Dearness Allow. 107% Payment to CG Employee w.e.f. 01.07.2014 - Memorandum

Ministry o Finance has been issued a office memorandum regarding revised rates of payment of dearness allowance to Central Government Employees i.e. 107% w.e.f. 01.07.2014 which is as under :

F.No.1/2/2014-E.II (B)
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated: 18th September, 2014.


Subject:- Payment of Dearness Allowance to Central Government employees – Revised Rates effective from 01.07.2014.

The undersigned is directed to refer to this Ministry’s Office Memorandum No.1/1/2014-E.II(B) dated 27th March, 2014 on the subject mentioned above and to say that the President is pleased to decide that the Deamess Allowance payable to Central Government employees shall be enhanced from the existing rate of 100% to 107% with effect from 1st July, 2014.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M. No. 1(3)/2008-E.II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness Allowance payable under these orders shall be paid in cash to all Central Government employees.

4. These orders shall also apply to the civilian employees paid from the Defence Services Estimates and the expenditure will be chargeable to the relevant head of the Defence Services Estimates. In regard to Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and Ministry of Railways, respectively.

5. In so far as the employees working in the Indian Audit and Accounts Department are concerned, these orders are issued with the concurrence of the Comptroller and Auditor General of India.

(A. Bhattacharya)
Under Secretary to the Govt. of India


CBDT reconstitutes Dispute Resolution Penal at Bengaluru

CBDT has issued an order u/s. 144C of The Income-Tax Act, 1961 to reconstitutes Dispute Resolution Panel (DRP) at Bengaluru vide F.No. 500/12/2012-SO/FT&TR-2(1)/418 dated 17th September, 2014.

In this order CBDT has amended clause (a) of Sub-section (15) of section 144C of Income Tax Act, 1961 (43 of 1961) read with Income-Tax (Dispute Resolution Penal) Rules, 2009 from time to time and in superseasion of earlier.

Download Reconstitute DSP (Click Here)

Advance Tax Due Date Extended by 3 Months for Jammu & Kashmir State Taxpayers.

CBDT has published a Press Released on 18th September, 2014 for Date of payment of the September installment of advance tax is extended from 15th September 2014 to 15th December 2014 for the taxpayers in State of Jammu & Kashmir.

The Central Board of Direct Taxes has issued an order to extend the date for payment of second installment of advance tax for companies and first installment of advance tax for others for FY 2014 - 15 (AY 2015 - 16) from 15th September, 2014 to 15th December, 2014 in case of all the tax payers in the State of Jammu and Kashmir.  These taxpayers can now pay their September 2014 installment of advance tax by 15th December, 2014 without entailing any consequential interest for deferment.

Download Advance Tax Due Date Extended Circular (Click Here)

7th Pay Commission meetings held by various Departments as on 17.09.2014.

In a resolution dated 28th February, 2014, Government of India has appointed the Seventh Central Pay Commission comprising Justice Shri Ashok Kumar Mathur as Chairman, Shri Vivek Rae as full time Member, Dr. Ratin Roy as part time Member and Smt. Meena Agarwal as Secretary. The Commission is headquartered in Delhi and has been given 18 months from date of its constitution to make its recommendations. To this end the Commission will set up its team of Officers, Advisers, Institutional Consultants and Experts and call for required information and documents from Ministries and Departments of Government of India and various Service associations.

The dates of appointment and submission of recommendations of the previous six central pay commissions are as under-
Central Pay Commissions Date of Appointment Date of Submission of Report
First Pay Commission May, 1946 May, 1947
Second Pay Commission August, 1957 August, 1959
Third Pay Commission April, 1970 March, 1973
Fourth Pay Commission June, 1983 Three Reports submitted in June, 1986;
December, 1986 and May, 1987 respectively
Fifth Pay Commission April, 1994 January, 1997
Sixth Pay Commission October, 2006 March, 2008

