Date : 1.2.2017
Transfers in ASP cadre
National Association of Postal Employees Group-C, Andrapradesh Circle, Vijayawada.
Tuesday, 31 January 2017
Re -allotments/ transfers/ postings in the cadre of PS Gr-B in Andhra Pradesh Circle
Date : 31.1.2017
Re -allotments/ transfers/ postings in the cadre of PS Gr-B in Andhra Pradesh Circle
Transfer of money consequent of promotion of a GDS under SDBS to a regular in Department of Posts
Date : 31.1.2017
Transfer of money consequent of promotion of a GDS under SDBS to a regular in Department of Posts
DEPARTMENT OF POSTS:INDIA
OFFICE OF THE DIRCTOR OF ACCOUNTS (POSTAL)
MAHANADI VIHAR, CUTTACK-753004
NO: SDBS(2010)/Corr/ Dated : 30/01/2017
To
The SSPOs/SPOs/SSRM/SRM
Sub:- Transfer of money consequent of promotion of a GDS under SDBS to a regular Dept.. post
This is regarding transfer of money of those GDS enrolled under SDBS subsequently being absorbed /promoted to a regular Departmental post. Under this circumstances the GDS are required to quit the SDBS scheme immediately and apply for transfer the accrued accumulations in their PR Account under the SDBS as well as accrued severance amount earned till their date of such absorption/regular appointment to their new account under New Pension Scheme.
Hence you are requested to identify such cases in the units under your jurisdiction & supply them prescribed SDBS-1 to apply. SDBS-I forms duly filled by the applicant & enlisted by the Divn in form SDBS-2 may please be sent to this office for onward submission to the NSDL for transfer of money to the new account as well as deactivating the old one.
Pl. find a copy of form SDBS-I & SDBS-2 with this letter.
Asst. Accounts Officer
GDS compassionate cases - Considered and Rejected cases in Andhra Pradesh Circle.
Date : 31.1.2017
CRC - GDS compassionate cases - Considered and Rejected cases in Andhra Pradesh Circle.
CRC - GDS compassionate cases - Considered and Rejected cases in Andhra Pradesh Circle.
Click Here to view the CRC minutes dated 10.01.2017 and 11.01.2017 on GDS compassionate cases
Monday, 30 January 2017
Limits on Cash withdrawals from Bank accounts and ATMs - RBI Order
Date : 30.1.2017
Limits on Cash withdrawals from Bank accounts and ATMs - RBI Order
First IPPB Inauguration at Raipur & Ranchi on 30th January 2017 at 5PM
Date : 30.1.2017
First IPPB Inauguration at Raipur & Ranchi on 30th January 2017 at 5PM
RICT DEVICE TRAINING MANUAL
Date : 30.1.2017
RICT DEVICE TRAINING MANUAL
Click below link to download RICT materials
CLICK HERE FOR FULL DETAILS
The introduction of Hand-held Device viz., Main Computing Device (MCD) with all its peripherals going to be used in Branch Post Offices is well presented for the information of GDS and all others.
This gives us preliminary information along with some theoretical knowledge (for unaware GDS) & practical knowledge (for those who are in good practice in some Circles/Divisions) over the MCD (Hand-held Device) and its usage in BOs.
IPPB Savings Account Charges and Remittance Charges Published
Date : 30.1.2017
IPPB Savings Account Charges and Remittance Charges Published
IPPB - Schedule of Charges
(Tariffs are excluding applicable taxes)
Savings account charges and features
Notes:
1. The above charges are in addition to the transaction charges (e.g. charges for AEPS are not included above). Please refer to the respective sections for transaction charges
2. The higher of financial and non-financial transaction charges for doorstep banking will be levied in case a customer avails both the facilities in a single visit (e.g. If a customer avails cash deposit of INR 10,000 and balance enquiry in a single doorstep visit, the customer will be charged INR 20 for that visit)
3. Only three transactions are allowed per visit. Fourth transaction would be treated as another visit, and charges would apply accordingly
Saturday, 28 January 2017
IPPB latest update
Date : 28.1.2017
!!! IPPB latest update !!!
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!!! IPPB latest update !!!
