DA Calculation 8 % as on 31.05.2010.
Expected DA as on 30.06.2010 is 10%
All India Consumer Price Index Numbers For Industrial Workers On Base 2001=100 For The Month Of May, 2010
All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100 for the month of May, 2010 increased by 2 points and stood at 172 (one hundred and seventy two).
At present calculation of Dearness Allowance stands at 43%. If AICPIN points will increase above 173 in next month, DA will increase additionally 10% (35% + 10% = 45%) from July, 2010. Please watch the table...
Dec 2009 35
Jan 2010 37
Feb 2010 39
Mar 2010 40
Apr 2010 42
May 2010 43
June 30, 2010
June 29, 2010
Last Date for Filing Income Tax Returns 31.07.2010
Government of India
Ministry of Finance
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Central Board of Direct Taxes
New Delhi, the 31st May, 2010.
Order under Section 119(1) of the Income Tax Act, 1961
The due date for filling of return of income within the meaning of Explanation 2(c) to Section 139(1) of the Income Tax Act, 1961 is 31st July, 2010. The income tax authorities are hereby directed to make arrangements for accepting the returns of income on 31st July, 2010 (being Saturday). This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961.
Special arrangements may also be made by way of opening additional receipt counters, wherever required, from 28th July to 31st July, 2010 to facilitate the taxpayers to file their returns.
(Ajay Goyal)
Director (ITA-II)
Director (ITA-II)
June 28, 2010
DA from 01.07.2010 Expected 10% or 9 %
From 01.07.2011 we will get additional 25% on all Allowances
The main expectation among lakhs of Central Government Employees will be announcement of the next additional installment of Dearness Allowance (DA) for this year….
The reasons are many…
Employees getting only 3% annual increment for one year and those who are getting promotion, they are also getting only Grade Pay difference + 3% annual increment after waiting for several years. But nowadays employees are getting Dearness allowance percentage much than annual increment due to all commodities price increase.
Dearness Allowance is an essential component of salary, it is based on monthly All India Consumer Price Index for Industrial Workers (Base year 2001-100) announced by the Labour Bureau – Government of India from time to time. After 6th CPC only the Government directed that the Dearness Allowance has to be calculated based on AICPIN with the base year 2001-100.
We have clearly stated in our site that the Dearness Allowance (DA) from Jan-2010 to Jun-2010 should be 8% with appropriate proof. Some had doubt about this, but the Government accepted and the 8% Dearness Allowance (DA) was announced (19.03.2010) from Jan-2010.
As of now, the situation demands increase in Dearness Allowance (DA) from Jul-2010 to Dec-2010 should be 44% and it will confirmed only when the All India Consumer Price Index (AICPIN) for May and June to be published. But when the index value 170 decreases to 165 or low for the next two months, the Dearness Allowance (DA) will be 8%. If it increases from 170 to 173 and above, there is a chance that the Dearness Allowance (DA) shoots up to 10%. Till now, we can conclude that additional Dearness Allowance (DA) will be 9% because there is no relief in the prices of essential commodities. But the Government will be strictly monitoring the situation and control prices that the AICPIN (All India Consumer Price Index Number for Industrial Workers (CPI-IW) on base 2001=100) value doesn’t go up.
In the next year, when DA crosses 50% all allowances will get a hike up to 25% as per the 6th CPC recommendations. This will bring some relief to the employees.
The Pensioners, State Government employees and who are all getting pay as per 5th CPC also looks forward eagerly waiting for the announcement of increase in Dearness Allowance (DA).
We have to wait for this announcement for almost two months.
June 24, 2010
Procedure for inclusion of names of dependent widowed sister, daughter Etc.
dependent disabled siblings (i.e. brothers and sisters/) in the PPO – Procedure for –
Regarding.
5. Hindi version will follow.
No. 1/6/08-P&PW (E)
Ministry of Personnel, P.G. & Pensions
Department of Pension & Pensioner’s Welfare
Lok Nayak Bhawan
Khan Market, New Delhi-110003
Dated: 22nd June, 2010
OFFICE MEMORANDUM
Subject: Inclusion of names of the widowed or divorced or unmarried daughter/ parents / dependent disabled siblings (i.e. brothers and sisters/) in the PPO – Procedure for –
Regarding.