Meetings held by 7th CPC (as on 17.09.2014)
Date Meeting with
17.09.2014 Aviation Research Centre
16.09.2014 RPF Group 'A' Officers, IIM Bangalore
15.09.2014 Disabled War Veterans (DISWAVE) Association, DG Bureau of Police Research and Development
26.08.2014 At Bangalore: IAS Officers' Association, IPS Officers' Association, IFS Officers' Association
25.08.2014 At Bangalore: IIM Bangalore, ISRO
24.08.2014 At Bangalore: Army Base Workshop (EME) Diploma Holders Association, Bangalore, Air Force Store Keepers Association, All India NCC Defence Civilian Employees Association, Confederation of Central Government Employees and Workers - Karnataka State, Atomic Energy Employees Federation, All India Central Excise Inspectors Association, The Indian Hospital Pharmacist Association, The Indian Railway Loco Pilot Association, South Western Railways Engineers Association, Railway Wheel Factory, South Western Railway Employees Sangh, All India DRDO Personal Staff Association, DoS Pensioners Forum, Central Government Pensioners Association, Indian Institute of Horticulture Research Employees’ Association, NIMHANS, Veterans Association
21.08.2014 Physiotherapy Forum; Indian Ordnance Factories Group'B' Gazetted Officers Association
20.08.2014 Commissioner, Kendriya Vidyalaya Sangathan; Commissioner, Navodaya Vidyalaya Sangathan
24.07.2014 Confederation of Central Government Gazetted Officers Association; National Ex-Servicemen Co-ordination Committee; Indian Ex-Services League
23.07.2014 Bharat Central Pensioners Federation; Bharat Pensioners Samaj; Group ‘B' Indian Information Service Association; Indian Postal Service Officers Association; DANICS Officers Association; Group ‘B' Indian Ordnance Gazetted Officers Association
22.07.2014 Police Commissioner, Delhi; DG Coast Guard; IOFS Officers Association
21.07.2014 Director, IB; Director, CBI; Director, RAW
19.06.2014 Indian Economic Service Officers Association; Indian Statistical Service Officers Association; IFS Officers Association; DGs of CAPFs (BSF+ITBP+Assam Rifles+Sashastra Seema Suraksha Bal); DGs of CAPFs (CISF+CRPF+NSC)
18.06.2014 IFS Officers Association; PFRDA; Officers of Department of Financial Services, MOF; Officers of Department of Pension & Pensioners Welfare; P&T Finance Accounts Gr.A Officers Association; IRAS Officers Association; Central Health Service Association
17.06.2014 IAS Officers' Association; Central Engineering Services Officers' Association (Water+Power+Architecture); Central Engineering Services Officers' Association (Civil+Electrical+Mechanical+Road Transport+Telecom); Income Tax Officers' Association; Custom Officers Association; Central Excise Officers Association
16.06.2014 IPS Officers' Association; Representative of Pay Commission cells of Army, Navy and Airforce; Indian Audit and Accounts Service Association; Cost Accounts Association; Civil Accounts Association; Federation of Railway Officers

7th Pay Commission's visit to Mussoorie/Dehradun.

The commission has, in its first phase of interaction, been seeking the views of various stakeholders on its terms of reference. To this end, meetings have been held in Delhi with various organisations and heads of various agencies.

In its second phase of interaction, the Commission has started holding meetings in different parts of the country to facilitate stakeholders staying in various areas to present their views personally before the Commission and ensure larger representation. This exercise is being undertaken to enable the Commission to get a first-hand impression about the functioning and the condition of service prevailing in different parts of the country.

Accordingly, the Commission, headed by its Chairman, Justice Shri A. K. Mathur, proposes to visit Mussoorie/Dehradun between 8th October and 10th October 2014. The Commission would like to invite various entities/associations/federations representing any/all categories of employees covered by the terms of Reference of the Commission to present their views.

Your request for a meeting with the Commission may be sent through e-mail to the Secretary, 7th Central Pay Commission at The memorandum already submitted by the requesting entity may also be sent as an attachment with this e-mail.

The last date for receiving request for meeting is 30th September, 2014 (1700 hours).

Souce : 7th Central Pay Commission

All about Conso File - FAQs

1. What is a conso file?

It is the consolidated data of the statements processed (regular & correction) for the relevant Financial Year, Quarter and Form Type.

2. Why is a conso file required?

While filing correction for a particular Financial Year, Quarter and Form Type, conso file provides details about all the previous corrections made in the relevant statement. This file gets updated each time a correction is filed for the particular Financial Year, Quarter and Form Type. Hence, each time a correction statement is to be filed for the given combination, a fresh conso file is required.

3. From which year is conso file available on TRACES?

Conso file is available on TRACES from FY 2007-08.

4. What would be the file extension for the consolidated file?

The file extension would be in “.tds” format.

5. How can I download conso file?

Login to TRACES as deductor and submit download request for the conso file under ‘Request for Conso File’ in ‘Statements / Payments’ tab. File will be available under ‘Requested Downloads’ in ‘Downloads’ tab.

6. Is it mandatory to download a conso file while filing correction statement?

Yes. It is mandatory, as it enables accuracy during correction filing.

