No.12011/07(i)/2011-Estt.(AL)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel and Training
New Delhi, 21st February, 2012
OFFICE MEMORANDUM
Subject: Children Education Allowance – Clarification.
The undersigned is directed to refer to Department of Personnel & Training’s O.M. No.12011/03/2008—Estt.(Allowance) dated 2nd September, 2008, and subsequent clarifications issued from time to time on the subject cited above, and to state that various Ministries / Departments have been seeking clarifications on various aspects of theChildren Education Allowance / Hostel Subsidy. The doubts raised by various authorities are clarified as under:
S.No. Point of reference/doubts Clarification 1. What constitute “Fee” as per para 1(c) of the O.M. dated 2/9/2008 and whether fee paid for extra-curricular activities to some other institute and reimbursement of, school bags, pen/pencils. etc., can be allowed? Is there any item-wise ceiling? “Fee’ shall mean fee paid to the school in which the child is studding, directly by the parents/guardian for the items mentioned in para 1(e) of the O.M.dated 2/9/2008. Reimbursement of school bags, pens/pencils, etc., may not he allowed. There is no item-wise ceiling. 2. Whether reimbursement can be allowed in case the original receipts are misplaced and duplicate receipts are produced by the Government servant? In case of misplacement of receipts given by the school/institution towards charges received from the parents/guardian, reimbursement may be allowed if the Government servant produces a duplicate receipt, duly authenticated by the school authorities. Receipts from private parties, other than the school, if misplaced shall not be , entertained, even if a duplicate receipt is produced. Original receipts from school authorities need not be attested / countersigned stamped bythe school authorities. 3. Whether the Government servant is allowed to get 50% of the total amount subject to the overall annual ceiling in the first quarter and the remaining amount in third and or fourth quarter? Reimbursement of 50% of the entitled amount for the academic year could be allowed in the first and/or second quarter and the remaining amount could be reimbursed in the third and/or fourth quarter. However,the entire entitled amount can be reimbursed in the last quarter. 4. It is provided that whenever the DA increases by 50% the CEA will increase by 25%. What shall be the date of effect of such enhancement? Any enhancement in the ceiling of reimbursement per annum due to increase in DA by 50%, shall be applicable on pro-rata basis from the date of increase in DA, subject to actual expenditure during the quarter. Hindi version will follow.
sd/-
(Vibha G.Mishra)
Director
Tel:23092483
DOPT issues some more clarifications on Children Education Allowance
State Finance Ministers to meet on March,3 for deciding on expanding Service Tax net
Ahead of the Union Budget, the state Finance Ministers will meet here on March 3 and suggest steps for increasing the ambit of the service tax net with a view to garnering more resources.
The state Finance Ministers have decided on the negative list and are expected to sort out issues concerning definition of services so that more economic activities could be brought under the tax net.
“We will meet on March 3. There was differences of opinion on definition of services. This time we will take a final view. Last time we achieved consensus on the negative list,” Chairman of the Empowered Committee of State Finance Ministers on GST Sushil Modi said.
It is widely expected that in the Union Budget on March 16, the government is expected keep 22 services in the negative list and impose 10% tax on all other services.
A proper definition of service will help the government in imposing levy on more economic activities and also prevent tax-related disputes.
Last month, the Empowered Committee of State Finance Ministers on Goods and Services Tax (GST) had approved imposition of service tax based on a negative list of services.
At present, the tax is levied on 119 services. For the current fiscal, the Centre hopes to mop up Rs 82,000 crore from this levy.
Modi said that during the next meeting the ministers would also deliberate on development of Information Technology network for GST, headed by Nandan Nilekani.
On compensation for phasing out of Central Sales Tax (CST), Modi said, “The Centre is refusing to give CST compensation for 2011-12. This issue will also be discussed and we will try to reach an amicable solution.”
The Centre has agreed to release around Rs 6,394 crore for 2010-11 as compensation to states for the gradual lowering of CST to 2% from 4% for gradual roll out of GST. However, the Centre has refused compensation to the states in the current fiscal.
At present, CST is payable on inter-state sales at 2%. Although CST is levied by the Centre, the revenue goes to the state government. State from which movement of goods commences gets revenue.
The government is trying to introduce the new GST regime, which will subsume various levies like excise, service tax and states tax, like value-added tax, entry tax and purchase tax.
In their pre-Budget consultative meeting with the Finance
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MPs want IT exemption limit hiked to Rs. 5 lakh
Ahead of the budget, some members of a Parliamentary panel scrutinising the Direct Taxes Code (DTC) Bill today pressed for raising the income tax exemption limit to Rs 5 lakh per annum.
The Standing Committee on Finance, which met under the chairmanship of senior BJP leader Yashwant Sinha, has decided to finalise its report by March 2, enabling Parliament to consider the ambitious reforms in direct tax regime.
“The Committee will meet again on February 24 and finalise the report on the DTC Bill by March 2,” sources said.
Some members, they said, “wanted the IT exemption limit to be increased to Rs 5 lakh per annum in view of inflation and erosion in purchasing power of rupee.”
