7th PAY COMMISSION NEWS - CENTRAL GOVERNMENT EMPLOYEES NEWS

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.

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...

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]

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...