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Thursday, 19 January 2017

Seventh Central Pay Commission's recommendations - revision of pay scales - amendment of Service Rules/Recruitment Rules

Seventh Central Pay Commission's recommendations - revision of pay scales - amendment of Service Rules/Recruitment Rules

revision of pay scales - amendment of Service Rules/Recruitment Rules

F.No. AB-14017/13/2016-Estt.(RR)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
Estt.-RR Division
North Block, New Delhi
Dated:18th January 2017
OFFICE MEMORANDUM

Sub: Seventh Central Pay Commission's recommendations - revision of pay scales - amendment of Service Rules/Recruitment Rules.

The undersigned is directed to refer to this Department's OM of even number dated 9th August, 2016 regarding amendment of Service Rules/Recruitment Rules by replacing the existing Pay Band and Grade Pay with the corresponding Level in the Pay Matrix in the revised pay structure recommended by the Seventh CPC and notified in the CCS(Revised Pay) Rules, 2016.

2. Subsequently, this Department held meetings in October/November, 2016 with the administrative Ministries/Departments to review the progress in the implementation of the OM. An important suggestion made in the meetings was with respect to facilitating the process of consultation with the Legislative Department for drafting notification for amendment of RRs in accordance with OM dated 9th August, 2016 and its Hindi translation so as to expedite the issue of notification. In this regard, this Department in consultation with Legislative Department has prepared a model notification in English and Hindi for use of the Administrative

Ministries/Departments. These are annexed at Annexure I and Annexure II.

3. Another issue which came up in the meeting is with respect to retention of standard Note under Co1.11 incorporated in the Schedule of the RRs regarding the regulation of service rendered prior to implementation of 6 thCPC, in those cases where the issue of upgradation/merger of the posts were involved. The relevant Note reads as follows:
"Note: For the purpose of computing minimum qualifying service for promotion, the service rendered on a regular basis by an officer prior to 1.1.2006/the date from which the revised pay structure based on the 6th CPC recommendations has been extended, shall be deemed to be service rendered in the corresponding grade pay/pay scale extended based on the recommendations of the Commission"
and/or
"Note: For purposes of appointment on deputation/ absorption basis, the service rendered on a regular basis by an officer prior to 1.1.2006/the date from which the revised pay structure based on the 6th CPC recommendations has been extended, shall be deemed to be service rendered in the corresponding grade pay/pay scale extended based on the recommendations of the Commission except where there has been merger of more than one pre-revised scale of pay into one grade with a common grade pay/pay scale, and where this benefit will extend only for the post(s) for which that grade pay/pay scale is the normal replacement grade without any upgradation."
4. After the implementation of 7 th CPC, there are only a few cases of  merger/upgradation of pay scale. It has been decided in consultation with UPSC that in cases where merger/upgradation of pay are not involved in the recommendations of the 7th CPC, the Note as referred above is not to be prescribed in the RRs/SRs. The guidelines in this regard have also been separately issued. The model notification includes a provision for deletion of the Note.

5. The Ministries/Departments are requested to finalise draft notification for amendment of the SRs/RRs in line with the model notification and thereafter, refer the same to the Legislative Department for vetting. The Legislative Department may dispose of references received from the Ministries/Departments within two weeks. Any amendment which is beyond the scope of the model rules will be finalized in usual process i.e. consultation with DoPT, UPSC and Legislative Department.

