CBDT published perquisite valuation rules.

The perquisite valuation rules finally arrived on December 21 after a long wait. The fringe benefit tax (FBT) was strongly opposed by India Inc, but there is no doubt that it was beneficial to the employees — they did not have to directly bear the tax on many perquisites. The repeal of FBT meant uncertainity on taxation of perks. Thankfully, there are few changes to the valuation rules when compared to the rules that existed prior to the introduction of FBT. Rule 2BB, which deals with taxability of allowances, remains unchanged. If we take an overall view on employee benefits and allowances, a few items merit attention and this article will discuss them with the hope that they will be taken note of. The taxable values for provision of an automobile including the cost of its running and maintenance, and driver is nil if the car is used purely for official purpose. However, if the employer allows mixed use, the rule provides for deemed values towards personal use. These values have raised by 50% (there is also an apparent typo in one clause that may be rectified soon). Given that the earlier values were set many years ago, an enhancement of the limit accounting for the increase in fuel prices is justified. However, price increase is not limited to fuel only, prices have increased on many other household expenditure as well such as school fees, food, local transportation etc for which the exemption limits have not been raised. The exemption for transport allowance under Rule 2BB remains unchanged at Rs 800 per month although the limits for this allowance was raised by the Sixth Pay Commission (SPC) or government employees. A 50% increase is merited here as well. Education allowance for children continues to be a measly Rs 100 per month while the entitlement under the SPC is a princely Rs 1,000 per month with an additional Rs 3,000 per month as hostel subsidy. With education being a key concern, a higher limits would be welcome. Now consider the case of meals provided by an employer during working hours. This is a benefit that is statutorily provided to factory workers and generally provided in many other establishments as well. There are enough studies that show the positive co-relation between wholesome meals and worker productivity and, during the FBT regime, the entire expenses were exempted. Source : Economic Times.

6500-10500 pre-revised scales will get Rs 4600 as Grade Pay w e f 01.01.2006

Good news at last. The Ministry of Expenditure has sanctioned Rs 4600 Grade pay to the scales which were 6500-10500. This order is effected with 01.01.2006 and all arrears are to be recalculated and paid immediately. This was long outstanding issue and several departments in the revenue have called strike against it.

View the Notification

Consequent upon the order issued on 13.11.2009, the Inspectors, PSs and A.O. s of the Dept are to get the enhanced Grade Pay of Rs 4600, the proposed strike action scheduled on 26th of this month is likely to be withdrawn. However, it will be decided on 17th November after a meeting of the service associations.
STRIKe WITHDRAWN
As stated above, the scheduled strike on 26th November has been withdrawn.

IT, Customs and Central Excise Joint Strike called on 26.11.2009

Income Tax Employees Federation

Income tax Gazetted Officers Association

All India Central Excise Inspectors' Association

All India Customs Preventive Services Federation

Address for correspondence:

Manishinath Bhawan

A/2/95 Rajouri Garden,

New Delhi. 110 027.

Dated: 5^th November, 2009

Shri P.V.Bhide,

Secretary, Revenue,

Govt. of India,

North Block,

New Delhi-110 001.

Dear Sir,

This is to give notice that the members of Income-tax Employees Federation, Income-tax Gazetted Officers Association, All India Central Excise Inspectors Association and All India Customs Preventive Services Federation will be on one day's strike on 26^th November, 2009. The demands in pursuance of which the employees will embark upon the strike action is enclosed.

Thanking You,

Yours faithfully,

Sd. Sd. Sd. Sd.

(Ashok B Shalunke) (Rajesh D.Menon) (Kaushik Roy) (I.B. Mishra)

Secretary General Secretary General Secretary General (Secretary General)

I.T.E.F. I.T.G.O.A. A.I.C.E.I.A. A.I.C.P.S.F.

Copy to:

1. The Hon'ble Finance Minister, Govt. of India, North Block, New Delhi

2. The Hon;ble Minister of State for Finance (Revenue), New Delhi.

3. The Secretary, Department of Expendigture, North Block, New Delhi.

4.The Chairman, Central Board of Direct Taxes, North Block, New Delhi,

5. The Chairman, Central Board of Excise & Customs, North Block, New Delhi,

6.. The Joint Secretary (Per), Dept. of Expenditure, North Block, New Delhi.

