TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS on payment of accumulated balance under recognised provident fund and contribution from approved superannuation fund

Ministry of Finance has issued a circular about details of TDS on approved Provident and Superannuation Funds as per Income-Tax Act

TDS ON PAYMENT OF ACCUMULATED BALANCE UNDER RECOGNISED PROVIDENT FUND AND CONTRIBUTION FROM APPROVED SUPERANNUATION FUND:

    The   trustees of a Recognized Provident Fund, or any person   authorized   by the regulations of the Fund   to  make payment of  accumulated   balances due   to  employees, shall   in   cases where sub-rule(1) of Rule 9 of Part A of the Fourth Schedule   to the Act applies, at the time   when the accumulated   balance due to an employee is paid, make therefrom   the deduction specified in Rule 10 of Part A of the Fourth Schedule to the Act.

The accumulated balance is treated as income chargeable under the head “Salaries”.

Where any contribution   made by an  employer,  including   interest on  such  contributions,  if any, in  an approved Superannuation Fund is paid to the employee,  tax on the  amount so paid shall be deducted by the trustees of the Fund  to the extent provided in Rule 6 of Part B of the Fourth Schedule to the Act. TDS should be at the average rate of tax at which, the employee was liable to be taxed during the preceding three years or during the period, if that period is less than three years, when he was member of the fund.

The deductor shall remain liable to deduct tax on any sum paid on account of returned contributions (including interest, if any)  even if a fund or part of a fund ceases to be an approved Superannuation fund.

As per section 192A of the Act, w. e. f. 01.06.2015 the trustees of the EPF Scheme 1952 framed under section 5 of the EPF & Misc. Provisions Act, 1952 or any person authorized under the scheme to make payment of accumulated balance due to employees, shall, in a case where the accumulated balance due to an employee participating in a recognized provident fund is includible in his total income owing to the provisions of Rule 8  of Part A of Fourth Schedule not being applicable at the time of payment of accumulated balance due to the employee, deduct income tax thereon @ 10% if the amount of such payment or aggregate of such payment exceeds Rs 50,000/-. In case the employee does not provide his/her PAN No., then the deduction will have to be made at maximum marginal rate.

Check the Circular

GST will not lead to job losses at central excise dept, assures Jaitley

GST will not lead to job losses at central excise dept, assures Jaitley

New Delhi: Ahead of the rollout of GST, Finance Minister Arun Jaitley today sought to address concerns of job loss from reduced work of central excise and service tax officials, saying they should have no insecurity as enough work and opportunities will be available to them in the new indirect tax regime.

"I see no reason really for disquiet for the simple reason (that) opportunities which are available to people in service and the matter of policy and constitutional guarantee are all protected," he said at the Investiture Ceremony 2017 and International Customs Day 2017 organised by CBEC here.

Only the nature of activity will change because there will be one national sales tax replacing an array of central and state levies like excise duty, service tax and VAT.

"Important changes and evolutions which take place are never put on the back burner" just because the people who conduct the activity would now have to work in an altered form and environment, he said.

"The number of people required, the kind of opportunity will remain unchanged except that the nature of activity itself changes," he said.

GST, he said, has for last several yeas been considered as a larger part of policy consensus in India and an important taxation reform that will lead to the economic integration of the country.

"Once it takes place you have a situation where taxes (that) are levied by the state (and) by Centre (will) all be integrated into one and therefore resulting in one assessment.

"Multiple systems on assessment which is there at present will evolve into a newer kind of system," he said.

He was responding to Central Board of Excise and Customs (CBEC) Chairman Najib Shah’s remarks drawing his attention to "the rising disquiet in the cadre", saying there were human resource issues in the service.

Jaitley said the revenue to be collected is going to expand and there will be expansion of economic activity as well.

"Therefore even though you have two parallel machineries which could now be converging into similar kind of activities and shared responsibility, I think the future will stand witness to the fact that there will be adequate amount of opportunities to be created and therefore the kind of disquiet in service, the kind of personal pressure I see on you should reduce as there is no real occasion for a fear of this kind or a sense of insecurity for anyone in this service," he said.

