Income Tax - Clarifications Regarding Use Of Form No.16 for pensioners where pensioners are drawing their pensions through banks

Clarifications regarding use of Form No. 16 for pensioners where pensioners are drawing their pensions through banks

1184. Clarifications regarding use of Form No. 16 for pensioners where pensioners are drawing their pensions through banks

1. The attention of the Board has been drawn to certain difficulties being faced by pensioners drawing their pensions through banks where the tax deduction at source certificate in the prescribed Form No. 16 is some-time denied to them on the ground that no employee-employer relationship exists between the banks and the pensioner. At times, objections have also been raised by the banks on the premise that Form No. 16 relates to deductions from salaries and not from pensions. In other cases, the certificates have been denied on the ground that the bank was not aware of any other income which the pensioner may have had.

2. The matter has been considered by the Board. It is hereby clarified that :—

(a) as per section 17(1)(ii) of the Income-tax Act, 1961, the term ‘salary’ includes pension;

(b) once tax has been deducted under section 192 of the Income-tax Act, 1961, the tax-deductor is bound by section 203 to issue the certificate of tax deducted in Form 16. No employee-employer relationship is necessary for this purpose;

(c) the certificate in Form No.16 cannot be denied on the ground that the tax deductor is unaware of the payees’ other income.

3. These clarifications may be brought to the notice of all concerned, especially the banks in your region.

Circular : No. 761, dated 13-1-1998.

Source: http://cpao.nic.in/

CPOA - Common Mistakes By PAOs In Processing Of Revision Of Pension

7th CPC Pension Revision : Common Mistakes by PAOs in Processing of Revision of Pension

Common Mistakes by PAOs in Processing of Revision of Pension under(7th CPC)

1. DATE OF DEATH OF PENSIONER NOT MENT10NED IN COLUMN 3(b〕(FAMILY PENSION CASE〕

2. APPLICABILITY OF COMMUTED PENS10N MAY BE CHECKED WHETHER IT IS APPLICABLE OR NOT.

3. CLASS/CATEGORY OF PENS10N UNDER COLUMN 1(g) MAY BE CHECKED

4. NOTIONAL PAY SHOWN UNDER COLUMN 3(e) MAY BE CHECKED.

5. PAY/NOTIONAL PAY SHOWN IN COLUMN 3(e), DOES NOT MATCH WITH PAY FIXED UNDER 7TH CPC AS SHOWN IN COLUMN 4(a〕.

6. LEVEL AND INDEX UNDER COLUMN 4〔a) MAY BE CHECKED.

7. BASIC PENS10NIS NOT MATCHING WITH THE LAST PAY DRAWN AS PER 7TH CPC

8. PAY MATRIX FOR LEVEL‐ 13 MAY BE CHECKED WITH REFERENCE TO REVISED PAY MATRIX IN TERMS OF MINISTRY OF FINANCE (DEPTT.OF EXPENDITURE) RESOLUTION DATED-16.05.2017.

9. PAY MATRIX FOR LEVEL-14 MAY BE CHECKED WITH REFERENCE TO REVISED PAY MATRIX IN TERMS OF DEPTT OF PENSION & PENSIONERS WELFARE OM DATED – 13.09.2017.

Authority: http://cpao.nic.in/

MoD Order - Scheme For Compassionate Appointment – Relative Merit Points And Revised Procedure For Selection

Scheme for compassionate appointment – Relative merit points and revised procedure for selection

Ministry of Defence

D(Lab)

Sub: Scheme for compassionate appointment – Relative merit points and revised procedure for selection.

The undersigned is directed to say that the Department of Personnel & Training under the Ministry of Personnel, Public Grievances and Pensions is the nodal department for Government of India’s Scheme for compassionate Appoinment. While considering requests for compassionate appointment, a balanced and objective assessment of financial condition of the families of the applicants has to be made taking into account the assets and liabilities and other relevant factors. The main object of the Scheme is to alleviate the family of the deceased government servant/member of the Armed Forces from indigence and help it get over the emergency. Accordingly, vide Ministry of Defence I.D. No.271/93/D(Lab) dated 2.11.93, Ministry of Defence had developed a 100-point weightage system containing various parameters/attributes to decide the most deserving cases amongst the large number of Defence ID No. 19(4)/824-99/1998-D(Lab) dated 9.3.2001. Consequent upon implementation of the 6th CPC Report, parameters of all these attributes were further revised in 2010 vide MoD note No. 19(3)/2009/D(Lab) dated 22.1.2010 and 14.5.2010. Presently, the attributes on 100-points scale are – Quantum of Family Pension (20 Points); Terminal Benefits (10 points); Monthly income of family from other sources (05 points); Movable/immovable property held by the family (10 points); No. of dependents (15 points), No. of unmarried daughters (15 points); No. of minor children (15 points) and Left over service (10 points). As per the parctice, compassionate appointment is given to the highest score earner.