6. This Department is monitoring the implementation of the OM dated 09.08.2016. All Ministries / Departments are therefore requested to furnish information as per Annexure-III at the earliest.
Encl.: As above
(Jayanthi G.)
Director (E.I)
To
All Ministries/Departments of Government of India
Annexure-III

Subject: Status regarding amendment of Recruitment Rules in pursuance of OM dated 09.08.2016

Sl.No.Post/DesignationWhether RRs notification issued for amendment of RRs as per DoPT OM dated 09.08.2016.
(Yes/No)
If answer is no, current status to be indicated. (Pending in the Ministry / Legislative Department / Any other Reason)

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7th Central Pay Commission recommendations -amendment of Service Rules/Recruitment Rules


7th Central Pay Commission recommendations -amendment of Service Rules/Recruitment Rules
7th-Central-Pay-Commission-dopt2017

No. AB-14017/13//2016-Estt(RR)-Pt
Government of India
Ministry of Personnel P.G & pensions
Department of Personnel and Training
North Block, New Delhi
Dated: 18.01.2017
OFFICE MEMORANDUM

Subject: Seventh Central Pay Commission's recommendations -amendment of Service Rules/Recruitment Rules.

The undersigned is directed to refer to this Departments OM No AB.14017/61/2008-Estt. (RR) dated 24/03/2009 regarding amendment of Service Rules/ Recruitment Rules in pursuance of Sixth Pay Commission's recommendations. The revised pay structure recommended by 6th CPC and approved by the Government included a number of 'merged grades' with a common Pay Band and Grade Pay.
2. In order to regulate the service rendered in the pre-revised scale where there have been merger of more than one grade into one with a single grade pay, it was advised that a Note to the following effect may be inserted under relevant columns in the Schedule of RRs and under relevant provisions in Service Rules.
"Note: For the purpose of computing minimum qualifying service for promotion, the service rendered on a regular basis by an officer prior to 1.1.2006/the date from which the revised pay structure based on the 6th CPC recommendations has been extended, shall be deemed to be service rendered in the corresponding grade pay/pay scale extended based on the recommendations of the Commission. For purposes of appointment on deputation/ absorption basis, the service rendered on a regular basis by an officer prior to 1.1.2006/the date from which the revised pay structure based on the 6th CPC recommendations has been extended, shall be deemed to be service rendered in the corresponding grade pay/pay scale extended based on the recommendations of the Commission except where there has been merger of more than one pre-revised scale of pay into one grade with a common grade pay/pay scale, and where this benefit will extend only for the post(s) for which that grade pay/pay scale is the normal replacement grade without any upgradation."
3. It has been observed that after implementation of 7th CPC there are only a few cases of merger/upgradation of pay scale. However in cases where merger/ upgradation of pay is recommended in the 7th CPC and the same has been accepted, there is a need to provide a Note on similar lines as above with relevant changes i.e. the date 1.1.2006 needs to be replaced with 1.1.2016 and "6th CPC" is to be replaced with "7th CPC". In other cases the Note as referred above need not to be prescribed in the RRs/SRs where no merger/ upgradation are involved as per 7th CPC recommendations.

(G. Jayanthi)
Director (E-I)
To
All Ministries / Departments of Government of India

Source: 7th CPC Ordes 2017
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The Central Government releases Special Central Assistance to various States to expedite their completion of area specific ongoing approved Schemes in order to fulfill the development agenda in Backward Region

The Central Government releases Special Central Assistance to various States to expedite their completion of area specific ongoing approved Schemes in order to fulfill the development agenda in Backward Region

The Union Government has been assisting the State Governments and providing “Special Assistance” with a view to expediting their completion of area specific Schemes.  This assistance is provided in view of the Government of India’s commitment to fulfilling the development agenda in backward region notwithstanding the fact that the State Plan Schemes including BRGF (State Component) are subsumed in larger devolution of Union Taxes and Duties to the States in terms of Recommendations of the 14th Finance Commission (FFC) and are delinked from the Union support with effect from 2015-16.