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AP Singh has been appointed as interim MD and CEO of the India Post Payment Bank. He was Joint Secretary in the Department of Disinvestment and one of the member of founding team that launched Aadhaar
India Post is likely to launch the first two branches of its payments bank—India Post Payments Bank (IPPB)—in Ranchi and Raipur on a pilot basis.
IndiaPost becomes 3rd entity to receive licence to start payment bank operations
Date : 28.1.2017
NEW DELHI: IndiaPost has become the third entity to receive a final license last week from the Central Bank to start its payment bank operations. Country’s largest telcom service provider Bharti Airtel and digital payments firm Paytm are the other two to have received the license while only Airtel has started operations so far.
The government has also appointed AP Singh has interim MD and CEO of the India Post Payment Bank. A 1986 Indian Postal Service Officer he was earlier Joint Secretary in the department of disinvestment, ministry of Finance and Deputy Director General incharge of financial inclusion and payments systems at Unique Identification Authority of India (UIDAI). Singh was one part of the founding team that launched Aadhaar and was stationed at the department of Post prior to UIDAI.
As per the initial road map, each post office in the country will offer the post bank services. The department of post has an existing network of around 1,55,000 post offices currently. ET had reported earlier that IndiaPost plans to open 650 new branches for the payment bank. The branches will be co-located with the existing post offices. The idea is that the 650 branches will be in located in postal district headquarters and all the branches under that particular head post office will be enabled by the payment bank services. This will cover the entire network of 155,000 post offices in the country.
Earlier this month, Airtel Payments Bank launched nationwide operations, offering 7.25% interest on savings bank balances, which is more than the maximum 7% paid by SBI on its fixed deposits. Bharti and Kotak Mahindra, which holds a 20% stake in the payments bank, would invest Rs 3,000 crore in the venture.
Payments banks can accept deposits from individuals and small businesses of up to Rs 1 lakh per account. And RBI had set a condition that formal license has to be obtained before 31 March.
ALIBABA backed Paytm also said early in January that it has received the final license from RBI and the company hopes to launch operations in February with the first branch coming up in Noida, Uttar Pradesh.
While operation of Payment Banks such as Paytm are likely to be focused on technology based differentiation, IndiaPost is banking on its huge reach especially in the rural areas to be successful.
Source : http://economictimes.
Recommendation of the Public Accounts Committee regarding reflection of the recurrent lapses in observing financial discipline in the Annual Performance Assessment Report (APAR).
Date : 28.1.2017
Recommendation of the Public Accounts Committee regarding reflection of the recurrent lapses in observing financial discipline in the Annual Performance Assessment Report (APAR).
Friday, 27 January 2017
Union Budget may levy new cess to provide social security to coolies.
Date : 27.1.2017
Union Budget may levy new cess to provide social security to coolies.
Union Budget may levy new cess to provide social security to coolies
Government may announce a new cess in the forthcoming Union Budget 2017-18 to cover around 20,000 railway coolies under social security schemes run by the retirement fund body EPFO.
“There is a proposal from the labour ministry to levy a cess of 10 paisa per railway ticket to cover 20,000 railway coolies under the ambit of social security net through the Employees Provident Fund Organisation (EPFO),” a source said.
“The proposal makes a lot sense because 10 paisa cess per ticket will not burn of a hole into travellers’ pockets. Besides it would help railways to mop up funds to provide social security to coolies,” said the source.
This proposal is a one of the initiatives of government’s overall efforts to bring over 40 crore informal sector workers under the social security net of the EPFO and others like ESIC.
According to a back-of-the-envelope calculation, levying of this 10 paisa cess will help in collecting about Rs 4.38 crore every year, which will be enough to provide basic minimum facilities like PF, pension and group insurance to coolies.
Indian Railways issues 10-12 lakh rail travel tickets everyday, including 58% reserved tickets. Thus, the move can help mop up about Rs 1.2 lakh every day for the purpose.
Chairman of the Central Board of Trustees, EPFO’s apex decision-making body, labour minister Bandaru Dattatreya had already assured the members to look into the proposal mooted by employee representative Ashok Singh, the vice-president of Indian National Trade Union Congress, had floated the proposal at the EPFO’s trustees’ meeting in Bengaluru on December 19, 2016.
