Please contribute for the above cause. All to deposit contributions in AICE Insprs' Assn a/c No.800171737 with Indian Bank Patna West Gandhi Maidan Br IFSC IDIB000P027.

Sunday, April 23, 2017

Govt to unveil Rs 5,000-Crore Pension plan, 5 mn Central Employees to benefit

Govt to unveil Rs 5,000-Crore Pension plan, 5 mn Central Employees to benefit
The Union cabinet is set to approve next week a new Rs 5,000-crore pension formula that is expected to benefit more than five million central government employees.
Official sources said the new formula will calculate pension based on the latest drawn salary for a particular post.
“If a person retired as a director under the sixth pay commission, ten years later his pension would be fixed (based on) the salary of a director in the seventh pay commission,” explained a senior government official.
“The new pension scheme will be put up to cabinet for approval next week.”
The new method was fixed by an empowered committee of secretaries (Ecos) headed by secretary (pensions).
The seventh pay commission recommended that pension could be calculated by two methods: One, pension would be 50% of the last salary and multiplied by 2.57. The second was an incremental method where pension was fixed at the last salary drawn with adjustments of increments drawn in that particular pay band.
The incremental method was found to have lacunae as 20% of records were found to be missing in various government departments, and officials felt this could lead to litigation in future.
“To avoid legal hurdles, the Ecos came up with the pay fixation method,” explained the senior official

Friday, February 10, 2017



Minutes of JAC Meeting held with Hon'ble FM on February 10, 2017

President, IRS (C&CE) Association greeted the FM and thanked him for granting time to the Joint Action Committee of all CBEC Associations. The President lauded the efforts put in by government in bringing this landmark legislation of GST aimed at One Nation One Tax. The President also conveyed the commitment of all CBEC officers in making this change a great success. The officers will put in all the efforts for a smooth transition. It was stressed and made clear that the officers are not against GST and not going on any demonstrations etc. the way state officers are doing.

The President  apprised the FM that such a major transition requires a motivated workforce which is lacking in the CBEC Officers due to certain decisions of GST Council. The President made it clear to the FM that officers are not hungry for power but the decisions made in GST Council are against the spirit of ease of doing business and not in the Centre's interest. It was also told how the reduced assessee base will effect the Service as well as the UOI. Parity issue   was also taken.
Thereafter, the President gave the JAC submission to Hon'ble FM which was carefully read fully by the FM.
Also, the President handed over the summary of Regional Chapters representations to FM which were also read completely by the FM.
 FM gave a patient hearing to the associations  and thereafter assured that he is now fully aware of the concerns and would discuss the same with RS & Chairman CBEC and will get our concerns redressed.

FM was of the viewpoint that there are two issues:..

·    ...    Shrinking of new hirings

·  ..      Boasting the morale of existing workforce and providing them ample career opportunities and proper utilisation of present work force.

The FM was of the opinion that post GST there will be increase in work of Income Tax Department  due to more and more assesses coming under tax net. This increase in work of Income Tax Department can be absorbed or transferred to CBEC. FM was aware that work done by CBEC and CBDT is quite similar in nature as both departments do assessment, scrutiny, audit etc. The surplus workforce of CBEC can be a boon to joint working by both departments.
The FM also said that merger of CBDT and CBEC can be explored but was also wary of a possible resistance from CBDT.

Further,  President informed the FM about major HR issues being faced by all service members and the solution can be achieved internally within the department. FM was very positive for finding the solution.

President also raised the  concerns of the service problems of Group B,C,D associations aldo and lack of promotion avenues . He  noted them to take on priority.

The meeting concluded o  a positive note with Vote of Thanks to FM for giving patient hearing and assurance to redress our concerns.

We hope for the best for all.

IRS ( C&CE) Association

Wednesday, January 18, 2017


Friends hope all will recall the case of union of India v Subramanian in SLP(CIVIL) CC No.15627/2011 is converted to Appeal Civil No.8883/2011 SC regarding 5400 gp after 4 years in 4800 gp on upgradation no stay is granted. Now the Dept has filed early hearing petition. If allowed will be listed for disposal soon and the case would have to be defended. We thank all the officers who have contributed earlier when the dept filed SLP in SC.To make our case felt, we have to engage a Sr.Cnsl. They charge around 3 - 3.5 L per hrng.  Ours should be over in 1 hg. But let us be prepared for 2 hgs.  So around 4.5 - 8 L is reqd. This will benefit the cadres more than anything else and enforce the belief of the cadres in the Asscn.  Most of the officers from 1993 batch on wards will be benefited by this. All Inspectors even those of 1985 or 1986 batch will also benefit provided they have not been promoted prior to 1/1/2006.
I think this is the one most important case that we need to fight to the end. If fought properly, we will certainly get the decision in our favor. Once again we have raise to the occasion. Please  contribute like last time. All deposits can be made in AICEIA Patna Account in Indian Bank No. 800171737, west Gandhi Maidan,Br. IFSC IDB000P027.