CHARTER OF D E M A N D S

1. Grant Grade pay of Rs. 4,600/- as per Government of India notification to Inspectors of Income-tax, Central Excise and Preventice Officer of Customs Department, Private Secretaries and Administrative officer Gr.III as per the Revised Pay Rules, 2008 Part B and C Section Para ii, under notification of the Govt. of India dated 29.08.2008 and Rs.1,800/-to all Group D employees.

2. Settle the demands contained in the Charter of Demand submitted to the Central Board of Direct Taxes by the JCA (ITEF & ITGOA), vide letter No. JCA/CHQ.09/10/2 dated 18.08.2009

3. The demands contained in the Charter of demand submitted to the Chairman, CBEC by AICEIA in CBEC/130/2009 dated 14.8.2009

4. Settle the demands contained in the letter dated 2.9.2009 addressed to the Chairman, CBEC by the All India Customs Preventive Services Federation.

(Published as per ITEF version)

***This is the third time in less than a year that ITEF has called strike. In earlier occassions they postponed/deferred the strike in the last moment without achieving any concrete assurance from Govt. So the members are requested to wait and watch upto 25th Nov. The leaders will desparately try to withdraw the strike as they know their incapability of holding a nationwide srike. Merely a meeting with the chairman of CBDT and verbal assurance of favourable consideration may be a face saver to the leaders to "postpone" the strike. There is only hope left that Customs and Central Excise Associations are with them this time.

Income Tax Dept Exam postponed, will commence from 26.10.09. Grade Pay issue of Inspectors not settled.

Download your Admit Card [New Pattern][For Old Pattern, Admit card will be issued as earlier Year].

Recent Update :

Negative marking reduced in New pattern and O.P removed from New Pattern of Exam.

DEPARTMENTAL EXAMINATION.2009.

The Examination for 2009 stands postponed in view of the election in Maharashtra and Haryana. The exam will now commence from 26^th October, 2009 as per the decision of the Directorate in this regard.

Update : View the Revised Notification.

Ministerial Exam 2009 will commence from 04.11.2009

View the Schedule

ITO/ITI Exam will commence from 26.10.2009 as mentioned earlier.

View the Schedule

GRADE Pay for Inspectors.

"Today we had a meeting on the above subject with the JS(Per). The issue has not been settled. . Contrary to the decision taken by the Revenue Secretary earlier to the effect that the issue will be separately considered and appropriate decision taken, the Expenditure Department has now proposed to consider this along with all other similar issues and demands. In view of this development, the Sectt. Meeting which is slated for 11^th might be constrained to revive the decision to organize strike action in the winter session of the Parliament. "

[Quoted text is as per version of ITEF]

Beware of fraud emails in the name of Income Tax Dept.

No mails for refunds issued from income tax department.

Information has been received from several quarters that people are receiving electronic mails informing them of their income-tax refunds and seeking their credit card details. The e-mail is sent from the following or similar mailing addresses.

hxbkw@accounts.net> or cvhfus@accounts.net

It is clarified that the Income Tax Department does not send e-mails regarding refunds and doses not seek any information regarding credit cards of taxpayers.

Taxpayers are, therefore, cautioned that they should not respond to such mails and if they do so it would be at their risk and responsibility.

Source : Govt. Press Release.

(Published in public interest to caution the taxpayers so that they may not be trapped by some frauds.)

Inspectors' Grade Pay Issue : Meeting on 7th Oct.

Another meeting with JS (Per) fixed for 7th of October 2009 to resolve the grade pay issue. CBEC, Secretary of Revenue and CBDT are also participating in the meeting apart from the Unions, hope a better result after 7th.

It is known that 24 files from 17 ministries pertaining to the upgradation of grade pay from 4200 to 4600/4800 are lying in the chamber of Director (IC), Dept. of Expenditure.

Income Tax Strike scheduled on 09.09.09 withdrawn

View the Clarification for advance increment for passing Dept. Exam.

