Current Affairs

Awards:

Indira Gandhi Paryavaran Puraskar 2008 - Isha Foundation

Isha Foundation is an NGO, founded by Sadhguru J Vasudev, whose "Project Green Hands" is a movement to raise the green cover of Tamil Nadu by 10 per cent. In the last 5 years, over 300,000 Isha volunteers across Tamil Nadu and Puducherry have raised 8.2 million trees for plantation. The foundation has been selected for prestigious 'Indira Gandhi Paryavaran Puraskar' 2008.

Instituted by the Ministry of Environment and Forests in 1987, the award called 'Indira Gandhi Paryavaran Puraskar' is given to those who make or has the potentialto make measurable and major impact in the protection of environment.

National Updates:

Air Marshal (Retd.) Bhushan Nilkanth Gokhale Court of Inquiry

Government of India has appointed Court of Inquiry into air crash of the Air India Express Boeing 737-800 aircraft VT-AXV which occurred near the Bajpe Airport, Mangalore on 22 May, 2010 while operating a scheduled flight IX-812 from Dubai to Mangalore resulting in the death of 158 passengers. For this purpose the government appoints Air Marshal (Retd.) Bhushan Nilkanth Gokhale to hold the investigation. Headquarters of this court will be at New Delhi. The Court will complete its investigation and submit the report to the Government by 31 August 2010.

Civil Aviation Safety Advisory Council (CASAC) -First meeting

Praful Patel, Minister of Civil Aviation inaugurated the first meeting of the Civil Aviation Safety Advisory Council (CASAC)

Civil Aviation Safety Advisory Council (CASAC) was set up under the Chairmanship of Director General of Civil Aviation (DGCA) on May 29, 2010. It consists of 28 members drawn from various aviation sub-sectors such as airlines (both public and private), flight operations, air worthiness, operations etc has been constituted for a period of one year. The Council is advisory in nature and will advise DGCA in areas of operations of aircraft – (commercial and general aviation), aerodromes and Heliports, air-navigation services, air operator certification, airworthiness of aircraft including maintenance, certification of aeronautical products, and human performance and training.

The council will review the existing regulatory framework and give recommendations to further strengthen the aviation safety. It will also develop, examine and recommend incorporation of best regulatory practices, recommend short, medium and long term measures for safety enhancement and reflect public views on aviation safety matters.

In the first meeting the DGCA was directed to institutionalize the CASAC, organize regular meetings of the Council and act upon all its suggestions to increase its effectiveness. He also called upon all airlines, airport operators and others associated in the sector to be equally responsible for the safety of the sector.

Kerala: Goodwill Ambassador of khadi- Mohan Lal

Malayalam matinee idol ''Padmasri'' Mohanlal was honored by the state government with the ''Goodwill Ambassador'' title for the promotion of handloom-khadi industry in the State.

Mizoram: 26th Sainik School

Ministry of DONER (development of North Eastern Region) has sanctioned Rs. Rs.8,289 lakh for construction of a Sainik School at Chhingchhip in Serchhip district of Mizoram. This is first of Mizoram, fourth of North East India and 26th of India's Sainik Schools.

Sainik Schools

Sainik Schools were conceived in 1961 by then defence minister V.K. Krishna Menon to rectify the regional and class imbalance amongst the officer cadre of the military and prepare students for entry into the National Defence Academy (NDA) and the Indian Naval Academy.

Kerala : Forest Development Agency

To co-ordinate activities of Participatory Forest Management (PFM) institutions -- Vana Samrakshana Smithies (VSS) and Eco-development Committees(EDC) -- at Forest Division level, the Kerala Government inaugurates the State Forest Development Agency on June 3, 2010. Participatory Forest Management (PFM) institutions seek to improve the livelihood of forest-dependent communities (Adivasis) and as a strategy for ensuring their participation in forest conservation efforts.

Business & Economy:

Reserve Bank of India: Application Tracking System

The Reserve Bank of India has launched the application tracking system to track applications made to the various departments of the RBI. The applicant can then submit an online application, attach related documents, view it and track its movement. The system can not be used for complaints made under Banking Ombudsman Scheme.

Reserve Bank of India: Damodaran Committee

Reserve Bank of India has constituted a committee under the chairmanship of M. Damodaran, former chairman of SEBI, to look into banking services rendered to retail and small customers, including pensioners. This is a 7 member committee and will look into the grievance redressal mechanism prevalent in banks, its structure and efficacy and suggest measures for expeditious resolution of complaints.

India-South Africa CEOs Forum

India-South Africa CEOs Forum was launched by South African President Jacob Zuma and India's Minister of Commerce & Industry Anand Sharma. The forum is headed by Ratan Tata from the Indian side and Mr. Patrice Motsepe, Executive Chairman, Africa Rainbow Minerals from the South African side.

India South Africa Trade

India is South Africa’s largest trading partner in South and South-East Asia and one of South Africa’s top ten trading partners globally. Bilateral trade which was valued at only US $ 1.3 billion in 2000-01 crossed US $ 7 billion mark in 2008-09. It is expected to touch US $ 10 billion by 2012.

Wipro- hydraulic cylinders facility in China

Wipro Infrastructure Engineering (WIE) which is a part of Wipro Ltd announces that it has signed an agreement with Chinese Wujin Hi-tech Industrial Zone (WIZ) to set up a facility to manufacture hydraulic cylinders at Changzhou. This is Wipro's first global manufacturing location in China and 9th in the world.

World Bank: Microfinance Project Loan for India

The world bank has approved a loan of $300 million for the Scaling up Sustainable and Responsible Microfinance project. This funding for the microfinance project will be used by Small Industries Development Bank of India (SIDBI) for on-lending to Indian microfinance institutions and to support responsible finance initiatives such as the establishment of a microfinance information platform and promotion of adherence to a code of conduct for MFIs (microfinance institutions)

World Bank : Loan to strengthen the statistical sector

The world Bank has also approved a loan of $ 107 million to support Indian government's plan for institutional and policy-based reform of state statistical systems within a national policy framework. The project will enable states to work towards "common national standards relating to key statistical activities and to improve the credibility, timeliness and accuracy of these and other statistics at both central and the state level.

