7th PAY COMMISSION NEWS - CENTRAL GOVERNMENT EMPLOYEES NEWS

Income Tax Exemption Limit Raised by Rs.50,000 – Does it meet the Central Government employees’ expectations? Finance Minister Arun Jaitley announced that the Income Tax exemption limit for individual taxpayers, below the age of 60 years has been raised from Rs. 2 lakhs to Rs. 2.5 lakhs. The General Budget 2014-15 presented by the Union Finance Minister Shri Arun Jaitley on 10th this month, most Central Government employees were hoping that the Income Tax exemption limit for salaried pupil would be raised to atleast Rs 3 lakhs this time. But the Finance Minister delivered a shock and disappointment to everyone with an increase of a mere Rs. 50,000.

Personal Income Tax Exemption Limit and 80C limit also raised by Rs. 50,000 Personal Tax Exemption Limit Raised by Rs. 50,000/- ; No Change in the Rate of Surcharge; 15% Investment Allowance to Manufacturing Companies, to Incentivize Small Entrepreneurs and Income from Foreign Portfolio Investors to be Treated as Capital Gains. Press Information Bureau Government of India Ministry of Finance 10-July-2014 14:40 IST Personal Tax Exemption Limit Raised by Rs. 50,000/- ; No Change in the Rate of Surcharge; 15% Investment Allowance to Manufacturing Companies, to Incentivize Small Entrepreneurs and Income from Foreign Portfolio Investors to be Treated as Capital Gains. The General Budget 2014-15 presented by the Union Finance Minister Shri Arun Jaitley has raised the personal income-tax exemption limit by Rs. 50,000/- that is, from Rs. 2 lakh to Rs. 2.5 lakh in the case of individual taxpayers, below the age of 60 years. Exemption limit raised from Rs. 2.5 lakh to Rs. 3 lakh in the ca...

Union Budget 2014-15 : Income Tax exemption limit raised to Rs.2.5 lakh and also raised to Rs 1.5 lakh under Section 80C Income Tax exemption limit raised to Rs.2.5 lakh and also raised to Rs 1.5 lakh under Section 80C Some relief to individual and salary tax payers, Finance Minister Arun Jaitley presenting Union Budget 2014-15 today in Parliament, raised individual tax exemption limit to Rs.2.5.lakh from current Rs.2 lakh.

Income Tax exemption limit should be raised to Rs 5 Lakh: Arun Jaitley Arun Jaitley, one of BJP’s prominent leaders says that raising income tax slab to Rs 5 lakh will benefit more than thirty million people in the country. He also added that direct tax should be reduced, If the Income Tax limit is raised from Rs. 2 lakh to Rs. 5 lakh, 3 crore people will save Rs. 24 crore which will lead to a small impact of 1 to 1.5 per cent of the National Tax Fund. All 100% of the Government employees pay taxes without fail, all the time. There is no doubt about it.

Proposed Direct Taxes Code 2013 The Finance Minister, in his speech on Interim Budget 2014-15, made the following observation on Direct Taxes Code (DTC):- "Revenues are of paramount importance. The best source of revenue is taxes and for that we need modern tax laws. I am disappointed that we have not yet been able to introduce GST. I leave it to you to answer the question, who blocked the GST when an agreement on the game-changing tax reform was around the corner? We have also got ready a Direct Taxes Code that will serve us for at least the next twenty years. I intend to place it on the website for a public discussion without partisanship or acrimony. I appeal to all political parties to resolve to pass the GST laws and the DTC in 2014-15." Accordingly, the DTC, 2013 along with DTC Bill, 2010 is placed on http://incometaxindia.gov.in. A write-up on the significant changes in the proposed DTC, 2013 is also placed on the website. The report of the Standing Committee on Fina...

Save Income Tax on the Contribution made by Government in pension fund of NPS Subscribers... Save Income Tax on the Contribution made by Government in pension fund of NPS Subscriber, Refer 5.5.3 Deduction in respect of contribution to pension scheme of Central Government (Section 80CCD). 5.5.3 Deduction in respect of contribution to pension scheme of Central Government (Section 80CCD): Section 80CCD(1) allows an employee, being an individual employed by the Central Government or any other employer, on or after the 01.01.2004, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified vide Notification F. N. 5/7/2003- ECB&PR dated 22.12.2003 or as may be notifed by the Central Government. However, the deduction shall not exceed an amount equal to 10% of his salary(includes Dearness Allowance but excludes all other allowance and perquisites). As per Section 80CCD(2), where an employee receives any contribution in the said p...

