakh to at least Rs 3 lakh to give adequate relief to the larger sections of the society, added the majority of the CEOs," the pre-Budget survey said.

The Budget 2011-12 would be unveiled by Finance Minister Pranab Mukherjee on February 28. At present, income up to Rs 1.6 lakh is exempted from tax for individuals. For women and senior citizens, the limit is Rs 1.9 lakh and Rs 2.4 lakh, respectively.

However, under the the Direct Taxes Code (DTC) Bill which was introduced in Parliament last year, the I-T exemption limit is Rs 2 lakh. The DTC is expected to replace the 50-year old Income Tax Act from April, 2012.

The survey further said that due to continuous elevated inflation and high commodity prices across globe, there is a strong case for continuation of stimulus package so that the growth momentum is not spiked.

It was a pre-Budget expectations survey conducted under the Associated Chambers of Commerce and Industry of India (ASSOCHAM) with participation from its 1,000 CEOs. Inflation, particularly food inflation, has been a concern for both the government and the common man. For past the few months, food prices are at high levels.

The WPI inflation for December rose to 8.43 per cent, from 7.48 per cent in the previous month. Food inflation, based on wholesale prices, rose to 17.05 per cent for the week ended January 22, on account of escalating vegetable prices, particularly, onions. It was at 15.57 per cent in the previous week.

Around 84 per cent of the CEOs belonging to large, micro, small and medium enterprises polled in the survey held that stimulus package for textiles, gems & jewellery, construction and real estate, cement and steel, among others, should continue for the next fiscal.

Besides, majority of the CEOs also pressed for larger and faster disinvestment in public sector undertakings, proceeds of which should partly be to fund infrastructure augmentation in PPP projects to help India grow and achieve intended growth rate of close to 9 per cent in next 2-3 years.

Source: Economic Times

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Railway Budget 2011-2012 Key Points

1. New 9 Duranto Trains
2. No increase in train fares
3. Ticket booking charges reduced by Rs 10 for AC and Rs 5 for non AC class
4. Coach Factory Work in Kanchikkode, Kerala will be started this year.
5. Wagon Factory in Cherthala, Kerala.
6. New Coach Factory in Jammu & Kashmir
7. Sports Cadre in Railway
8. Loco Factory in Manippur
9. New Go India Smart Cards
10. 15 new suburban Trains in Kolkota.
11. 3 New Shatabdi Trains
12. 55 New Express Trains
13. Senior citizen concession for women above 58 years.
14. No unmanned Crossings across the country in 2012
15. Concession for physically handicapped in Rajadhani and Shatabdi
16. Railway line capacity will be raised to 700 kms.
17. Metro coach factory near Singur in West Bengal
18. Senior citizens will get 40 per cent concession on rail ticket.
19. All-India security helpline set up
20. Manipur to be soon connected to railway network
21. Upgraded class of AC travel to be intrdouced.
22. Student Express to be introduced.

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Accounts Pay Bill Drawal Error : Invalid Object Name R2010_2011, provided by Help Desk, PTC, Mysore

Click Here to Download

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Recruitment Rules Group ‘C’ posts in Pay Band I with Grade Pay of Rs. 1800 (pre-revised Group D posts)

AB14017/6/2009-Estt(RR)

Government of India

Ministry of Personnel, Public Grievances & Pensions

Department of Personnel & Training
---

New Delhi, the 17th February, 2011

OFFICE MEMORANDUM

Subject: Recruitment Rules Group ‘C’ posts in Pay Band I with Grade Pay of Rs. 1800 (pre-revised Group D posts).

Reference is invited to OM of even number dated 30th April,2010 circulating Model Recruitment Rules for Group C posts in Pb-I with Grade Pay of Rs.1800. In this Department’s OM dated 12th May,2010. Ministries / Departments were requested to intimate their requirements for non-technical Group ‘C’ posts PB- I Grade Pay of Rs 1800 to SSC immediately so that Commission could initiate action for recruitment. However, several Ministries / Departments are yet to notify the revised Recruitment Rules as per the Model Recruitment Rules circulated by DOPT even though the vacancies in Group C, PB-I Grade Pay Rs. 1800 have been communicated by them to the concerned Regional Office of Staff Selection Commission. In view of the ensuing examination to be conducted by Staff Selection Commission for the Multi-Tasking Staff, DOPT has issued Umbrella Notification No.AB14017/6/2009-Estt(RR) dated 8th February, 2011 for regulating the educational and other qualifications for direct recruits for the posts which were in Group D scale prior to the implementation of Sixth Central Pay Commission and have been placed in Group C in PB-I, GP Rs.1800. The Umbrella Notification has been circulated to all the Ministries/Departments of Government of India also.

2. IT is, however, reiterated that all the Ministries / Departments will initiate action on priority basis for revising the Recruitment Rules circulated by this Department.

(Smita Kumar)

Director (E. I)

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Unions to march to Parliament on Feb 23

Vijayawada (AP), Feb 20 (PTI) INTUC today said that all the trade unions of the country will jointly hold a march to Parliament on February 23, to put forth their charter of demands.

Speaking at a convention here, India National Trade Union Congress (INTUC) president G Sanjeeva Reddy said the major demands were curbing inflation, upgradation of labour laws and abolition of contract labour among others.

Minimum monthly wages for unorganised labourers should be fixed at Rs 7,000, while profitable PSUs should not be disinvested, Reddy said.

For the banking sector, there should be a common pension policy, he said.

Source: PTI

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CLARIFICATIONS NEW PROCEDURE DECEASED CLAIM SB – ORDER 2/2011

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Is Nokia jumping into a burning vessel called Microsoft ?

