Income Tax for Premature Provident Fund withdrawal of more than Rs.30,000

Premature Provident Fund withdrawal – Income tax will be imposed

Income Tax for Premature Provident Fund withdrawal of more than Rs.30,000

The Government has announced that income tax will be imposed if, at the time of premature withdrawal, the Provident Fund amount is in excess of Rs.30,000.

Finance Minister brought a new provision in his budget that allows for TDS on Provident Fund withdrawal before five years of continuous service. When calculating the period of continuous service of five years, the previous employment can also be included. The intention of this at promoting long-term savings. The amendment will come into force from June 2015.

“Taxes will be imposed if, at the time of closing or transferring the PF account, the amount is in excess of Rs.30,000, and, if the employee has been employed in the current job for less than five years. Tax rebates are applicable. In order to claim tax exemption, the person has to submit a copy of his/her PAN card and Forms 15G and 15H, accompanied by a signed and filled up Form 19.

“Failing to do so will attract maximum taxes of up to 34.61%. If the forms are submitted, only 10% taxes will be deducted. Taxes will not be imposed if an old PF account is being converted to a new PF account. If the employee has served for more than five years, then, at the time of closing his account, no taxes will be imposed.

“The PF amount will also not be taxed if the employee is unwell, if the company has closed down, if the employment contract comes to an end, or if the employee loses employment for reasons that cannot be attributed to him/her.”

Source: CGEN.in

FAQ ON CHILDREN EDUCATION ALLOWANCE – CLARIFICATION ORDER ISSUED BY RAILWAY BOARD ON 1 JUNE 2015

Clarification on Children Education Allowance as FAQ issued by Railway Board on 1.6.2015

A table of ‘Frequently Asked Questions’ issued by Railway Board about Children Education Allowance. The order repeatedly indicates the same line of sentence for the question of ‘Third Child’ as ‘Reimbursement is permissible only the two eldest surviving children..’

And also clarified for the questions of Number of Note books and Recognition of Educational Institution in form of FAQ. Reproudction of the order and given below for your ready reference…

G.I., Min. of Railways, Railway Board O.M.No.E(W)2008/ED-2/4, dated 1.6.2015

Sub: Children Education Allowance – Frequently asked questions.

Please refer to Railway Board’s letter of even number dated 01.10.2008 followed by subsequent letters regarding revised policy instructions / clarifications on Children Education Allowance admissible to Railway Servants, based on the recommendations of Sixth Central Pay Commission.

2. Now, DOP&T has inter-alia issued clarification on reimbursement of Children Education Allowance in the form of frequently asked questions (FAQ) in terms of their Office Memorandum No.I-11020/1/2014-Estt.(AL). The text of OM is tabulated below for guidance of all concerned.

Source: NFIR

Modi Government to Raise Bonus Limits from Rs.3500 to Rs.4500

Modi Government to Raise Bonus Limits from Rs.3500 to Rs.4500

The Government has decided to raise the upper limit for the annual bonus that is being given to Central Government employees all over the country.

Payment of Bonus (Amendment) ordinance 2007 according to which section 12 of the payment of Bonus Act 1965 had been amended raising the ceiling for calculation purpose from salary of 2500/- P.M. to Rs.3500/-P.M. w.e.f. 01.04.2006. And also amended the Payment of Bonus Act, 1965 to raise the eligibility limit for payment of bonus from the salary or wage of Rs. 3500/- per month to Rs. 10000/- per month.

Central Government employees are regularly given Productivity Linked Bonus(PLB). Each department announces its bonus days in the month of September. But, since there was an upper limit, only small amounts were given as bonuses. CG Employees Federations all over the country were demanding that the limits should be raised.

News have surfaced that decisions in this regard were made during a recent meeting held with group of ministers. According to unconfirmed sources, the upper limit has been raised by Rs.1000 from Rs.3500 to Rs.4500.

Source: www.cgstaffportal.in

One Rank One Pension Scheme - Ex-Servicemen Decide to Fight

One Rank One Pension – Ex-Servicemen Decide to Fight

Ever since Narendra Modi took charge as the new Prime Minister, expectations have been running high. When expectations run high, so do disappointments. Despite the fact that some time is needed for implementing the various promises that his party had made during the Parliamentary elections, questions are also being raised as to why there is such a long delay.

The Indian Ex-Servicemen Movement (IESM) has announced that it is going to launch a series of protests demanding that the One Rank One Pension scheme be implemented.

A group of Ex-Servicemen met Defence Minister Manohar Parrikar on Saturday, but he didn’t give any date by which the scheme will be implemented. Parrikar understood our problem and argument in the two meetings but he did not give us any date for OROP implementation. Therefore, we are going ahead with our agitation,” said Major-General (retd) Satbir Singh, chairperson of the Indian Ex-Servicemen Movement.

The first step is to launch a series of protests. One-Rank-One-Pension was one of the biggest and most important promises that Narendra Modi had made. According to this scheme, all the ex-servicemen of the same rank will be given the same pension irrespective of the year in which they had retired or quit the services. There shall not be any variations. Laws relating to this have to be passed by the Parliament. To probably serve as reminders to the promise made by him, large numbers of ex-servicemen used to throng all the political rallies organized by Modi.

Modi clarified that there are some legal issues that have to be sorted before the scheme is implemented, but he promised fast action. But, the ex-servicemen are going to protest from the 14th of this month to make the OROP scheme a reality. They proposed to hold a Rally at Jantar Mantar on June 14 and hunger strike from 15th onwards.

Everybody is curious to find out how Modi is going to handle this protest – probably the first large-scale show of disgruntlement against the NDA government.

Defence Civilians Medical Aid Fund (DCMAF), Ministry of Defence - Exemption from Income Tax on donation exceeding Rs.250

Defence Civilians Medical Aid Fund – Exemption from Income Tax on donation exceeding Rs.250

Exemption u/s 80 (G) of Income Tax Act on donation to DCMAF – PCDA Orders

Defence Civilians Medical Aid Fund (DCMAF)

Ministry of Defence

Room No. PC – l, B-Block

Dalhousie Road,New Delhi-110011

19 March 2015

To
Heads of All Defence Units
All Labour Welfare Commissioners

Subject- Exemption u/s 80(G) of Income Tax Act on donations to DCMAF

1. Consequent on the decision taken by the Managing Committee in its 57th annual meeting held on 28th June 2013 under the chairmanship of Defence Secretary, the Defence Civilians Medical Aid Fund (DCMAF) has been registered u/s 80(G) of Income Tax Act 1961 for the period from Assessment year 2014-15 onwards. All civilian employees working under Ministry of Defence can get exemption on income tax u/s 80(G) of the IT Act on their donations to DCMAF exceeding Rs. 250/-.

2. it is requested that the contents of this letter may please be widely disseminated for information of all members/employees under your administrative jurisdiction.

sd/-

(Poonam Goila)

Dy CAO (DCW) &

Hony Secretary/DCMAF

Source: www.pcdacc.gov.in