The forthcoming general budget is likely to be tabled in Parliament on February 1, 2017.
The proposed cess of 10 paise is on every ticket sold by Indian Railways. It will not be levied per passenger. One ticket sold by Indian Railways can have multiple passengers.
Hindustan Times.
RICT MCD Device Unboxing Installation and Troubleshooting
Date : 27.1.2017
Click below to play the Video
RICT MCD Device Unboxing Installation and Troubleshooting
In the process of computerization of Branch Post Offices, it is well aware that a HAND HELD DEVICE is going to supply to all GDS.
In the project of RURAL INFORMATION & COMMUNICATION TECHNOLOGY (RICT) the device i.e, MAIN COMPUTING DEVICE (MCD) with its peripherals to be installed in BOs soon.
For a preliminary information to GDS & for awareness on the Computerization of BOs, a short video film is published here
Thursday, 26 January 2017
Limited Transfer Facility to GDS - Committee Recommendations.
Date : 27.1.2017
Limited Transfer Facility to GDS - Committee Recommendations.
NUGDS BRIEF NOTE SUBMITTED TO GDS PAY COMMITTEE
Limited Transfer Facility to GDS - Committee Recommendations.
The Committee recommends relaxing the Limited Transfer Facility of GDS on request with following salient features.
NUGDS BRIEF NOTE SUBMITTED TO GDS PAY COMMITTEE
Clarification regarding timely payment of GPF final payment to the retiring Government Servant – DoPT Order
Date : 27.1.2017
Clarification regarding timely payment of GPF final payment to the retiring Government Servant – DoPT Order
No.3/3/2016-P&PW(F)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003
Dated 16th January 2017.
Khan Market, New Delhi-110003
Dated 16th January 2017.
OFFICE MEMORANDUM
Subject: Clarification regarding timely payment of GPF final payment to the retiring Government servant – regarding
During review meetings held to evaluate the status of implementation of Bhavishya with Ministries/Departments, it was observed that GPF final payment in many cases is not being paid to the retiring Government servants immediately on retirement from service leading to payment of interest for the delayed period.
2. Rule 34 of General Provident Fund (Central Service) Rules clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment. The authority for the amount payable is to be issued at least a month before the date of superannuation, but payable on the date of superannuation. It may be noted that the requirement of submitting a written application by the retiring Govt. servant for GPF final payment has been dispensed with vide this Department’s Notification No.20(12)/94-P&PW (E) dated 15.11.1996 and notified under S.O NO.3228 dated 23.11.19963. As per Rule 11(4) of GPF Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also. While interest for the first six months beyond retirement can be allowed by the PAO in the normal course, approval of Head of the accounts office is required for payment of interest beyond six months and that of Controller of Account/Financial Adviser beyond a period of one year.
4. To ensure timely final payment of GPF, and to avoid unnecessary financial burden on account of interest beyond retirement, it has now been decided that every case, in which payment of interest on General Provident Fund becomes necessary in terms of Rules 11(4) of GPF Rules, 1960, shall be put up for consideration to the Secretary of the Administrative Ministry/Department. In all such cases the Secretary of the Administrative Ministry/Department will fix responsibility at all levels to take appropriate action against the Government servant or servants who are found responsible for the delay in the payment of General Provident Fund.
5. This issues with the concurrence of the Ministry of Finance, Department of Expenditure, vide their 10 NO.187/EV/2016 dated 2th September 2016.
6. Hindi version will follow.
(Seema Gupta)
Director
Director
Authority: http://www.pensionersportal.gov.in/
Govt to look into issues of Aadhaar being made mandatory for select schemes
Date : 27.1.2017
Govt to look into issues of Aadhaar being made mandatory for select schemes
New Delhi, January 26:
The Centre is examining various questions raised by Software Freedom Law Centre (SFLC), a legal services organisation, with regard to violation of the Supreme Court’s order against making Aadhaar mandatory for access to certain services, sources close to the development, told BusinessLine.
According to sources, Ravi Shankar Prasad, Minister of Electronics and Information Technology, has recently responded to a letter by Rajya Sabha MP, Rajeev Chandrasekhar, saying he was ‘getting the matter examined’.