Is nokia in the path of self destruction ? this was the question came to my mind when i heard the nokia is going to tie knot with microsoft and hit the iceberg before sinking itself, i don't know whether nokia is being egoistic or hatred towards the android, one thing for sure their market share is declining like a collapsing world trade center day by day, if this continues you can see "Defunct company" in wikipedia about Nokia corporation, I also suspect whether it is the plan of Microsoft to take over Nokia Strategically?.

So who will benefit from this partnering?

It would definitely workout well for microsoft because its getting a partner who is pioneer in quality hardware than any other players in the market but for nokia for sure its a risk that costs its own survival for future, since the partnering makes nokia a handset builder rather than having any control over its software platform. and yes windows mobile developers like me who was planning to switch to other mobile development platforms like android will surely benefit from this.

Is nokia ignorant or headstrong in its decision?

I think nokia is very overconfident in repeating history since it revived a legacy dying platform called psion epoc and built a new platform called symbian over it, though there is every chance of windows phones os to again take over the control of market share since nokia has the capacity to manufacture wide variety of handsets from touch to qwerty with its strong hardware platform combined with windows 7 awesome form factor and user experince i think google has to be cautious and step a head now.

Though nokia would have been seen a double success rate if it has tied up with googles android since most of the people even non techies know the fact that nokias powerful hardware coupled with android would be a killer device, i know many of uncles and aunts who are technically challenged are seeking for "Nokia ANdroid Phones" but this common perception of people is some how masked by the people at Nokia by their strong hatred and egoism.

What ever it is bottom line "nokia is jumping from one sinking platform(symbian) to another (windows phone 7)"

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What will be the Dearness Allowance from January 2011 ?

The AICPI for all the 12 months are now published in Labour Bureau website. According to this Website the AICPI-IW for 12 months are given below.

January-172

Febraury-170

March-170

April-170

May-172

June-174

July-178

August-178

September-179

October-181

November-182

December-185

Now the prediction and calculation over Dearness Allowance will come to an end. According to the All India Consumer Price Index for Industrial Workers for the last 12 months, it is expected that the Dearness Allowance will be 51% from January 2011.As we expected earlier, additional 6% will be added to the existing D.A of 45%..Hence we can expect that 51% Dearness Allowance will be paid to all the Central Government Employees from January 2011, if so government decides. The Government may take a decision in this matter by first week of March 2011.

Some of our viewers have raised the same question again and again in the comments forum that if D.A crosses 50% level whether it would be merged with D.A or not. It has been clarified that the D.A will not be merged with basic pay since it was not recommended by 6CPC.

But if the D.A crosses 50% level, some of the Allowances, which are compensatory in nature, will be raised by 25% as per the recommendation of 6CPC.

These Allowances are,

1. Children Education Assistance & Reimbursement of Tuition Fee

2. Advances for purchase of Bicycle Advacne, Warm clothing Advance, Festival Advance, Natural Calamity Advance

3. Special Compensatory Hill Area Allowance

4. Special CompensatoryScheduled / Tribal Area Allowance

5. Project Allowance

6. Speical Compensatory (Remote Locality) Allowance

7. Cycle Maintenance Allowance

8. Mileage for road journey all components of daily allowance on tour, rate of transportation of personal effects.

9. Rates of Conveyance Allowance under SR-25

10. Washing Allowance

11. Split Duty Allowance

12. Spl. Allowance for Child Care for Women with Disabilities and Education Allowance

for disabled children

13. Cash Handling Allowance

14. Risk Allowance

15. Postgraduate Allowance

16. Desk Allowance

17. Bad Climate Allowance

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How to calculate the Income Tax exemption on House Rent Allowance...

House Rent Allowance on Income Tax :-

How to calculate the Income Tax exemption on House Rent Allowance...

If an employee is living in a rented house, exemption is allowed to the extent of the least of the following...

Actual House Rent Allowance received from your employer

Actual House Rent paid excess of 10% of salary

50% of basic salary, if residence is in a metro or 40% of salary in non-metros.

For example :

If an employee is getting basic pay of Rs.15,000 pm, and HRA is 4,500. He is paying rent as Rs.2,500

calculation of amount of House Rent Allowance admissible for imcome tax exemption will be...

1. HRA received (12 x 4,500 = 54,000) : 54,000

2. Rent paid in excess of 10% (30,000 - 18,000) : 12,000

3. 50% of salary : 90,000

Out of the total of House Rent Allowance of Rs.54,000 received, Rs.12,000 which is the lease of the three items is admissible for income tax exemption. So the balance of Rs.42,000 will be include under income.

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Inflation impact: Govt may hike tax exemption limit

New Delhi, Feb 1 (PTI) Tax payers can expect some relief from high inflation in Budget 2011-12 as the government may raise the income tax exemption limit for individuals.

"Finance Minister Pranab Mukherjee is alive to the price situation and its impact on the common man," sources said, adding he would favourably consider the issue of hiking tax exemption limit.

Moreover, they said, as the government is committed to raise the income tax exemption limit from Rs 1.6 lakh per annum to Rs 2 lakh in line with the Direct Taxes Code (DTC) in 2012-13, tax payers could expect at least some relief in the upcoming Budget on February 28.

"The finance ministry would keep in mind the high inflation in the Budget. Since there is no dearness allowance for a vast section of the society, hike in income tax exemption limit is likely," a source told PTI.

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Meeting of National Anomaly Committee...

Flash News from Secretary General of Confederation


National Anomaly Committee Meeting

Confederation General Secretary informs that the next Meeting of the National Anomaly Committee will be held on 15.02.2011.

We hope the following issues to be discussed in the meeting…

Employees whose date of increment is between Feb-June in Vth CPC issue…

Stepping up of pay of senior on par with the pay of higher pat granted to new entrants…

Health Insurance Scheme…

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