2. Now, consequent upon implementation of the 7th CPC pay structure, the finacial parameters are required to be revised again. Certain organisations/ formations under Ministry of Defence have been requesting for revision of relative merit points and procedure for selecting the most indigent applicant(s) for compassionate appointment after death/medically boarding-out of the Government servant/member of the Armed Forces on whose income the family was wholly dependent.

3. As per 7th CPC structure, the minimum pension stands revised from Rs.3,500 p.m. (as per 6th CPC) to Rs.9,000 p.m. which approximately comes out to be 2.57 times the old pension. The Govt. of India have also approved this factor of 2.57 for working out revised pay, based on which DCRG, Family Pension and Leave encashment are calculate. Accordingly, the monetary parameters/attributes such as Family Pension, Terminal Benefits, Monthly income of earning member(s) and income from property and lates market value of the Movable/Immovable property have been revised by the multiplying the fitment factor of 2.57 or so, for arriving at the present-day weightage points. However, other non-monetary parameters/attributes viz. No. of Dependents, No. of Unmarried Daughter, No. of Minor Children and Leftover Service have been kept unchanged.

4. Accordingly, with the approval of the competent authority, various parameters on the 100-points scale of weightage system stand revised as under with immediate effect:-

(a)     Basic Family Pension / Monthly Amount received under National Pension   System                                                                                           (20 points)

Upto     Rs. 9,000	20
9,001 – 11,500	18
11,501 – 14,000	16
14,001 – 16,500	14
16,501 – 19,000	12
19,001 – 21,500	10
21,500 – 24,000	08
24,000 – 26,500	06
26,501 – 29,000	04
29,001 – 31,500	02
31,501 and above	00

(b) Lump sum amount received by the family on death of Govt. servant (i.e.DCR Gratuity, GPF/PPF A/c balance, Leave Encashment, CGEGIS, LIC/PLI etc.)/ Lump sum Amount received under NPS edtc.  (10 points)  

Upto   Rs.10,00,000	10
10,00,000 – 11,87,500	09
11,87,501 – 13,75,000	08
13,75,001 – 15,62,500	07
15,62,501 – 17,50,000	06
17,50,001 – 19,37,500	05
19,37,501 –  21,25,000	04
21,25,001 – 23,12,500	03
23,12,501 – 25,00,000	02
25,00,001 – 26,87,500	01
26,87,501 and above	00

(c)    Annual income from movable/immovable property as well as Annual income earned by other member(s) of the family   (05 points)

Nil	05
Rs.1-1,05,000	04
1,05,001  – 1,35,000	03
1,35,001 – 1,65,000	02
1,65,001 – 1,95,000	01
1,95,000 and above	00

(d)  Movable/immovable property of the family (Latest Market Value including Fixed Deposit/Bank balance etc. but excluding the lump sum amount received as mentioned in (b) above   10 points)

Nil	10
Upto Rs.5,00,000	08
05,00,001 – 10,00,000	06
10,00,001 – 15,00,000	04
15,00,001 – 20,00,000	02
20,00,001 and above	00

e)  No.of dependents  (15 points)

1	5
2	10
3 and above	15

(f)   No.of unmarried daughters

                                                                                            (15 points)

None	0
1	5
2	10
3 and above	15

g) No.of minor children 

                                                                                           (15 points)

None	0
1	5
2	10
3 and above	15

(h) Left over service    

                                                                            (10 points)

Upto 5 years	2
Over 5 years & upto 10 years	4
Over 10 years & upto 15 years	6
Over 15 years & upto 20 years	8
Over 20 years	10

Total 100 points)

5. the revised guidelines will take place with immediate effect. However, cases already considered by the Boards of Officers constituted for considering requests for compassionate appointment as per the previous guidelines need not be re-opened.

6. However, for considering belated requests for compassionate appointment where the death/disablement of Govt. servant/member of Armed Forces took place long ago, weightage points towards ‘Terminal Benefits’ may be awarded in the following manner:-

(a) For cases where death of the deceased Govt. servant occured prior to 9.3.2001, parameters of ‘Terminal Benefits’ given in MoD ID note dated 2.11.1993 will be applicable:

(b) For cases where death of the deceased Govt, servant occurred on or after 9.3.2001 till 21.1.2010, parameters of ‘Terminal Benefits’ given in Mod ID note dated 9.3.2001 will be applicable: and

(c) For cases where death of the deceased Govt. servant occurred on or after 22.1.2010 till 31.12.2015, parameters of ‘Terminal Benefits’ given in MoD ID note dated 22.1.2010 will be applicable.

7. All the concerned are advised to strictly follow these weightage points and guidelines keeping in view the instruction issued by the DoP&T/MoD, from time to time for assessing comparative merit of the applicants for compassionate appointment.

(S S S SARMA)

Director (Estt. & CP), Govt. of India

Order Copy