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HRA Calculation For Income Tax Exemption

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House Rent Allowance Calculation for Tax Exemption

House Rent Allowance is a Tax Free Income under Section 10(13A) of the Income-tax Act, subject to the following conditions

House rent allowance [Section 10(13A)] of the Income-tax Act

As per section 10(13A), read with rule 2A of the Income-tax Act, the exemption in respect of HRA will be lower of the following amounts:

(1) 50% of salary, when residential house is situated at Mumbai, Kolkata, Delhi or Chennai and 40% of salary where residential house is situated at any other place.

(2) HRA actually received by the employee in respect of the period during which rental accommodation is occupied by the employee during the previous year.

(3) Rent paid in excess of 10% of salary.

Salary will include basic salary, dearness allowance forming part of salary while computing all retirement benefits and commission based on fixed percentage of turnover achieved by the employee. Apart from this, salary for this purpose does not include any other allowances/perquisites.

Salary for this purpose shall be computed on due basis in respect of period during which the accommodation is occupied by the employee in the previous year. Hence, any payments not pertaining to the previous year or not pertaining to the period of occupation of the accommodation shall be excluded

[As amended by Finance Act, 2017]

7th CPC - Special Incident, Investigation And Security Allowance In The Report Of Committee

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7th Pay Commission Report | Special Incident / Investigation / Security Allowance

Special Incident / Investigation / Security Allowance (Para 8.17.121-122)

Existing Provisions: This allowance is provided to personnel of special security forces, both as compensation for risk and hardship as well as an incentive to attract talent, as under:

 
Granted to personnel of
Present Rate
SPG (Operational Staff)
50% of (BP+DA)
SPG (Non-Operational Staff)
25% of (BP+DA)
NSG
25% of (BP+DA)
NIA (Executive Staff)
25% of (BP+DA)
NIA (Non-Executive Staff)
15% of (BP+DA)
CBI (Officers up to the level of SP)
25% of BP
CBI (Officers of the rank DIG and above)
15% of BP
CBI (Non-Executive Cadres)
15% of BP
IB
15% of BP
RAF of CRPF
10% of BP

Recommendations of 7th CPC: The following structure of Special Security Allowances is recommended:



No new categories of staff in other organizations may be made eligible for the grant of this allowance based on these recommendations. No Deputation (Duty) Allowance will be applicable along with this allowance.

The Commission has also recommended Special Security Allowance @20% of Basic Pay to R&AW.

Demands:

I. Special Protection Group (SPG): There is a need to enhance the existing formula and rate of the Special Security Allowance be revised to 60% and 30% plus DA thereon for Ops and Non-Ops categories respectively.

II. Department of Revenue: Special Incentive / Security Allowance may be given to Enforcement Directorate, Financial Intelligence Unit (FIU), India, DRI at par with the CBI.

III. Chairman, NTRO: Special Allowance of 15% of the Basic Pay is granted to NTRO employees since its inception. However, 7th CPC has made no recommendations regarding NTRO. Therefore, SSA should be granted to NTRO and be enhanced from 15% to 20%.

IV. National Disaster Response Force: NDRF allowance to personnel of NDRF at par with SPG, NSG and IB.

V. Intelligence Bureau: Special Security Allowance be allowed @25% of Basic Pay + DA.

Analysis and Recommendations of the Committee:
The Committee notes that the 7th CPC has recommended that no new categories of staff in other organizations may be made eligible for the grant of this allowance based on these recommendations.

The Committee also notes that this allowance has been granted to Enforcement Directorate as an ad – hoc measure with the approval of Department of Expenditure pending recommendations of the 7th CPC. Further, the Department of Revenue has sent the file that DRI and FIU (India) also be allowed this allowance at par with ED. The 7th CPC, in Para 11.18.109 of the Report, has recommended that Department of Revenue should assess the risk profile of the officials of the ED at various levels and thereafter make a case to Ministry of Finance for grant of Risk and Hardship Allowance, if any, as per appropriate cell.

It has been brought to the notice of the Committee that employees of National Technical Research Organization (NTRO) have been getting this allowance but have not been mentioned in the Report.

Therefore, it is recommended that:

(i) The Department of Revenue should assess the risk profile of the officials of the ED at various levels and thereafter make a case to Department of Expenditure, Ministry of Finance for grant of Risk and Hardship allowance, if any, as per appropriate cell. In the meantime and taking into consideration the fact that the 7 th CPC has not recommended this allowance for ED, it may be withdrawn as it was approved as an ad-hoc measure by the Department of Expenditure and was to the recommendations of the 7th CPC in this regard.

(ii) Officers / Officials of NTRO be allowed this allowance @20% of Basic Pay only as they appear to have been inadvertently left out from the list.

The additional financial implication on account of the changes proposed by the Committee is estimated to be ₹ 1.25 crore per annum and will benefit approximately 1081 personnel of NTRO.

7th CPC - Special Running Staff Allowance In The Report Of The Committee

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7th Pay Commission Committee Report | Special Running Staff Allowance

Special Running Staff Allowance (Para 8.11.15, 11.40.62)

Existing Provisions: This allowance is granted to Running staff on account of more onerous nature of work as well as process of selection involved. The extant rates are:

Loco Pilot (Passenger), Mail Guard @ Rs.500 pm + DA
Loco Pilot (Mail/Express) @ Rs.1000 pm + DA

Recommendations of 7th CPC: Special Running Staff Allowance should be raised to Rs.2,250 pm for Loco Pilot Mail / Express, Rs.1,125 pm to Loco Pilot Passenger/Motormen and Rs.1,125 for Guard Mail/Express. In addition, Loco Pilot Goods and Sr. Passenger Guard should also be extended this allowance at the rate of Rs.750 pm. Dearness Allowance will be payable on this allowance but it will not count for pensionary benefits.