Strike postponed by one month inform all comrades. Examination issues settled, orders on mobile phones issued, Advance increment issue being clarified, Grade Pay issue will be resolved with in a month time, no outsourcing and agrement with JCA will be honoured,other issues are to be settled with in a month. Detailed Circular to be issued in a day or two. Any absence due to non communication will not be treated as absence.


Source : Income tax Employees' Federation.

Did the employees really get anything positive ? Read the detailed circular of ITEF below and decide yourself. Please write your comment in this issue.

"

INCOMETAX EMPLOYEES FEDERATION

Manishinath Bhawan,

A/2/95 Rajouri Garden

New Delhi. 110 027.

Dated: 8^th September, 2009

ITEF/15/2009

Dear Comrade,

The Central JCA decided to postpone the one day token strike scheduled for tomorrow i.e. 09.09.2009 by a month. The Central JCA alongwith the Circle/State Secretaries will meet within 15 days to decide upon the next date of strike and the future course of action. The representatives of the Central JCA met the Member (P) and Chairman today to have another round of negotiations on the Charter of Demands. We give hereunder a brief resume of discussions.

1. Exam-related issues :

a) Negative marking being a necessary ingredient of any objective test examination will

remain. However, it will now be only a nominal reduction of one mark for every 8 wrong answers.

b) The SC/ST candidates will have the opportunity to rewrite the examination to improve their marks.

c) The Office Procedure paper will be removed from the examination for ITOs.

2. Clarificatory order will be issued on grant of advance increments on passing the departmental examinations (for those who have passed prior to 01.01.2006) immediately and for those who have cleared after 01.01.2006 within a few days. The distinction between prior and after 01.01.2006 has to be made in view of the merger of pay scales of senior TAs, OS, Steno Gr.II and Steno Gr.I.

3. The definition of partially qualified candidates to cover all those who are qualified even in one single paper out of the four core papers have already been issued.

4. Orders to ensure that the 15 mobile phones in a range are to be allotted to non-gazetted employees issued. The question of extending it to all the non-gazetted employees who are deployed in operational sections will be decided and orders issued after the proposed meeting of Addl. Commissioners of I.T.(HQrs.) scheduled to be held on 17/18^th September, 2009.

5. BPR outsourcing will be in consonance with the agreement already entered into between the JCA and the Board. The Chairman and the concerned member will visit Bangalore and will look into any violation thereof and cause discussion with the JCA representatives to resolve the issue.

6. Grade Pay for Inspectors - It was reported that the Expenditure department has conveyed to the Secretary (Revenue) the outcome of discussions the representative of Federations in CBDT and CBEC had with them earlier. The Chairman and the Member(P) will meet Secretary (Exp.) within the next 10 days after interacting with the Sec.(Revenue). If no settlement is brought about the issue will be taken up by the Board with the Finance Minister.

7. All formalities required to hold the DPC for Asst. Commissioner(2009-10 R.Y) will be completed within a month. The JCA representatives will meet the Chairman/Member(P) once in a week to expedite the issue. The DPC for promotion as DCs/JCs will also be held within this time limit.

8. The suspension of officers in Madhya Pradesh for the alleged charge of assessment getting barred by limitation of time would be reviewed with a view to revoke the suspension on getting the reports of the DI(Vig.) in the matter.

9. The Board will consider the demand for providing laptop computers to PSs/DPAs and Administrative Officers in the light of the recommendations of the DG(Systems).

10. The DG(Systems) have agreed to provide Desktop computers to all Gr.C employees once the proposal for offline processing of returns is implemented.

11. The Supreme Court's interim order in inter-se seniority will be given effect to in the case of the petitioners. The universal application thereof will be considered after getting the legal advice from the Solicitor General or clarificatory order from the Supreme Court.

12. The Chief Controller of Accounts (CBDT) has been appraised of the background in which the DG(HRD) has taken the decision to grant the benefit of higher grade pay of Rs. 5400/- to ITOs who have completed 4 years of service reckoned with reference to the date of their promotion. The CIT (Coordn.) will discuss the said issue with the Chief Controller of Accounts further to ensure that appropriate instructions are issued to ZAOs to stay the recovery.