Latest WTO stats on World Exports

In the first quarter of 2010 (January -March) , the global merchandise exports grew by a healthy 27 per cent as per the latest international trade statistics report by WTO. This growth was driven by significant increase in exports from China, Japan, India and other Asian countries. India's exports during the period increased by a robust 33 per cent while that of Japan and China surged 48 per cent and 29 per cent.

On Michael Jackson Museum

Gary, Indiana, United states is the place where the Michael Jackson museum is coming up. Father of the pop legend, Joe has signed a deal to create a $300 million worth museum dedicated to his late son. (Femalefirst.co.uk)

Current Affairs

International Congress of Mathematicians

International Congress of Mathematicians will be held in India in Hyderabad from august 19-27, 2010. This will be for the first time that ICM will be held in India and only third time in an Asian Country. The 1990 Congress was held in Kyoto and the 2002 Congress in Beijing.

First Official peace Talks: Centre and NSCN-IM

Centre and the National Socialist Council of Nagaland, Isak-Muivah (NSCN-IM) faction held the first official peace talks in the last 13 years of ceasefire in New Delhi.

Israeli attack in Gaza

Gaza Freedom Flotilla was an aid flotilla of six ships carrying 663 activists from 37 nation and the activists were planning to break through the Israeli Egyptian blockade of Gaza and deliver humanitarian supplies. The Israel had said that the flotilla has to change the course to the port of Ashdod where the Israeli Government would inspect the aid and deliver the items that were not banned by Israel in Gaza. The activists refused. In the Israeli raid about 16 people were reportedly killed and more than 30 injured when Israeli commandos stormed a six-ship flotilla carrying about 10,000 tonnes of aid and 600 human rights activists to the Hamas-run Gaza Strip. The United Nations demanded a full explanation for the attack while the EU and Russia demanded an inquiry. Israeli Ambassadors to many countries were summoned to the Foreign Ministries in those countries and demanded explanation for the attack. India also joins the protests.

Seychelles President in India:

Seychelles President James Alix Michel arrives in India on a three-day visit to hold delegation -level talks with Prime Minister Manmohan Singh on several matters of bilateral, regional and global concern. It is a very important country of the Indian Ocean threatened by piracy...They want wider collaboration (with India) against piracy

NHRC Chairman: Justice K G Balakrishnan

Former Chief Justice of India K G Balakrishnan has been appointed as the Chairman of the National Human Rights Commission.He was the first Dalit Chief Justice of India and will be the first Dalit heading NHRC.NHRC was headless for over a year.

President's Rule in Jharkhand:

Union Cabinet today recommended the president to clamp President's rule in Jharkhand and keep the state assembly under suspended animation. Prior to this, Chief Minister Shibu Soren resigned without facing the trust vote in the state assembly. Soren Government was reduced to minority on May 24 when BJP with 18 MLAs and JD(U) with 2 MLAs withdrew support to the Soren's government whose party Jharkhand Mukti Morcha had 18 MLAs and was also enjoying the support of seven other legislators in the 82-member House. The BJP was cut up with Mr Soren ever since he voted with UPA in the Lok Sabha during voting on cut motions on April 27.

Burkina Faso's First Call center: Courtsey India

India's Export-Import (Exim) Bank has given a loan of $5 million to Burkina Faso to start its first call center with 400 positions. Burkina Faso is also part of India's flagship project - Pan African e-network project. Previously, India also approved the setting up of a tomato processing factory through a line of credit of $15 million in Burkina Faso.

Maruti Suzuki: Highest Monthly sales

Maruti Suzuki Tuesday reports a 27.9 % jump in sales for May at 102,175 units compared to 79,872 vehicles it sold in the year-ago period. For the first time the company has ever sold over 100,000 units in a month, its previous highest monthly sale figure being 96,650 units in February 2010. Domestic sales for Hyundai Motor India sped up 13% to more than 27,000. And Tata Motors sold 38% more vehicles this May, a total of nearly 53,000 cars, trucks and other vehicles.

Two-wheeler sales stayed on the fast lane as well. Hero Honda’s increased to 436,000 units, an increase of 14%. And Bajaj Auto’s India sales accelerated 63% to nearly 270,000 two-wheelers.

UAE's airline Emirates has earned $1.1 billion net profit in 2009-10 despite the global slowdown and largest chunk of this profit comes from India. India and West Asia contributed to the 12.6% of the total revenues.

What is Trafigura?

Trafigura is a Swiss-based multinational company, which was named in the Iraq Oil-for-Food Scandal. Oil-for-Food Programme, which was established by the United Nations in 1995 and was terminated in late 2003. It was established with the stated intent to allow Iraq to sell oil on the world market in exchange for food, medicine, and other humanitarian needs for ordinary Iraqi citizens without allowing Iraq to boost its military capabilities. The company was reported to be behind the Côte d'Ivoire toxic waste dump in 2006. The dump was a health crisis in Côte d'Ivoire in which a ship registered in Panama, the Probo Koala, chartered Trafigura Beheer BV, disposed of toxic waste in the Ivorian port of Abidjan.It was more than 500 tonnes of a mixture of fuel, caustic soda, and hydrogen sulfide transported from Europe as toxic waste. The Dutch prosecutors haveaccused Trafigura of illegally exporting hazardous waste to Ivory Coast in 2006. the prosecuters say that "the waste is thrown over the fence, dumped in a third world country". On June 1, 2010, The trial of Trafigura for illegally exporting hazardous waste to Ivory Coast in 2006 begins in Amsterdam. (BBC)