Chandrasekhar, in his letter to Prasad in December, had asked the government to state the ‘correct position under law’ on the issue of Aadhaar being made mandatory by various government and private entities with regard to their schemes, which, he said was a violation of the apex court’s orders.
Chandrasekhar had also raised question in the Rajya Sabha in November, after which SFLC had written in detail to Chandrashekar, listing out about 120 violations between September 2015 and September 2016, based on which the MP had written a letter to Prasad, who incidentally is also the Law & Justice Minister.
Exempted schemes
The Aadhaar scheme is instituted and operated by the Unique Authority of India (UIDAI) and in 2015, the Supreme Court had restricted the voluntary use of Aadhaar to six government schemes — the public distribution system (PDS), LPG, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Prime Minister’s Jan Dhan Yojna and National Social Assistance Programme (old age and widow pension). The court had clearly emphasised that no person should be denied any service for lack of an Aadhaar card or number.
However, many schemes are being run wherein Aadhaar has been made mandatory to avail of the services.
Citing SFLC’s list, Chandrasekhar highlighted some of the schemes wherein Aadhaar has been made mandatory.
“For instance, he has mentioned government considering EPFO’s voluntary pension scheme linked with Aadhaar, Linking BPL ration cards with Aadhaar made mandatory for PDS in Bengaluru, Paytm starting Aadhaar-based KYC process, government saying households not to get LPG subsidy without Aadhaar,” said a government official.
111 crore cards issued
Meanwhile, the government is enrolling Aadhaar numbers to the maximum number of people, including children, asking the authority to enrol as many people as possible at the earliest.
As of Wednesday, 111 crore Aadhaar cards have already been generated, according to the UIDAI website.
Recently, Prasad had also said that the more people are enrolled with Aadhaar, the maximum number of benefits they would get. He had also said that the government was now going to introduce a new Aadhaar-based digital payment system for the common man.
But, several citizen groups have pointed out that the mandatory use of Aadhaar in social welfare schemes was leading to exclusion and harassment of the poor, and was in violation of Supreme Court’s six orders in three years.
The citizens groups also pointed out that the Aadhaar Act 2016, ‘nowhere authorises the seeding of the Aadhaar number in any database. “The 2016 Act clearly speaks only of ‘authentication’, viz., asking the UIDAI database to verify that we are who we say we are. So, asking anyone to put the number in any other database (the LPG database, for example, is unsupported by the law),” they said.
Clarification on purchase of Air Tickets from Unauthorized Agents
Date : 27.1.2017
Clarification on purchase of Air Tickets from Unauthorized Agents
To
The Secretary, OFB, ID-A, S.K. Bose Rd, Kol-01
All Sr. General Managers/All General Managers
The Secretary, OFB, ID-A, S.K. Bose Rd, Kol-01
All Sr. General Managers/All General Managers
Ordnance/ Equipments Factories.
All Group controllers & Branch AOs
Sub: Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air
Kindly refer to DoP&T letter No.31011/3/2015-Estt(A.lV) dated 18/02/2016 wherein it is mentioned under points 14 & 15 that Govt employees not entitled to travel by air, may travel by any airline. However, reimbursement in such cases shall be restricted to the fare of their entitled class of train/transport or actual expense, whichever is less. In all cases whenever a Govt servant claims LTC by air, he/she is required to book the air tickets either directly through the airlines or through the approved travel agencies viz M/s Balmer Lawrie & Co. Ltd/ M/s Ashok Tours & Travels Ltd/ IRCTC. Booking of tickets through any other agency is not permissible.
This is for your information, guidance and necessary action please.
Dy.Controller
Accounts(Fys)
Authority: http://pcafys.nic.in/
Income Tax 2016-17 – Exempted Income – Income not included under the Head Salaries – Exempted Income under Finance Act 2016
Date : 27.1.2017
Income Tax 2016-17 – Exempted Income – Income not included under the Head Salaries – Exempted Income under Finance Act 2016.
