IT Return : Due Date extended to 15th October 2010.

The Central Board of Direct Taxes have extended the due date of filing income tax returns for the assessment year 2010-11 from 30th September 2010 up to 15th October 2010. The due date has been extended in view of disturbance to general life caused by floods.

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Extra 1% EPF interest to be taxed.

The government’s surprise gift for workers isn’t much of a gift after all. The labour ministry has hiked the employees’ provident fund, or EPF, rate to 9.5%, but a finance ministry notification says that anything in excess of 8.5% will be taxed. 

The labour ministry is, however, confident that the tax department will renotify the higher rate, as otherwise a lot of contentious issues will come up. Labour Minister Mallikarjun Kharge had declared a 9.5% bonanza on provident fund deposits on September 15 — marking a one percentage point increase in the rate from the 8.5% paid in the last five years. 

But even before the EPF board met under Kharge, the Central Board of Direct Taxes had notified a tax-free PF rate of 8.5% for 2010-11 — effective from September 1. This means that the 1% extra income (or Rs 1,700 crore) that the labour ministry has projected as a gift to the workforce, would be fully taxable. This is the first time ever that income from provident fund would be taxable, if the tax department does not notify the higher rate. 

Historically, the tax-free PF rate notified by the income tax department has never been lower than the EPF rate declared for the year. 

In recent years, while the EPF rate was at 8.50%, the ceiling was at 9.50%. This year, when the EPF rate has been hiked to 9.50%, the ceiling on tax free provident fund returns has been lowered to 8.50%. “The incremental PF return would be taxable in the hands of the worker. This has never happened before,” said Bhupendra Meel, associate vice president in charge of retirement trust solutions at AK Capital Services. 

But levying the tax would be far from easy. The PF interest would be credited to workers’ accounts at the end of the year. The trust in charge of the PF would be responsible for deducting the applicable tax at that time. 

Usually, the income tax department notifies a tax-free PF rate for the whole year. But this year, it’s only applicable from September 1. So the 9.5% provident fund return would be tax-free from April to August, but taxable thereafter. “For company-run trusts, this would be a headache — calculating the tax liability on 1% PF income for seven months,” said Amit Gopal, senior vice president at India Life Capital. 

But the most acute problem will be faced by the Employees’ Provident Fund Organisation – which manages 5 crore PF accounts. 

Firstly, EPFO simply doesn’t have the systems in place to deduct tax at source. All PF account withdrawals before completing five years of service, are fully taxable, as per existing income tax rules. But the rule has never been implemented because of EPFO’s unreliable manual record-keeping systems. 

Even if EPFO could deduct tax at source before crediting interest to members, the applicable income tax bracket would vary for its members. For every deduction made, it would also have to give workers a Form 16 statement. 

For an organization that doesn’t even give members annual account slips on time, mailing 5 crore ‘Form 16’ sheets would be physically impossible. Experts reckon the PF office could instead put the onus of paying the tax on employees filing their returns. 
Source : Economic Times

Rescheduling of Departmental Examination for ITOs/ITIs/Ministerial Staff.

The ITOs/ITIs/Ministerial Staff Examination 2010 has been rescheduled in view of elections in certain states and is now slated to commence from 26th October, 2010 and will end on 8th November 2010.


View the modified Time Table


Source : Income Tax Dept.

ITO to ACIT Promotion Order released.

DPC for DCIT to JCIT is tentatively scheduled to be at Delhi on 20/21/22-09-2010.
153 Income Tax Officers have been promoted to ACIT on 17th September 2010.


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ITGOA withdraws from All India strike on 07/09/2010, ITEF to participate

Following are the versions of ITGOA and ITEF regarding the all India Strike scheduled on 7th Sep, 2010.
ITGOA Version :
"Majority Units of ITGOA have expressed their view/opinion, against participating in the All India Strike scheduled to be held on 07/09/2010, by the Confederation of Central Govt. Employees & Workers. The reason advanced by the units is none of the Gazetted Officers Association of Central Govt. Depts, are participating in the said strike on 07/09/2010. On a comprehensive consideration of the above situation, ITGOA has decided 'NOT TO JOIN THE STRIKE ON 07/09/2010'. All the Units Secretaries/President are requested to give a suitable intimation to the respective CCIT(CCA) and also inform the members, so as to remove any sort of confusion. With regards, B. Shanthi Kumar - President Rajesh Menon - Secretary General PS "


ITEF Version :
"We write this to request you once again to take all steps to mobilize the members to participate in the one day General Strike slated for tomorrow, the 7^th September, 2010.  We must continue our tradition of having cent per cent participation in the strike.  We know the decision of ITGOA to withdraw from the strike action has created difficulties, especially in some States where their leaders were with us in campaigning.  We must overcome this and if done, we can strengthen the efficacy of our organization further.  As per our report, more and more organizations of Central Government employees have decided to participate in tomorrow's strike.   The strike of 7^th September, 2010 is thus destined to be one in which the largest number of workers in the country will take part especially in the background of INTUC involving themselves in this action.

