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Increase retirement age of government employees to 62.

On 21st March 2013, there was an unstarred question in Rajya Sabha, about whether there was a proposal to increase the retirement age of Central government employees. The relevant MOS answered there was no such proposal. That’s not quite true, because there is such a proposal floating around and it went to Cabinet sub-committee and an in principle decision to implement was taken by Department of Personnel and Training (DOPT). One should not mix up existence of a proposal with a decision about implementing it. Evidently, a decision has now been taken to increase the age from 60 to 62 years, the last time such an increase took place was in 1998, when there was an increase from 58 to 60 years. Whenever such a decision is taken, debates centre on the big picture. What are arguments for? First, life expectancies are increasing. There is a shortage of good people within government. Let’s tap this expertise. Second, in any case there are extensions in “exceptional circumstances”. But that’s arbitrary and can be shot down by the Appointments Committee of Cabinet (ACC). Why not formalize the system by allowing extensions to everyone? The trouble with this argument is that there will be no finality about 62 either and there will be “exceptional circumstances” beyond 62.

Third, there should be parity. Professors now retire at 65. High Court judges retire at 62, Supreme Court judges retire at 65. The counter-arguments of the big picture are also obvious. India is a young country, young need employment opportunities. Promotional avenues of existing civil servants get blocked. Often, in the private sector, people retire at 60 and there are extensions, with the qualification that extensions are at consolidated monthly emoluments, with no perks. An increase in retirement age occurs with all perks. Therefore, there are significant fiscal costs. While these big picture arguments and counter-arguments are important, my problem is that such decisions aren’t taken because of logical coherence. They are ad hoc decisions, driven by myopic motives. First, increase in retirement age postpones the one-time superannuation burden of severance payments by around Rs 5000 crores. For a government that has drawn up red lines on deficit numbers, that’s a desirable objective, even though it is myopic because it increases fiscal costs on future governments. Second, there’s a clear political cum electoral motive. Outright, if we include Defence, we are talking about 1.5 million Central government employees.

In a broader sense, we are talking about something like 6 million, excluding State governments and quasi-government, all urban. This is therefore a significant component in that 65 million urban household figure. These two points will also be made when the 62 decision is announced. But the one that bothers me most is a third element, one that is invariably never talked about. Such ad hoc decisions are taken because of specific individuals. There is one particular individual whom government wishes to place in one particular position. Once he is placed there, government wishes him to benefit from increase in retirement age. But to ensure he is placed there, one needs to ensure those who are senior to him get out of the way first. After all, supersession is not desirable. Hence, announce the decision after some people have retired at 60 and exited. This is the way decisions are taken. At one level, there is no point complaining, because we have accepted corruption of institutions and systems as fact of life. But when this 62 decision is announced, as it soon will, let us not pretend there are any big picture considerations involved.

Source : www.blogs.economictimes.indiatimes.com

Revised Pay Structure of Medical Officer in Commissionorate of Employees State Insurance Scheme.

REVISED PAY STRUCTURE OF MEDICAL OFFICER
Maharashtra Government has issued a resolution on 29th May, 2013 for revised pay structur of Medical Officer in Commissionorate of Employee state insurance scheme vide G.R.No. Vepur/1212/Pra.Kra./20/Sudharna-5/Seva-9.  Before this resolutions Medical Officer is in  Pay Structur 9300-34800 Pay grade Rs. 5400 and after this resolution revised pay structure 15600-39100 with Grade Pay 5400 w.e.f. 04.11.2009.

Read Full Government Resolution of Revised Pay Structure of Medical Officer

Download Form-16 (Part-A and B) & Form-16A is mendatory from TRACES w.e.f. 31.05.13

All  TDS Deductors/Deductees can download TDS Certificate (Form 16 (Part A) and Form 16A) from TRACES. The file will be provided in text format and will contain certificate details for all requested PANs. Deductor will have to convert the text file into PDF using TRACES PDF Generation Utility. This utility will convert the text file into individual PDFs for each PAN. The same utility can be used to convert text file for Form 16 / 16A. The certificate should specify the amount of tax deducted and rate at which it is deducted Form No. 16A, under Rule 31.

Download TRACES PDF Generation Utility Ver. 1.3L

Procedure to install utility
  • Download the PDF Generation Utility by logging in to TRACES. Click on 'Requested Downloads' under 'Downloads' menu then click on 'TRACES PDF Generation Utility' link
  • Unzip and save the utility on your desktop
  • Double-click on the utility (exe) and click on 'Run'
  • Utility will be installed on your desktop
  • Click here for installation procedure

 Procedure to convert text file into PDF

  • Open the utility from your desktop and select the text file
  • Select the digital signature to digitally sign the Form 16 / 16A
  • Generate PDFs
  • If PDF is not digitally signed, deductor should manually sign the printed Form 16 / 16A before sending it to Tax Payers

Notes:

  • TRACES PDF Generation Utility should be used to convert text file for Form 16 / 16A into individual PDFs
  • Download the utility and install it on your desktop
  • Pass the text file through the utility to generate PDFs for individual PANs
  • You can opt for manual / digital signature for the PDFs
  • File name for Form 16 / 16A text file will be as mentioned below. TAN will be masked
    • Form 16 - _Form16_, e.g., ABCxxxxx5E_Form16_2012-13.zip
    • Form 16A - _Form16A__, e.g., ABCxxxxx5E_Form16A_2012-13_Q2.zip
  • Password for Form 16 / 16A text file is TAN of deductor. Enter password to open file
  • File name for individual PDF files will be as mentioned below. PAN will be masked
    • Form 16 - Form16__, e.g., Form16_2012-13_ABCxxxxx4F
    • Form 16A - Form16A___, e.g., Form16A_2012-13_Q2_ABCxxxxx4F
  • There is no password for individual PDF files 

Taxable Income Over 5 Lakhs e-Filing of Return is mandatory For A.Y. 2013-14

E-filing was mandatory for those whose Taxable Income over Rs. 10 Lakhs.  But from the Assessment Year 2013-14 it is mandatory to file electronic income tax return if Taxable Income is exceeds Rs. 5 Lakhs. In this regard the Income Tax department has already issued Notification No. 34/2013 dated 01-05-2013.

A senior Finance Ministry officially said on Last Tuesday from Asstt. Year 2013-14 e-filing of Income Tax Return is mandatory to taxpayer whose annual taxable income above Rs. 500000/-.  Now in current year i.e. Asstt. Year 2012-13 e-filing is is mandatory to those taxpayee whose income more than 10 lakhs.  Besides, the Finance Ministry is also making provisions for e-filing of Wealth Tax returns.