Kohinoor & Sultanganj Buddha:

Kohinoor diamond and the Sultanganj Buddha are only a few examples of our priceless artifacts taken away during British rule. The Archaeological Survey of India (ASI) Director-General Gautam Sengupta says that there is a need for a "diplomatic and legal campaign" for their restitution from institutions, including the British Museum, the Royal Collection and the Birmingham Museum and Art Gallery. In this context, India looks for joining a campaign with the support of UNESCO, and other countries with longstanding complaints about the foreign ownership of their artistic riches, including Egypt and Greece. (Times of India)

Waverock

Waverock is an IT park located in the Nanakramguda IT special economic zone (SEZ) in Andhra Pardesh being developed by New York-based real estate developer Tishman Speyer. The state government had entered an MOU in 2006 with the company. The park is being inaugurated on June 2, 2010. The park will be completed in 5 years.

Number of Poors:

India’s Planning Commission estimates the country’s BPL population at 62.5 million. But the rural development ministry says that number is more like 107 million. The ministry set up a panel to resolve the conflicting numbers. Now the government is coming up with a process to start the process of identifying families below the poverty line. Pilot projects are going to start next month in 260 villages across the country. Results of the pilot projects expected to come by March of next year. Its full-scale survey of below the poverty line families will then begin in April 2011.

Current Affairs Notes: 01.06.2010

•India's First Smoke Free State

On May 31, 2010, (World No Tobacco Day) Sikkim has become India's First state to be declared as "Smoke Free State" in India.

•New DGP of Maharastra?

D. Sivanandan takes charge as Maharashtra's new Director General of Police (DGP), taking over from A.N. Roy, who was retired.

•New Chairman of Railway Board:

Vivek Sahai has been appointed as new Railway Board Chairman, he replaced SS Khurana.

•Updates on National Advisory Council:

Ms Rita Sharma, IAS has been appointed as Secretary, National Advisory Council (NAC).

Prime Minister Manmohan Singh appoints 14 members to the National Advisory Council in consulation with its chairman Sonia Gandhi. The members are Aruna Roy, Jean Dreze, N C Saxena, A K Shiva Kumar, M S Swaminathan, V Krishnamurthy, Narendra Jadhav, Mirai Chatterjee,Farah Naqvi,Pramod Tandon,Harsh Mander, Ram Dayal Munda,, Anu Aga, Madhav Gadgil,

•Sahara retains Indian Cricket Team Sponsoship

As per a BCCI announcement, Sahara India has retained the sponsorship rights of the Indian cricket team for a whopping Rs.30.34 million per match (ODI and Twenty20 matches) for the next three years till 2013.

•Fastest Super Computer of China:

"Xingyun" is the name of the fastest super computer of China which runs at more than one quadrillion (one thousand million million) calculations per second. Tianhe-1" was the previous fastest machine in China. and Xingyun works at a speed double than its speed.

•India Food Bank:

India Food Bank is a new project of Sam Pitroda, the current advisor to the prime minister on Public Information Infrastructure and Innovations. It may be put in place by end of this year in collaboration with Chicago-based international organization, Global Food banking Network, a Stanford University think-tank that provides food aid to 30 nations

•Revised GDP

The revised GDP data have been released by the CSO and Indian Economy has grown 7.4% for 2009-10. Indian Economy grew by 8.6% during the quarter ended March 31, 2010. The economy had registered a 6.1 percent growth in the first quarter, 7.9 percent in the second, but dropped to a modest 6 percent in the third.

•IAEA votes sanctions against Iran

In the International Atomic Energy Agency's report before the United Nations Security Council votes on sanctions against Iran, international nuclear inspectors state that Iran has now produced a stockpile of nuclear fuel that would be enough, with further enrichment, to make two nuclear weapons, and it appears to bolster the Obama administration’s case for a fourth round of economic sanctions against Iran.

•25th EU Russia Summit:

The 25th EU-Russia summit begins in Rostov-on-Don with talks on industrial and trade links, human rights and a visa-free regime.

•Pakistan: Ban of Facebook Lifted:

A court in Pakistan lifts a ban on Facebook imposed two weeks ago after an "Everybody Draw Mohammed Day" group appeared on the site

LAUNCHING “VENTURE” – SECOND EDITION

We are glad to inform that second edition of ‘Venture’ will be launched in the Federal council on 21.06.2010 at New Delhi.

It contains 12 chapters with 640 pages. We took all pain to update the Venture with all latest orders and it is our unique privilege to launch the Venture during the eighth Federal Council.

The cost of the Venture has been fixed as Rs.175/- only with our plan of ‘no profit, no loss’. Indent can be placed now onwards to the CHQ. It will be sent only by Regd. Post for which one has to pay Rs.30/- per copy towards postage charges.

All Branches/Divisional Secretaries are requested to furnish their demand about the number of copies required for their branches immediately by e-mail so that, it will be sent through registered post. Please treat this as urgent and important.

With greetings,

Comradely yours,

(K. V. Sridharan)

General Secretary

Originally Posted by AIPEU P3 CHQ

Central Administrative Tribunal order checks bias in Income Tax department

CAT order checks bias in I-T dept

In a ruling aimed at checking bias in departmental promotions, the Central Administrative Tribunal has said if a Departmental Promotion Committee goes against the entries in an employee’s Annual Confidential Reports, the panel must give reasons for its decision.

A CAT bench said: “The DPC, as per DOP&T instructions may make its own assessment on the basis of entries in the ACRs and may not be guided merely by the overall grading. However, in cases where the assessment by DPCs are apparently not in line with the gradings in the ACRs, the DPC should appropriately substantiate its assessment...”

The ruling came on a petition filed by an income tax commissioner, who was ignored for promotion to the post of Chief Commissioner of I-T even as his juniors made it to the post.

