It is learnt that IZT orders for AGT,2014 in Superintendent Cadre in Hyderabad CCA are likely to be issued today or at the most by next Monday. It is expected that around 75 officers will be brought from Vizag Zone to Hyderabad Zone.
All the best to all the officers who are due for repatriation in this AGT from Vizag Zone to Hyderabad Zone.
The Tax Administration Reform Commission (TARC), headed by Parthasarathi Shome, also said the retrospective amendments to tax laws should be avoided as a principle and Income Tax Return should also include wealth tax details.
The panel, which has submitted its first report to Finance Minister Arun Jaitley, also pitched for a separate budget allocation to ensure time bound tax refund and a passbook scheme for TDS (Tax Deduction at Source).
"The post of revenue secretary should be abolished. The present functions of the Department of Revenue should be allocated to the two Boards (CBDT and CBEC). This would empower the tax departments to carry out their assigned responsibilities efficiently," the report said.
The tax administration, it added, needs to have greater functional and financial autonomy and independence from governmental structures, given their special needs.
It said, the revenue secretary, an IAS, is "likely to have little experience or background in tax administration at the national level and little familiarity with tax."
The 550-page report further said the two Boards must embark on "selective convergences immediately to achieve better tax governance, and, in next five years, move towards a unified management structure with a common Board for both direct and indirect taxes, called the Central Board of Direct and Indirect Taxes".
On PAN, the report said it should be developed as a common business identification number (CBIN), to be used by other government departments also such as customs, central excise, service tax, DGFT and EPFO.
"Both central excise and service tax should be covered under a single registration as both the taxes are administered by the same department and cross utilisation of credit is permitted between central excise and service tax under the CENVAT credit rules," it said.
The panel further said it is also necessary to provide for de-registration, cancellation or surrender of registration numbers and PAN.
It said the approach to retrospective amendments has resulted in protracted disputes, apart from having deeply harmful effects on investment sentiment and the macro economy and recommended "retrospective amendment should be avoided as a principle.
The panel suggested I-T returns should also include wealth tax return so that the taxpayer need not separately file wealth tax returns. These returns should also be processed together in the CPC at Bengaluru.
Besides, it called for a dedicated organisation for delivery of taxpayer services with customer focus and made a strong case for "pre-filled tax returns".
TARC also recommended that in line with international practice, a minimum of 10 per cent of the tax administration's budget must be spent on taxpayer services. At least 10 per cent of the budget should be alllocated and spent for ICT-based taxpayer services.
On tax refunds, the panel suggested it should be issued within a strict time frame.
Retirement fund body EPFO is likely to provide nine per cent rate of interest on PF deposits for the current fiscal to its over five crore subscribers, slightly higher than 8.75 per cent paid in 2013-14.
“The initial estimates indicate that the Employees’ Provident Fund Organisation (EPFO) can easily provide nine per cent rate of interest on PF deposits for 2014-15,” a source said.
According to him, the improved market conditions, especially after the formation of a new government at Centre last month, have raised expectations of higher yields on various investments by the body.
EPFO manages a corpus of over Rs 5 lakh crore. It has received Rs 71,195 crore as incremental deposits from its subscribers under social security schemes run by it during 2013-14, which is 16 per cent higher than Rs 61,143 crore collected by it in 2012-13.
The source said EPFO also plans to unlock its investment of around Rs 55,000 crore in Special Deposit Scheme (SDS). The government pays a fixed rate of eight per cent on SDS to EPFO which is lower than other investment options available in the present legal frame work.EPFO is also expected to improve yields or returns on its investment under the new norms prescribed under an investment pattern notified by the Labour Ministry last year.
According to the new pattern, EPFO can invest up to 55 per cent of its funds in debt securities issued by banks and financial institution and other body corporate.The new investment pattern also allows EPFO to invest up to five per cent of its corpus into money market instruments, including units of mutual funds, equity linked schemes regulated by Securities and Exchange Board of India.The new investment norms also provide for parking up to 55 per cent of the EPFO funds in a new category comprising government and state bonds.
Source : The Economic Times
Govt. to raise IT Exemption Limit to Rs. 5 lac and increase Section 80C deduction from the present Rs. 1 lac to Rs.2 lac?…CII urges the Govt. to raise TA, CEA, CHA, Leave Enchashment, LTA allowances
Below are the excerpts from the report
> Section 17 of the Income Tax Act, 1961 has been amended to include superannuation contributions made by an employer to the account of its employee as a perquisite. Accordingly, as per Section 17(2) (vii), superannuation contribution by the employer in excess of Rs 1 lakh would be considered as part of the employee’s salary income; thereby increasing the withholding tax liability in his hands..
> Provision to section 17(2) of the Act, medical reimbursements not exceeding Rs 15,000 per annum for employee and his family are exempt. This limit needs to be revised and limit for exemption for medical reimbursements should be increased to Rs 75,000 per annum
> (As per rule 2BB of section 10(14) Limit of transport / conveyance allowance of Rs 800 per month not taxable was fixed long ago and since then the transport cost had increased multifold, thus this limit should be rationalized to a minimum of Rs 3,000 per month.
> Children education allowance should also be increased to Rs 2,000 per month, as the current limit of Rs 100 per month, is too less and does not reflect the high expenses involved in the current education system. Currently, the school fees varies from Rs 2,000 to Rs 5000.
> Children hostel allowance should also be increased to Rs 4,500 per month, as the current limit of Rs 300 per month, is too less and does not reflect the high expenses involved in the current system.
> An independent deduction separate from the deduction under section 80C of the Act, in respect of housing loan repayments (principal) should be provided. This will help motivating people to repay the housing loans at a time when inflation is very high.