“Income tax returns for the group above Rs 5 lakh, all such returns will be e-filed. This is a move towards using technology so that the interface between Assessing Officer and assessee is minimized,” Revenue Secretary Sumit Bose said at a Ficci event here.

The government had last year introduced the system of e-filing of Income tax returns for assessees with annual income of Rs 10 lakh and above.

Section 14 of the Wealth-tax Act provides for furnishing of return of net wealth as on the valuation date in the prescribed form.

At present, certain documents and reports are required to be furnished along with the return of net wealth under the provisions of Wealth-tax Act read with the provisions of Wealth-tax Rules.

Sections 139C and 139D of the I-T Act contain provisions for facilitating filing of return of income in electronic form by certain class of income-tax assessees.

“In order to facilitate electronic filing of annexure- less return of net wealth, it is proposed to insert new sections 14A and 14B in the Wealth-tax Act on similar lines… The amendments will take effect from June 1, 2013,” said the Memorandum to the Finance Bill 2013.

Latest ITR-2 Excel Utility to upload e-return for Asstt. Year 2013-14.

ITR-2 Return Form is to be used by an individual or a Hindu Undivided Family whose total income for the assessment year 2013-14 includes - (a) Income from Salary / Pension; or (b) Income from House Property; or (c) Income from Capital Gains; or (d) Income from Other Sources (including Winning from Lottery and Income from Race Horses). Further, in a case where the income of another person like spouse, minor child, etc. is to be clubbed with the income of the assessee, this Return Form can be used where such income falls in any of the above categories. ITR-2 Return Form is applicable for assessment year 2013-2014 only, i.e., it relates to income earned in Financial Year 2012-13. Remember this Return Form should not be used by an individual whose total income for the assessment year 2013-14 includes Income from Business or Profession.  No document (including TDS certificate) should be attached to this Return Form. All such documents enclosed with this Return Form will be detached and returned to the person filing the return.

Read More Details who can File ITR-1 (Sahaj) and ITR-4S (Sugam) (Download)

Who can exempt from filing of e-Filing Return and FAQs ?

Read full details about due dates for the year end (Fin.Year) 2012-13.

DETAILS REGARDING TAX RETURN PREPARER (TRP)
(a) This return can be prepared by a Tax Return Preparer (TRP) also in accordance with the Tax Return Preparer Scheme, 2006 dated 28th November, 2006.
(b) If the return has been prepared by him, the relevant details have to be filled by him in item No.16 below verification and the return has to be countersigned by him in the space provided in the said item.
(c) The Tax Return Preparer is entitled to a maximum fee of Rs. 250/- from the taxpayer. TRP is also entitled to a reimbursement from the Government for following three years as under:-
  1. 3 per cent of the tax paid on the income declared in the return for the first eligible assessment year (first eligible assessment year means the assessment year if no return has been furnished for at least three assessment years preceding to that assessment year);
  2. 2 per cent of the tax paid on the income declared in the return for the second eligible assessment year (second eligible assessment year means the assessment year immediately following the first eligible assessment year);
  3. 1 per cent of the tax paid on the income declared in the return for the third eligible assessment year (third eligible assessment year means the assessment year immediately following the second eligible assessment year);
(d) For these three eligible assessment years, the TRP will be eligible for the fee from the taxpayer to the extent of the amount by which Rs. 250/- exceeds the amount of reimbursement receivable by him from the Government.

Do you know How can taxpayee decide which form is applicable for his income?

Taxpayee should choose a return form according to his/her status and nature of income from the following:
ITR1  For Individuals having Income from Salary/ Pension/ family pension & Interest
ITR2  For Individuals and HUFs not having Income from Business or Profession
ITR3  For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR4  For individuals & HUFs having income from a proprietary business or profession
ITR5  For firms, AOPs and BOIs
ITR6  For Companies other than companies claiming exemption under section 11
ITR7  For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)
ITR8  Return for Fringe Benefits
ITRV  Where the data of the Return of Income/Fringe Benefits in Form ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-8 transmitted electronically without digital signature

ITR, Tax Challan, Tax Calculation Software For Asstt. Year 2013-14 - Free Download

Income Tax Department has started online uploading of ITR-1 (Sahaj) and ITR-4S (Sugam) on Income Tax e-Filing website as well as the department has issued Annual Income Tax Return prepation software in excel i.e. ITR-I (Sahaj) and ITR-4S (Sugam) and it also available in pdf format with all applicable ammendments of forms ITR-1 (Sahaj), ITR2, ITR-3, ITR-4s (Sugam), ITR-4, and ITR-5 Acknowledgement in PDF format for Asstt. Year 2013-14.  Excel utility for Income tax return Sahaj(ITR-1) and Sugam(ITR-4S) are now available for download and file your annual income tax return by e-filing way.
Free Download ITR-1 (Sahaj) to ITR-V in Excel Base Utility and PDF Format


Arrears of Sixth pay Commission- depositing in GPF in March 2014 instead of June 2013.

State Government implemented 6th pay by recommended Hakim Committee and Central Government title.  The arrears of 6th Pay commission depositing in GPF instead of Cash of period 01.01.06 to 31.03.2009 in 5 equal Installment.  But due to dryness this year, the depositing amount of 6th pay into GPF not deposited in June-13, It will be depositing in March-14.

In This regard Click here to read more.

Important Tax Information e-Books for All Taxpayee including Salaried Employee.

There are so many books available on net for tax information.  These e-book are available on changes.  The tax payers and the tax administrators on various aspects of the new concept in order to assist them in gaining better understanding about the new system of taxation. It is clarified at the outset that this guide is merely an educational aid based on a broad understanding of a team of officers of the issues. But most of the people does not have a source where they can know provisions of the tax. But i have able to found a book on this subject.  These books have following and are taxpayers can download free:


Tax Liability if the Sale proceeds is utilized for purchase of a Residential House property.

Subject to various other terms / stipulations, Tax on Long Term Capital Gain (LTCG) arising from the transfer of plot or urban agricultural land can be saved u/s 54F if the sale consideration is used for purchase of a residential house property within a prescribed period. The time limit prescribed for the purpose is:
 
For purchase:
One year before or two years from the date of Transfer.

For Constructions:
Three years from the date of Transfer.

It may be noted that although section 54F offers the time period of 2 years for purchase & 3 years for construction, the return of income is required to be filed before the specified date which is much shorter than the time period granted by Section 54F. If investment for purchase/ construction is not done by the tax payer before the due date of return filing, the amount need to be isolated by depositing it in the Capital Gain Deposit Accounts Scheme-1988 (CGDAS). Readers who wish to claim an exemption u/s 54F may note that if the amount is not invested for purchase/construction before the DUE DATE of furnishing the return of income, then it should be deposited under the CGDAS, before the DUE DATE of furnishing the return. After Deposit, the amount already utilized by the tax payer for purchase/ constructions of the new house along with the amount so deposited, shall be eligible for exemption under section 54F in the year in which LTCG has arisen.