This was despite the fact that D. K. Singh, Commissioner of Income Tax (appeal-IV), M.G. Road, Chennai had the prescribed benchmark (very good) in all the ACRs under consideration.

Singh, an Indian Revenue Service (Income Tax) Officer of 1977 batch, enjoyed excellent service record.

However, the DPC held on October 23, 2009 did not recommend Singh for promotion. Copies of his ACRs (2003-04 to 2007-08) revealed his reporting officer had given adverse remarks, which was corrected by the reviewing officer, who graded him as ‘very good’.

Singh, who had always been graded ‘very good’ in the ACRs preceding and succeeding the year 2005-06, submitted that “if one were to go by the remarks of the reporting officer, there is sudden sharp decline in the personal traits and skills of the applicant for the year 2005-06 ....Sharp fluctuations are not possible ... rather suggest bias and malice ....”

Singh alleged that the DPC went by assessment of the reporting officer and ignored the report made by the reviewing officer. As per the SC rulings adverse remarks in ACRs have to be communicated to employee concerned.

The CAT said: “Assuming that the reporting officer would have graded the applicant (Singh) only as ‘good’ because of some adverse remarks given by him, the same stood overruled by the reviewing officer. Though such was the position, the DPC could still take its own view and overrule the grading done by the reporting or the reviewing officer. For that, it was required to record reasons.”

The CAT pointed out that there was not a word mentioned as to why Singh had been found ‘unfit’. “There is not even a mention that ACR of the applicant ... would be considered only as good going by the adverse remarks given by the reporting officer, least the preference between the two gradings done by the reporting and the reviewing officer,” it noted.

“Present is not a case of the reporting officer giving over all grading of ‘good’ to the applicant for the year 2005-06... he has not graded the applicant at all,” the CAT pointed out.

Allowing Singh’s plea, the CAT directed the department of revenue, department of personnel and training and the UPSC to convene a review DPC for considering his case for promotion to the post of chief commissioner of I-T, as expeditiously as possible and definitely within a period of two months.

“In case the review DPC assesses the applicant fit for promotion, he would be promoted from the date persons junior to him were promoted, with all ...benefits,” the CAT ordered.

Source: Hindustan Times

Retirement benefits not to be taxed: Govt

The government said provident funds would not be taxed on withdrawal and dropped a proposal to levy Minimum Alternate Tax from corporates based on their assets from the revised draft Direct Taxes Code.

The Code, released for public discussion, does not give any details on the Income Tax structure such as the slabs or rates, which were provided in the first draft released in August 2009.





Based on the outcome of discussion on the revised draft code, the government will bring in a new Income Tax legislation to replace the archaic Act of 1961.





Revenue Secretary Sunil Mitra said the taxation rates in the first draft, which suggested 10 per cent tax on income from Rs 1.60-10 lakhs and 20 per cent on income between Rs 10-25 lakhs and 30 per cent beyond that, were illustrative.





He said the tax rates would be made known only in the proposed Act, a bill for which will be introduced in Parliament in the coming monsoon session.





"As of now, it is proposed to provide the EEE (Exempt- Exempt-Exempt) method of taxation for Government Provident Fund (GPF), Public Provident Fund (PPF) and Recognised Provident Funds (RPF) ...", the revised DTC released by the Finance Ministry said.





The revised draft also puts pensions administered by the interim regulator PFRDA, including pension of government employees who were recruited since January 2004, under EEE treatment.

THE DIRECT TAXES CODE JUNE 2010 - REVISED DISCUSSION PAPER

REVISED DISCUSSION PAPER

ON

THE DIRECT TAXES CODEJUNE 2010

Central Board of Direct TaxesDepartment of RevenueMinistry of Finance

CHAPTER II

TAX TREATMENT OF SAVINGS – EXEMPT EXEMPT TAX (EET)VIS-A-VIS EXEMPT EXEMPT EXEMPT (EEE) BASIS

1. Chapter-XII of the Discussion Paper on the Direct Taxes Code (DTC) deals with tax incentives for savings. It proposes the "Exempt-Exempt-Taxation‟ (EET) method of taxation for savings. Under this method, the contributions towards certain savings are deductible from income (this represents the first 'E' under the EET method), the accumulation/accretions are exempt (free from any tax incidence) till such time as they remain invested (this represents the second "E‟ under the EET method) and all withdrawals at any time are subject to tax at the applicable marginal rate of tax (this represents the "T‟ under the EET method).

1.1 Based on the EET principle, the Code provides for deduction in respect of aggregate contributions upto a limit of three hundred thousand rupees (both by the employee and the employer) to any account maintained with any permitted savings intermediary, during the financial year. This account will have to be maintained with any permitted savings intermediary in accordance with the scheme framed and prescribed by the Central Government. The permitted savings intermediaries will be approved provident funds, approved superannuation funds, life insurer and New Pension System Trust. The accretions to the deposits will remain untaxed till such time as they are allowed to accumulate in the account. Any withdrawal made, or amount received, under whatever circumstances, from this account will be included in the income of the assessee under the head 'income from residuary sources', in the year of such withdrawal or receipt. It will accordingly be subject to tax at the applicable personal marginal rate of tax.

1.2 Taxation on EET basis is proposed to be prospective. The DTC provides that the withdrawal of any amount of accumulated balance as on the 31st day of March, 2011 in the account of the individual in a Government Provident Fund (GPF), Public Provident Fund (PPF), Recognised Provident Funds (RPFs) and the Employees Provident Fund (EPF) will not be subject to tax. Therefore, only new contributions as well as accretions on or after the commencement of the DTC, will be subject to the EET method of taxation.