The Finance Minister said change and evolution are an integral part of any economic order, and they are never held back because the nature of responsibility is going to change.

"This is an ongoing process it will continue and we will all have to adjust ourselves with this particular change. I can only assure you that there is no reason for disquiet, you can go and have a comfortable sleep tonight,” he told the revenue officials.

Revenue Secretary Hasmukh Adhia told the officers that they will have enough work to do under GST.

The Indian Revenue Service (Customs and Central Excise) Officers Association has asked the government to protect the sanctity of their service amid attempts by officers of state government VAT departments to equate themselves with IRS (Customs and Central Excise) officers.

PTI

Budget may bring good news for salaried people

Budget may bring good news for salaried people

New Delhi: Every year when the Union finance minister presents the Budget speech, the ‘salaried people’ looks to him with expectations for reducing their tax liability.

It is possible that there would be some moves in this regard in the coming one.

The salaried people could get some relief as finance minister Arun Jaitley is likely to raise the minimum income threshold for paying personal income tax for those below 60 years of age to Rs 3 lakh a year from Rs 2.5 lakh at present and the deduction limit under Section 80C to Rs 2 lakh in the Union Budget for 2017-18, multiple sources told The Sen Times.

Currently the tax exemption slab is at Rs 2.5 lakh for individuals below 60 years, while deduction under Section 80C is Rs 1.5 lakh.

Union Finance Minister Arun Jaitley raised the personal income tax exemption limit from Rs 2 lakh to Rs 2.50 lakh on July 11, 2014 in the Union Budget for 2014-15.

Jaitley may also raise section 80C deductions limit to Rs 2.0 lakh, the sources said.

This move aimed at boosting household savings. The hike in deductions limit for investments by individuals in financial instruments to Rs 2.0 lakh would come as a sigh of relief for the salaried people blatting high inflation.

Investments under Section 80C up in popular tax saving instruments such as the general provident Fund, public provident fund, NPS, national savings scheme, unit-linked insurance plans and equity-linked savings schemes are not taxed up to the allowed threshold.

Section 80C was introduced by the UPA government in 2005-06 with a limit of Rs 1 lakh but UPA government did not revised it since then. Jaitley raised it up to Rs 1.5 lakh in the Union Budget for 2014-15.
Deduction on payment of income tax on interest paid on loans for self occupied houses may be also raised to Rs 2.5 lakh from Rs 2.0 lakh, the sources added.

Union Finance Minister will present the Union Budget on Wednesday.

TST

Clarifications on implementation of GAAR provisions under the Income Tax Act, 1961

Clarifications on implementation of GAAR provisions under the Income Tax Act, 1961

The General Anti Avoidance Rule (GAAR) provisions shall be effective from the Assessment Year 2018-19 onwards, i.e. Financial Year 2017-18 onwards. The necessary procedures for application of GAAR and conditions under which it shall not apply, have been enumerated in Rules 10U to 10UC of the Income-tax Rules, 1962.The provisions of General Anti Avoidance Rule (GAAR) are contained in Chapter X-A of the Income Tax Act, 1961.

Stakeholders and industry associations had requested for clarifications on implementation of GAAR provisions and a Working Group was constituted by Central Board of Direct Taxes (CBDT) to examine the issues raised. Accordingly, CBDT has issued the clarifications on implementation of GAAR provisions today.

Amongst others, it has been clarified that if the jurisdiction of FPI is finalized based on non-tax commercial considerations and the main purpose of the arrangement is not to obtain tax benefit, GAAR will not apply. GAAR will not interplay with the right of the taxpayer to select or choose method of implementing a transaction. Further, grandfathering as per IT Rules will be available to compulsorily convertible instruments, bonus issuances or split / consolidation of holdings in respect of investments made prior to 1st April 2017 in the hands of same investor. It has also been clarified that adoption of anti-abuse rules in tax treaties may not be sufficient to address all tax avoidance strategies and the same are required to be tackled through domestic anti-avoidance rules. However, if a case of avoidance is sufficiently addressed by Limitation of Benefits (LoB) provisions in the tax treaty, there shall not be an occasion to invoke GAAR.