            In this regard, following the recent release of Rs.200 crore to the State of Bihar, the Central Government has decided to provide further “Special Assistance” of Rs.1129.40 crore to the State during 2016-2017 for completion of the approved ongoing projects under Special Plan for Bihar. These releases are in continuation to the release of Rs.1,887.53 crore which was made by the Central Government during the year 2015-16.  Including the present release of Rs.1129.40 crore, the Central Government has so far released Rs.6934.61 crore to the State of Bihar. The Central assistance would facilitate completion of ongoing projects such as strengthening of sub-transmission system (including capacity augmentation) in North and South Bihar, renovation and modernization of Barauni and Muzaffarpur Thermal Power Stations, construction of transmission system at Kishanganj with associated transmission lines, The release of fund would accelerate the completion of much needed power generation and transmission system of Bihar which in turn would lead to higher availability of electricity for the people of the State.

            The Central Government in order to honour its spill-over committed liability had recently released Special Assistance of Rs.367.93 crore to Odisha during 2016-17. This is the Final Instalment for funding of projects under Special Plan for the KBK districts (districts of Koraput, Bolangir and Kalahandi reorganized into eight districts). The plan had an approved amount of Rs. 1,250 crore for the 12th Plan period. The Special Plan for the KBK districts has been in operation since 2002-03. The area spreads over 47,646 sq. km. comprising mainly rural population (89.95%) with a large proportion of STs (38.41%) and SCs (16.25%) as per 2001 Census. The Schemes taken up under this are  largely for Promotion of Education among ST/SC Girls and Boys including development of playgrounds/sports activities in hostels and schools, Improvement of Inter- District roads/other major roads/Rural roads; Strengthening of Electric Supply Systems and Lift Irrigation/Deep Bore-wells/Check Dams.

            Further, keeping in mind the special needs of the State of Jammu & Kashmir, the Central Government had released Rs.1194.37 crore during 2015-16, for completely damages /severely damaged/partially damaged houses. Subsequently, during 2016-17, the Central Government has made a further release of Rs.2207.30 crore to the State of Jammu & Kashmir. This includes Rs.1093.34 for permanent restoration of damaged structure, Rs.313.96 crore for counterpart funding for Asian Development Bank-II loan under EAP projects of J&K Urban Sector Development Investment Programme (JKUSDIP) in order to complete the ongoing projects and Rs.800 crore for interest subvention on assistance for the restoration of livelihood for traders/self employed/business establishments etc. Cumulatively, the Central Government has so far released Rs.3401.67 crore to the State as Special Assistance.

            Similarly, the Central Government has used the Special Assistance to support the newly formed States Of Andhra Pradesh and Telangana. A further release of Rs.1,976.50 crore to the State Of Andhra Pradesh was made during the Current Financial Year 2016-17. The amount included Rs.1176.50 for bridging the Resource Gap arising-out of the bifurcation of the erstwhile State, Rs.350 crore for the development of 7 Backward Districts of Anantpur, Chittoor, Cuddapah, Kurnool, Srikakulam, Vizianagram, and Vishakhapatnam and Rs.450 crore as assistance to the capital city, Amaravati. These additional resources from the Central Government would enable the State to devise and implement schemes best suited for mitigation of backwardness and alleviation of poverty. In addition, grant of Rs.100 crore was released for Polavaram Irrigation Project. Further, release of Rs.1981.54 crore was made to the state through NABARD on 27.12.2016 as Central assistance for Polavaram Irrigation Project by the Ministry of Water Resources, River Development & Ganga Rejuvenation MoWR, RD & GR.

            Further, in keeping with its commitments to support the development of backward areas of Telangana, the Central Government had provided a further “Special Assistance” of Rs.450 crore to the state.  The Backward Districts which are being supported with this development fund are Adilabad, Nizamabad, Karimnagar, Warangal, Medak, Mahbubnagar, Rangareddy, Nalgoda and Khammam where the work of creating road network has been taken-up.

            The State of Tamil Nadu has also been a beneficiary of this Special Assistance. An amount of Rs. 200 crore was released to the state to resolve the issues affecting processing industry in Tirupur (Tamil Nadu), for adoption of Zero Liquid Discharge by 18 Common Effluent Treatment Plants (CETPs). This provision will help the industries to minimize pollution and it will be a step towards clean environment.