The decision to postpone the strike action could be conveyed to the Chairman, CBDT at 6.00 pm., as the discussions with various authorities went on upto 4.30 p.m. We have taken efforts to convey the decision to all the field formations through SMS as also by placing a brief message on our website. We are fully aware of the fact it would be difficult for our circle leadership to inform the members and consequently those who could not be accessed with the message may not attend the office on 09.09.2009. It has been assured by the Chairman that the absence of such members will not be treated as absence.

We take this opportunity to congratulate all our comrades for the excellent preparations made for the successful conduct of the strike action. It may kindly be noted that the JCA leadership has decided to propose to the Central JCA that the postponed action should take place in the 3^rd week of October 2009 if the agreement reached is not translated into tangible orders. This would become all the more necessary if the issue concerning the grant of higher grade pay is not settled eventhough we are convinced that the Board and the Secretary (Revenue) do make strenuous efforts in our favour.

With Greeting especially on the eve of Pooja and Diwali festivals and assuring of our united efforts in pursuing the demands through struggles.

Yours fraternally,

sd/

Ashok B Salunkhe

Secretary General"

Tax-free transport allowance may rise fromRs 800 to Rs3200.

The government is considering a proposal to raise the tax exemption limit on monthly transport allowance, a move that could enrich taxpayers by as much as Rs 9,000 a year, but at the same time put further pressure on its already-strained finance.

The proposal to increase the tax exemption limit for transport allowance to Rs 3,200 a month from Rs 800 follows a similar hike for government servants under the Sixth Pay Commission award. It is likely to find adoption in the private sector too, triggering greater spending across the economy and boosting the bottomlines of companies in a wide swath of sectors.

A decision on the proposal, following representations from some quarters in the government, is expected soon, a finance ministry official told ET, on condition of anonymity.

Allowances such as transport are governed by the rule 2BB of the Section 10(14) of the Income Tax Act. The board is only required to place the new rule before Parliament whenever it has its next session.

Source : Economic Tmes.

Dos and Dont's for printing and submitting of ITR-Vs to ITD-CPC Bangalore

1. Please use Ink Jet /Laser printer to print the ITR-V Form.
2. The ITR-V Form should be printed only in black ink.
3. Do not use any other ink option to print ITR V.
4. Use of Dot Matrix printer should be avoided.
5. Ensure that print out is clear and not light print/faded copy.
6. Please do not print any water marks on ITR-V. The only permissible watermark is that of "Income tax Department" which is printed automatically on each ITR-V.
7. The document that is mailed to CPC should be signed in original.
8. Photocopy of signatures will not be accepted.
9. The signatures or any handwritten text should not be written on Bar code.
10. Bar code and numbers below barcode should be clearly visible.
11. Only A4 size white paper should be used.
12. Avoid typing anything at the back of the paper.
13. Perforated paper or any other size paper should be avoided.
14. Do not use stapler on ITR V acknowledgement.
15. In case you are submitting original and revised returns, do not print them back to back. Use two separate papers for printing ITR-Vs separately.
16. Please do not submit any annexures, covering letter, pre stamped envelopes etc. along with ITR-V.
17. The ITR-V form is required to be sent to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100, by ordinary post.
18. ITR-Vs that do not conform to the above specifications may get rejected or acknowledgement of receipt may get delayed.

By Courtsey : Income Tax Department.

CBDT admits employees' demand, Modification in ITO/ITIs Exam 2009.

It has been decided that even Partially Qualified candidates are also eligible to appear in old pattern of Examination to clear the old papers.

Earlier, the dept. has clarified that at least two basic subjects have to be cleared to avail the chance to appear in the old scheme of examination.

See the details here.

Now under the pressure from the employees the Board has directed that those who have cleared at least one core paper will be eligible to appear in the old scheme of examination.

View the latest notification.

IT/Central Excise Inspectors' Grade Pay : An Update.

The meeting in the Expenditure Dept. took place as scheduled. please find the outcome of the meeting as under.