[Consequence where the amount deposited in the capital gain deposit account scheme is not utilized for the purchase or the construction of a residential house property within the specified period:
In this case, the amount not so utilized shall be charged as capital gain of the year in which the period of 3 years from the date of LTCG expires and it will be taxable as LTCG of that year. The assessee then shall be eligible to withdraw the amount from the scheme. As per scheme, he is required to submit an application in Form G after getting the approval of the Assessing Officer.]

With above basic idea, it may be noted that temporary parking of the funds in fixed deposits/ bonds / post office certificates after the due date of furnishing the return of income, may obstructs your exemption claim u/s 54F. If you have to claim an exemption u/s 54F, you have to choose CGDAS as an investment tool for temporary investments of the funds.

Source: The Hitwada

Common 8 Questions with Exemption from filing of Income Tax Return.

1. What is the purpose of this notification and who are proposed to be exempted from the requirement of filing of the return?
The primary objective of this notification is to exempt those salaried taxpayers from the requirement of filing income-tax returns, who have (i) total income not exceeding Rs.5,00,000, and (ii) the total income consists only of income chargeable to income tax under the head Salaries and interest income from savings bank account if such interest income does not exceed Rs.10,000. Further, such salaried taxpayer would be eligible for exemption from filing a return of income only if tax liability has been discharged by the employer by way of Tax Deducted at Source (TDS) and the deposit of the same to the credit of the Central Government. For this purpose, taxpayer has to intimate his interest income to the employer during the course of the year.
For Example –
  1. If an individual has salary income of Rs.4,90,000 and interest income from savings bank account not exceeding Rs.10,000 (which has been reported to the employer and tax has been deducted thereon), then the taxpayer would be exempt from the requirement of filing income-tax returns since the total income from both the above sources does not exceed five lakh rupees.
  2. A taxpayer having salary income of Rs.4,98,000 and interest income from savings bank account of Rs.2,000 (which has been reported to the employer and tax has been deducted thereon), would also be eligible under this Scheme. 
  3. A taxpayer having salary income upto Rs.5,00,000 and nil interest income would also be eligible under this Scheme.
  4. A taxpayer having salary income of Rs.5,50,000, interest income from savings bank account of Rs.8,000(which has been reported to the employer and tax has been deducted thereon), and who has claimed deduction of Rs.70,000 under section 80C (on account of certain payments/investments/savings) would also be eligible under the Scheme.
  5. A taxpayer having salary income of Rs.6,10,000, interest income from savings bank account of Rs.10,000 (which has been reported to the employer and tax has been deducted thereon), and who has claimed deduction of Rs.1,00,000 under section 80C (on account of certain payments/investments/savings), a deduction of Rs.20,000 under 80CCF (Infrastructure Bonds) and a further deduction of Rs.15,000 under section 80D (Health Insurance Premium) would also be eligible under the Scheme.
2. Whether a salaried taxpayer having total income of less than Rs.5,00,000 and claiming a refund of Rs.3,000 would be eligible under this Scheme No. The taxpayer has to file a return of income for making a claim of refund.

3. Is having a valid PAN number a precondition for being covered by the notification?
Yes. The notification clearly specifies that the individual has to report his PAN to the employer. Hence having a valid PAN is a precondition for falling within the ambit of the notification.

4. Can an individual who is getting income under the head “salaries” from more than one employer take benefit of the notification?No. A salaried taxpayer who has earned income from more than one employer during the financial year is not covered under this Scheme.

5. Whether this notification would also cover taxpayers having ‘loss from house property’, which are often reported by the employees to the employer.No. Under the existing procedure, DDO/employer can give credit to the employee for a claim for loss under the head “income from house property” u/s 24 made by the employee. As a result, a salaried employee’s total income may reduce to less than Rs.5,00,000 as loss from the head “income from house property” would have been set-off against salary income. Such a taxpayer is not exempted from filing his return of income as the notification exempts only cases where the total income is under the head “salary” and from savings bank account (income from other sources) not in excess of Rs.10,000. If the taxpayer has any loss under the head “income from house property”, he will not be eligible for exemption from filing a return of income.

6. Does savings bank account include other banking accounts like fixed deposits or recurring deposits accounts?No. The benefit of the notification is available to taxpayers whose interest income comprises of interest earned on savings bank account ONLY.

7. Circular No. 8/2010 dated 13.12.2010 which is applicable for Assessment Year 2011-12 stipulates that the Drawing and Disbursing Officer (DDO)/Employer while deducting TDS from salary of an employee cannot allow deduction u/s 80G except donations made to the Prime Minister’s Relief Fund, the Chief Minister’s Relief Fund or the Lt. Governor’s Relief Fund. Whether the notification would cover only these cases?Yes. An individual cannot avail the exemption under this notification if the claim of deduction for donations under section 80G is for donations other than those mentioned in Circular No.8/2010. A taxpayer has to file a return of income for making a claim in respect of claim of deduction under section 80G for such donations (not specified in Circular No.8/2010).

8. Will a salaried individual having agricultural income, which is exempt from tax, be covered within the ambit of the notification?A salaried individual with agricultural income exceeding five thousand rupees shall be out of the ambit of the notification. A return will have to be filed in such a case, even if other conditions of the notification are satisfied as the agricultural income (of more than Rs.5,000) has to be included, for rate purposes, in the total income,.

How to File Income Tax Return Online by e-Filing Procedure?

It is well known fact that tax payers are now required to file their Income-tax Return for the Financial Year 2012-13 relevant to the Assessment Year 2013-14. These Income-tax Returns in most cases have to be filed by 31st July, 2013.  All Taxpayee carefully read the new ammended ITR forms and applicable ITR form select to submit Annual Income Tax Return.   The most important point is that taxpayee who have PAN card may submit Annual Income Tax Return on or before 31st July, 2013.  In this regard  I want to share some important point to filing e-return with Income Tax Department.  But on the contrary most of Taxpayee not watch or read the post carefully. So due to this problem I will try at my level best to clarify & escape from Problem of online Income Tax Return Filing for Assessment year 2013-14.

Some are very easy task for layman even you don’t required any software. However you need to know about scrolling of computer mouse. There are lots of benefits to file income tax return online. No need to stand in long queues at the income tax department. No fear of lost any document, one can print and download whenever you wants after log-in your account.