PIB
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NPS Committee Meeting to be held on 20.1.2017 - NC JCM Staff Side


NPS Committee Meeting to be held on 20.1.2017 - NC JCM Staff Side

Meeting of the Committee constituted to suggest measures for streamlining the implementation for the National Pension System for Central Government employees

No.57/1/2016-P&PW(B)
Government of India
Ministry of Personnel,Public Grievances & Pensions
Department of Pension & Pensioners Welfare

3rd Floor, Lok Nayak Bhavan, Khan Market,
New Delhi-110003, Dated the 16th January, 2017
To,
(1) The Secretary,
National Conucil (Staff Side).
JCM for Central Government Employees,
13C, Finrozshah Road,
New Delhi-110001

(2) Shri Snjay Bhoosreddy,
Honoary Secretary,
Indian Civil & Administration Service (Central) Association,
190A, F Wing,
Krishi Bhawan, New Delhi - 110001,
(email-secylasca@gmail.com)

(3) Shri P.V.Rama Sastry, IPS,
Secretary/JS(Department of Consumer Affairs),
Krish Bhawan, New Delhi-110001,
(email-pvrastry@gmail.com)

Subject: Meeting of the Committee constituted to suggest measures for streamlining the implementation for the National Pension System for Central Government employees - reg.

Sir,
I am directed to say that a Committee under the Chairmanship of Secretary (Pension) has been constituted to suggest measures for streamlining the implementation of the National Pension System.

2. A meeting of the Committee with the JCM (Staff Side) and a few other Association is proposed to be held on 20.01.2017 at 11.00 a.m. at Conference Hall, 5th floor, Sardar Patel Bhawan, New Delhi. The members nominated to atted the said meeting should be well versed with the issue and include a fair mix of NPS beneficiaries.

3. In view of the paucity of time, Associations are requested to limit their presentation to not more than 20 minutes each.

4. This Department looks forward to your participation in the meeting.
Yours faithfully,
sd/-
Director(Pension Policy)
harjit.singh59@nic.in
Source: www.ncjsmstaffside.com
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Digital payment promotion gets a boost


Digital payment promotion gets a boost

More than 3.81 lakh consumers and 21,000 merchants win prizes worth Rs.60.90 crore at Digi-Dhan Melas

The Government’s efforts to give a boost to the digital payment systems and the cashless economy, post-demonetization have generated enthusiastic response from the people. People from different age groups, occupations and different walks of life have taken part in a big way in the Lucky Grahak Yojana and Digi-dhan Vyapar Yojana giving a fillip to digital transactions.     

More than 3.81 lakh consumers and 21,000 merchants have been declared the winners of prize money worth Rs.60.90 crore at 24 Digi-Dhan Melas across the country.   Giving the details, the Union Minister Law & Justice, Electronics and Information Technology Shri Ravi Shankar Prasad said that the Common Service Centres under the Deptt. of Electronics and Information Technology have trained 1.94 crore citizens and 5.93 lakh merchants so far for carrying out transactions through digital payment systems.

The prize money worth Rs. 60.90 crore to over 3.81 lakh winners of NITI Aayogs’s lucky draw schemes ‘Lucky Grahak Yojana, LGY’  for consumers and ‘Digi-Dhan Vyapar Yojana, DVY’ for merchants has been declared at 24 Digi- Dhan Melas across the country – daily as well as weekly.   The lucky winners include 24 year old Ashutosh Mishra, a mobile shop owner in Rampur, Odisha, 24 year old Jadhav Amit Anil from Ghatkopar, Mumbai, 27 year old Mangesh Anantrao Jadhav from Nasik, 42 year old Suman Sapra from Ulsoor, Bengaluru, Tripta Devi, a 54 year old housekeeper from Andhra Pradesh, among others.  The list includes winners from different walks of life including the small farmers, Anganwadi workers, housewives, labourers, etc.