"In continuation of the meeting chaired by the Secretary (Revenue) on 23.07.2009, a meeting was called by the JS (Per) of Expenditure Ministry. The President and SG attended the meeting. Representatives of the ITEF and Customs Preventive Federation also attended. In the course of the meeting, the Expenditure Authorities conceded that it is not possible to merge the cadres of STA and Inspector due to functional distinction. However they were not ready to commit on the upgradation to Rs. 4600/- and instead they suggested some alternate measures like 2-3- 4 additional increments/ higher start in the pay band/ putting 80% of Inspectors in Rs. 4600/- and the rest in Rs. 4200/- who will move to Rs. 4600/- after 4 years/ clarification that promotion from STA to Inspector would entail FR 22 fixations. We categorically stated that none of the suggestions would solve the problem faces by the cadre. They even suggested that all the Inspectors presently on the rolls can be granted Rs. 4600/- and the subsequent entrant would be in Rs. 4200/- . When we stood to our stand the meeting was prorogued by the JS (P) stating that they would report to the RS and after that the decision would be communicated.

Met the US IFU to pursue the representation against the Dy Controller of Accounts letter regarding Grade Pay on receipt of ACP under the 99 scheme. We briefed him and requested to expedite the matter.

Met Member (P&V) and registered our protest in permitting ICT on spouse joining ground on without loss of seniority principle and expending the order to promotional posts also. The Member agreed to have a relook.

However, we shall continue our agitation program till we receive a positive communication from the Government."

(It is published without any change from the website of Central Excise Inspectors' Association.)

Meeting with Dept. of Expenditure on 24.08.09 regarding merger of three pay scales.

In continuation of the meeting with Revenue Secy on 23.07.2009 regarding enhancement of Grade Pay to IT/Central Excise Inspectors, a meeting has been convened by the JS(Personnel), Dept. of Expenditure on 24.08.2009 .

Service association of Central Excise, Customs and Income Tax has been called to resolve the long standing issue.


View the letter addressed to Central Excise and Customs employees' Association.

Extension of time limit for filing ITR-V form

The Central Board of Direct Taxes had, vide circular No.3/2009 dated 21.05.2009, allowed assessees who file their income tax returns in electronic form without digital signature to submit their verified ITR-V form, within a period of 30 days, thereafter. The ITR-V form was required to be sent to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100, by ordinary post.
It has now been decided to extend the time limit for filing the ITR-V form by relaxing the stipulations in the circular dated 21.05.2009. The ITR-V form relating to returns which have been filed electronically (without digital signature) on or after 1st April, 2009 can now be filed on or before the 30th September, 2009 or within a period of 60 days of uploading of the electronic return data, whichever is later. The ITR-V should continue to be sent by ordinary post to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100.

Income Tax employees walked out today, call strike on 9th Sept.

The IT employees observed a walkout today at 12 noon throughout the country to press their demands. The movement has been carried out by the call of Joint Council of action.

They have called a nationwide strike on 9th September.

CHARTER OF D E M A N D S

1. Grant Grade pay of Rs. 4,600/- as per Government of India notification to Inspectors, Private Secretaries and Administrative officers and Rs.1,800/-to all Group D employees; Implement the clarification with respect to Grade Pay of Rs. 5,400/- to ITOs after 4 years w.e.f. 01/01/2006.

2. Out of 1% incremental incentive:

a. Reimburse Mobile phone charges to all employees in the department

b. Sanction Laptops to all Gazetted Officers including AO, PS/Sr.PS, on non-returnable basis.

3. Deptl. Examination-2009 should be conducted accepting demands communicated vide ITEFs letter dated 25^th July, 2009 addressed to the DGIT(Admn), New Delhi.

4. Transfer DCIT/ACIT (who have completed 2 years cooling period and with spouse/medical/compassionate grounds, etc.) and revoke the transfer of officers, who are transferred before completing their tenure.

5. Fill up all vacant posts in gazetted and non-gazetted cadres and effect promotion to the cadre of ACIT/DCIT/Jt. CIT, by giving one time relaxation. (Conduct DPC for ACIT for RY 2009-10 and DCIT for RY as on 01/01/2009 and 01/01/2010).