The undersigned is directed to state that it was clarified earlier vide this Department’s O.M.No. 1/21/91-P&PW (E) dated 20.1.1993 that the revised PPO format introduced w.e.f. 1.1.1990 contains provision for entry of details of all members of the family of the pensioner. The PPOs issued prior to 1.1.90, however, do not contain the names / details of children of the pensioner. In cases where the names of eligible children have not been mentioned in the PPO for various reasons, the pensioner can furnish a list of eligible children to the pension sanctioning authority and obtain an acknowledgement thereof from that authority. This acknowledgment will be produced at the time of submission of family pension claim to the pension sanctioning authority. However, the production of an acknowledgment will not be a pre-condition to the processing of claim for family pension. Even the spouse of the dead Government servant/ pensioner can furnish the details of such Children, if not furnished by the Government servant/pensioner earlier, to the pension sanctioning authority as clarified vide this Department’s O.M. No. 1/21/91-P&PW (E) dt. 15.1.1999.
2. Representations have been received in this Department from Pensioners/family pensioners and Pensioners Associations indicating the reluctance on the part of Ministries / Departments / Organisations to include the names of eligible family members (i.e. widowed / divorced / unmarried daughters; parents and dependent disabled siblings (i.e. brothers and sisters) in the PPO thereby delaying the sanction of family pension to such eligible family members. This is not only a source of frustration and denial of rightful claim to such eligible family members but at times causes undue hardship to them.
3. With a view to streamlining and cut delays in the pension sanctioning process, it is hereby clarified that in cases wherein eligibility of family members (i.e. divorced or widowed or unmarried daughter/ parents/ dependent disabled siblings (i.e. brothers/sisters) occurs after issue of the PPO, the pensioner himself or his/her spouse may intimate the details/ names of divorced or widowed or unmarried daughter/parents/dependent disabled siblings (i.e. brothers and sisters), to the pension sanctioning authority as per the procedure indicated in para (1) above. Similarly, in cases where the pensioner or his/her spouse has expired, the widowed or divorced or unmarried daughter/ parents/ dependent disabled sibling can themselves intimate such details to the pension sanctioning authority. However, the family pension in such cases can be processed by the pension sanctioning authority even without such intimation / acknowledgment, if sufficient proof of entitlement is produced by the claimant and all other conditions for grant of family pension are fulfilled.
4. This issues with the concurrence of the Ministry of Finance, Department of Expenditure vide their U.O. No.368/EV/2010 dated 15.06.2010. 5. Hindi version will follow.
Yours sincerely
(K.S. Chibb) Deputy Secretary to the Govt. of India
June 18, 2010
Travel by Air to Jammu & Kashmir - Relaxation of LTC Rules
Order in connection with relaxation of LTC Rules for travelling to Jammu & Kashmir by air is reproduced below:
====================================================================
NO. 31011/2/2003-Estt. (A-IV)
Government of India
Ministry of Personnel, P.G. & Pensions
(Department of Personnel & Training)
New Delhi, dated the 18th June., 2010
OFFICE MEMORANDUM
Subject.: CCS (LTC) Rules, 1988 – Relaxation for travel by air to visit J&K
The undersigned is directed to say that in relaxation of CCS(LTC) Rules. 1988, it has been decided by the Government to permit Government employees to travel by air to J&K as per the following scheme:-
(i) All officers/employees of Government of India will be allowed to avail LTC to visit J&K against conversion of one block of their Home Town LTC.
(ii) Officers/employees of Government of India entitled to travel by air can avail this LTC in their entitled class.
(iii) All other employees of Government of India can travel by air in economy class from Delhi and Amritsar to any place in J&K by any airlines subject to their entitlement being limited to LTC-80 fares of Air India. Journey from their place of posting up to Delhi/Amritsar will have to be undertaken as per their entitlement.
(iv) Restriction of air travel only by Air India on LTC to other places shall continue to remain in force.
(v) This scheme shall be effective from the date of issuance.