Thursday, December 1, 2016

January Salary Of Central Employees To Follow Higher Allowances: Finance Ministry


The Sen Times reports that a top official of the finance ministry today told The Sen Times on condition of anonymity that Central government employees’ salaries for January will be in line with the higher allowances.
When asked whether the arrears would be paid too, he said, “This depends on the cabinet. If the cabinet gives the nod higher allowances with retrospective effect from August 2016, the arrears will be paid.”
“The government faces severe attack for cash crunch because of demonetisation. But the situation will return to normalcy after the deadline of December 30 for deposit of invalid Rs 500 and Rs 1,000 notes.”
He added, “It’s better if delayed till sufficient cash is available with the banks.”
The government in June approved the 7th Pay Commission recommendations for its employees with higher basic pay, which has been paid with arrears, effective from January 1, 2016 but the hike in allowances other than dearness allowance referred to the ‘Committee on Allowances’ headed by the Finance Secretary Ashok Lavasa for examination as as the pay commission had recommended of abolishing 51 allowances and subsuming 37 others out of 196 allowances.
Until acceptance of higher allowances, existing allowances are to be paid according to the 6th Pay Commission recommendations, says an earlier official statement issued by the finance ministry.
However, the committee on allowances head Finance Secretary Ashok Lavasa said recently, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”
Source: tkbsen.in

Saturday, November 26, 2016

7th Pay Commission – CG Employees may have to Wait till January for Allowances

7th Pay Commission – CG Employees may have to Wait till January for Allowances.
7th Pay CommissionThe 7th Pay Commission continues to be a source of an irritant for the central government employees as the issues on allowances are not yet settled.
The Centre had set up a ‘Committee on Allowances’ which met last Thursday under the chairmanship of Union Secretary, Finance (Expenditure) with representatives of the Central government unions.
At the very start of the meeting, representatives of the unions expressed their anguish for ‘non-formation of High Level Committee’. According to them it was agreed to in July by the Group of Ministers (Government of India) for settling the issue of Minimum Wage and Multiplying Factor. The unions want the ‘minimum wage’ for Central employees to be fixed at Rs. 26,000 as opposed to Rs. 18,000 recommended by the 7th Central Pay Commission (CPC).
“The Secretary, Finance (Expenditure) told that, the committee constituted under the chairmanship of Addl. Secretary (Exp.) with J.S. (Pers.), JS (Estt.) and JS(Imp.) as Members has been made only for this purpose. Let us believe that, after the meeting, report of the said committee would be sent to the Government of India for its acceptance’’, Mr. Mishra, secretary (Staff Side) of the National Council/Joint Consultative Machinary, noted.
At the meeting, the unions claim that they made a strong case for implementation of the allowances to be decided by the Committee from January 1, 2016.
Besides that, they claimed that they have asked for House Rent Allowance be fixed at range 10 to 30 per cent of the basic linked to the classification of the town of posting, children education allowance of Rs. 3,000 and hostel subsidy of Rs.10,000. All these allowances should be tax exempt.
Staff Side demanded inclusion of post-graduate and professional courses in children education allowance. The issue of special duty allowance was also raised for Northeastern region.
Their wishlist extended to ‘Fixed Medical Allowance’ of Rs. 2,000 with Dearness Allowance Indexation, review of overtime allowance, small family allowance and dress allowance.
“Various Departmental Allowances, which have been abolished, should be allowed to continue, like Breakdown Allowance in the Railways and Fixed Conveyance Allowance to Postal Department employees”, Mr. Mishra noted.
Separately, M. Ragaviah, National Federation of Indian Railwaymen-NFIR said, “While there has been no commitment from the Chairman and Official Side of the Committee, the Finance Secretary however stated that further meetings will be held and in the meantime the JCM (Staff Side) may list out common issues and send the same to the Joint Secretary (Imp) and equally Departmental specified issues be sent through the respective Administrative Ministries for examination”.
However, the future looks different and dim.
Fearing a jump in footfalls to deposit or withdraw cash following the demonetisation of Rs 500 and 1,000 bank notes, the Finance Ministry is likely to scale down the the higher allowances proposal.
“The central government employees have to wait for a few weeks as the demonetisation drive is open till December 30” a finance department official said.
“As people continue to suffer after demonetisation from November 9 on account of cash crunch, the Finance Minister Arun Jaitley compels to keep in abeyance the higher allowances till things normalize, and it is likely to be implemented from January next,” Finance Ministry sources revealed.
“Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not announce higher allowances to save demonetisation chaos,” they added.
The committee under the headship of Finance Secretary Ashok Lavasa, set to decide on allowances said recently, “We are ready to submit our report, when the Finance Minister Arun Jaitley calls up.”
However official sources indicate, The Finance Minister will wait for the situation to normalize to receive report on higher allowances or implement what was recommended by the 7th pay commission.
In the meantime, keep your fingers crossed, atleast till January 2017.
Source; Gconnect