Data analytics provided by the National Payments Corporation of India (NPCI) has highlighted a positive response among the people to adopt digital payments.  Maharashtra, Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Karnataka have emerged as the top 5 states with maximum number of winners.  Active participation has been seen among men and women while most of the winners were in the age group of 21-30 years.

The two schemes were launched on December 25, 2016 and shall remain open till April 14, 2017.  The schemes are aimed at incentivizing the consumers and the merchants to promote digital payments.  15,000 daily winners vie for total prize money of Rs. 1.5 crore at the rate of Rs.1000 per person.  Besides, over 14,000 winners qualify for weekly draws with the total prize money of over Rs. 8.3 crore per week.

Customers and merchants using RuPay Card, BHIM, UPI (Bharat Interface for Money/Unified Payment Interface) USSD based *99# service and Aadhaar enabled Payment Service (AePS) are eligible for participating in the daily and weekly lucky draws.

These lucky draws are being held at Digi-Dhan Melas across the country.  Over 100 Digi-Dhan Melas will be held across the country to inculcate digital payment among the people.  Till date, 24 Digi-Dhan Melas have been held across the country since 25th December, 2016.  These include New Delhi, Gurugram, Ludhiana, Panaji, Dehradun, Lucknow, Ranchi, Raipur, Mumbai, Meerut, Haldwani, Amritsar, Pune, Patna, Vijayawada, Chandigarh, Guwahati, Kochi, Bilaspur, Bokaro, Dadra & Nagar Haveli, Bengaluru, Jammu and Hyderabad. The exercise has covered so far 12 states and 3 Union territories. By 1st February, the exercise will have covered the cities from 21 States and 4 UTs. The upcoming Digi-Dhan Melas are scheduled to be held as per the following schedule:-


Table - List of cities for Lucky Grahak Scheme draws till February 1, 2017.

Digital-payment-promotion


Background:

Lucky Grahak Yojana and Digi-Dhan Vyapar Yojana awards were launched in New Delhi on December 25, 2016 by Union Minister of Finance and Corporate Affairs, Arun Jaitley and Union Minister of Electronics & Information Technology and Law & Justice, Ravi Shankar Prasad to incentivize digital payments. The lucky draws have been planned at over 100 Digidhan Melas spread across the country in 100 different cities till April 14, 2017. The highlights of the Schemes are as follows :

  •  All transactions done by consumers and merchants from November 9, 2016 till April 14, 2017 will be eligible for winning prize under the scheme.
  •  All such transactions irrespective of the fact whether it has won daily / weekly prize, will be eligible for Mega Draw to be conducted on April 14, 2017.
  • Three Mega prizes for consumers worth Rs. 1 crore, Rs 50 lakh and Rs 25 lakh.
  •  For merchants too, there would be three mega prizes worth Rs. 50 lakh, Rs. 25 lakh and Rs. 12 lakh.
  • The draw of winners are presented at different centres on each day by the senior officials of NPCI in the presence of senior minister from GoI, representatives of NITI Aayog and general public.
  • Schemes have total outlay of Rs. 340 crore of which - Rs. 300 crores would be spent on consumers and merchants while the remaining Rs. 40 crore on awareness and publicity.
  • Total winners under the scheme are expected to be over 18.75 lakh.

PIB
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Cabinet approves the exclusion of States from the investments of National Small Savings Fund from 1.4.2016


Cabinet approves the exclusion of States from the investments of National Small Savings Fund from 1.4.2016

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval to exclude State Governments States/UTs (with Legislature) except Arunachal Pradesh, Delhi, Kerala and Madhya Pradesh from National Small Savings Fund (NSSF) investments from 01.04.2016. It also approved providing a one-time loan of Rs. 45,000 crore from NSSF to Food Corporation of India (FCI) to meet its food subsidy requirements.