6. Grant correct seniority to DCIT on account of CAT decision in S.K. Shukla's case and Allot Civil List Code no. to all promotee ACsIT till R.Y. 2008-09

7. Implement the order of the Supreme Court on Inter-se-Seniority in the case of Inspectors.

8. BPR to be implemented only after reaching an agreement with the JCA and stop outsourcing of Departmental functions.

9. Grant Desktop computers to all Group C employees.

10. Dispose of all vigilance cases pending beyond one year.

11. Stop vindictive actions on our members in the light of the recent issue in MP charge.

Strike Notice

Ref : JCA/CHQ/09-10/2 18^th August, 2009

To,

The Chairman

Central Board of Direct Taxes

North Block,

Central Secretariat,

New Delhi – 100 001

Dear sir

This is to give notice that the members of Income Tax Employees Federation and the Income Tax Guzetted Officers Association will be on a day's token strike on 9^th September 2009, under the banner of Joint Council of Action in pursuance of the enclosed charter of demands.

Thanking You,

Yours faithfully

Ashok.B.Salunkhe. Rajesh D Menon.

Joint.Convenors.

Govt. proposes new tax code : Income tax relief expected but home and retirement benefits to take hit

The government today kick-started radical tax reforms by unveiling a draft tax code under which an individual will effectively not have to pay any tax on an income of up to Rs 4.6 lakh a year against Rs 2.7 lakh at present.

The ceilings on tax-free income will be raised to Rs 4.9 lakh in the case of women and Rs 5.4 lakh in the case of senior citizens.

The code proposes zero tax on an income of up to Rs 1.6 lakh but also provides for a tax deduction of up to Rs 3 lakh on bank fixed deposits and specified investments in small savings schemes, insurance and other savings instruments.

Over and above the Rs 3 lakh ceiling, taxpayers can claim deductions for money spent on children’s education, health insurance premia up to Rs 20,000 annually in the case of senior citizens (Rs 15,000 for the rest), medical treatment of up to Rs 60,000 annually for senior citizens (Rs 40,000 for the rest), and expenses up to Rs 1 lakh for disabled dependants.

But there’s bad news as well: there will be no tax break for buying an apartment (which qualifies at present for a tax benefit of Rs 1.5 lakh a year on interest payments). Moreover, withdrawals from retirement funds will no longer be exempt from tax.

Salaried individuals may also feel the pinch since all perks will now be included in the definition of taxable salaries.

Companies will have to pay tax at the rate of 25 per cent instead of an effective rate of almost 35 per cent at present. However, companies that pay minimum alternate tax (MAT) — a tax levied since 1997 on zero-tax companies — could face a big blow since the levy will now be charged on 2 per cent of their gross assets. Earlier, it was charged on 15 per cent of book profits.

2 years to kick in

The changes have been proposed in a tax code that seeks to replace the 48-year-old Income-Tax Act. The code has been put in the public domain for discussion. It will come into effect in about two years after it is passed by Parliament with changes.

Finance minister Pranab Mukherjee, who released the tax code along with his predecessor P. Chidambaram, said the bill could be tabled in Parliament in the winter session.

“It’s a simpler tax code and we expect it will usher in better compliance, better tax realisation and lead to far less litigation,” Mukherjee added.

Chidambaram said the tax code had been written from scratch and could be enacted by 2011, synchronising with the golden jubilee of the Income-Tax Act. The former finance minister had started work on the tax code three years ago.

Wealth tax

The ambit of wealth tax is being widened — and this could prove to be a huge blow to the super-rich. Wealth tax will be levied on a net wealth above Rs 50 crore instead of Rs 30 lakh at present but it will cover assets like shares.

However, the wealth tax rate is being slashed from 1 per cent at present to 0.25 per cent. “This has been done to ensure better compliance,” officials said. “Right now, it is a tax that everybody tries to avoid.”

Industry has been lobbying the government to scrap it since the government expects to raise only Rs 425 crore through wealth tax this year.

The direct tax code will obviate the need to introduce a voluminous Finance Bill every year along with the budget — a tiresome rite that former finance minister Jaswant Singh railed against recently during the budget debate. However, tax amendments will still require sanction from Parliament.