Tuesday, July 26, 2016

7th Pay Gazette Notification


Taxable and Non-Taxable Elements of Pay and Allowances

Taxable and Non-Taxable Elements of Pay and Allowances

List of Taxable Elements of Pay

Taxable Element of Pay : Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances.

Non-Taxable Elements of Pay : Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. 01 Sep 08) + DA + NPA (if any).

Sl. No.
Taxable Elements of Pay
Pay in the Pay Band
Grade Pay
Military Service Pay
Dearness Allowance
Non-Practicing Allowance (if any)
Hazard/Special Hazard Pay
Para Allowance/Para Reserve Allowance/Special Commando Allowance
City Compensatory Allowance
Deputation (Duty) Allowance (If any)
Reimbursement of Furniture
 Reimbursement of Water
Reimbursement of Electricity
Technical Allowance
Qualification Pay
Special Action Group Allowance (on posting to National Security Guard)
Technical Pay
Language Allowance
Qualification Grant
Language Award
Flying Allowance
Leave Encashment on LTC
Specialist Allowance
Test Pilot Allowance
Instructor Allowance
 Flight Test Allowance
Security Allowance
Strategic Force Allowance

Sl No.
Non-Taxable element of Pay
Limit of Exemption
Gallantary Award
A.O. 46/79;U/S 10 (18)(i) of IT Actsw.e.f. 1947
Fully Exempt
Entertainment Allowance
U/S 16 (ii) of IT Act w.e.f.01/04/81
 A sums equal to1/5th of
salary(excluding any allowance/benefit) orRs.5000/- per annum whichever isless.
 Leave Travel Concession (LTC)
U/S 10 (5) of IT Act w.e.f.01/04/89
Actual Expenditure upto the limit of entitlement
Foreign Allowance
U/S 10 (7) of IT Act
Fully Exempt
Bhutan Compensatory Allowance (BCA)
AO 395/74and U/S 10(7) of IT Act
Fully Exempt
Servant Wages Allowance along with BCA
 AO 395/74 and U/S 10 (7) of IT Act
Fully Exempt
Purchase of Crockery/Cutlery/Glassware
U/S 10 (7) of IT Act
Fully Exempt
Outfit allowance on posting to Embassy
 U/S 10 (7) of IT Act
Fully Exempt
Arrears of Cash Grant – Foreign Allowance (Nepal)
 U/S 10 (7) of IT Act
Fully Exempt
Myanmar Allowance
U/S 10 (7) of IT Act
Fully Exempt
Representation Grant for use of crockery set
U/S 10 (7) of Act
Fully Exempt
Encashment of Leave on retirement whether on superannuation/voluntary
retirement/release/invalidment etc.
U/S 10 (10AA) (i) of IT Act w.e.f. 01/04/78
Fully Exempt
House Rent Allowance/House Rent Reimbursement (HRA/HRR)
 U/S 10 (13A) of IT Act w.e.f.06/10/1964;
Limit of exemption as per Rule 2A of IT Rules
*Quantum of exemption is least of the following – a) For Bombay/Kolkata/Delhi Chennai i) Allowance actually received. ii) Rent paid in excess of 10% of salary iii) 50% of salary b) For other cities i) Allowance
actually received. ii) Rent paid in excess of 10% of salary. iii) 40% of salary
Children Education Allowance
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.5 of the IT Rules
Rs.100/- per month per child upto a maximum of 2 children.
Hostel Subsidy
U/S 10 (14) (ii) of IT Act and Rule
2BB (2) – Table Sl No.6 of the IT Rules, Rs.300/- per month per child upto a maximum of 2 children
 Siachen Allowance
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) –Table Sl No.1 (II) of
the IT Rules
Rs.7000/ per month w.e.f. 01/08/1997
Special Compensatory (Remote Locality) Allowance
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.2 of the IT Rules
Category I – SCA ‘A’ – Rs.1300/- per month Category III – SCA ‘B’ –
Rs.1050/- per month. Category IV – SCA ‘C’ –Rs.750/- per month. Category VI – SCA ‘D’ – Rs.200/- per month.
Compensatory Field Area Allowance
 (CFAA) U/S 10 (14) (ii) of IT
Act and Rule
2BB (2) – Table Sl No.7 of the IT Rules Rs.2600/- per month w.e.f.01/05/1999
 Compensatory Modified Field
Area Allowance (CMFAA)
 U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.8 of the IT Rules
Rs.1000/- per month w.e.f. 01/05/1999
Any Special Allowance in the nature of Counter Insurgency Allowance
 U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.9 of the IT Rules
Rs.3900/- per month w.e.f. 01/05/1999
 Transport Allowance granted to
meet expenditure for the purpose of commuting between place of residence and
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.10 of the IT Rules