It has been clarified that if at the time of sanctioning an arrangement, the Court has explicitly and adequately considered the tax implications, GAAR will not apply to such an arrangement. It has also been clarified that GAAR will not apply if an arrangement is held as permissible by the Authority for Advance Rulings.

Further, it has been clarified that if an arrangement has been held to be permissible in one year by the PCIT/CIT/Approving Panel and the facts and circumstances remain the same, GAAR will not be invoked for that arrangement in a subsequent year.

The proposal to apply GAAR will be vetted first by the Principal Commissioner of Income Tax / Commissioner of Income Tax and at the second stage by an Approving Panel headed by a judge of High Court. The stakeholders have been assured that adequate procedural safeguards are in place to ensure that GAAR is invoked in a uniform, fair and rational manner.

Government is committed to provide certainty and clarity in tax rules. Further clarifications, if any, on doubts of stakeholders regarding GAAR implementation, will also be provided.

PIB

Review of CSSS officers in the Grade of Personal Assistant under FR 56 (j) and Rule 48 of CCS(Pension) Rules, 1972

Review of CSSS officers in the Grade of Personal Assistant under FR 56 (j) and Rule 48 of CCS(Pension) Rules, 1972

Reminder

No. 25/9/2016-CS-II(C)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

3rd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi-11 0003
Dated: 25th Jan, 2017

OFFICE MEMORANDUM

Subject: Review of CSSS officers in the Grade of Personal Assistant under FR 56 (j) and Rule 48 of CCS(Pension) Rules, 1972-reg.

The undersigned is directed to refer to this Department's D.O. letter No. 3/8/2015-CS.1 (D) dated 26.02.2016 and subsequent reminders dated 08.11.2016, 29.11.2016 and 23.12.2016 vide which all the cadre units of CSSS were requested to furnish the inputs in the format annexed therewith with respect to the officers who in the opinion of Ministry/Department, are covered under extant provisions of FR 56 (j)/Rule 48 of CCS(Pension) Rule, 1972. However, the inputs sought in respect of PA Grade are still awaited from several Ministries/Departments.

2. It is, therefore, once again requested to all the defaulting cadre units to furnish the requisite information in respect of PA Grade who are due to review under the provisions of FR 56U) to this Department within a week positively.

(Pradeep A)
Under Secretary to the Government of India
Tel: 24623157

To
Under Secretaries of all defaulting Cadre units of CSSS
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GST - 70,000 Tax Officials warn of non-cooperation movement

GST - 70,000 Tax Officials warn of non-cooperation movement

Opposing some recent decisions taken by GST Council, various indirect tax officials' associations today decided to start non-cooperation movement.

To start with, the employees associations will not celebrate international customs day on Friday. Besides, they will observe 'black day' by wearing black badges on Martyrs' Day, i.E. January 30, as per minutes of meeting held among their representatives here.

The associations said that their members are "highly disappointed" and feel "cheated" over the decisions taken by Finance Minister Arun Jaitley-led GST Council in its meeting on January 16.

The Council had agreed to give states the powers to levy tax on economic activity within 12 nautical miles of territorial waters and to administer 90 per cent of the tax payers under Rs 1.5 crore annual turnover.

"We feel that the biggest tax reform of the century should have been in conformity with the principles of responsibility and authority going together and also in conformity with the Constitutional design. We feel that the decision shall weaken the Centre's ability to ensure its revenues.

"The decision will not only adversely affect the career of revenue officers but it is not in national interest. We oppose the decisions taken by GST Council and requests for deferment and review of above inappropriate and incorrect decisions," as per the minutes of meeting of steering committee of associations representing Group A, B and C employees of Central Board of Excise and Customs (CBEC).

The decision came after a meeting of representatives of Indian Revenue Service (Customs and Central Excise), All India Association of Central Excise Gazetted Executive Officers, All India Central Excise Inspectors' Association and All India Central Excise and Service Tax Ministerial Officers Association, comprising 70,000 personnel, here, office bearers said.
According to them, the decision taken by GST Council in its January 16, meeting will not only weaken the Centre but also adversely affect the Indian economy and revenue collection but also national security.