RATES OF INCOME-TAX AS PER FINANCE ACT, 2013 As per the Finance Act, 2013, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head "Salaries" for the financial year 2013-14 (i.e. Assessment Year 2014-15) at the following rates: 2.1 Rates of tax A. Normal Rates of tax: S. No Total Income Rate of tax 1 Where the total income does not exceed Rs. 2,00,000/-. Nil 2 Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000/- 10 per cent of the amount by which the total income exceeds Rs. 2,00,000/- 3 Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-. 4 Where the total income exceeds Rs. 10,00,000/-. Rs. 1,30,000/- plus 30 Per cent of the amount by which the total income exceeds Rs. 10,00,000/- B. Rates of tax for every individual, resident in India, who is o...

Government of India Ministry of Finance Department of Economic Affairs New Delhi, Dated August 16, 2013 NOTIFICATION 8% Savings (Taxable) Bonds, 2003 No. F. 4(10)-W&M/2003: The Government of India hereby notifies that the following corrections shall be made in the last Paragraph of the Notification dated July 29, 2013, issued for incorporating amendments regarding the provision for premature encashment for eligible investors. “Thus the effective date of premature encashment for eligible investors will be 1st August and 1st February every year”. The other terms and conditions of the Notification dated July 29, 2013 shall remain unchanged. By Order of the President of India (Dr. Rajat Bhargava) Joint Secretary to the Government of India Government of India Ministry of Finance Department of Economic Affairs New Delhi, Dated July 29, 2013 NOTIFICATION 8% Savings (Taxable) Bonds, 2003 No. F.4(10)-W&M/2003: The Government of India hereby notifies that Paragraph 16 (Rep...

Government of India Ministry of Finance Department of Economic Affairs New Delhi, Dated August 16, 2013 NOTIFICATION 8% Savings (Taxable) Bonds, 2003 No. F. 4(10)-W&M/2003: The Government of India hereby notifies that the following corrections shall be made in the last Paragraph of the Notification dated July 29, 2013, issued for incorporating amendments regarding the provision for premature encashment for eligible investors. “Thus the effective date of premature encashment for eligible investors will be 1st August and 1st February every year”. The other terms and conditions of the Notification dated July 29, 2013 shall remain unchanged. By Order of the President of India (Dr. Rajat Bhargava) Joint Secretary to the Government of India

Extension of due date for filing of Returns of Income from 31.07.2013 to 05.08.2013 F.No. 225/117/2013/ITA.II Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes North-Block, ITA.II Division New Delhi, the 31st of July, 2013 Order under Section 119 of the Income-tax Act. 1961 The Central Board of Direct Taxes, in exercise of powers conferred under section 119 of the Income-tax Act, 1961, hereby extends the ‘due-date’ for filing Returns of Income from 31st July, 2013 to 5th August, 2013. sd/- (Rohit Garg) Deputy-Secretary to Government of India Source: www.incometaxindia.gov.in [http://incometaxindia.gov.in/archive/BreakingNews_Extension_for_filing_of_Returns_of_Income_31072013.pdf]

Cadre Restructuring of Income Tax Department - DPCs for filling up of vacancies in various posts are likely to be held shortly F.No.A-32011/5/2013-DT/Per Govt. of India Ministry of Finance Department of Revenue (CBDT) North Block, New Delhi Date 12-07-2013 To All Chief Commissioners of Income Tax (CCAs). Subject : Cadre Restructuring of Income Tax Department - regarding. Madam / Sir, I am directed to refer to the above cited subject and to state that as you are aware that consequent upon the approval of the Cabinet for additional manpower for Income Tax Department. DPCs for filling up of vacancies in various posts are likely to be held shortly.  It is therefore requested that appropriate actions towards completion of ACR dossiers of the officers under your charge, who may fall under zone of considerations for promotion to the next higher grades, may please be taken up on priority. Besides, officer concerned may also please be advised to ensure that their ACR dossiers are co...