1.3 The permitted savings intermediaries would be approved by the Pension Fund Regulatory and Development Authority (PFRDA). These intermediaries will, in turn, invest the amounts deposited with them in government securities, term deposits of banks, unit-linked insurance plans, annuity plans, bonds and securities of public sector companies, banks and financial institutions, bonds of other companies enjoying prescribed investment grade rating, equity linked schemes of mutual funds, debt oriented mutual funds, equity and debt instruments. The choice of instruments will, in some schemes, be with the investor and in some others with the trustees of the schemes. The pattern of investment by the latter will be as prescribed. The rollover of any amount received, or withdrawn, from one account with the permitted savings intermediary to any other account with the same or any other permitted savings intermediary will not be treated as withdrawal and, accordingly, will not be subject to tax.

2. A large number of representations have been made with regard to the proposed EET system. It has been stated that most countries that follow the EET method of taxation of savings also have a social security system in place for all their citizens. The EET savings accounts which operate for individuals in these countries are over and above the mandatory social service payments received by them. It has been represented that in India, in the absence of a universal social security system, the proposed EET method of taxation of permitted savings would be harsh. Tax payers require some flexibility in making withdrawals in lump sum without being subjected to tax. People may need lump sum funds on retirement for various family obligations. Requests have therefore been made for continuation of Exempt Exempt Exempt (EEE) method of tax treatment of investments. Alternatively, the application of EET should be restricted to new savings instruments after the date from which the DTC comes into effect, and it should not apply to existing saving instruments.

3. Universal social security benefits for tax payers may not be feasible in the near future. Also, switching over to a complete EET method of taxation for all savings instruments would entail many administrative, logistical and technological challenges. It would require a vast network of permitted savings intermediaries, a central record keeping authority and a central agency to service around more than three crore accounts and deduct tax at the time of withdrawals. The segregation of taxable and non-taxable amounts at the time of withdrawal and rollover from one account to another would introduce complexities and create practical difficulties.

3.1 Therefore, as of now, it is proposed to provide the EEE method of taxation for Government Provident Fund (GPF), Public Provident Fund (PPF) and Recognised Provident Funds (RPFs) and the pension scheme administered by Pension Fund Regulatory and Development Authority. Approved pure life insurance products and annuity schemes will also be subject to EEE method of tax treatment. In order to achieve the objective of long term savings, the rules for contribution as well as withdrawal will be harmonised and made uniform so that such savings are actually made and utilised by the taxpayer for the long term. Investments made, before the date of commencement of the DTC, in instruments which enjoy EEE method of taxation under the current law, would continue to be eligible for EEE method of tax treatment for the full duration of the financial instrument.

CHAPTER IV

TAXATION OF INCOME FROM HOUSE PROPERTY

1. Chapter VIII of the Discussion Paper on the draft Direct Taxes Code (DTC) deals with the computation of income from house property. “Income from house property” is one of the five heads under which accruals or receipts relating to ordinary sources of income are to be classified. The Discussion Paper states that income from house property, which is not occupied for the purpose of any business or profession by its owner, is to be taxed under this head. The Discussion Paper proposes a new scheme for computation of income from house property in the draft DTC, the salient features of which are:

(a) Income from house property shall be the gross rent less specified deductions.

(b) Gross rent will be higher of

(i) the amount of contractual rent for the financial year; and

(ii) the presumptive rent calculated at six per cent per annum of the ratable value fixed by the local authority. However, in a case where no ratable value has been fixed, six per cent shall be calculated with reference to the cost of construction or acquisition of the property. If the property is acquired during the financial year, the presumptive rent shall be calculated for the proportionate period of that financial year.

(c) The advance rent will be taxed only in the financial year to which it relates.

(d) The gross rent of one self-occupied property will be deemed to be nil, as at present. In addition, the gross rent of any one palace in the occupation of a ruler will also be deemed to be nil, as at present.

(e) The following deductions will be admissible against the gross rent:- (i) Amount of taxes levied by a local authority and tax on services, if actually paid. (ii) Twenty per cent of the gross rent towards repairs and maintenance as against thirty per cent at present. (iii) Amount of any interest payable on capital borrowed for the purposes of acquiring, constructing, repairing, renewing or re-constructing the property.

(f) In the case of a self-occupied property where the gross rent is deemed to be nil, no deduction for taxes or interest will be allowed.

(g) The income from property shall include income from the letting of any buildings along with any machinery, plant, furniture or any other facility if the letting of such building is inseparable from the letting of the machinery, plant, furniture or facility.

2. The most frequent feedback on computation of income from house property has been the determination of notional rent on presumptive basis (at the rate of 6%) with reference to the cost of construction/ acquisition. The input is that this is inequitable as it discriminates against recent owners as such cost is a function of inflation. The other major issue which has been raised is that, in order to incentivize investment in housing, the deduction for interest on capital borrowed for acquisition or construction of a self occupied house property, up to a ceiling of Rs. 1.5 lakhs, as available in the existing provisions of the Income-tax Act, 1961 should be retained.

3. The determination of notional rent for computing income from house property has been a cause for much litigation. Internationally also, in most jurisdictions, income from house property is taxed on the basis of rent from letting out of property.

3.1 Taking the above factors into account, the following modifications are proposed: (a) In case of let out house property, gross rent will be the amount of rent received or receivable for the financial year. (b) Gross rent will not be computed at a presumptive rate of six per cent of the rateable value or cost of construction/acquisition. (c) In case of house property which is not let out, the gross rent will be nil. As the gross rent will be taken as nil, no deduction for taxes or interest etc., will be allowed. However, in case of any one house property, which has not been let out, an individual or HUF will be eligible for deduction on account of interest on capital borrowed for acquisition or construction of such house property (subject to a ceiling of Rs. 1.5 lakh) from the gross total income. The overall limit of deduction for savings will be calibrated accordingly.

Restructuring of Cadre of Artisan staff in Defence Establishments in modification of recommendations of 6th CPC

No.11(5)2009 D(Civ-I)

Government of India

Ministry of Defence

******

New Delhi, the 14th June, 2010

To

The Chief of Army Staff

The Chief of Air Staff

The Chief of Naval Staff

The DGOF

& all Heads of Inter Services Organizations.