Demands:

I. Ministry of Railways:
i. Special Running Allowance (Additional Allowance for Running Staff) be revised from Rs.2250/- pm to Rs.3000 pm and Rs.1250/- pm to ₹1500/- pm for Loco Pilot (Mail / Express) and Loco Pilot (Pass.) respectively as erstwhile distinct cadres and pay scales of LP (M/E) and LP (Pass) and LP (Goods) were merged into Grade Pay of Rs.4200 by 6th CPC and proposal for grant of Grade Pay Rs.4600 to LP (M/E) has not been accepted.

ii. This allowance be called Additional Allowance as earlier and not Special Running Allowance.

II. All India Guards Council: Special Running Staff Allowance may also be allowed to the Goods Guards.

Analysis and Recommendations of the Committee:

In the deliberations of the Committee, Ministry of Railways have emphasised the functional requirements of the Organisation and the need for increasing the rates of this allowance for Loco Pilot (Passenger) and Loco Pilot (Mail /Express). Ministry of Railways have also stated that the nomenclature of the allowance used  by the 7th CPC may be changed as there are other running allowances admissible in Railways. The Committee noted that the rates of this allowance being fixed in nature, have already been revised by a factor of 2.25. In addition, Loco Pilot (Passenger) and Loco Pilot (Mail / Express) are already getting this allowance at different rates. Therefore, no change is being recommended in the rates for this Allowance. The Committee, however, recommends that the  name of this Allowance may continue to be „Additional Allowance‟ instead of Special Running Staff Allowance.

7th CPC Over Time Allowance To Operational Staff

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Over Time Allowance (OTA) to Operational Staff – seeking Inputs/Comments

“Definition of Operational Staff : “All non-ministerial non-gazetted staff directly involved in smooth operation of the office including those tasked with operation of some electrical or mechanical equipment.”

No.A-27016/01/2017-Estt.(AL)
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training

Block-IV, Old JNU Campus,
New Delhi – 110067,
Dated: 16th November, 2017.

Office Memorandum

Subject: Inviting comments on the definition of “Operational Staff” which would be eligible for Overtime Allowance

As per the Dept. of Expenditure’s Resolution No. 11-1/2016-IC dated 06.07.2017, following is the decision of Government on Overtime Allowance (OTA): “Ministries/Departments to prepare a list of those staff coming under the category of ‘Operational Staff’. Rates of Overtime Allowance not be revised upwards”. Further it has been clarified by the Dept. of Expenditure that the Government has decided that given the rise in the pay over the years, the recommendations of the 7th CPC to discontinue OTA for categories other than Operational Staff and industrial employees who are governed by statutory provisions may be accepted.

2. Accordingly, it has been decided to implement the aforesaid decision of the Government on Overtime Allowance across all the Ministries/Departments and attached and subordinate office of the Government of India.

3. However, this Department has been receiving queries from various Deptts. as to which staff would be covered under the term “Operational”. Thus it appears that there is a lack of clarity as to what constitutes Operational Staff. In pursuance of decision taken on the recommendations of the 7th CPC relating to OTA, a broad definition has been attempted in order to assist in identification of operational Staff. Definition: “All non-ministerial non-gazetted staff directly involved in smooth operation of the office including those tasked with operation of some electrical or mechanical equipment.”

4. Inputs and suggestions are requested from all Ministries/Departments taking into account the specific peculiar requirements of staff under each of them keeping in view the content of work being performed by them. The inputs /suggestions may be kindly sent to the undersigned on mail id: sandeep.saxena@nic.inwithin 15 days of the issue of this O.M.

sd/-
(Sandeep Saxena) 
Under Secretary to the Government of India

Authority: www.dopt.gov.in

NFIR - 7th CPC Constant Attendent Allowance

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7th CPC Constant Attendant Allowance – Railway Board Orders

GOVERNMENT OF INIDA (BHARAT SARKAR)
MINISTRY OF RAILWAYS (RAIL MANTRALAYA)
(RAILWAY BOARD)

No.F(E)III/2009/PN1/6

RBE No.:164/2017

New Delhi,Dated: 08.11.2017

The GMs/The principal Financial Advisers
All Zonal Railways/Production Units
(As per mailing list)

Subject: Implementation of Government’s decision on the recommendations of the 7th Pay Commission on CCS (Extraordinary Pension) Rules, 1939 – Constant Attendant Allowance – regarding.

A Copy of Department of pension and Pensioners welfare (DOP&PW)’s O.M.No.1/4/2017-P&PW(F) dated 3rd October,2017 on the above cited subject is enclosed for information and compliance. These instructions shall apply mutatis mutandis on Railways also. CCS (Extraordinary Pension) Rules,1939 corresponds to Railway services (Extraordinary Pension) Rules, 1993. DOP&PW’s O.M.No.1/4/2017-P&PW(F) dated 02.08.2017, referred to in the enclosed O.M.dated 03.10.2017, was circulated on the Railways vide Board’s letter of even number dated 22.08.2017.

sd/-
(G.Priya Sudarsani)
Joint Director, Finance (Estt.)
Railway Board.

Source: NFIR

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