The details are as under:-
a) Exclusion of States/UTs (with Legislature) excepting Arunachal Pradesh, Kerala, Madhya Pradesh and Delhi from NSSF Investments. Arunachal Pradesh shall be given loans to the tune of 100% of NSSF collections within its territory, whereas Delhi, Kerala and Madhya Pradesh shall be provided 50% of collections.

b) Servicing of interest and principal of debt extended to FCI through the budget line of Department of Food and Public Distribution. The repayment obligation of the FCI in respect of NSSF Loans would be treated as the first charge on the food subsidy released to the Food Corporation of India. In addition, FCI shall reduce the amount of its current Cash Credit Limit with the banking consortium to the extent of the NSSF loan amount.
c) NSSF in the future shall, with the approval of Finance Minister, invest on items the expenditure of which is ultimately borne by Government of India and the repayment of principal and interest thereto would be borne from the Union budget.
The States except Arunachal Pradesh, Delhi, Kerala and Madhya Pradesh shall be excluded from NSSF investments from 01.04.2016. A legally binding agreement will be signed between FCI, Department of Food and Public Distribution and Ministry of Finance on behalf of NSSF on the modalities for repayment of interest rate and principal and the restructuring of FCI debt will be made possible within 2-5 years.

Once states are excluded from NSSF investments, the investible funds of NSSF with Gol will increase. Increased availability of the NSSF loan to Gol may reduce the Gol's market borrowings. The States will however, see an increase in market borrowings. Any increase in yields due to an increased demand for loanable funds in the market from Centre and States combined would be marginal. The reduction of FCI's borrowing cost equivalent to the extent of the interest differential will be reflected in the Gol's savings on the Food Subsidy Bill.

Implementing the decision to exclude states from NSSF investments and extending the loan will entail no additional cost. Instead a reduction in the food subsidy bill of the Gol is anticipated.

Arunachal Pradesh, Delhi, Kerala and Madhya Pradesh will continue availing of NSSF loans, 26 other States and Puducherry who are eligible to borrow from the market have preferred to stop taking loans from the NSSF.

Background:

The Fourteenth Finance Commission (FFC) recommended that State Governments be excluded from the investment operations of the NSSF. The NSSF loans come at an extra cost to the State Government as the market rates are considerably lower. The Union Cabinet in its meeting held on 22nd February, 2015, accepted that this recommendation will be examined in due course in consultation with various stake holders. Barring Arunachal Pradesh, Delhi, Kerala and Madhya Pradesh, the other State Governments/UTs expressed a desire to be excluded from NSSF investments. The involvement of States which are excluded from operations of National Small Savings Fund with effect from 1.4.2016 would be limited solely to discharging the outstanding NSSF debt obligations as on 31.3.2016 (FFC Recommendation). The loan contracted by States till 31.3.2016, from the National Small Savings Fund will stand completely repaid by the Financial Year 2038-39.

NSSF shall extend a part of its collections to Food Corporation of India (FCI) to meet its food subsidy requirement. This will help the FCI reduce its interest cost. FCI presently takes working capital loans through Cash Credit Limit (CCL) at an interest rate of 10.01% and Short Term Loan (STL) at a weighted average interest rate of 9.40%, whereas the NSSF currently charges 8.8% p.a interest on its loans. This savings on interest rate outgo will reduce the food subsidy burden of the Government of India.
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Grant of Transport Allowance at double the normal rates to deaf and dumb employees of Central Government

Grant of Transport Allowance at double the normal rates to deaf and dumb employees of Central Government
No.20/2/2016-E-11(B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi. Dated:17.01.2017

OFFICE MEMORANDUM

Subject: Grant of Transport Allowance at double the normal rates to deaf and dumb employees of Central Government.