2. These orders shall be in operation for a period of two years from the date of issue of this O.M.
3. In their application to the staff serving in the indian audit and Accounts Department, these orders issue on consultation with comptroller and Auditor General of India.
Smt.Rajbala singh
Under secretary to the Govt.of India
June 09, 2010
Central Government Group ‘D’ Employees warmly welcomes the Modified Assured Career Progression Scheme which was announced in the 6th CPC.
A Government order which announced that those Group ‘D’ employees who got ACP I and ACP II after completing 24 years of service will not be taken into account for the benefit of MACP Scheme was widely appreciated by every one.
The Group ‘D’ classification was abolished and they were inducted into Group ‘C’ employees. The minimum qualification was SSLC and they were given training and fixed Rs.1800 as Grade Pay.
A guidelines says that the ACP and promotion which was given before Rs.1800 as Grade Pay will not be counted for the MACP. A Group ‘D’ employee who completes 30 years of service will get Rs.1900 – 2000 – 2400 as Grade Pay, whereas who got promotion from Group ‘D’ to Group ‘C’ were given Rs.2400 – 2800 as Grade Pay. Employees who completed 30 years of service were given Rs.4200 and Rs.4600 as Grade Pay. Which was gladly welcomed by all.
One of the email from our reader received to us said, “It was a glories moment in my life, it was a dream come true”.
He also says, “I was appointed as a Group ‘D’ employees in 1973 in central government service and got promotion as Group ‘C’ in 1976 and completed 24 years service without any promotion. In 1999, I got ACP I and my basic pay fixed as Rs.4000-100-6000(Pre revised scale), but ACP II was refused to me as the promotion from Group ‘D’ to Group ‘C’ was he reason.
In 2006, I got promotion and my basic pay was fixed at Rs.4500-125-7000(Pre revised scale).
He says again ”In the year 2008, MACP was introduced. I came to know that this is different from ACP. Upgradation will be given in every ten years of service incase of without promotion. I felt that I will not get any benefit from this. But told that I will get Rs.4600 as Grade Pay. I was greatly surprised to hear this.
After that, the implementation came and I received the new payment which was very much a dream for me”. My pay fixed as follows…
Firt MACP I – Rs.1900 – Rs.2400 Grade Pay
Second MACP II – Rs.2400 – Rs.4200 Grade Pay
(Rs.2800 Grade Pay is not treated as promotion)
Third MACP III – Rs.4200 – Rs.4600 Grade Pay.
A Government order which announced that those Group ‘D’ employees who got ACP I and ACP II after completing 24 years of service will not be taken into account for the benefit of MACP Scheme was widely appreciated by every one.
The Group ‘D’ classification was abolished and they were inducted into Group ‘C’ employees. The minimum qualification was SSLC and they were given training and fixed Rs.1800 as Grade Pay.
A guidelines says that the ACP and promotion which was given before Rs.1800 as Grade Pay will not be counted for the MACP. A Group ‘D’ employee who completes 30 years of service will get Rs.1900 – 2000 – 2400 as Grade Pay, whereas who got promotion from Group ‘D’ to Group ‘C’ were given Rs.2400 – 2800 as Grade Pay. Employees who completed 30 years of service were given Rs.4200 and Rs.4600 as Grade Pay. Which was gladly welcomed by all.
One of the email from our reader received to us said, “It was a glories moment in my life, it was a dream come true”.
He also says, “I was appointed as a Group ‘D’ employees in 1973 in central government service and got promotion as Group ‘C’ in 1976 and completed 24 years service without any promotion. In 1999, I got ACP I and my basic pay fixed as Rs.4000-100-6000(Pre revised scale), but ACP II was refused to me as the promotion from Group ‘D’ to Group ‘C’ was he reason.
In 2006, I got promotion and my basic pay was fixed at Rs.4500-125-7000(Pre revised scale).
He says again ”In the year 2008, MACP was introduced. I came to know that this is different from ACP. Upgradation will be given in every ten years of service incase of without promotion. I felt that I will not get any benefit from this. But told that I will get Rs.4600 as Grade Pay. I was greatly surprised to hear this.