Income Tax Department has issued a Circular on 02.01.2017 in respect of Salaried Income Tax. This article covers the Exempted Income under Finance Act 2016
Any income falling within any of the following clauses shall not be included in computing the income from salaries for the purpose of section 192 of the Act :-
The value of any travel concession or assistance received by or due to an employee from his employer or former employer for himself and his family, in connection with his proceeding (a) on leave to any place in India or (b) after retirement from service, or, after termination of service to any place in India is exempt under Section 10(5) subject, however, to the conditions prescribed in Rule 2B of the Rules.
For the purpose of this clause, “family” in relation to an individual means: (i) the spouse and children of the individual; and
(ii) the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the
individual.
It may also be noted that the amount exempt under this clause shall in no case exceed the amount of expenses actually incurred for the purpose of such travel.
Death-cum-retirement gratuity or any other gratuity is exempt to the extent specified from inclusion in computing the total income under Section 10(10). Any death-cum-retirement gratuity received under the revised Pension Rules of the Central Government or, as the case may be, the Central Civil Services (Pension) Rules, 1972, or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence service is exempt. Gratuity received in cases other than those mentioned above, on retirement, termination etc is exempt up to the limit as prescribed by the Board. Presently the limit is Rs. 10 lakhs w.e.f. 24.05.2010 [Notification no. 43/2010 S.O. 1414(E) F.No. 200/33/2009- ITA-1 dated 11th June 2010].
Any payment in commutation of pension received under the Civil Pensions (Commutation) Rules of the Central Government or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all- India services or to the members of the defence services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority] or a corporation established by a Central, State or Provincial Act, is exempt under Section10(10A)(i). As regards payments in commutation of pension received under any scheme of any other employer, exemption will be governed by the provisions of section 10(10A)(ii). Also, any payment in commutation of pension from a fund referred to in Section 10(23AAB) is exempt under Section 10(10A)(iii).
Any payment received by an employee of the Central Government or a State Government, as cash-equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation or otherwise, is exempt under Section 10(10AA)(i). In the case of other employees, this exemption will be determined with reference to the leave to their credit at the time of retirement on superannuation or otherwise, subject to a maximum of ten months’ leave. This exemption will be further limited to the maximum amount specified by the Government of India Notification No.S.O.588(E) dated 31.05.2002 at Rs. 3,00,000/- in relation to such employees who retire, whether on superannuation or otherwise, after 1.4.1998.
Under Section 10(10B), the retrenchment compensation received by a workman is exempt from income-tax subject to certain limits. The maximum amount of retrenchment compensation exempt is the sum calculated on the basis provided in section 25F(b) of the Industrial Disputes Act, 1947 or any amount not less than Rs.50,000/- as the Central Government may by notification specify in the Official Gazette, whichever is less. These limits shall not apply in the case where the compensation is paid under any scheme which is approved in this behalf by the Central Government, having regard to the need for extending special protection to the workmen in the undertaking to which the scheme applies and other relevant circumstances. The maximum limit of such payment is Rs. 5,00,000/- where retrenchment is on or after 1.1.1997 as specified in Notification No.
10969 dated 25-06-1999.
Under Section 10(10C), any payment received or receivable (even if received in installments) by an employee of the following bodies at the time of his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of public sector company, a scheme of voluntary separation, is exempt from income-tax to the extent that such amount does not exceed Rs. 5,00,000/-:
a) A public sector company;
b) Any other company;
c) An Authority established under a Central, State or Provincial Act;
d) A Local Authority;
e) A Cooperative Society;
f) A university established or incorporated or under a Central, State or Provincial Act, or, an Institution declared to be a University under section 3 of the University Grants Commission Act, 1956;
g) Any Indian Institute of Technology within the meaning of Section 3 (g) of the Institute of Technology Act,
1961;
h) Such Institute of Management as the Central Government may by notification in the Official Gazette, specify in this behalf.
The exemption of amount received under VRS has been extended to employees of the Central Government and State Government and employees of notified institutions having importance throughout India or any State or States. It may also be noted that where this exemption has been allowed to any employee for any assessment year, it shall not be allowed to him for any other assessment year. Further, if relief has been allowed under section 89 for any assessment year in respect of amount received on voluntary retirement or superannuation, no exemption under section 10(10C) shall be available.