7. What is the password for opening Conso file?

The password for opening Conso file will be your TAN_Request Number in capital letters.

8. I want to submit request to download the conso file, will system allow me to pass through validation screen without any challan and deductee detail?

Yes, you can download the conso file even if you have zero challan detail and no deductee record for the statement.

9. I have filed a paper return, and want to download the consolidated file for the same on TRACES. How should I proceed?

Conso file will not be available in case of paper return. Refer e–Tutorials for more details.

10. While entering validation details for submitting request to download conso file, I have entered details correctly in Part 1 and Part 2 of the validation screen, yet it shows error as ‘Invalid Details’ in Part 1 or Part 2. What should I do?

Details to be filled in validation screen should be exactly the same as reported in the TDS statement. If you have filed any correction statement, Token Number and other details should be as per the latest correction statement.

11. While entering validation details for submitting request to download conso file, I am getting an error, ‘More than one PAN in the challan’. What should I do?

In such case, CIN of that challan should be entered which has been claimed for at least two, three or more PANs.

12. While entering validation details for submitting request to download conso file, I am getting an error, ‘Invalid Token Number’. How do I rectify the error?

Enter Token Number for latest accepted statement (regular or correction) for the statement for which conso file is being requested.

13. While submitting request to download conso file, I am getting an error message that request has failed. What should I do?

In such cases, request for downloading conso file needs to be resubmitted.

Source: TRACES

Grow your Money with ELSS Mutual Funds & Save Tax.

There are various tax saving option which is suggested by our colleagues, chartered Accountants and Tax Experts, one of option which is investment in ELSS mutual fund. Equity Linked Savings Schemes (ELSS) offers an option to obtain tax benefits and an opportunity to harness the potential growth of investing in the equity market.

ELSS is a diversified equity fund which has lock in period of 3 years. ELSS is equity linked Saving scheme in which one can invest by opting option of systematic investment plan (SIP) i.e. by Investment fixed Amount every Month . This is option is viable person of high risk appetite.

ELSS invests a majority of its corpus in equity and equity related products. It comes with a lock in period of three years and is suitable for investors having a high risk profile. ELSS schemes are open ended, that is, investors can subscribe to the fund anytime.

What are Equity Linked Saving Scheme (ELSS) Mutual funds?
ELSS mutual funds in simple term are mutual fund schemes that invests 65% in equity related instruments that are notified to avail tax benefits. Investment in such ELSS MFs would provide tax benefit to investors u/s 80C, which is capped to a maximum of Rs 1 Lakh.

How do you benefit from ELSS Mutual funds?
There are various ways you would benefit from ELSS mutual funds.

Tax saving benefits

1) ELSS mutual funds help you to grow money: Since ELSS mutual funds invests in equity related instruments, these schemes would help you to grow your money when the stock market grows over a period of time.

2) Save tax u/s 80C up to Rs 1 Lakh: By investment in ELSS mutual funds, you are eligible for tax exemption up to Rs 1 Lakh u/s 80C. If you have not utilized 80C fully, this is a good opportunity to invest in ELSS funds.

3) Lock-in period of 3 years: ELSS mutual funds come with lock-in period of 3 years. Long term Capital gain arises on ELSS is exempt under section 10(38) because ELSS has lock in period of 3 years. Generally, investors would get tempted to take out the money from any investment option as soon as they get some good returns. They would not wait for long term to enjoy long term benefits. Since ELSS MF’s come with a 3 year lock-in period, you are forced to keep your investment for a minimum of 3 years. This would help you to grow your money that considers market fluctuations.

4) ELSS returns are tax free: If you observe, none of the returns from tax saving investment options other than PPF are tax free. NSC, Tax Saving Bank FD, Tax saving Post office TD scheme etc. all these tax saving option returns are taxable based on individual tax slab. However, interest in Public Provident Fund is tax free, but that comes with a 15 year lock-in period (apart from certain exemptions to withdraw in between). The only tax saving investment option that provides tax free returns for short period is ELSS Mutual funds. Since ELSS mutual funds invest in equity related instruments, these are classified under equity funds. Any returns received from equity funds after 1 year is tax free, hence ELSS funds which comes with a 3 year lock-in period, dividends/returns/capital gains from such funds are also tax free.

In nutshell all the Earnings from ELSS fund are not taxable, but at the same time one must take into consideration of market Risk attached   with these funds. 