Political parties will be happy to learn that the new tax code allows tax deductions on campaign contributions by both individuals and companies, provided the donation amounts to 5 per cent of a person’s income or the profits of a company.

Source : The Telegraph

Proposed Income Tax Rates for Individuals

Up to Rs.1,60,000	Nil
From Rs.1,61,000 to Rs.10,00,000	10 Per cent (Income exceeds Rs.1,60,000)
From Rs.10,01,000 to 25,00,000	20 Per cent (Rs.84,000 + Income exceeds Rs.10,00,000)
Above Rs.25,00,000	30 Per cent (Rs.3,84,000 + Income exceeds Rs.25,00,000)

Proposed Income Tax Rates for Women-below 65 years

Up to Rs.1,90,000	Nil
From Rs.1,91,000 to Rs.10,00,000	10 Per cent (Income exceeds Rs.1,90,000)
From Rs.10,01,000 to 25,00,000	20 Per cent (Rs.81,000 + Income exceeds Rs.10,00,000)
Above Rs.25,00,000	30 Per cent (Rs.3,81,000 + Income exceeds Rs.25,00,000)

Proposed Income Tax Rates for Senior Citizens

Up to Rs.2,40,000	Nil
From Rs.2,41,000 to Rs.10,00,000	10 Per cent (Income exceeds Rs.2,40,000)
From Rs.10,01,000 to 25,00,000	20 Per cent (Rs.76,000 + Income exceeds Rs.10,00,000)
Above Rs.25,00,000	30 Per cent (Rs.3,76,000 + Income exceeds Rs.25,00,000)

Direct Taxes Code Bill

Discussion Paper

Income Tax Dept. Exam : Last Chance in Old Syllabus for partially qualified candidates. Update on Grade Pay Issue.

On 5^th Aug,2009 The Income Tax Dept vide Notification No.II for Dept Exam 2009 made it clear that those who have qualified in at least two of the basic four papers, i.e., Law(i&2), Book Keeping, O.T and O.P. will be given the last and final chance to clear the examination under the old syllabus. It is also mentioned that those who will remain unsuccessful, will have to appear in all papers under new syllabus from the year 2010 onwards.

View the Dept. Circular in this regard.

The exam will commence from 20^th Oct,2009 for both old and new syllabus.

ITEF’s Stand on the issue :

“The Examination on the old pattern was to be for all partially qualified candidates. Partially qualified according to us means are those who have qualified in any of the four basic papers i.e., IT law I & II, Book-keeping, Other Taxes and Office Procedure. The Directorate has decided that partially qualified means only those who have qualified in any two of the above mentioned four papers. This is not acceptable to us.”

Update on Grade pay and Infrastructure Fund Issue :

“ Neither on infrastructure fund nor on Grade Pay settlement has been brought about. The Secretary (Revenue) despite supporting our genuine concern on Grade Pay has not been able to make the Department of Expenditure to see reason.”

“Accordingly it has been decided to organize a walk out of 18^th August, 2009 from 12.00 Noon onwards.”

“On walking out on 18^th August hold demonstrations in front of all offices and the following telegram/savingram/fax sent to the Chairman, CBDT., North Block, Central Secretariat, New Delhi-110 001 and to the Secretary (Revenue), Govt. of India, Ministry of Finance, North Block, Central Secretariat, New Delhi -110 001.

Text of Telegram to Chairman:

PLEASE ADDRESS THE OBJECTIONS RAISED BY ITEF TO THE NEW EXAMINATION RULES AND ELEGIBILITY OF CANDIDATES UNDER THE OLD PATTERN. SETTLE THE SAME IMMEDIATELY

Text of telegram to Secretary (Revenue)

PLEASE GET THE ISSUE OF GRADE PAY FOR INSPECTORS, ADMINISTRATIVE OFFICERS AND PRIVATE SECRETARIES SETTLED AS PER THE GOVT. OF INDIA NOTIFICATION.”

Update on 11th August on Grade pay Issue.

All India Central Excise Inspectors' Association urged the Revenue Secretary to intervene in the Grade pay issue. He earlier had issued directions to convene another meeting in the 1st week of August 2009 to resolve the issue.

Following is the text of the letter.