After that, the implementation came and I received the new payment which was very much a dream for me”. My pay fixed as follows…
Firt MACP I – Rs.1900 – Rs.2400 Grade Pay
Second MACP II – Rs.2400 – Rs.4200 Grade Pay
(Rs.2800 Grade Pay is not treated as promotion)
Third MACP III – Rs.4200 – Rs.4600 Grade Pay.
June 08, 2010
Present position for Cadre merger & Grade pay
The Directorate has decided to place the proposal of merger and granting higher grade pay for IP Cadre in the ensuing postal board meeting. The proposal will be submitted to the Ministry of Finance along with the postal board’s decision.
The Ministry of Finance normally considered the proposal approved by the Board of any Ministry.
The Directorate has decided to place the proposal of merger and granting higher grade pay for IP Cadre in the ensuing postal board meeting. The proposal will be submitted to the Ministry of Finance along with the postal board’s decision.
The Ministry of Finance normally considered the proposal approved by the Board of any Ministry.
June 04, 2010
Tax treatment of Home Loans
The Income Tax Act, 1961 provides tax benefits for assessees that have home loans. The home loan which has to be repaid to the bank in monthly installments. The installment consists of two components i.e. - interest and principal repayment. The bank gives a detailed worksheet of the loan calculation and of the bifurcation of the EMIs paid by the borrowers. These monthly repayments are qualified for deductions from income tax.
You can ask for Amortization Schedule from your bank which consist the entire schedule of loan with detailed break-up month wise for Interest as well as Principal repayment
Please find the tax treatment for EMIs paid by the borrower:
Deduction under Section 80C of the Income Tax Act: The portion of the EMI paid towards repayment of principal amount of the loan can be deducted from income. The borrower can get a tax deduction for a maximum amount of Rs 1,00,000 each year under this section irrespective of his tax bracket. The Act requires the home loan to be towards a property for self occupation.
However, if the assessee's city of employment is different from the city where he has purchased a home, he is still eligible for this deduction.
So if you work in Delhi but has purchased a home your hometown, you can still claim a deduction under this section even if he is not actually staying in this home.
Deduction under Section 24(b) of the Income Tax Act
The interest paid towards home loan is treated as an 'expense' under 'Income from house property' and is deductible under Section 24(b) from the total income of the assessee.
The maximum deduction permitted under this section is Rs 1,50,000 per annum.
In case of partial disbursement of loan
In cases where some part of the loan is disbursed by the bank during construction stage of the property, the tax treatment is slightly different. This portion of the interest paid prior to completion of construction of property cannot be claimed as a deduction in the year in which it is paid.
However, upon completion of construction, the assessee can claim deduction for this interest under Section 24(b) in 5 equal installments, i.e., 1/5th for each of the five years after the end of construction period. Note that the upper limit on deduction each year remains Rs 1,50,000.
Assume you purchased a home in FY06.The property was still under construction and was completed only in FY09. Some amount of loan was disbursed by the bank in FY05-06 and you made interest payments of Rs1,00,000 between FY06 and FY08. You can claim deduction of Rs 20,000 for 5 years starting from FY09.
Disbursement of loan
As we all know that Builder's generally offer 2 types of plan
Construction Linked
Down Payment
If you have opted for down payment plan and received the entire loan money in FY06, and EMI starts immediately, you would lose on the principal repayment deduction under Section 80C for the 3 years until construction of the property ends. This is because deduction under Section 80C can be availed only after getting possession of the property.
In case of more than one home loan
If you work in Delhi and has a purchased a home in your hometown for which you have taken home loan. Will he still get benefit under the Act for this second home your hometown?
The answer is 'Yes'. Benefits under Section 80C and Section 24(b) can be taken for more than one home if all these homes satisfy the requirements of the Act. The home in delhi satisfies the condition of self occupancy while the home in hometown comes within the exception of the self occupancy rule that the city of work is different. Irrespective of the number of homes the maximum limit of Rs 1,00,000 for Section 80C and Rs 1,50,000 for Section 24(b) still apply. Note that it does not matter if you gives one home on rent. You will still be able to get the tax break.