Any sum received under a Life Insurance Policy (Sec 10(10D), including the sum allocated by way of bonus on such policy other than the following is exempt under section 10(10D):
i) any sum received under section 80DD(3) or section 80DDA(3); or ii) any sum received under a Keyman insurance policy; or
iii) any sum received under an insurance policy issued on or after 1.4.2003, but on or before 31-03-2012, in respect of which the premium payable for any of the years during the term of the policy exceeds 20 percent of the actual capital sum assured; or
iv) any sum received under an insurance policy issued on or after 1.4.2012 in respect of which the premium payable for any of the years during the term of the policy exceeds 10 percent of the actual capital sum assured; or
v) any sum received under an insurance policy issued on or after 1.4.2013 in cases of persons with disability or
person with severe disability as per Sec 80U or suffering from disease or ailment as specified in Sec 80DDB, in respect of which the premium payable for any of the years during the term of the policy exceeds 15 percent of the actual capital sum assured
However, any sum received under such policy referred to in (iii), (iv) and (v) above, on the death of a person would be exempt.
Any payment from a Provident Fund to which the Provident Funds Act, 1925, applies or from any other provident fund set up by the Central Government and notified by it in the Official Gazette is exempt under section 10(11).
Under section 10(13A) of the Act, any special allowance specifically granted to an assessee by his employer to meet expenditure incurred on payment of rent (by whatever name called) in respect of residential accommodation occupied by the assessee is exempt from Income-tax to the extent as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations. According to Rule 2A of the Rules, the quantum of exemption allowable on account of grant of special allowance to meet expenditure on payment of rent shall be the least of the following:
(a) the actual amount of such allowance received by the assessee in respect of the relevant period i. e. the period during which the accommodation was occupied by the assesse during the financial year; or
(b) the actual expenditure incurred in payment of rent in excess of one-tenth of the salary due for the relevant period; or
(i) where such accommodation is situated in Bombay, Calcutta, Delhi or Madras, 50% of the salary due to the employee for the relevant period; or
(ii) where such accommodation is situated in any other places, 40% of the salary due to the employee for the relevant period.
For this purpose, “Salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.
It has to be noted that only the expenditure actually incurred on payment of rent in respect of residential accommodation occupied by the assessee subject to the limits laid down in Rule 2A, qualifies for exemption from income-tax. Thus, house rent allowance granted to an employee who is residing in a house/flat owned by him is not exempt from income-tax. The disbursing authorities should satisfy themselves in this regard by insisting on production of evidence of actual payment of rent before excluding the House Rent Allowance or any portion thereof from the total income of the employee.
Though incurring actual expenditure on payment of rent is a pre-requisite for claiming deduction under section 10(13A), it has been decided as an administrative measure that salaried employees drawing house rent allowance upto Rs.3000/- per month will be exempted from production of rent receipt. It may, however, be noted that this concession is only for the purpose of tax-deduction at source, and, in the regular assessment of the employee, the Assessing Officer will be free to make such enquiry as he deems fit for the purpose of satisfying himself that the employee has incurred actual expenditure on payment of rent.
Further if annual rent paid by the employee exceeds Rs 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along with the name and address of the landlord should be filed by the employee.
Section 10(14) provides for exemption of the following allowances :-
(i) Any special allowance or benefit granted to an employee to meet the expenses wholly, necessarily and exclusively incurred in the performance of his duties as prescribed under Rule 2BB subject to the extent to which such expenses are actually incurred for that purpose.
(ii) Any allowance granted to an employee either to meet his personal expenses at the place of his posting or at the place he ordinarily resides or to compensate him for the increased cost of living, which may be prescribed and to the extent as may be prescribed.
However, the allowance referred to in (ii) above should not be in the nature of a personal allowance granted to the assessee to remunerate or compensate him for performing duties of a special nature relating to his office or employment unless such allowance is related to his place of posting or residence.