Subject:- Restructuring of Cadre of Artisan staff in Defence Establishments in modification of recommendations of 6th CPC.

Sir,

The matter regarding revision of pay scale of Master Craftsman in Defence Establishments has been under consideration of the Government of quite some time. Now in partial modification of the 6th CPC recommendations made in para 3.8.27 of its report and amendment made in Civilian in Defence Services (Revised Pay) Rules, 2008, vide SRO 11(E) dated 28.8.2009, I am directed to convey the sanction of the President of restructuring of cadre of Artisan Staff in Defence Establishment as under,

2. The grade structure in the industrial as well as in the non-industrial trades, wherever already available and the pay scales of the Defence artisan staff shall stand modified w.e.f. 1.1.2006 as under:

(i) Skilled – Pay Band PB-1 Grade Pay Rs.1900

(ii) Highly Skilled Grade II – Pay Band PB-1 Grade Pay Rs.2400

(iii) Highly Skilled Grade I– Pay Band PB-1 Grade Pay Rs.2800

(iv) Master Craftsman – Pay Band PB-2 Grade Pay Rs.4200

3. (a) Wherever the grade structure in the Industrial as well as Non-Industrial trades is already existing in the ratio of 45:55, the erstwhile Skilled and High Skilled, and 25% of Highly Skilled in the grade of Master Craftsman, the following will apply,

• 45% of the posts may be granted the pay scale of Skilled Worker (Grade Pay of Rs.1900 in the Pay Band PB-1)

• 25% of the remaining 55% may granted the pay scale of MCM (Grade pay of Rs.4200 in the Pay Band PB-2), and

• The remaining posts may be divided in a ratio of 50:50 and redesignated as Highly Skilled Worker Grade-II (Grade Pay of Rs.2400 in Pay Band PB-I) and Highly Skilled Worker Grade-I (Grade Pay of Rs.2800 in Pay Band PB-I).

(b) The Placement of the individuals in the posts resulting from the restructuring shall be made w.e.f. 1.1.2006, in relaxation of the conditions, if any, i.e. trade test etc. as one time measure.

(c) Highly Skilled Grade I shall be en-bloc senior to Highly Skilled Grade II

4. (i) The post of Master Craftsman shall be part of the hierarchy and the placement of Highly Craftsman of Highly Skilled Grade I in the grade of Master Craftsman will be treated as promotion.

(ii) In the case of Defence Establishments where there is no category of Skilled Workers and direct recruitment’s made 100% at the level of Highly Skilled, the posts of Master Craftsman existing as on 1.1.2006 will be placed in PB-2 + GP 4200 and the remaining posts of Highly Skilled Workers may be bifurcated in HS-I in the ratio of 50:50.

(iii) In view of the above re-structuring, the artisan staff may be allowed to give revised option for pay fixation w.e.f. 1.1.2006 within these months from the date of issue of orders in this regard.

(iv) The existing recruitment rules for the Tradesman may be amended and RRs for the post of MCM may be framed accordingly.

5. The expenditure involved will be dehitable to the respective Heads of Defence Services Estimates.

6. To the extent of provisions indicated in the paragraphs above MoD letter No. 11(1)/2002-D(Civ-I) dated 20.5.2003 stands amended.

7. This issues with the approval of DOP&T U.O. No.5358/10/CR dated 25.2.2010 and Ministry of Finance I.D. No.2(16)E.III Desk/2008 dated 10.06.2010 and concurrence of Ministry Defence (Finance AG/PB) vide their U.O. No.164/AG/PB dated 14.06.2010.

(M.S. sharma)

Under Secretary of the Government of India

Source: CGStaffNews

Frequently Asked Question - MD 6.6 SP1

FAQ Meghdoot 6.6.1

Point of Sale

1. RPLI transactions cannot be booked.

Solution: Do not enter Date Of Acceptance and Agent Code while doing RPLI transactions till a new service pack is supplied.

2. Stored procedure missing error while doing submit account.

Solution: EMO database upgradation should be done before Counter upgradation. You should do emo database upgradation and then do the counter database upgradation.

3. The following error log after counter database upgradation.

1. COUNTER

22:36:28:============================================

22:36:28: SCRIPT EXECUTION DETAILS (counter)

22:36:28:============================================

22:36:29:[Column names in each table must be unique. Column name 'AgentCode' in table 'PostalLifeInsurance' is specified more than once.] : Script Execution Error : While executing statement ALTER TABLE PostalLifeInsurance ADD AgentCode nvarchar(15) NULL

22:36:29:[Column names in each table must be unique. Column name 'FirstYearPremium' in table 'PostalLifeInsurance' is specified more than once.] : Script Execution Error : While executing statement ALTER TABLE PostalLifeInsurance ADD FirstYearPremium money NULL

22:36:29:[Column names in each table must be unique. Column name 'DateOfAcceptance' in table 'PostalLifeInsurance' is specified more than once.] : Script Execution Error : While executing statement ALTER TABLE PostalLifeInsurance ADD DateOfAcceptance datetime

Solution: These error messages will come if counter database is upgraded twice. These error messages can be ignored.

4. Active X component cannot create object.

Solution: Reinstall the application after deleting the old installation cab files. If you are getting any error while registering the dlls then do the following

Register the dll by entering the following in the Run dialog box window.(Start - Run)

Regsvr32 ApplicationPath\dllname

eg.Regsvr32 H:\POS\cash.dll

5. While doing submit accounts ‘Server not configured for RPC’

Solution: Run the following query using query analyzer

exec sp_serveroption @server='myserver', @optname='rpc', @optvalue='true'

go

exec sp_serveroption @server='myserver', @optname='rpc out', @optvalue='true'

go

in the myserver replace the myserver with your servername.. It will solve the RPC problem

6. While doing submit accounts error ‘Operation is not allowed when the object is closed’

Solution : Run Counter13042010.exl using script tool.