 For whole of India – Rs.1600/- per month
 Transport Allowance granted to
a blind or orthopedically handicapped employee with disability of lower
extremities  to meet expenditure for
the purpose of commuting between place of residence and duty
U/S 10 (14) (ii) of IT Act and Rule
For Whole of India – Rs.3200/- per month 2BB (2) – Table Sl.No.11 of the IT Rules
High Altitude Uncongenial Climate Allowance (HAUCA)
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) Table Sl.No.13 of the IT Rules
For areas of (a)Altitude of 9000 to 15000 feet (HAUCA ‘I) – Rs.1060/- per month w.e.f. 01/05/1999 (b)Altitude above 15000 feet (HAUCA ‘II’ & ‘III) – Rs.1600/- per month w.e.f. 01/05/1999.
 Highly Active Field Area
Allowance (HAFA)
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) –Table Sl.No.14 of the IT Rules
Rs.4200/- per month
Island (duty) Allowance granted to the members of Armed Forces
U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.15 of the IT Rules.
For Andaman & Nicobar and Lakshadweep group of islands – Rs.3250/- per month inserted w.e.f. 29/02/2000.
Outfit Allowance (Initial/Renewal)
 U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of IT Rules.
 Fully Exempt
Compensation for the change of uniform
U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
Fully Exempt
. Kit Maintenance Allowance
U/S 10 (14) (i) of IT Act and Rule 2 BB (1) (f) of the IT Rules
 Fully Exempt
Uniform Allowance (MNS)
U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
Fully Exempt
Special Winter Uniform Allowance
 U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules
 Fully Exempt
 Reimbursement of Medical
U/S 17 (2) (viii) (v) of IT Act
Actual expenditure upto Rs.15000/- per annum.
Any payment from Provident Fund
 U/S 10 (11) of IT Act
Fully Exempt
Payment of Compensation – Disability Pension
CBDT F.No. 200/51/99- ITA1 dated 02 Jul 2001
Fully Exempt.

DISCLAIMER: The above provisions are with the understanding and interpretation of IT Act 1961/IT Rules as amended and instructions issued by CBDT from time to time. Rules, provisions, further amendments and clarifications are issued by IT department/CBDT only and this office does not have any role in framing the same except IT deductions at source with reference to them.

Authority: www.pcdaopune.gov.in

Thursday, June 30, 2016

Cabinet approves Implementation of the recommendations of 7th Central Pay Commission

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the implementation of the recommendations of 7th Central Pay Commission (CPC) on pay and pensionary benefits.   It will come into effect from 01.01.2016.

In the past, the employees had to wait for 19 months for the implementation of the Commission’s recommendations at the time of 5th CPC, and for 32 months at the time of implementation of 6th CPC.  However, this time, 7th CPC recommendations are being implemented within 6 months from the due date.

The Cabinet has also decided that arrears of pay and pensionary benefits will be paid during the current financial year (2016-17) itself, unlike in the past when parts of arrears were paid in the next financial year. 

The recommendations will benefit over 1 crore employees. This includes over 47 lakh central government employees and 53 lakh pensioners, of which 14 lakh employees and 18 lakh pensioners are from the defence forces.


1.            The present system of Pay Bands and Grade Pay has been dispensed with and a new Pay Matrix as recommended by the Commission has been approved. The status of the employee, hitherto determined by grade pay, will now be determined by the level in the Pay Matrix. Separate Pay Matrices have been drawn up for Civilians, Defence Personnel and for Military Nursing Service. The principle and rationale behind these matrices are the same.

2.            All existing levels have been subsumed in the new structure; no new levels have been introduced nor has any level been dispensed with. Index of Rationalisation has been approved for arriving at minimum pay in each Level of the Pay Matrix depending upon the increasing role, responsibility and accountability at each step in the hierarchy.