They have decided to request authorities concerned to take immediate necessary action to resolve the issues and to defer the unjustified decision of GST Council taken under pressure of state VAT officers.

"We feel that if the above genuine demands in national and revenue interest are not considered then this disciplined service will be forced to initiate non-cooperation movement following Gandhian methods of Satyagraha," the associations said.

The Goods and Services Tax (GST) is likely to be rolled out from July 1, as against April 1 decided earlier by the government.

PTI

Representation of Defence Civilian Employees Federations regarding misinterpretation of RPR 2016 leading to incorrect pay fixation of employees

MoD once again issued a clarification orders with three illustrations of an employee shall be fixed who has been granted financial upgradation in MACP on 15.3.2016 in the grade pay of Rs.4200.

MoD action on BPMS's representation on Seeking of Clarification regarding Option & Pay Fixation in 7th CPC

Office of the Controller General of Defence Accounts
Ulan Batar Road, Palam, Delhi Cantt - 110010

No.AT/II/2701/Orders

Dated: 05 Jan 2017

To
All PCsDA/CsDA
PCA(Fys)/All CsFA(Fys)
(Through NIC mail server

Subject: Representation of Defence Civilian Employees Federations regarding misinterpretation of RPR 2016 leading to incorrect pay fixation of employees.

A copy of MoD/D (Civ-I) ID No 11 (6)/2016-D(Civ-I) dated 07.12.2016 along with all its enclosures on the above subject is forwarded herewith. It is seen that MoD/D(Civ-I) has requested that the clarification on the subject from MoF/MoD(Fin) may be awaited. Accordingly, the instructions issued by MoD in para 2 of the MoD ID dated 7.12.2016 may be adhered to avoid any inconsistencies in the matter of pay fixation.
Jt CGDA (P&W) has seen.

(Vinod Anand)
Sr ACGDA (P&W)

The employee has exercised option 2 to fix the pay in the Pay Matrix after availing the increment dated 1.7.2016, in the old pay structure scale.

Option 2 is exercised by the employee to fix the pay in the new pay matrix after availing promotional upgradation under MACP Scheme that look place on 1.1.2016.

Option 2 is exercised by the employee to fix the pay in the pay matrix after availing promotion/MACP upgradation as on 15.3.2016

Click to view the order
Authority: http://pcafys.nic.in/

General Budget 2017-18 - NFIRs proposals for consideration

General Budget 2017-18 - NFIR's proposals for consideration

NFIR
National Federation of Indian Railwaymen
3, Chemlmsford Road, New Delhi - 110 055
Affiliated to:
Indian National Trade Union Congress (INTUC)
International Transport Workers’ Federation (ITF)
No.IV/Budget/Part III

23.01.2017

Shri Arun Jaitley,
Hon'ble Minister of Finance,
North Block, New Delhi.

Dear Sir,

Sub: General Budget 2017-18 - NFIR's proposals for consideration

The National Federation of Indian Railwaymen (NFIR) requests the Hon'ble Finance Minister to consider its proposals listed below for inclusion in the General Budget 2017-18 to be presented in Parliament in February, 2017.
1. The Income Tax exemption limit for Central Government Employees may be raised to atleast Rupees Six Lakhs
2. The Income Tax exemption limit for senior citizens may be raised to Rs.7.5 lakhs and for those Senior Citizens above 75 years age, the exemption be allowed up to Rs.10 lakhs.
3. Transport Allowance presently paid to the Central Government Employees may be exempted from the purview of Income Tax.
4. Fixed Medical Allowance to the retired Central Government Employees may be revised to not less than Rs.2,000/- Per month.
5. Grant House Rent Allowance at the rate of 30%, 20% & 10% of 7th CPC Pay to the Central Government Employees working at Cities/Towns classified as 'X' 'Y' & 'Z' respectively with back date.
6. Contract Labour performing jobs of perennial nature be granted wages at par with the regular employees performing similar jobs.
7. Child Care Leave for women employees be revised upwardly.
8. Pension parity be granted all those pre 1.1.2016 Pensioners of Central Government.