In case of joint home loan
What is the tax impact if you have taken the home loan jointly with your wife? In this case both you and your wife can claim tax deduction on their return if the home too is jointly owned by them. Tax benefit can be availed in the same proportion as the burden of EMI borne by each. If you pay 80 per cent of the EMI and your wife contributes towards the remaining 20 percent, the tax deduction will be available in the same proportion. So if principal repaid during a year is Rs 100,000 then you can claim Rs 80,000 under section 80C and even your wife can claim Rs 20,000 under the section.
If your wife does not co-own the home, then she will not get any tax deductions for EMIs paid on such loan.
Source: Assettreat
The Income Tax Act, 1961 provides tax benefits for assessees that have home loans. The home loan which has to be repaid to the bank in monthly installments. The installment consists of two components i.e. - interest and principal repayment. The bank gives a detailed worksheet of the loan calculation and of the bifurcation of the EMIs paid by the borrowers. These monthly repayments are qualified for deductions from income tax.
You can ask for Amortization Schedule from your bank which consist the entire schedule of loan with detailed break-up month wise for Interest as well as Principal repayment
Please find the tax treatment for EMIs paid by the borrower:
Deduction under Section 80C of the Income Tax Act: The portion of the EMI paid towards repayment of principal amount of the loan can be deducted from income. The borrower can get a tax deduction for a maximum amount of Rs 1,00,000 each year under this section irrespective of his tax bracket. The Act requires the home loan to be towards a property for self occupation.
However, if the assessee's city of employment is different from the city where he has purchased a home, he is still eligible for this deduction.
So if you work in Delhi but has purchased a home your hometown, you can still claim a deduction under this section even if he is not actually staying in this home.
Deduction under Section 24(b) of the Income Tax Act
The interest paid towards home loan is treated as an 'expense' under 'Income from house property' and is deductible under Section 24(b) from the total income of the assessee.
The maximum deduction permitted under this section is Rs 1,50,000 per annum.
In case of partial disbursement of loan
In cases where some part of the loan is disbursed by the bank during construction stage of the property, the tax treatment is slightly different. This portion of the interest paid prior to completion of construction of property cannot be claimed as a deduction in the year in which it is paid.
However, upon completion of construction, the assessee can claim deduction for this interest under Section 24(b) in 5 equal installments, i.e., 1/5th for each of the five years after the end of construction period. Note that the upper limit on deduction each year remains Rs 1,50,000.
Assume you purchased a home in FY06.The property was still under construction and was completed only in FY09. Some amount of loan was disbursed by the bank in FY05-06 and you made interest payments of Rs1,00,000 between FY06 and FY08. You can claim deduction of Rs 20,000 for 5 years starting from FY09.
Disbursement of loan
As we all know that Builder's generally offer 2 types of plan
Construction Linked
Down Payment
If you have opted for down payment plan and received the entire loan money in FY06, and EMI starts immediately, you would lose on the principal repayment deduction under Section 80C for the 3 years until construction of the property ends. This is because deduction under Section 80C can be availed only after getting possession of the property.
In case of more than one home loan
If you work in Delhi and has a purchased a home in your hometown for which you have taken home loan. Will he still get benefit under the Act for this second home your hometown?
The answer is 'Yes'. Benefits under Section 80C and Section 24(b) can be taken for more than one home if all these homes satisfy the requirements of the Act. The home in delhi satisfies the condition of self occupancy while the home in hometown comes within the exception of the self occupancy rule that the city of work is different. Irrespective of the number of homes the maximum limit of Rs 1,00,000 for Section 80C and Rs 1,50,000 for Section 24(b) still apply. Note that it does not matter if you gives one home on rent. You will still be able to get the tax break.
In case of joint home loan
What is the tax impact if you have taken the home loan jointly with your wife? In this case both you and your wife can claim tax deduction on their return if the home too is jointly owned by them. Tax benefit can be availed in the same proportion as the burden of EMI borne by each. If you pay 80 per cent of the EMI and your wife contributes towards the remaining 20 percent, the tax deduction will be available in the same proportion. So if principal repaid during a year is Rs 100,000 then you can claim Rs 80,000 under section 80C and even your wife can claim Rs 20,000 under the section.
If your wife does not co-own the home, then she will not get any tax deductions for EMIs paid on such loan.
Source: Assettreat
June 03, 2010
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