The government is hoping for approval of the DTC Bill by Parliament in the next fiscal. Pending Parliamentary nod, the government may include some of its provisions of the Bill in the budget to be presented on March 16.
The Committee, in its draft report, has suggested that the income tax exemption threshold be enhanced to Rs 3 lakh per annum from Rs 1.8 lakh at present. The Bill proposes the limit of Rs 2 lakh and also provides for revising the tax slabs for all the three categories.
Currently, income of Rs 1.80-5 lakh attracts 10 per cent tax, Rs 5-8 lakh 20 per cent and above Rs 8 lakh, 30 per cent.
It had also proposed retaining the corporate tax rate at the existing 30 per cent.
The DTC, which will replace the Income Tax Act, 1961, was referred to the Standing Committee for scrutiny after introduction in Lok Sabha on August 2, 2010.
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Power of Customs and Central Excise Officers to arrest is under question
The Supreme Court has held that evasion of central excise and customs duties is a bailable offence and authorities cannot arrest the offender without obtaining a warrant from a competent court.
A three judge bench headed by Justice Altamas Kabir said the main object of Custom and Excise Acts was the recovery of excise duties and not really to punish for infringement of its provisions.
“Having considered the various provisions of the Central Excise Act, 1944, and the Code of Criminal Procedure, which have been made applicable to the 1944 Act, we are of the view that the offences under the 1944 Act cannot be equated with offences under the Indian Penal Code which have been made non-cognizable and non-bailable,” the bench said.
“Language of the Scheme of 1944 Act seem to suggest that the main object of the enactment of the said Act was the recovery of excise duties and not really to punish for infringement of its provisions,” the bench also comprising justices Cyriac Joseph and S S Nijjar said while explaining the provision of the Excise Act.
The bench said that all offences under the Central Excise Act, 1944 and the Customs Act, 1962, are non-cognizable, and they are bailable.
Under the Cr.PC, a police officer had no authority to make an arrest, without a warrant, for a non-cognisable offence, the Bench pointed out.
“Different expressions used in the Code and also in connected enactments in respect of a non-cognizable offence, a police officer, and, in the instant case an excise officer, will have noauthority to make an arrest without obtaining a warrant for the said purpose,” the bench said.
Consequently, as in the case of offences under the Central Excise Act, 1944, offences under Section 135 of the Customs Act, 1962, “are bailable and if the person arrested offers bail, he shall be released on bail in accordance with the provisions the Customs Act.”
It turned down the plea of Centre which contended that the power to arrest must necessarily be vested in Customs and Excise Officer for the efficient discharge of his functions and duties in order to prevent and tackle the menace of black money and money laundering.
“Section 9A of the 1944 Act and Section 104(4) of the Customs Act, 1962, provide that notwithstanding anything in the Code of Criminal Procedure, offences under both the Acts would be non-cognizable,” the bench said.
“The provisions of the two above-mentioned enactments (custom and excise) on the issue whether offences under both the said Acts are bailable, are not only similar, but the provisions of the two enactments are also in parimateria (similar) in respect thereof,” the bench said.
According to CrPC, all offences that are non-cognizable, arrest can only be carried out after obtaining a warrant from a Magistrate.
Therefore, the Customs/Central Excise officers have the power to arrest is under question now.
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Form 16 treated as Income Tax Return for salaried individuals with a total taxable income of up to Rs 5 lakh
The Form 16 is issued by DDO to salaried employees may be treated as Income Tax Return.
Salaried individuals with a total taxable income of up to Rs 5 lakh do not have to file income tax returns. However, in case tax payers want to seek an income tax refund , they will have to file their returns.
In the above case, a salary people has income from other sources like dividend, interest etc.not exceeding Rs.10 thousand and does not want to file returns, he has to disclose such income to his DDO.
The Form 16 is issued by DDO to salaried employees may be treated as Income Tax Return.
According to the notification, individuals having total income up to Rs 5 lakh for financial year, after allowable deductions, consisting of salary from a single employer and interest income from deposits in a saving bank account of up to Rs 10,000 are not required to file their income tax return.
Such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their DDO, pay the entire tax by way of deduction of tax at source, and obtain a certificate of tax deduction in Form No. 16
However, persons receiving salary from more than one employer, having income from sources other than salary and interest income from a savings bank account, or having refund claims shall not be covered under the scheme.
The gazette Notification in this respect was issued on 23/06/2011
Circular issued by Commissioner-II for conducting cultural programmes on the eve of Central Excise Day,2012 Celebrations
In connection with the Central Excise Day celebrations to be held at Ravindra Bharati on 24-2-2012, Department has proposed to organise cultural programmes in the following events.
1. Dance
2. Singing
3.Mimicry
4. Skit
5. Instrumental music
6. Anyother performance.
All the officers of Central Excie and their family members are invited to participate in the cultural programmes. All the members interested in participating in the cultural programmes, may assemble at Multipurpose room, 5th floor, HQRS Office, Basheerbagh on 17-2-2012 at 1500 hrs. For further details, please contact the following officers.