7. While booking MO Videsh, Countries and currencies are not coming

Solution : If countries, currencies are not coming in Movidesh booking then patch is available in ftp site...

ftp://ftp.ptcinfo.org/ForSKRegionAndCoimbatoreRegionProjectArrowTesting/MOVidesh/EuroGiroTest.rar

8. While performing Day End, Multiple step operation generated errors. Check each status value

Solution: Please download the zip file from http://www.sendspace.com/file/r7xz78. Unzip it and follow the instruction given in readme.

9. Invalid object name 'ECounter..ENVIRONMENT'.

Solution : Upgrade eCounter database

TREASURY

1. In treasury module while entry in postman returns error shown ‘POSTMAN DATA BASE IS NOT AVAILBLE QUITTING’

Solution: Run the following query using query analyzer

exec sp_serveroption @server='myserver', @optname='rpc', @optvalue='true'

go

exec sp_serveroption @server='myserver', @optname='rpc out', @optvalue='true'

go

in the myserver replace the myserver with your servername.. It will solve the RPC problem

2. Accounts Heads not coming

Solution: Please run treasury1.exl using script tool.

After executing the script, run query analyzer and execute the following query selecting treasury database.

update_megh66_accountheads_bydate 'ddmmyy'

ddmmyy stands for the date on which account heads not appeared. ex: if the date is 06/04/2010 then ddmmyy will be 060410

DESPATCH

1. While performing Day End, Multiple step operation generated errors. Check each status value

Solution: Please download the zip file from http://www.sendspace.com/file/r7xz78. Unzip it and follow the instruction given in readme.

2. Station articles are not fetching in Despatch

Solution: Local delivery / Station articles will not be fetched for despatch in the Despatch module.You can fetch local article for delivery through postman module. The data will be correctly fetched in DET.

POSTMAN

1. Local articles are showing not sent out for delivery in DET

Solution: The option "Fetch from Counter" should be used on the day of invoicing these articles to Postman beats. For ex: If you have booked local articles today and you want them to be sent to beats on tomorrow, you should not use the Fetch from Counter option today. This option to be exercised on the next dayonly.

In such a situation, even if you don’t fetch today, all these local articles will be treated as "Despatched" in DET. Hence Pls use the Fetch from Counter option on the date of invoicing the articles to postman.

SUB ACCOUNTS

For any type of error coming after upgradation pl.do the following.

Restore the backup of Sub accounts, Sub Treasury, BO Sub accounts taken before upgradation....and continue your work till solution is provided by PTC.

eMO

1. Object reference not set error while doing paid verification

Solution: Please ensure that eMO Account heads are created properly. SubAccount and SupplySubaccount databases are running and correct treasury server name is given while configuration. Ensure that Socodemapping is done correctly. Ensure that HOAccount date and SOaccount dates are entered correctly both in eMO operator and subaccount modules

 

 

Thanks to Kiran Kishore, Mumbai North Division

Marriages and Morals

‘The real act of marriage takes place in the heart.’


-Barbara de Angels



The article ‘An Alien Culture we can do without’ (The HINDU Open Page, April 18) deified the institution of marriage and abhorred live-in relationships. However, only one side of the issue was presented. Live-in relationships are a reality in today’s India and viewing it through the prism of morality will prevent us from seeing the unique pros and cons that come with it. It is commendable that the Supreme Court of India, in an appropriate and candid manner stated that “when two adult people want to live together, what is the offence?” and expanded it by reiterating that living together is a right to life and is a question of personal view. Jolted by the verdict, brouhaha about the sensitive issue has been going rounds and needless to say it has fomented the ire of the puritan moralists.



The concept of premarital togetherness is not alien to our culture. Our Gods set the trend aeons back. Our mythologies are replete with broad hints of premarital co-habitation, polygamy, polyandry and so on. In ancient India, there were eight different types of marriages of which the father giving away his daughter was only one type. It seems that our forefathers were more broad minded as the bride could choose the husband of her choice when she came of age. The legendary Shakuntala and Draupadi are portrayed as powerful women along with the tradition bound Sita.



Perception of sexual morality is constantly changing in our society. Those who paint the moral picture on live-in relationships are thoroughly disconnected with the realities of the present. When the lifestyles of people have changed in the last few decades, the views of prudes seem outdated and out of sync with changing times. Society must grow up to respect the rights and decisions of consenting individuals with mutual understanding in matters of personal choice. Morality is highly subjective and is not a bundle of dry positives and negatives alone. Rather, man’s rational valuation of realities must be given precedence.



Marriages make families and have social approval and blessings. This has been the custom that was evolved through the years. As customs are man-made practices, they have to change with the changing times. It is really unfortunate that our society is not open enough to accept single mothers, life partners, inter- caste marriages and homosexuals. Free thinking individuals who follow their heart over the social dictates are victims of disapproval, dismay, distrust and even disgust. Straddling the lines between the traditional ways and the unconventional ones are fraught with dire consequences. Khap Panchayats rule over our Constitution, skewed morality chokes individual freedom.



We can blame the ‘evil’ influences of the west, chic literature and American sitcoms for all we want. The increasing pressure of that the young generation face to succeed has pulled them away from the cocoons of the family into long drawn hours in their offices. The need for companionship may bring two like-minded people together. Mutual compatibility will nourish the relationship than matching horoscope and social approvals. The increasing economic independence of young people emboldens them to go for live-in relationships. This comes with its unique pros and cons. Live-in relationships are for individuals who take complete responsibility for their actions. Here, there is no scope to hide behind social customs and take your partner for granted. As two individuals have committed to live together, they have to face the odds together too. The sense of responsibility and accountability is between the partners. There is a greater commitment and effort put by the individuals to make the relationship work. Also, there is a good sense of living when you get an opportunity to check out your preferences and compatibility. These relationships maybe without vows, but they have values. It is wrong to assume that these couples are afraid to take the plunge into marriage. It is a decision they voluntarily choose and it requires a strong character and determination to make such relationship work.