Filing Income Tax Return:
  1. Select appropriate type of Return Form
  2. Download Return Preparation Software for selected Return Form.
  3. Fill your return offline and generate a XML file.
  4. Go to Income Tax Department website.
  5. Register and create a user id/password
  6. Login and click on relevant form on left panel and select “Submit Return
  7. Browse to select XML file and click on “Upload” button
  8. On successful upload acknowledgment details would be displayed. Click on “Print” to generate printout of acknowledgment/ITR-V Form.
  9. In case the return is digitally signed, on generation of “Acknowledgment” the Return Filing process gets completed. You may take a printout of the Acknowledgment for your record.
  10. In case the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgment cum verification form. The tax payer has to fill-up the verification part and verify the same.
  11. Update: Now you have to send ITR-V to the “Income Tax Department , CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka”. They’ll send the acknowledgment receipt at your email address.
  12. For any assistance in filing the paper copy of the return please contact by comment form given below.

Clarification on Grant of one increment in Pre-Revised Pay Scale.

Clarification on Grant of one increment in Pre-Revised Pay Scale.

F.No.1/1/2008-IC
Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi
Dated the 22nd May, 2013

OFFICE MEMORANDUM


Subject: Grant of one increment in pre-revised pay scale - OM dated 19.3.2012 - clarification regarding.

The undersigned is directed to invite a reference to this Ministry’s Office Memorandum of even no. dated 19.3.2012 which provides that those Central Government employees who were due to get their annual increment between February to June during 2006, may be granted one increment as on 1.1.2006 in the pre-revised pay scale as a one time measure and, thereafter, will get the next increment in the revised pay structure on 1.7.2006.

2. As per this Ministry’s OM No. F. No. 1/1/2008-IC dated 30th August, 2008. fitment tables have been prescribed in Annexure-1 thereto, specifying the stages of revised pay in the revised pay band with reference to each stage of pre-revised pay in various pre-revised pay scales. As per the fitment tables, the stage of revised pay in the pay band has been mentioned at the same stage in respect of two consecutive pre-revised stages of pay in cases of certain pre-revised scales.

3. This Ministry has been receiving references as to whether in cases where the fitment table provides for the same revised stage in case of two consecutive pre-revised stages in a particular pre-revised scale of pay, the benefit of bunching is admissible after grant of one increment in the pre-revised pay scale by virtue of this Ministry’s OM dated 19.3.2012.

4. The matter has been considered and it is clarified that Fitment Table contained in the aforesaid OM dated 30.8.2008 is to he strictly followed for fixation of pay in the revised structure without any deviation.

5. In cases where the stages of fixation of pay in the revised pay band as per fitment table contained in the aforesaid OM dated 30.8.2008 provides for the same revised stage in the Pay Band with reference to two consecutive stages of pre-revised pay in the corresponding pre-revised scales, then in such cases due to application of this Ministry's OM dated 19.3.2012, there will be no change in the revised pay as on 1.1.2006, if the revised stage with reference to the pre-revised pay after accounting for one increment in the pre-revised scale does not undergo any change as per the Fitment Table. It is also clarified that no further bunching will be allowed in such cases and no re-fixation of pay will be admissible in the revised pay as on 1.1.2006.

sd/-
(Amar Nath Singh)
Deputy Secretary to the Government of India

Updated all Income Tax Forms for Asstt. Year 2013-14 free download.

Income Tax Department has published updated Income Tax ITRs for Annual Income Tax Return i.e. ITR-1 (Sahaj), ITR2, ITR-3, ITR-4, ITR-4S (Sugam) and ITR-5 to file Income Tax Return for Asstt. Year 2013-14. The all revised ITR Forms are available in "PDF" Format. Income Tax Department has started uploading ITR-1 (Sahaj) and ITR-4S (Sugam) online or offline.  It has released latest Excel Base Utility for Taxpayers to submit Annual Income Tax Return for Asstt. Year 2013-14 with new amendments.  The latest amendment in Income Tax Return Forms this Excel utility is available Income tax return Sahaj(ITR-1) and Sugam(ITR-4S) online/offline with Checklist of documents and pre-requisites.
Sl.No. Form name Category Description
1ITR-1 SAHAJ (A.Y. 2013-14)English Hindi Form  Instructions English Instructions Hindi Indian Individual Income tax Return
2ITR-2 (A.Y. 2013-14)English Hindi Form  Instructions English  Instructions Hindi For Individuals and HUFs not having Income from Business or Profession
3ITR-3 (A.Y.2013-14)English Hindi Form  Instructions English  Instructions Hindi For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
4SUGAM (ITR-4S) (A.Y. 2013-14)English Hindi Form  Instructions English  Instructions Hindi Sugam - Presumptive Business Income tax Return
5ITR-4 (A.Y. 2013-14)English Hindi Form  Instructions English  Instructions Hindi For individuals and HUFs having income from a proprietory business or profession
6ITR-V (A.Y. 2013-14)English Form Hindi Form -

How to Download ITR-V (For Tax Payee not audited u/s 44AB) ?

Taxpayee not audit u/s. 44AB of Income Tax Act and wants to file Income Tax Return without DSC (Digital Signature required ITR-V.  On the Income Tax Site portal there is no any provision of Form ITR-V.  Therefore the new website of e-filing of return provides facility to download ITR-V.  The following procedure is helps to Taxpayee to dowload Form ITR-V:

For Income Tax Returns e-Filed without using Digital Signature Certificate (DSC), submission of ITR-V is mandatory.

An ITR-V is
  • a form which is generated if the Income Tax Return is e-Filed without Digital Signature Certificate.
  • generated to authenticate the identity of the sender/e-Filer.
  • required to be printed, signed and sent to the below address by Ordinary Post or Speed Post ONLY within 120 days from the date of e-Filing.
    Address
    Income Tax Department
    Centralized Processing Centre,
    Post Bag No. 1,
    Electronic City Post Office,
    Bangalore - 560100

To Download ITR-V, LOGIN to e-Filing application and GO TO --> My Account --> My Return/Forms and select the ITR-V to download.

To open the ITR-V, you should enter your PAN in lower case and date of birth in case of individual tax payers/date of incorporation for non-individual tax payers in DDMMYYYY format without any space between the PAN and date fields. For example, if your PAN is ABCDE1234A and date of birth/ incorporation is January 1, 1985 then the password will be abcde1234a01011985. The date of birth/ incorporation should be same as furnished to the Department and available in the Income Tax Department PAN master (as printed on the PAN card).