AICEIA/PRES/2009 11.08.2009

To
Shri. P.V. Bhide,
Secretary (Revenue),
Ministry of Finance,
North Block, New Delhi.

Sir,
Sub – Upgradation of pay scales of Inspectors in CBEC & CBDT – Reg

A kind reference is invited to the meeting of officials of the Department of Expenditure and the staff representatives of CBEC & CBDT, convened by the Secretary (Revenue) on 23.07.2009 with regard to the up gradation of pay scales of Inspectors in CBEC & CBDT. In the said meeting Secretary (Revenue) had issued directions to convene another meeting in the 1st week of August 2009 to resolve the issue. I respectfully submit that the proposed meeting has not yet been convened. I humbly request the Secretary (Revenue) to intervene in the matter so as to settle the issue.


Yours faithfully


ARUN ZACHARIAH.P
PRESIDENT, A.I.C.E.I.A.

Copy submitted to:

The Joint Secretary (Admn)
Central Board of Excise & Customs,
Department of Revenue,
Ministry of Finance,
North Block, New Delhi.

Source : All India Central Excise Inspectors' Association.

IT/Central Excise Inspectors may get enhanced Grade Pay soon, AO/PSs will have to wait more.

The Revenue Secretary hold a meeting with service associations and officers of the expenditure department to resolve the long standing demand of granting higher pay for the inspectors. He pursued hard in favour of the inspectors but assured to discuss the similar case of AO & PSs later as that is a common case in various department.

The summary of the meeting is reproduced here.

“The Revenue secretary has convened a meeting of the representatives of the ITEF and the organizations in the CBEC along with the official representatives of CBDT, CBEC, Revenue H.Qrs and the JS (Per), Director (IC) in the Department of Expenditure, Ministry of finance. On behalf of ITEF, Com. KKN Kutty, Com. Ashok Salunkhe and Com. Amitava Dey participated in the discussion. The Revenue Secretary supported the cause of the Inspectors of Central Excise, Customs and Income tax Department and asked the officials of the Department of Expenditure to seek any clarification they require in the matter. Most of the discussion and queries revolved around the functional distinction between the Sr. Tax Assistants and Inspectors and the feeder cadres of promotion to the grade of Inspector. The Staff side stated that there had been no justification in dilly dallying the issue so long especially in the light of the notification issued by the Government. It appeared from the discussion that the Department of Expenditure was concerned of the financial and other repercussions a positive decision might emanate from the Assistants of the Central Secretariat and other similarly placed cadres. On behalf of the ITEF it was pointed out to them that the Department of Expenditure themselves had settled the issue of parity in the pay scale of Inpsectors of Revenue Department vis a vis that of the Para Military forces, CBI. IB etc. and besides the necessity of assigning higher grade pay for Inspectors primarily arises from the functional distinction between the merged cadres of Sr. Tax Assistants, O.S and Inspectors and there cannot be any parity in so far this issue is concerned with the personnel in the Central Secretariat.

In so far as the anomaly of grade pay for P.S and Administrative officers are concerned, the Revenue Secretary said that he would convene such a meting later after ascertaining the stand of the Department of Personnel in the matter as these are common categories.”

Source : Income Tax Employees’ Federation

The Revenue Secretary informed that the meeting was called to resolve the grade pay issues of Inspectors who seek an upgradation to the grade pay of Rs. 4600/-. As regards the pay issue of DOS & AO, he stated that it would be looked into later. He told the meeting that the Inspectors have started a lunch hour demonstration, which may lead to a strike, and he wanted to avoid that. He wanted to find a solution to the problem faced by the cutting edge level officers. The officials from the Expenditure Department indicated their reservation on the subject. The Revenue Secretary as well as the other officials in the Revenue Department clearly stated that the post of Inspector and Senior Tax Assistant cannot be merged due to functional considerations. Revenue Secretary repeatedly mentioned about his concern about the agitation programme already taken up by the Inspectors of CBDT and CBEC. He finally requested the Expenditure Department to resolve the issue in two weeks and asked to convene a meeting in the 1st week of August for this purpose."

Source : All India Central Excise Inspectors’ Association.