The CBDT has prescribed guidelines for the purpose of Section 10(14) (i) & 10 (14) (ii) vide notification No.SO 617(E) dated
7th July, 1995 (F.No.142/9/95-TPL)which has been amended vide notification SO No.403(E) dt 24.4.2000 (F.No.142/34/99- TPL). The transport allowance granted to an employee to meet his expenditure for the purpose of commuting between the place of his residence and the place of duty is exempt to the extent of Rs. 1600 p. m. or Rs 3200 p.m. (for a person who is blind or deaf and dumb or is orthopaedically handicapped with disabilities of lower extremes) vide notification S.O.No. 395(E) dated
13.05.98 r/w S.O. No. 1002 (E) dated 13.04.2015 & S.O. No. 2604 (E) dated 23.09.2015.
5.3.11 Under Section 10(15)(iv)(i) of the Act, interest payable by the Government on deposits made by an employee of the Central Government or a State Government or a public sector company out of his retirement benefits, in accordance with such scheme framed in this behalf by the Central Government and notified in the Official Gazette is exempt from income-tax. By notification No.F.2/14/89-NS-II dated 7.6.89, as amended by notification No.F.2/14/89-NS-II dated 12.10.89, the Central Government has notified a scheme called Deposit Scheme for Retiring Government Employees, 1989 for the purpose of the said clause.
Any scholarship granted to meet the cost of education is not to be included in total income as per provisions of section 10(16) of the Act.
Section 10(18) provides for exemption of any income by way of pension received by an individual who has been in the service of the Central Government or State Government and has been awarded “Param Vir Chakra” or “Maha Vir Chakra” or “Vir Chakra” or such other gallantry award as may be specifically notified by the Central Government. Family pension received by any member of the family of such individual is also exempt [Notifications No.S.O.1948(E) dated 24.11.2000 and 81(E) dated 29.1.2001, which are enclosed as per Annexure VIII & IX]. “Family” for this purpose shall have the meaning assigned to it in
Section 10(5) of the Act.
DDO may not deduct any tax in the case of recipients of such awards after satisfying himself about the veracity of the claim.
Under Section 17 of the Act, exemption from tax will also be available in respect of:-
(a) the value of any medical treatment provided to an employee or any member of his family, in any hospital maintained by the employer;
(b) any sum paid by the employer in respect of any expenditure actually incurred by the employee on his medical treatment
or of any member of his family:
(i) in any hospital maintained by the Government or any local authority or any other hospital approved by the
Government for the purposes of medical treatment of its employees;
ii) in respect of the prescribed diseases or ailments as provided in Rule 3A(2) of the Rules in any hospital approved by the Chief Commissioner having regard to the prescribed guidelines as provided in Rule 3(A)(1)of the Rules,
(c) premium paid by the employer in respect of medical insurance taken for his employees (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority) or reimbursement of insurance premium to the employees who take medical insurance for themselves or for their family members (under any scheme approved by the Central Government or Insurance Regulatory and Development Authority);
(d) reimbursement, by the employer, of the amount spent by an employee in obtaining medical treatment for himself or any member of his family from any doctor, not exceeding in the aggregate Rs.15,000/- in an year;
(e) As regards medical treatment abroad, the actual expenditure on stay and treatment abroad of the employee or any member of his family, or, on stay abroad of one attendant who accompanies the patient, in connection with such treatment, will be excluded from perquisites to the extent permitted by the Reserve Bank of India. It may be noted that the expenditure incurred on travel abroad by the patient/attendant, shall be excluded from perquisites only if the employee’s gross total income, as computed before including the said expenditure, does not exceed Rs.2 lakhs.
For the purpose of availing exemption on expenditure incurred on medical treatment, “hospital” includes a dispensary or clinic or nursing home, and “family” in relation to an individual means the spouse and children of the individual. Family also includes parents, brothers and sisters of the individual if they are wholly or mainly dependent on the individual.
It is pertinent to mention that benefits specifically exempt u/s 10(13A), 10(5), 10(14), 17 etc. of the Act would continue to be exempt. These include benefits like house rent allowance, leave travel concession, travel expense allowance on tour and transfer, daily allowance to meet tour expenses as prescribed, medical facilities subject to conditions.
In this connection it is to be noted that as per sec. 10 (14) read wit rule 2BBany allowance granted to meet the cost of travel on tour or on transfer includes any sum paid in connection with transfer, packing and transportation of personal effects o such transfer shall be exempt. Also any allowance, whether, granted for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence form his normal place of duty shall be exempt.
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