Print Specifications for SAHAJ and SUGAM for Asstt. Year 2013-14

SAHAJ and SUGAM Forms notified by CBDT are the simplest, technology enabled and taxpayer friendly return forms. These have been designed to facilitate error free and faster digitization. This is expected to curtail processing cycle and expedite issue of refunds. Taxpayers are advised to follow steps enumerated below.
  • SAHAJ and SUGAM forms are colored forms with standard features like registration marks, barcode etc. Taxpayers are advised to collect the forms from Income Tax offices, Tax-melas, TRP’s and submit the same to the income tax department.
  • Taxpayers can also download the forms from the website and print using a color printer on an A4 size white paper. It is advisable for taxpayer to set the properties in printing options to “fit to page” and print the forms on a good quality white paper.
  • Taxpayers may also use the Fillable forms, being made available by the department shortly.
  • The Acknowledgement copy [ITR-V Acknowledgement] to be retained by taxpayer may be printed in black & white.
Printers and Software vendors are advised the following.
  • In case, the private printers/vendors want to deliver the forms and instructions to the public at large, they can get the source file in Corel Draw format from Centralized Processing Center at no cost, by sending a request to “ Commissioner of Income Tax, Centralized Processing Center, “Prestige Alpha”, Hosur Road, Bangalore-560100” or e-mailing at “itdcpc@incometaxindia.gov.in”. Printers are advised to print the forms according to print specifications given in Annexure –A & B. The dimensions of the borders and markers are same as the earlier forms notified for AY 11-12 which are specified in Annexure-A
  • No approval is required from Income Tax Department for certification of printing software.

Dearness Relief on pension/Family Pension.80% From 1st January, 2013

Government is pleased to decide that the rate of dearness relief with effect from 1st January, 2013 to the State Government pensioners /family pensioners on their asic Pension/Family Pension and Dearness pension/ Dearness family pension(if any) will be enhanced from 72% to 80%. Dearness relief will be payable in cash from 1st May, 2013. The orders regarding payment of arrears with effect from 1st January, 2013 to 30th April, 2013 will be issued separately.

2.It will be the responsibility of the Pension Disbursing Authority, i.e. Pay and Accounts Officer, Mumbai/Treasury Officers, as the case may be, to calculate the quantum of dearness relief payable in each individual case

3.Government is also pleased to direct that above decision should, mutatis mutandis, apply to those employees including family pensioners of Recognised and Aided Educational Institutions, Non-Agricultural Universities and Affiliated Non-Government Colleges and Agricultural Universities to whom the pension scheme is made applicable.

4.In exercise of the powers conferred by the proviso to Section 248 of the Maharashtra Zilla Parishads and Panchayat Samities Act, 1961 (Mah. V of 1962) and of all the other powers enabling it in that behalf, Government is further pleased to decide that the above decision shall apply to the pensioners including family pensioners of Zilla Parishads.

5.State Government Employees who had drawn lumpsum payment on absorption in a PSU/Autonomous body/Local Bodies and have become entitled to restoration of 1/3rd commuted portion of pension as well as revision of the restored amount in terms of Government Resolution, Finance Department, No. COP1099/306/SER-4, dated 15th Novermber 1999 will also be entitled to the payment of dearness relief on full pension as per the provisions of Government Resolution, Finance Department, No. COP-1001/50/SER-4, dated 9th April 2001, at the prescribed rate and from the date, prescribed in paragraph 1 above.

6.The expenditure on this account should be debited to the Budget Heads to which the retirement benefits of the employees mentioned in the above paras are debited and should be met from the grants sanctioned thereunder.

7. All orders in force in regard to the payment of relief on pension sanctioned by Government from time to time will, mutatis mutandis, apply to the dearness relief now sanctioned.

Download Dearness Relief G.R. (Click Here - Marathi)
Download Dearness Relief G.R. (Click Here - English)

5 Years Tax Calculator for All Taxpayers

The online Income Tax calculator for 5 Asstt. Year for all Taxpayers, that is simple to use and understand.  Calculate your Taxable Income by computing income from all sources viz. Salary and Allowances, House Property, Capital Gains, Income from other sources, Agriculture Income etc. You can also include income chargeable at Special Rate for computing the Taxable Income.  Calculate deductions available from the Taxable Income under various Sections of Income Tax Act. Calculate Income Tax and Education Cess Payable with slab-wise details of Income and Income Tax payable. Calculate Income net of Income Tax Liability. This tax calculator also tells you where you are in the Income Tax slab, and also provides information on the payment of advance tax. You can use this calculator as an aid to compile your tax return.





Tax Penalties and Interest Calculations.

Issue of TDS Certificate in Form No.16A downloaded from TIN

TDS certificate in Form No.16 is to be issued annually whereas TDS certificate in Form No.16A is to be issued quarterly

Currently, a deductor has an option to authenticate TDS certificate in Form No.16 by using a digital signature. However, no such option of using a digital signature is available to a deductor for issuing TDS certificate in Form No.16A and it, therefore, needs to be authenticated by a manual signature. The Central Board of Direct Taxes (the Board) has received representations to allow the option of using digital signature for authentication of TDS certificate in Form No.16A as issuance of TDS certificate in Form No.16A by manual signature is very time consuming, specially for deductors who are required to issue a large number of TDS certificates.

The Department has already enabled the online viewing of Form No.26AS by deductees which contains TDS details of the deductee based on the TDS statement (e-TDS statement)filed electronically by the deductor. Ideally, there should not be any mismatch between the figures reported in TDS
certificate in Form No. 16A issued by the deductor and figures contained in Form No.26AS which has been generated on the basis of e-TDS statement filed by the deductor. However, it has been found that in some cases the figures contained in Form No.26AS are different from the figures reported in Form No.16A. The gaps in Form No.26AS and TDS certificate in Form No. 16A arise mainly on account of wrong data entry by the deductor or non-filing of e-TDS statement by the deductor. As at present, the activity of issuance of Form No.16A is distinct and independent of filing of e-TDS statement, the chances of mismatch between TDS certificate in Form No.16A and Form No.26AS cannot be completely ruled out. To overcome the challenge of mismatch a common link has now been created between the TDS certificate in Form No.16A and Form No.26AS through a facility in the Tax Information Network website (TIN Website) which will enable a deductor to download TDS certificate in Form No.16A from the TIN Website based on the figures reported in e-TDS statement filed by him. As both Form No.16A and Form No.26AS will be generated on the basis of figures reported by the deductor in the e-TDS statement filed, the likelihood of mismatch between Form No.16A and Form No.26AS will be completely eliminated.