On analyzing the above we can conclude that from  the point of view tax benefits  ELSS is better option for person who is ready to bear the risk  I e Risk takers . While at the same time combination   of ElSS & any one other tax saving option is also not bad option for person who is conservative on risk. Example by opting 60 percent in PPF, NSC & FD while 40 percent in ELSS one can at least one can secure principal Amount of RS 1 lakh.  

Returns of ELSS are depend upon the movement of market , so over long term prospect investing in ELSS is definitely good tool to avail tax benefits along the high returns and growth.  if the investor is willing to be risk appetite

Due Date for ITR filing extends to 30.11.14 for IT Assessees in J&K State for A. Y. 2014-15 - CBDT.

CBDT extends due date for filing of Income Tax Return by Two months i.e. from 30.09.2014 to 30.11.2014 for Income Tax Assessees in State of Jammu and Kashmir for Asstt. Year 2014-15.

The order issued u/s. 119 of the Income Tax Act, 1961 on 16th Sept., 2014 by considering the large scale devastation in the State of Jammu & Kashmir due to heavy rains and floods.

Download Due Date Extends order for J&K (Click Here)

Important points to remember for Revised Return u/s. 139(5) of Income Tax.

An assessee who is required to file a return of income is entitled to revise the return of income originally filed by him to make such amendments, additions or changes as may be found necessary by him. Such a revised return may be filed by the assessee at any time before the assessment is made. There is no limit under the income tax Act in respect of the number of time for which the return of income may be revised by the assessee. However, if a person deliberately files a false return he will be liable to be imprisoned under section 277 and the offence will not be condoned by filing a revised return.

As per section 139(5), the revised return can be filed before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier.  Thus return of A.Y 2011-12 can be revised till 31st March 2013 or before the completion of the assessment whichever is earlier.
Point to Remember :
  • Revise tax returns within one year from the end of the assessment year or before the assessment. For the financial year 2010-11 one can filed the revised return up to march 2013.
  • You can’t refile your return if income tax department already did the assessment of your return.
  • If you missed any deduction or income in the return you can refile it.
  • If some information come to your knowledge after filing the return you can refile it.
  • The receipt no. & the acknowledgement no. is must for the refiling of the return.
  • Revision is allowed only if the omission was unintentional. The benefit of Section 139 (5) cannot be claimed by a person who has filed fraudulent returns. Section 139 (5) will apply only to cases of ‘omission or wrong statements’ and not to cases of ‘concealment or false statements’. Once you revise returns, the original stands withdrawn. If the omission(s) in the original return is intentional, the assessee will be penalised
  • No need to pay interest u/s 234A if any tax due, but you have to pay 234B, 234C interest if due
  • you can only revise the return if the original one was filed on time. Belated returns cannot be revised
  • You can file a revised return only in case of ‘omission or wrong statements’ and not for ‘concealment or false statements’
  • Returns can be revised when filed pursuant to notice under Section 148  as it is provided u/s 148 that for such return all the provisions of section 139 shall apply.
  • You will have to cough up 100 to 300 per cent of tax due as penalty for concealing income
  • If the returns are revised before the notice under Section 148 is issued, then there is no penalty.
  • If income was hidden in the original return and is revised and disclosed after the assessing officer pursued it, then a penalty is levied. If the revised return shows a higher income than originally declared, a penalty may or may not be levied.
  • Revised returns have a higher chance of landing a scrutiny letter from the I-T department.
  • To file revised returns, one can use both the online and physical methods. However, you can revise returns online only if you have filed the original returns online and have the 15-digit acknowledgement number. You cannot, otherwise, file returns online. The I-T department searches for the original details once the returns are revised. On not finding the original return, an error is shown. Therefore, it may be wise to revise in physical form.
  • If the taxpayer has revised return after the survey and it was has found that the mistake in the original return was not bonafide then levy of penalty is justified.
  • If some income was concealed in the original return and revised return disclosing such  income is filed after the AO has unearthed such undisclosed income then penalty can be levied.
  • If the asseessee after the search filed the revised return declaring higher income than declared in original one, to buy peace of mind and to avoid litigation then penalty cannot be levied .
  • If the taxpayer has declared higher income in revised return of his own and there is nothing to prove that the taxpayer had concealed income malafidely then no penalty can be levied.
  • If the asseessee after the search filed the revised return declaring higher income than declared in original one, to buy peace of mind and to avoid litigation then penalty cannot be levied.
Text of Section 139(5)

    139(5) If any person, having furnished a return under sub-section (1), or in pursuance of a notice issued under sub-section (1) of section 142, discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier :..”


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