Cadre Review Notification issued - Additional 1349 ACIT posts to be filled in 5 Years span F.No.A- 11013/1/2013-Ad.VII Government of India/Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, 31st May, 2013 All the Chief Commissioners of Income-tax All the Directors General of Income-tax Subject : Additional Manpower for the Income Tax Department.  Sir/Madam, I am directed to state that the Government has approved, as per decision taken in Cabinet Meeting held on 23rd May, 2013 (Minutes issued on 27th May, 2013), additional manpower for the Income Tax Department in various cadres as per Annex A of this communication. These posts are created in addition to the existing posts as per restructuring of the Department vide F.No.A-11013/3/98-Ad.VII dated 24th October, 2000 and 7051 additional posts created vide order F.No.A-11013/3/2006-Ad.VII dated 20.11.2006. 2. All the additional posts at different levels as per Annex A stand created with effect ...

Withholding of Income Tax Refund A detailed written reply has been submitted in the Parliament by the Finance Minister on 22nd March, 2013 to a question regarding the withholding of IT Refund as follows... There is no withholding of Income Tax refunds by the Government. Refunds arise mainly on account of processing of Return of Income (ROI) or on account of giving effect to the appellate orders. ROI can be processed up to one year from the end of the financial year in which Return is received, and the refund so generated, is issued in due course. Also, the refunds arising as a result of giving effect to appellate orders are issued after due verification of the same. Various steps taken by the Government to expedite refunds are as under: i) Promoting e-filing of the returns for speedy processing. ii) Centralized Processing Centre (CPC) at Bengaluru has been set up to process e-returns of the entire country. iii) To expedite faster issue, dispatch and delivery of refunds, issuance...

Central Government Employees News : List of popular websites among the employees of working in Central Government... We have compiled interestingly to the best of our knowledge, a short list of most popular websites, which are all visited frequently by the employees working in Central Government services. The list includes Government Portals, Private websites and Individual Blogs. Internet is the most powerful tool of information and growing big with every passing day. In recent years, Central Government employees are surfing the internet in search of the current news and orders about their service matters also is gradually increasing. Because of this, lot of websites and blogs are created to update the latest news and orders for the working groups. Most popular websites are given below… Government Portals : Department of Personnel and Training Central Government Health Scheme Finance Ministry Income Tax Kendriya Vidyalaya Sangathan Directorate of Estates Ministry of ...

Income Tax Refund Status - Check your status through online... 'Refund Banker Scheme' - Check your Income Tax Refund status through online The Income Tax Department has already introduced the provision to know the status of Income Tax Refund through online. As shown in the official website of TIN-NSDL you can verify the status of refund for the assessment year 2003-04 to 2013-14. Taxpayers can view status of refund 10 days after their refund has been sent by the Assessing Officer to the Refund Banker - by entering 'PAN' and 'Assessment Year' in the prescribed place of the webpage. The details are given for recollecting the information... Tax Information Network of Income Tax Department REFUND STATUS Refund Banker The 'Refund Banker Scheme,' which commenced from 24th Jan 2007, is now operational for taxpayers assessed all over India (except at Large Taxpayer Units) and for returns processed at CPC (Centralized Processing Centre) of the Income Tax De...

Income Tax Refund : Interest on Income Tax refund amount due to delay The below information was said in a written reply to a question about interest paid on income tax refund amount due to delay in Lok Sabha by the Minister of State for Finance Shri.S.S.Palanimanickam on 1st March, 2013 as follows... The Income Tax Act 1961, stipulates that refund to a taxpayer shall include interest on excess collection of taxes, as under: i.    In case of processing of the return of income: From 1st April of the Assessment Year to the date of processing of return, and ii.    In case of giving effect to appellate orders etc: From the date/s of payment of excess tax to the date of giving effect to the appellate order. It is hence submitted that payment of interest on refund is not on account of delay in issuance of refunds but is a statutory obligation arising on account of provisions inbuilt in the law itself. The amount of funds spent on payment of interest on exce...

Interest on Excess Tax  - Interest on IT Refund The Income Tax Act 1961, stipulates that refund to a taxpayer shall include interest on excess collection of taxes, as under: i.In case of processing of the return of income: From 1st April of the Assessment Year to the date of processing of return, and ii.In case of giving effect to appellate orders etc: From the date/s of payment of excess tax to the date of giving effect to the appellate order. It is hence submitted that payment of interest on refund is not on account of delay in issuance of refunds but is a statutory obligation arising on account of provisions inbuilt in the law itself. The amount of funds spent on payment of interest on excess tax in past three years is tabulated as under: Financial Year Interest paid on refund (in Rs. Crores) 2009-10 6876 2010-11 10499 2011-12 6486 2012-13 Not Available The outgo towards interest on refunds is treated as “reduction from gross tax collections” an...