1. P.Mohan Vamsi, Supdt, Maritime Rebate, Hyd-II 98480 70037
2. M.Ekambara Rao, Inspector, Customs Disposal, Hyd-II 98660 23523
3. P.V.Jai Kiran, Inspr, Adjudication, Hyd-II 94405 71150
4. Manoj Kumar, Inspr, Hyd-III 94904 84907
Circular issued by Commissioner-II in this regard is published below.
Poster for Agitational Programme call given by JAC
5) All India Central Excise Inspectors’ Association.
Income Tax deduction for housing loan may increase upto 3 Lakh and Parliamentary panel suggests exemption upto Rs. 3 lakh from Income Tax
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Exempt income up to Rs 3 lakh from I-T: Parliamentary panel
The skewed personal income tax collection pattern of the government has prompted the Parliamentary Standing Committee on Finance to suggest moderately higher taxes for those who earn more and greater relief for small taxpayers. In fact, it has suggested that the tax should kick in only at annual income levels of Rs 3 lakh and more. According to latest data collected by the Income Tax department, of the 300 million taxpayers in the country, just 1,85,000 individuals earn over Rs 20 lakh a year. But this small group pays Rs 53,170 crore in personal income tax. The broad categorisation of tax payers shows that individuals in Rs 0-10 lakh comprise almost 92 per cent of the total taxpayer base, but they contribute only Rs 21,094 crore, less than 40 per cent of the amount collected as taxes from the small group earning over Rs 20 lakh a year. The tax payers within the income slab of Rs 10-20 lakh per annum — 3.35 lakh tax payers — paid Rs 10,185 crore to the government, the data showed. The stark contradiction has prompted the standing committee to suggest that the government should restructure the current tax regime, making it more progressive so that individual tax payers and corporate can be shielded from regressive effects of the present structure. Accordingly, the committee suggests that the tax slab attracting nil rate should be raised from Rs 2 lakh proposed in the Direct Tax Code to Rs 3 lakh so that the department can channelise its resources in minimising the compliance and transaction cost. “The character of the tax regime should change and it should be made more progressive. This would entail greater relief for small tax payers—both individuals and corporate — and moderately higher rates for tax payers in the higher bracket,” the Parliamentary panel has said. The panel, currently vetting the proposed DTC has questioned the rationale of the existing tax slabs pointing out that most taxpayers — 2.02 crore of the total 3 crore — fall under the income slab of Rs 0-2 lakh. The number of tax payers further falls to 56.73 lakh in the income slab of Rs 2-4 lakh, making it around 72 per cent in the lowest income bracket for tax purposes. The panel noted that the department should not “diffuse their energies and spread their resources thin over handling such a large number of tax payers with low income potential”. Another anomaly, the committee has said, lies in the corporate tax structure. The data shows that the tax collected in the income slab of Rs 0-100 crore is Rs 44,016 crore while that in the income slab of Rs 100-500 crore is Rs 23,421 crore, and Rs 54,558 crore in the above Rs 500 crore slab. Greater relief * Let those who earn more pay moderately higher taxes, Parliamentary panel tells government on DTC * Suggests restructuring the current tax regime so that tax payers can be shielded from regressive effects of the present structure * Committee says that tax slab attracting nil rate should be raised from Rs 2 lakh proposed in the Direct Tax Code to Rs 3 lakh Source: Indian Express |
Circular No. 03/2012, dt. 13-2-2012 issued by SG
- Minimum fixation after correction of Grade pay from Rs. 4200/- to Rs. 4600/- should be implemented forthwith.
- Clarifications on the Inter Commissionerate transfer as requested by the association should be issued immediately.
- Implementation of Judgment dt.17.1.2012 of the CAT Bombay Bench for notional fixation of revised pay scale from 01.01.1996.
- To resolve the ratio issue for promotion to the grade of Assistant Commissioner.
- PFRDA bill should be scrapped and all possible help to the working classes organisation would be initiated for this.
- Inspectors of 2002 batch should be promoted in this restructuring across the country.
- Base cadre seniority to be taken as the criteria for the promotions to Gr.A posts in the CBEC.
- Regional disparities in the grade of Inspector to Superintendent promotion should be wiped off in the ensuing cadre restructuring.
- Superintendent’s grade pay should start from 5400/- grade pay.
- All vacancies in the Inspector grade should be filled up immediately.
Base cadre seniority & Grade Pay of Rs. 5400/- could not be resolved as both the issues are purportedly sub-judice.
For wide circulation
Update on Cadre restructuring of Customs and Central Excise
BOARD OF CENTRAL EXCISE AND CUSTOMS
Tthe cadre review proposal was sent to DOPT from CBEC after removal of objectons in favour of Group B Officers for promotion thus catering to the promotional aspirations of Superintendents/Inspectors under CBEC.
The Department of Personnel & Training likely to clear the proposal with some certain reductions in posts of APEX and HAG Scales.The proposal in respect of Gr.B and Gr.C most likely to be cleared by the Department of Personnel & Training without any changes.
After the above process, the cadre restructuring proposal is expected to go to the Group of Secretaries and then to the Cabinet for clearance by the end of this financial year. Once it is passed by the Cabinet, the additional posts created will be allocated charge-wise and notification will be issued.