In supersession of this Department 0.M.No.21(2)/2011-E-11(B) dated 19.02.2014 regarding admissibility of Transport Allowance at double the normal rates to employees who are deaf and dumb, the undersigned is directed to say that the matter has been re-examined and it has been decided with the approval of Competent Authority that Transport Allowance at double the normal rates is admissible to Hearing Impaired employees also in addition to employees who are both deaf and dumb.

2. Transport Allowance at double the normal rates would be admissible to the 'Hearing Impaired employees having loss of sixty decibels or more in the better ear in the conversation range of frequencies' as per Persons With Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995.

3. The admissibility of Transport Allowance at double the normal rates to above categories of employees is subject to recommendation of the Head of ENT Department of a Government Civil Hospital and fulfilment of other conditions applicable in respect of other disabilities mentioned in D/o Expenditure’s O.M. No. 19029/1/78-E-IV (B) dated 31st August, 1978 read with 0.M.No.21(2)/2008-E.11(B) dated 29.08.2008.

4. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, this order issues in consultation with the Comptroller And Auditor General of India.

5. These orders would be effective from 19.02.2014.

6. Hindi version is attached.
(Nirmala Dev)
Deputy Secretary (EG)
Telefax. 23093276
Transport Allowance Order
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Salaried peoples expectations from Budget 2017-18


Salaried peoples expectations from Budget 2017-18

New Delhi: Finance Minister Arun Jaitley unveils the budget on 1 February. The salaried class has a lot of expectations from the Budget. Increase in the personal income tax exemption limit and a higher deduction limit on home loan interest are among the common ones, say analysts.

The following salaried people's expectations from FM Jaitley’s Budget 2017-18:

1. Raise minimum limit for taxable income

Considering the increase in cost of living, the current basic exemption limit of 2.5 lakh should be raised to Rs. 3 lakh. If the minimum limit is increased, it will not only benefit taxpayers at the bottom but also salaried class youth who are starting out as employees.

2. Change in tax slabs

A Change in of tax slabs will be a big balm for the salaried class. Currently, 10 per cent tax is charged on annual income of Rs 2.5 lakh to Rs 5 lakh, 20 per cent on Rs 5 lakh to Rs 10 lakh and 30 per cent on income above Rs 10 lakh. The first two slabs can be widened or taxed at a lower rate.

3. Raise exemption limit on allowances

Salaried employees enjoy exemption from tax on several allowances/benefits that the employer provides such as children's education, conveyance, medical reimbursement, house rent and leave travel. The allowance limits were fixed a long time ago and need to be revised in view of inflation.

4. Increase deduction under Section 80C

Currently, deduction under Section 80C of the Income-tax Act is allowed from Rs 150,000 to Rs 300,000. If Jaitley increases the limit, he can boost household savings which can ultimately get invested and power growth.

5. Bring back deduction on infrastructure bonds

The government may reintroduce deduction of Rs 20,000 or actual amount invested, whichever is lower, for investments made in infrastructure bonds. This will also boost spending, spur growth and create more jobs.

6. Offer more incentives for NPS investment

Jaitley can offer more incentives for taxpayers to invest in the National Pension System (NPS). He can increase the deduction under Section 80CCD (1B) to Rs 100,000 from the existing Rs 50,000. He can also being NPS on par with the Employees Provident Fund or Public Provident Fund with respect to exemption of 100 per cent of the accumulated balance on withdrawal, subject to certain conditions.

7. Offer interest subvention on home loans

Prime Minister Narendra Modi has already offered interest subvention of 3 per cent and 4 per cent for loans of up to Rs 12 lakh and Rs 9 lakh, respectively, under the Pradhan Mantri Awas Yojana. However, these subventions are targeted at buyers in Tier 3 cities. Budget 2017 has scope of offering interest subvention on larger amounts of loan which will benefit buyers in big cities and other urban areas.

8. Allow higher deduction on home loan EMIs

Currently, the deduction available on interest on home loan is up to Rs 2,00,000. The deduction can be claimed on the principal repayment for up to Rs 1.50 lakh. There is a large scope in both cases to raise the deduction limits.