3.            The minimum pay has been increased from Rs.  7000 to 18000 p.m.  Starting salary of a newly recruited employee at lowest level will now be Rs.  18000 whereas for a freshly recruited Class I officer, it will be Rs.  56100.  This reflects a compression ratio of 1:3.12 signifying that pay of a Class I officer on direct recruitment will be three times the pay of an entrant at lowest level.

4.            For the purpose of revision of pay and pension, a fitment factor of 2.57 will be applied across all Levels in the Pay Matrices.

5.            Rate of increment has been retained at 3 %. This will benefit the employees in future on account of higher basic pay as the annual increments that they earn in future will be 2.57 times than at present.

6.            The Cabinet approved further improvements in the Defence Pay Matrix by enhancing Index of Rationalisation for Level 13A (Brigadier) and providing for additional stages in Level 12A (Lieutenant Colonel), 13 (Colonel) and 13A (Brigadier) in order to bring parity with Combined Armed Police Forces (CAPF) counterparts at the maximum of the respective Levels.

7.            Some other decisions impacting the employees including Defence & Combined Armed Police Forces (CAPF) personnel include :

·               Gratuity ceiling enhanced from Rs.  10 to 20 lakh. The ceiling on gratuity will increase by 25 % whenever DA rises by 50 %.
·               A common regime for payment of Ex-gratia lump sum compensation for civil and defence forces personnel payable to Next of Kin with the existing rates enhanced from Rs. 10-20 lakh to 25-45 lakh for different categories.
·               Rates of Military Service Pay revised from Rs.  1000, 2000, 4200 & 6000 to 3600, 5200, 10800 & 15500 respectively for various categories of Defence Forces personnel.
·               Terminal gratuity equivalent of 10.5 months of reckonable emoluments for Short Service Commissioned Officers who will be allowed to exit Armed Forces any time between 7 and 10 years of service.
·               Hospital Leave, Special Disability Leave and Sick Leave subsumed into a composite new Leave named ‘Work Related Illness and Injury Leave’ (WRIIL). Full pay and allowances will be granted to all employees during the entire period of hospitalization on account of WRIIL.

8.            The Cabinet also approved the recommendation of the Commission to enhance the ceiling of House Building Advance from Rs.  7.50 lakh to 25 lakh. In order to ensure that no hardship is caused to employees, four interest free advances namely Advances for Medical Treatment, TA on tour/transfer, TA for family of deceased employees and LTC have been retained. All other interest free advances have been abolished.

9.            The Cabinet also decided not to accept the steep hike in monthly contribution towards Central Government Employees Group Insurance Scheme (CGEGIS) recommended by the Commission. The existing rates of monthly contribution will continue. This will increase the take home salary of employees at lower levels by Rs. 1470. However, considering the need for social security of employees, the Cabinet has asked Ministry of Finance to work out a customized group insurance scheme for Central Government Employees with low premium and high risk cover.

10.        The general recommendations of the Commission on pension and related benefits have been approved by the Cabinet. Both the options recommended by the Commission as regards pension revision have been accepted subject to feasibility of their implementation. Revision of pension using the second option based on fitment factor of 2.57 shall be implemented immediately. A Committee is being constituted to address the implementation issues anticipated in the first formulation. The first formulation may be made applicable if its implementation is found feasible after examination by proposed Committee which is to submit its Report within 4 months.

11.        The Commission examined a total of 196 existing Allowances and, by way of rationalization, recommended abolition of 51 Allowances and subsuming of 37 Allowances. Given the significant changes in the existing provisions for Allowances which may have wide ranging implications, the Cabinet decided to constitute a Committee headed by Finance Secretary for further examination of the recommendations of 7th CPC on Allowances.  The Committee will complete its work in a time bound manner and submit its reports within a period of 4 months. Till a final decision, all existing Allowances will continue to be paid at the existing rates.

12.        The Cabinet also decided to constitute two separate Committees (i) to suggest measures for streamlining the implementation of National Pension System (NPS) and (ii) to look into anomalies likely to arise out of implementation of the Commission’s Report.

13.        Apart from the pay, pension and other recommendations approved by the Cabinet, it was decided that the concerned Ministries may examine the issues that are administrative in nature, individual post/ cadre specific and issues in which the Commission has not been able to arrive at a consensus.

14.        As estimated by the 7th CPC, the additional financial impact on account of implementation of all its recommendations in 2016-17 will be Rs. 1,02,100 crore. There will be an additional implication of Rs. 12,133 crore on account of payments of arrears of pay and pension for two months of 2015-16.

 Source: PIB