Read more Circulars and Notifications regarding issuing of Form-16A

Circular Date Circular Number Description
13-May-2011 03 / 2011 Issuance of TDS Certificates in Form 16A downloaded from TIN website and option to authenticate the same by way of digital signature – Circular under Section 119 of the Income Tax Act, 1961
09-Apr-2012 01 / 2012 Issuance of TDS Certificates in Form 16A downloaded from TIN website – Circular under Section 119 of the Income Tax Act, 1961
17-Apr-2013 04 / 2013 Issuance of certificate for Tax Deducted At Source in Form 16 in accordance with the provisions of Section 203 of the Income Tax Act, 1961, read with Rule 31 of the of the Income Tax Rules, 1962

Latest ITR-1 & ITR-4S (Online/Offline) is available for Asstt. Year 2013-14 with Checklist.

Income Tax Department has started uploading ITR-1 (Sahaj) and ITR-4S (Sugam) online or offline.  It has released latest Excel Base Utility for Taxpayers to submit Annual Income Tax Return for Asstt. Year 2013-14 with new amendments.  The latest amendment in Income Tax Return Forms this Excel utility is available Income tax return Sahaj(ITR-1) and Sugam(ITR-4S) online/offline with Checklist of documents and pre-requisites.


Download ITR-1 (Sahaj) and ITR-4S (Online/Offline) in Excel Base Utility



Checklist of documents and pre-requisites
  • A copy of last year's tax return
  • Bank Statement
  • TDS certificates
  • Savings certificates/Deductions
  • Interest statement showing interest paid to you throughout the year.
  • Balance Sheet, P&L Account Statement and other Audit Reports wherever applicable.

Penalties & Interests on Late or non filing ITR in Assessment Year 2013-14.


Taxpayee and Tax Deductor must be aware about penalties/dues which are applicable under Income Tax Act. There are various penalties under the various provisions of the act committed by an assessee/Taxpayee. The penalties are liable under the act out of these  some important penalties that are mandatory in nature while in most of the cases penalty is leviable at the discretion of the Assessing Officer (AO). The major penalties that are imposed under the act along with their nature of defaults are given as under:
1. Default: Concealment of Income or furnishing inaccurate particulars of income.
  • Minimum Penalty: 100% of tax sought to be evaded.
  • Maximum Penalty: 300% of tax sought to be evaded.

2. Default: Failure to keep or maintain books as required u/s 44AA.
  • Minimum Penalty: Rs. 25,000/-

3. Default: Failure to get accounts audited or furnish report u/s 44AB.
  • Minimum Penalty: ½% of the total sales, turnover or gross receipts.
  • Maximum Penalty: Rs. 100,000/-
4. Default: Taking/Repaying or accepting any loan or deposit in contravention of the provisions of section 269SS /269T (Loan taken or repaid above Rs. 20,000 in cash).
  • Minimum Penalty: Amount of loan/deposit so taken or accepted or repaid.

5. Default: Failure to furnish Return of Income.

  • Minimum Penalty: Rs. 5000/-

Tax Challan & Form-16 Software for printing with Barcoded PAN/TAN and other details.

This is a free software for taxpayers for printing Income Tax Challans with Barcoded PAN/TAN and other Details.  The software can be downloaded and installed on your computer for repeated/multiple use.  Once installed you may use this utility to print challans with PAN and other details. The Barcode of PAN will be printed automatically.   Kindly note that correct quoting of PAN on the challan will help you to get correct credit of the amount of tax you pay through the challan.  We urge you to check the correctness of your PAN by using the "know your PAN" facility available on our site.  Below are the details of the system requirements for installing this utility on your PC.

Minimum Systems Requirements:
  • Pentium or better.
  • 15MB disk space.
  • 32MB RAM.
  • Windows 95, 9X, ME, XP, NT, 2K.
This Software print Challans:
280: For depositing Advance tax, Self Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.
281: For depositing TDS/TCS by company or non company deductee
282: For depositing Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax and Hotel Receipt tax
283: For depositing banking cash Transaction Tax and FBT


Steps for Installation
  • Download the Taxprochallan.zip file.
  • Extract the Taxprochallan.zip file into a physical path.
  • Double click on the Taxprochallan.exe from the extracted path.

File Size Date
Form-16 (Part-A & B) Software.xlsx
Form-16 (Part-A & B) Software for All Salaried Employee
2.02 MB 05/19/2013 Download
TaxProChallan.exe
Challan (280, 281, 282 & 283) Software M/s. Chartered Information Systems Pvt. Ltd.
4 MB 05/19/2013 Download

(This utility is brought to you, courtesy M/s. Chartered Information Systems Pvt. Ltd.)

What to do when you get an income tax notice?

Do you know that your tax return may be picked for random scrutiny? It is quite possible that you receive a notice from the Income-Tax Department for old dues or ambiguous income. Sending scrutiny notice under section 143 (3) has become a style for the department to develop seriousness in people regarding tax compliances.

Notices are also served on demand of the individual after applying for a rectification petition during filing of return under section 154, most probably due to mismatch in TDS or income amount, as well as when the details required are not specified under section 143 (2) of the Income-Tax Act, 1961. The AO (Assessing Officer) can make a regular assessment after a detailed enquiry under section 143 (2).

Notice under section 143 (1) is served to the assessee regarding intimation about the calculation mistake or error in filing return or claiming excessive deduction or wrong exemption found in processing of income tax return. The purpose is to inform the person about the difference between the return filed by him and the computation as per the IT department, which result in creating the situation of amount payable or amount refundable.

Do not panic and never try to ignore the notice. Because this ignorance may lead to a fine, that can be extended up to Rs. 10,000, apart from the penalty of tax and interest. So, as per the notice, you must meet the AO with all the relevant documents. Following points should be taken care of before meeting the assessing officer:
  1. Understand the motive of serving the notice.
  2. Check the given details of notice, i.e., your name, address, PAN, etc. It may happen that your name or address is printed incorrectly but the PAN number is enough for the IT department to identify you.
  3. The notice also contains details of officer in-charge like name, designation, signature and office address with income tax ward/circle number. Keep these in view to escape from being cheated.
  4. Now, the trend of electronic notices has started. Therefore, check 'document identification number' available on each communication with tax authorities.
  5. Check the validity of the notice as well as the duration within which you have to respond to the AO. Usually, a scrutiny notice has to be served to the assessee within a period of six months from the end of the financial year. It may be possible that under section 148, a notice related to very old cases are sent because of being reopened by the AO due to genuine reasons.
  6. Retain some copies of the notice.
  7. Preserve the envelope of the notice. It contains the Speed Post number and date of posting and serving of notice to you. It will be helpful when you receive the notice late and fail to respond within the valid period.
  8. Collect all the required documents and make a cover letter containing a list of all the annexed documents with necessary details. Retain a photocopy of that file for future reference.
  9. In the case of notice under section 143 (2), collect the basic documents related to major expenses, income and loan details, bank statements, etc.
Submit the file and ask for the acknowledgement on a copy of the cover letter attached to the file and preserve it. It acts as an evidence of submission of the concerned articles along with details of each document.