The Protection of Women from Domestic Violence Act, 2005 equates long term live-in relationships with marriages. In India, live-in relationships have legal sanction; what remains is the social sanction.

Originally Posted by Deepa Kylasam Iyer

TEXT OF POST CARD CAMPAIGN

To




Shri.A.Raja
Honourable MOC & IT
Government of India
Electronic Nikethan
CGO Complex
Lodi Road,
New Delhi – 110001


     Respected Sir,

     POSTAL EMPLOYEES REQUEST YOUR KIND INTERVENTION TO DIRECT THE POSTAL BOARD TO DISCUSS THE CHARTER OF DEMANDS OF POSTAL JOINT COUNCIL OF ACTION FOR REACHING SETTLEMENT OF OUR JUSTIFIED ISSUES.

THANKING YOU SIR,

YOURS FAITHFULLY,

--------------------------

Name:
Designation:
Office:
Date:




(Source: AIPEU P3 CHQ)

NEWS FLASH - COPY OF GDS 60% ARREARS ORDER

Download COPY OF GDS 60% ARREARS ORDER HERE1

Download COPY OF GDS 60% ARREARS ORDER HERE2

Source: AIPEUP3CHQ

Leave Travel Concession - LTC rules : reference

Eligibility:

Any employee with one year of continous services on the date of Journey performed by him/his family is eligible. For eg an official appointed on 31-12-2008 will be eligible for the tow year block 2008-09, but those appointed on or afer 01-01-2009 will not be eligible for that block.

Government servants whose spouses are working in indian railways, National Airlines are not eligible for LTC and if an official is under suspension, his family members only can avail LTC.

When both the husband and wife are central government servants then:

1. They can claim LTC for their respective families. eg: while the husband can claim for his parents/minor brothers/sisters, the wife can avail for her parents/ miner brothere/sisters.

2. The husband / wife who avails LTC as a meber of the family of the spouse, cannot claim independently for self.

3. They can declare separate Home towns indepently.

Salient Points regarding LTC

1. Concession can be availed of for self and family members separtely on different occasions, even in different calendar years of the same block.

2. Family can travel in one or more groups; but each group should complete its return jouney with in six months from the date of its outward journey.

3. Cirular tour tickets can be availed of in conjunction with the concession.

4. Can be availed of during any leave including study leave, casual leae and special casual leave.

5. It can be combined with transfer/tour.

6. Cannot availed of during closed holidays only without taking the leave.

LTC in the case of Fresh recruits.

Entitlements for LTC

1. Journey by Air/Rail/Steamer:

Entitled officers and their family members can travel by any air india only.

Details of travel by air india in the case of LTC for central government employees.

2. Journey by Road:

Entitles will be the same as for tour / transfer. Reimbursement admissible only in respect of journeys performed in vehicles operated by the government of any corporation in the public sector run by the central or state government or a local body.

Whn journy is performed by a longer route (not the cheapest route) in tow different classes of rail accomadation , the entitled class rate will be admissile for the curresponding proportion of the shortes/cheapest route and the lower class rate for the remaining mileage by such route. Where journey is performed by a longer route respect of journey performed by rail and for the remaining shortest distance, as per entitlement by rail or the actual fare paid for the journey by road, whichever is less.

Reimbursement in the case of LTC:

Fares for journeys between duty station and Home town, both ways will be reimbursed by the government in full. If the employee and family reside away from the duty station, fares for journeys between place of residence and home town, both ways, restricted to that from duty station to reimbursable.

LTC Advance:

Upto 90% fares can be taken. Advance admissible for both outward and return journey if the leave taken by the official or the anticipated absence of members of family does not exceed 90 days. Otherwise, advance may be drawn for the outward journey only.

The official should furnish Railway ticket numbers, PNR No, etc to the competent authority within ten days of the drawal of the advance.

When advance is taken claim should be submitted within three months from the date of return journey. If not outstanding amount will be recovered in one lumpsum and claim will be treated as one where the advane is sanctioned. When the claim is submitted within stipulated time but unutilezed portion of advance not refunded, interest is chargeable on that amount from the date of drawal to the date of recovery.

When no adavance is taken, claim should be submitted within six months from the completition of return journey. Othewise the claim will be forfited.

LTC to Home Town:

Ltc to home town is admissible to all employees irrespecitve of distance involved. Home town once declared is treated as final. In exceptional circumstances the Head of the Department may authorize a change, only once during entire service.

Enchashment of Earned Leave (EL) during LTC:

It will be admissible subject to the following conditions:-

a. It is limited to 10 days of earned leave on one occasion without linkage to the number of days and nature of leave availed and 60 days in the entire career.

b: Will not be deducted while computing the maximum admissible for encashment at the time of quitting service.

c: The balance at credit should not be less that 30 days after deducting the total of leave, if any availed plus leave for which encashment was availed.

d: Where both husband and wife are government servants, enchashment of leave will continue to be available to both subjecdt to maximum limit of 60 days to each of them.

Misuse of LTC

Disciplinary action will be taken and during its pendency. The disputed claim will be withheld and further LTC facility will not be allowed.

When disciplinary proceedings are over and if found not guilty, then the withheld claim will be admitted and any LTC facility not be allowed additional set in the future blocks of years irrespecitve of the provisions relating to lapsing of unavailed LTC. Such additional sets also should be availed before the date of superannuation.

If found guilty then the withheld claim will be disallowed , the next two sets one to home town and one to any place to India will be forfeited and in the case of grave misuse, the competent authority may disallow even more than two sets.