> Standard Deduction from salary, which was withdrawn from the Assessment Year (‘AY’) 2006-07 should be revived. A standard deduction of Rs 75,000 or 10 percent of salary will bring great relief to salaried individuals. This deduction was earlier available under Section 16(1).
> The exemption limit of Rs 50 on the provision of free meals was introduced in 2001, since then the costs have increased multifold, thus this limit should be rationalized to a minimum of Rs 150 to help the common man cope with rising prices of food items.
> The exemption limit of leave encashment under section 10(10AA)) should be raised to Rs 10 lakhs.
> It is suggested with an increase in trend of travelling overseas, overseas travel should also be included within the purview of exemption for Leave Travel Allowance (LTA)
> It is suggested calendar years should be replaced with the concept of Financial Year.
> It is suggested that LTA exemption should be allowed each year as compared to twice in block of four year.
> It is suggested to clarify that the benefits under section 80CCD is applicable to employees irrespective of the date of employment. Since this benefit is over and above other retirement benefits the deduction in respect of employee contribution to National Pension Scheme should be allowed over and above the limit of Rs 100,000 under chapter VIA.
The salaried class would be eagerly awaiting finance minister Arun Jaitley's maiden Budget speech, likely in mid July. And why not. Just a month before the NDA won the elections with a huge majority, Jaitley had suggested that the Income Tax exemption limit should be raised to Rs 5 lakh from Rs 2 lakh currently.
National Council (Staff Side)
NEW DELHI: 14 JUNE, 2014
Present whispering about reverting back to six days a week in place of the prevalent five days week working in the Administrative Office of the Central Government.
In this connection, the issue was discussed by Shri Shiva Gopal Mishra, Secretary Staff Side, National Council(JCM) and General Secretary, All India Railwaymen’s Federation, with the Cabinet Secretary on 13th June, 2014, and it was brought to his notice that five days a week working was introduced, way back in the year 1985 after prolonged deliberations at the National Council(JCM) level. Various aspects, including energy saving in the form of electricity and also Statutory Provision regarding working hours were kept in view.
After discussion, Cabinet Secretary assured to Secretary Staff Side NC/JCM, Shri Shiva Gopal Mishra, that no such proposal is under consideration with the Government at present.
For Secretary(Staff Side)
I am getting regular calls regarding the status of the cadre restructuring. The current status id as follows-
The staff allocation order has already been approved by the Chairperson and pending with the concerned section (Ad IV) of the CBEC for the issuance. It may be issued soon after taking some procedural time.
2) The reorganisation notification may be issued after due amendments in the Act during the budget defining the work responsibilities of the posts created in between the posts of Chief Commissioner and Member.
3) The efforts are being made to send the proposal to the UPSC for the promotion to the post of Asstt. Commissioner in the month of June itself as soon as the pending ACR dossiers and other relevant information/documents are received and no deficiency is found.
4) Any delay in the issuance of reorganisation notification/allocation order should not affect the process of the DPC for the promotion to the post of Asstt. Commissioner as the said order/notification should certainly be issued before the holding of the said DPC. Even the DPC for the post of Commissioner has already been held. If the proposal is sent to the UPSC in the month of June, they will give the date of DPC taking their own procedural time provided no deficiency is found in the proposal. This big DPC (perhaps biggest for the post of AC in the history of the CBEC) may also take the time of around 3 weeks for completion. Then the minutes will be prepared, issued and sent by UPSC to the CBEC taking due procedural time. Finally then, the promotion orders will be issued by CBEC further taking some procedural time. This may require procedural time of around four months in all (CBEC–>UPSC–>CBEC–>orders). During this period, the reorganisation notification/staff allocation order should certainly be issued.
Declaring Best Employee of the Month – DOPT may instruct all Ministries – Suggestions from Employees to be obtained irrespective of cadre to improve work culture
With the Narendra Modi regime pitching for corporate work-culture in government departments, the department of personnel and training (DoPT) may soon write to all Central ministries and departments to incentivise efficient workers by naming their respective best employee of the month, organizing “off-site retreats” for the staff and facilitating their direct interface with the departmental head from time to time.
Though the incentive plan is already under implementation in the DoPT, most other ministries and departments are yet to take a cue and introduce similar norms to motivate their staff by rewarding the efficient among them.
The DoPT, as part of the initiative, confers the title of “employee of the month” to the highest achiever, decided by a committee of joint secretaries of the department. The employee of the month is rewarded a certificate of excellence by the minister concerned. Also, “off-sites” or ” DoPT retreats” are organised from time to time to discuss ideas and suggestion in a new and relaxed environment. Suggestions from employees, irrespective of their seniority, are encouraged through placement of suggestion boxes at vantage points across the DoPT office.
Besides, the personnel secretary has been meeting deputy secretary and director-level officers one-one-one, taking their inputs and suggestions on better functioning of the department.
“This incentive scheme for motivation of staff amounts is nothing but a stepping stone to corporatization of the government,” a senior DoPT official said adding that the department may now write to other ministries/departments afresh to introduce similar incentives.
Meanwhile, the DoPT also plans to implement competency-based human resource management for the higher and middle level official is in Central government departments. A pilot project is already underway in the DoPT, which has mapped the required attributes for most departmental posts and is in the process of matching them with the knowledge, skills, ethics and attitude of the incumbents. Any gaps will be analysed and filled through refresher training.
Until now, the bureaucrats were selected for a post based merely on their service records. Now, under the competency-based HR management, the attributes of each senior post in government departments will be mapped and selection will be based on who matches these attributes best,” a DoPT official said adding that the new system may be introduced as soon as the DoPT pilot project is complete.
Source : The Economic Times