If some of your old dues come out after the process, they can be adjusted against your pending refunds, if claimed.

If the case is complicated, it is better to take the help of a professional like CA, CS, advocate etc. He will make you understand about the demand in the notice and about the supporting documents needed. A professional will also help in preparing an appropriate response at the time of appearing before the AO and things might get resolved with ease.

Source: www.profit.ndtv.com

Seven Important facts about PPF accounts.

         It requires just Rs. 100 to start a PPF account: PPF accounts could be opened by individuals, whether salaried or self-employed, with a minimum initial deposit of just Rs. 100. Accounts could be opened at any branch of the State Bank of India (SBI) or branches of its associated banks. Other nationalised banks which offer this service are Bank of India, Central Bank of India and Bank of Baroda. The general post office too allows opening of a PPF account. Individuals may also open a PPF account on behalf of a minor child of whom they are the guardian.

         PPF accounts have a minimum and maximum deposit limit: A minimum deposit of Rs. 500 must be made during one whole financial year. The maximum that could be deposited is Rs. 1,00,000 in a financial year. Deposits could be in either one go, or in flexible instalments (in multiples of Rs. 10). You could vary the amount and the number of instalments, as per your convenience, provided you do not exceed 12 instalments in one financial year. Failing to deposit the minimum requirement would lead to your account being discontinued. Interest would, however, continue to accrue. You could regularize the account again on paying the prescribed default fee along with subscription arrears.

         Interest calculation in PPF account: The interest rate in your PPF account is calculated on the lowest balance between the fifth and the last day of the month. So to maximise your earnings, try making deposits between the 1st and the 5th of the month. Interest is compounded annually and credited on March 31 each year.

         Premature withdrawal from PPF: The entire amount in your account could be withdrawn only on maturity. However, in times of financial crises partial withdrawals are permitted subject to certain ceiling limits. You could withdraw once a year, from the 7th year onwards. Such withdrawals must not exceed 50 per cent of the balance at the end of the fourth year, or 50 per cent of the balance at the end of the immediate preceding year, whichever is lower. Premature closure of a PPF account is permissible only in case of death.

        PPF offers multiple tax benefits: Deposits in a PPF account qualify for a deduction under section 80C. Furthermore, the entire maturity amount including the interest is non-taxable. Not only is the interest earned tax free, PPF deposits are exempt from wealth tax too.

         Need a loan? Use your PPF: You could take a loan on your PPF deposit, subject to certain terms and conditions. Loans could be taken from the third year onwards till the sixth year. Up to a maximum of 25 per cent of the balance at the end of the 2nd immediately preceding year would be allowed as loan. Such withdrawals are to be repaid within 24 months. Rate of interest charged on the loan would be 2 per cent more than the PPF interest rate prevailing then.

    A second loan could be availed as long as you are within the 3rd and the 6th year, and only if the first one is fully repaid. Also note that once you become eligible for withdrawals, no loans would be permitted. Inactive accounts or discontinued accounts are not eligible for loan.

         Continuing PPF after the 15-year period: PPF account holders have an option of extending their accounts after the 15 year tenure with or without further subscription, for any period in a block of five years. The balance in the account will continue to earn interest at normal rate as admissible on PPF account till the account is closed. In case the account is extended without contribution, any amount can be withdrawn without restrictions. However, only one withdrawal is allowed per year.

         If you continue the account after 15 years, with continued deposit, withdrawal up to 60 per cent of the balance at the beginning of each extended period (block of five years) is permitted.

Source: www.profit.ndtv.com

Issuance of certificate for tax deducted at source in Form No. 16.

Issuance of certificate for tax deducted at source in Form No. 16 in accordance with the provisions of section 203 of the Income-tax Act, 1961 read with the Rule 31 of the Income-tax Rules 1962

1. Section 203 of the Income-tax Act 1961 (“the Act”) read with the Rule 31 of the Income-tax Rules 1962 (“the Rules”) stipulates furnishing of certificate of tax deduction at source (TDS) by the deductor to the deductee specifying therein the prescribed particulars such as amount of TDS, valid permanent account number (PAN) of the deductee, tax deduction and collection account number (TAN) of the deductor, etc. The relevant form for such TDS certificate is Form No. 16 in case of deduction under section 192 and Form No. 16A for deduction under any other provision of Chapter XVII-B of the Act. TDS certificate in Form No. 16 is to be issued annually whereas TDS certificate in Form No. 16A is to be issued quarterly. TDS Certificate in Form No 16 as notified vide Notification No. 11/2013 dated 19.02.2013 has two parts viz Part A and Part B (Annexure). Part A contains details of tax deduction and deposit and Part B (Annexure) contains details of income.

2. With a view to streamline the TDS procedures, including proper administration of the Act, the Board had issued Circular No. 03/2011 dated 13.05.2011 and Circular No. 01/2012 dated 09.04.2012 making it mandatory for all deductors to issue TDS certificate in Form No. 16A after generating and downloading the same from “TDS Reconciliation Analysis and Correction Enabling System” or (https://www.tdscpc.gov.in) (hereinafter called TRACES Portal) previously called TIN website. In exercise of powers under section 119 of the Act, the Board has now decided as following:-

2.1 ISSUE OF PART A OF FORM NO. 16 FOR DEDUCTION OF TAX AT SOURCE MADE ON OR AFTER 01.04.2012:  All deductors (including Government deductors who deposit TDS in the Central Government Account through book entry) shall issue the Part A of Form No. 16, by generating and subsequently downloading through TRACES Portal, in respect of all sums deducted on or after the 1st day of April, 2012 under the provisions of section 192 of Chapter XVII-B. Part A of Form No 16 shall have a unique TDS certificate number.

2.2 AUTHENTICATION OF TDS CERTIFICATE IN FORM NO. 16:  The deductor, issuing the Part A of Form No. 16 by downloading it from the TRACES Portal, shall, before issuing to the deductee authenticate the correctness of contents mentioned therein and verify the same either by using manual signature or by using digital signature in accordance with sub-rule (6) of Rule 31.

2.3 In other words, Part A of Form No. 16 shall be issued by all the deductors, only by generating it through TRACES Portal and after duly authenticating and verifying it.

2.4 ‘Part B (Annexure)’ of Form No. 16 shall be prepared by the deductor manually and issued to the deductee after due authentication and verification alongwith the Part A of the Form No. 16 stated above.