9. Allow early deduction on home loan EMIs

Deduction for interest on home loan is currently available only after the buyer gets the possession of the property. This means the benefit begins several years after the buyer gets the home loan and begins paying the EMIs. This deduction can be given right from the payment of the first EMI.

10. Raise exemption limit for senior citizens

The existing exemption limit of Rs 300,000 for senior citizens (60 years to less than 80 years) and Rs 500,000 for super senior citizens (80 years and above) could be enhanced to Rs 400,000 and Rs 600,000 respectively.

TST
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GST: Service tax likely to be hiked to 18 percent this budget


GST: Service tax likely to be hiked to 18 percent this budget

New Delhi: Most services are likely to attract a tax of 18 percent under the Goods and Services Tax (GST) as Union Finance Minister Arun Jaitley presents the Union Budget on February 1.

It will be interesting to witness whether the Centre raises the service tax rate from the existing 15 percent by at least one percentage point to 16 percent as a precursor to the rollout of GST.
However, the Centre and states have agreed to rollout GST from July 1, 2017, after which most services will turn costlier.

Also, a higher service tax, even for three months, will help the Centre partially offset the revenue loss after the GST kicks in, sources indicated.

Under GST, the service tax collections will be divided equally between the Centre and the states. A service tax closer to the GST rate will also help consumers avoid a greater price shock after the new system is rolled out.

Jaitley-headed GST Council has agreed on a four-slab structure -5, 12, 18 and 28 percent-along with a cess on luxury and 'sin' goods such as tobacco.

Within these, two standard rates of 12 percent and 18 percent could extend to a majority of the taxable goods.

ANI
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CBDT issues clarification on indirect transfer provision under the IT Act, 1961

CBDT issues clarification on indirect transfer provision under the IT Act, 1961

New Delhi: The Central Board of Direct Taxation (CBDT) on Wednesday issued clarification on Indirect Transfer provisions in respect to circular no. 41/2016, which was issued on December 21, 2016.

After the issue of the aforementioned circular, representations have been received from various FPIs, FIIs, VCFs and other stakeholders.

The stakeholders have presented their concerns stating that the circular does not address the issue of possible multiple taxation of the same income.

The representations made by the stakeholders are currently under consideration and examination.
Pending a decision in the matter the operation of the above mentioned circular is kept in abeyance fourth time being.

ANI
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Delhi Commission for Women notice to DoPT over blind woman's appointment cancellation


Delhi Commission for Women notice to DoPT over blind woman's appointment cancellation

New Delhi: Delhi Commission for Women (DCW) today issued notice to Department of Personnel and Training (DoPT) in connection with a complaint by a blind women alleging cancellation of appointment in Ministry of Railway due to her disability.

The woman who qualified the civil services examination in 2015 has alleged that she was initially allotted Indian Railways Accounts Service.

The woman claimed her appointment was cancelled because of her blindness and later when she excessively followed it up with DoPT, she was reallocated Postal and Telecommunication, Accounts and Finance Service.

"While she was allocated the IRAS service as per her rank in CSE-2015, her appointment was cancelled by the Ministry of Railways. She has further alleged that after several weeks of follow-ups she has now been allocated IP and TAF service which is in contravention of her rank, merit and preference of service," DCW Chief Swati Maliwal said in the notice issued to DoPT Secretary BP Sharma.

"It is evident that the lady has already undergone a great deal of struggle and after painstaking efforts has cleared the civil services examination. Crucial time of training and foundation course has been wasted due to systemic delays. Therefore, it is necessary that immediate action is taken to rectify the same," the notice further read.

The commission has sought within a week's time the factual report of the woman’s candidature, reasons for rejection of IRAS service initially allocated to her and the proposed action plan of the DoPT to resolve the issue and compensate the loss of time to the candidate.

PTI
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