Proposals - Railway Specific

9. Additional funds be allocated for augmenting Railway Training Institutes and Railway Community Halls, Recreation Clubs etc'.
10. More funds may be provided for construction of new quarters in the Railways and for maintenance of Railway colonies.
11. Training Allowance for Trainers in Railways Training Institules may be enhanced to 30% of pay in lieu of the existing 15%.
12. Separate Rest Rooms for Women Railway Employees at different locations be sanctioned to enable them to stay when they visit on railway duties.
13. Additional Road Mobile Medical Vans may be approved for providing medical treatment to the railway employees and their families living at remote places and jungle stations.

sd/-
(Dr. M.Raghavaiah)
General Secretary

Source: NFIR

Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air

Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air

To
The Secretary, OFB, ID-A, S.K. Bose Rd, Kol-01
All Sr. General Managers/All General Managers
Ordnance/ Equipments Factories.
All Group controllers & Branch AOs

Sub: Clarification on purchase of Air Tickets from unauthorized agents for non- entitled officials to travel by air

Kindly refer to DoP&T letter No.31011/3/2015-Estt(A.lV) dated 18/02/2016 wherein it is mentioned under points 14 & 15 that Govt employees not entitled to travel by air, may travel by any airline. However, reimbursement in such cases shall be restricted to the fare of their entitled class of train/transport or actual expense, whichever is less. In all cases whenever a Govt servant claims LTC by air, he/she is required to book the air tickets either directly through the airlines or through the approved travel agencies viz M/s Balmer Lawrie & Co. Ltd/ M/s Ashok Tours & Travels Ltd/ IRCTC. Booking of tickets through any other agency is not permissible.

This is for your information, guidance and necessary action please.

Dy.Controller
Accounts(Fys)

Authority: http://pcafys.nic.in/

Clarification regarding timely payment of GPF final

Clarification regarding timely payment of GPF final

No.3/3/2016-P&PW(F)
Ministry of Personnel, PG & Pensions
Department of Pension & Pensioners’ Welfare
Desk-F

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-110003
Dated 16th January 2017.

OFFICE MEMORANDUM

Subject: Clarification regarding timely payment of GPF final payment to the retiring Government servant - regarding

During review meetings held to evaluate the status of implementation of Bhavishya with Ministries/Departments, it was observed that GPF final payment in many cases is not being paid to the retiring Government servants immediately on retirement from service leading to payment of interest for the delayed period.

2. Rule 34 of General Provident Fund (Central Service) Rules clearly provides that when the amount standing at the credit of a subscriber in the General Provident Fund becomes payable, it shall be the duty of the Accounts Officer to make payment. The authority for the amount payable is to be issued at least a month before the date of superannuation, but payable on the date of superannuation. It may be noted that the requirement of submitting a written application by the retiring Govt. servant for GPF final payment has been dispensed with vide this Department’s Notification No.20(12)/94-P&PW (E) dated 15.11.1996 and notified under S.O NO.3228 dated 23.11.1996.

3. As per Rule 11(4) of GPF Rules, in case the GPF balance is not paid on retirement, interest on the GPF balance is required to be paid for the period beyond the date of retirement also. While interest for the first six months beyond retirement can be allowed by the PAO in the normal course, approval of Head of the accounts office is required for payment of interest beyond six months and that of Controller of Account/Financial Adviser beyond a period of one year.

4. To ensure timely final payment of GPF, and to avoid unnecessary financial burden on account of interest beyond retirement, it has now been decided that every case, in which payment of interest on General Provident Fund becomes necessary in terms of Rules 11(4) of GPF Rules, 1960, shall be put up for consideration to the Secretary of the Administrative Ministry/Department. In all such cases the Secretary of the Administrative Ministry/Department will fix responsibility at all levels to take appropriate action against the Government servant or servants who are found responsible for the delay in the payment of General
Provident Fund.

5. This issues with the concurrence of the Ministry of Finance, Department of Expenditure, vide their 10 NO.187/EV/2016 dated 2th September 2016.

6. Hindi version will follow.

(Seema Gupta)
Director

Authority: http://www.pensionersportal.gov.in/