2.5 Sub rule (3) of rule 31of the Rules sets the time limit for issuance of Form 16 by the deductor to the employee. Currently, Form 16 should be issued by 31st May of the financial Year immediately following the financial year in which income was paid and tax deducted.

3.1 The Director General of Income-tax (Systems) shall specify the procedure, formats and standards for the purpose of download of Part A of Form No. 16 from the TRACES Portal and shall be responsible for the day-to-day administration in relation to the procedure, formats and standards for download of Part A of Form No. 16 in electronic form.

3.2 It is further clarified that Part A of Form No. 16 issued by the deductors in accordance with this circular and as per the procedure, formats and standards specified by the Director General of Income-tax (Systems) and containing Unique Identification Number shall only be treated as a valid compliance to the issue of Part A of Form No. 16 for the purpose of section 203 of the Act read with rule 31 of the Rules.

Do you want to download or read full notification? (Click Here)

Additional counters for Income Tax Dues collections in June-13.

The Reserve Bank of India, Kanpur, has opened additional counters in the bank keeping in view the increase in number of persons depositing income tax dues in the last days of June.

Deputy general manager (banking) Anup Kumar said that tax payers should deposit their income tax dues before the last date to avoid inconvenience.

He said the facility for depositing income tax by cash or cheque is also available at 145 branches of public sector banks, including State Bank of India and three branches of private sector banks in Kanpur. Kumar said the list of such branches has been displayed outside the premises of Reserve Bank of India and also at the branches of other commercial banks.

Source: The Times of India

How to Calculate Salaried Employee Tax Liability For A.Y. 2014-15?

After Budger-2013 and proposed income tax slab of F. Year 2013-14, we have uploaded below Income Tax Calculator for Financial Year 2013-14 or Assessment Year 2014-15 and also contains Income Tax Rate. The Calculator calculates tax for Individual (Salaried Employee), HUF, Senior citizens, super Senior citizens and Females Assessees.

This Income tax Calculator is in Excel Format for Salaried Persons for Financial year 2013-14 / Assessment Year 2014-15. This tax calculator can be used to calculate the approximate tax payable by salaried individuals. This should NOT be used to compute the actual taxes to be paid to the Government other than State Government as per current and proposed D.A. Rates.

Income Tax Slab for Asstt. Year 2014-15.
I. In case of individual (other than II and III below) and HUF
*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

II. In case of individual being a woman resident in India and below the age of 60 years at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

III. In case of an individual resident who is of the age of 60 years or more at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh

IV. In case of an individual resident who is of the age of 80 years or more at any time during the previous year:

*** Tax credit of Rs.2000 for annual income of Rs. 5 lakh
  • Education Cess: 3% of the Income-tax.
  • New Rs 50,000 tax exemption for retail equity investments
  • Sale of residential property exempt from Capital Gains tax if invested in equity or equipment of an SME.
  • Implementation of Direct Tax Code (DTC) deferred. GST to be operational by August 2012.
  • Surcharge of 10% on income more than Rs. 1 crore
  • Tax credit of Rs.2000 for annual income of Rs. 5 lakh
  • Home Loan Income tax Exemption limit increased from Rs.1.5 lakhs to Rs.2.5 lakhs for loan up to Rs.25 lakhs
  • Rajiv Gandhi Equity Savings Scheme extended to mutual funds.
  • Rajiv Gandhi Equity Savings Scheme to be liberlised.
  • Rajiv Gandhi Equity Savings Scheme limit increased.

"Creamy Layer" Income Limit increased upto 6 Lakhs.

Union Cabinet yesterday approved to increase the limit of 'Creamy layer'  bar from Rs.4.50 lakh to Rs.6 lakh...

Revision of Income Criterion to exclude Socially Advanced Persons/ Sections (Creamy Layer) from list of other Backward Classes (OBCs)

The Union Cabinet today gave its approval for increase in the present income criterion of Rs. 4.5 lakh per annum for applying the Creamy Layer restriction throughout the country, for excluding Socially Advanced Persons/Sections (Creamy Layer) from the purview of reservation of Other Backward Classes (OBCs).

The new income criterion will be Rs. 6 lakh per annum. The increase in the income limit to exclude the Creamy Layer is in keeping with the increase in the Consumer Price Index and would enable more persons to take advantage of reservation benefits extended to OBCs in government services and admission to central educational institutions.

This would bring about equity and greater inclusiveness in society. The Department of Personnel and Training and the Ministry of Human Resource Development would issue necessary orders to this effect.

Source: PIB News

D.A. increased by 8% to State Govt. and other eligible employees w.e.f. 1st Jan, 2013.


Today Finance Department of Maharashtra Government has issued a resolution regarding D.A. which is increased by 8% i.e. from 72% to 80% from 01st January, 2013.  All the State Government Employee and other than eligible State Employee enjoying the increased D.A. benefit from May-13 and the Arrears of Balance months will be paid soon by State Government.


Update Dearness allowance rate of Maharashtra State for 5th Pay Commission and 6th Pay Commission as bellow:



Note: The 5th Pay Commission was announced and

implemented on 01 Jan. 1996.
01/01/1996
0.00%
D.A. RATES AS PER 5TH PAY COMMISSION
01/07/1996
4.00%
01/01/1997
8.00%
01/07/1997
13.00%
01/01/1998
16.00%
01/07/1998
22.00%
01/01/1999
32.00%
01/07/1999
37.00%
01/01/2001
38.00%
01/10/2001
41.50%
01/04/2002
44.50%
01/08/2003
55.00%
01/06/2004
61.00%
D. A. Merge 50% in Basic Pay as "D.P." from 01.08.2004
01/08/2004
50% + 11%
01/04/2005
50% + 14%
01/07/2005
50% + 21%
01/05/2006
50% + 24%
01/09/2009
50% + 29%
01/04/2007
50% + 35%
01/07/2007
50% + 41%
01/01/2008
50% + 47%
01/07/2008
50% + 54%
01/01/2009
50% + 64%
01/07/2009
50% + 73%
01/06/2010
50% + 87%
01/11/2010
50% + 103%
01/05/2011
50% + 115%
01/10/2011
50% + 127%
Note: The 6th Pay Commission was announced and implemented on 01 Jan. 2006.
01/01/2006
0.00%
D.A. RATES AS PER 6TH PAY COMMISSION
01/07/2006
2.00%
01/01/2007
6.00%
01/07/2007
9.00%
01/01/2008
12.00%
01/07/2008
16.00%
01/01/2009
22.00%
01/07/2009
27.00%
01/06/2010
35.00%
01/11/2010
45.00%
01/05/2011
51.00%
01/10/2011
58.00%
01/01/2012
65.00%
01/07/2012
72.00%
01/01/2013
80.00%