            We request you to kindly take the adverse situation brought about by the decision of ITGOA to advise their members not to participate in the strike, as a challenge and opportunity to make our Federation stronger and capable of organizing much higher form of action programmes."

Is it the begining of split in JCA ????

Income Tax employees agitation ends, see what they could achieve

1.       Functioning of CPC. Agreed to go by the agreement between CBDT and JCA.  Further discussion to find solution will be held after 10.09.2010.  Human Resource Directorate will be asked to undertake evaluation of manpower in the Department for the care-taking staff.

2.      (a) Reimbursement of Mobile Phone Charges.  Discussion with BSNL is in progress to implement the scheme approved by the Finance Minister.  May take one more month to implement the scheme.  In any case, the scheme will be operationalised by October, 2010.

(b) Efforts are being taken to justify the requirement of Laptops to other Officers to get the Govt.'s sanction.

(c)Proposal has been sent for financial approval to provide one more computers to each ward/circle and two computers to each range.

3    Publish civil list without any further loss of time. On the lines it was issued till 2006.  Publish seniority list of Group B C & D employees as per board's instructions on an annual basis. It was stated that the DI (HRD) has prepared the Civil list and the same will be submitted to the Board on obtaining the signature of the DG(HRD) who is to resume duty on Ist September, 2010. The Board will take steps to publish the same within a few days time.

4.   The transfer of ACIT/DCIT who has completed 2 years cooling period will be considered at the time of promotion orders of ACIT for 2009-10 are issued.

5.   Framing of Recruitment Rules for the Multi Tasking Staff is in the final stage.  On its approval, the existing vacancies will be filled up .

6.   DPC for ACIT for the year 2009-10 is over the orders will be issued shortly.  Preparation for DPC for the year 2010-11 is in the final stage.  Promotion orders for DCIT will be issued within 10 days.  DPC for the post of JCIT will be held in the second half of September, 2010.

7.   Pay anomaly matter between the Direct recruits and promotes has already been taken up and the same is being pursued with the Dept. of Exp. JCA is to give note on justification of up-gradation of Pay of AO/PS enabling the Board to take up the matter.

8.   As in above

9.   Cadre composition of Group C Staff as suggested by the ITEF requires further clarification and discussion.  The next meeting will take place on 29^th of September, 2010.

10. The notification for Deptl. Examination 2010 has been issued incorporating the suggestions of the ITEF.

11. Pending vigilance cases will be disposed off shortly.  JCA to give list of long pending cases.

12. Report of the Cadre Restructuring Committee has been sent to the Secretary, Revenue and discussions have taken place.  Approval of the Revenue Secretary is awaited to pursue the matter with other Govt. Agencies.
Source : ITEF
View the ITGOA version :

The JCA (CHQ) leaders viz. S/Shri B. Shanthi Kumar, Rajesh Menon, R.S. Meel, K.P. Rajgopal, Ashok Salunkhe, Amitava De & K.K.N. Kutty had discussions with Member(P) on 31-08-2010 at 2-00PM on all the issues of the Charter of Demands.  During the discussions, Member (P) had given a detailed account of progress made on the issues appearing in the 12 point charter of demand and gave positive assurances as under :

1. Civil List will be released within one week.

2. Promotions of ITO to ACIT - Orders will be issued by 15/09/2010.  Proposal for 2010-11 is ready and will be submitted immediately after issuing the promotion order of RY 2009-10.

3. Promotions of ACIT to DCIT - Orders will be issued by 15/09/2010.

4. Promotions of DCIT to JCIT - UPSC Chairman, who is presently out of India will be back in office on 13/09/2010 and as per Member (P) the DPC is expected to be held between 20 & 25 September, 2010.

5. Transfer of ACIT/DCIT – The 15 officers of west Bengal and all cases of completion of 2 year cooling off period and compassionate cases will be considered in the posting orders consequent to promotion of ITO to ACIT.

6. The GP of 4800 to AO-III & PS will be taken up with Dept. of Expenditure, on the lines of ITGOA's note justifying the said demand.

7. The issue of LAPTOPs to AO & PS/Sr PS will be positively reconsidered.

8. Revised Examination rules as demanded by ITEF have been issued.  

9. Reimbursement of Mobile Phone charges for all will be operational within a month i.e. expected to begin from 01-10-2010.

10. Vigilance matters pending for long will be expedited and towards this ITGOA's suggestion to appoint Addl. CIT (Inquiry) would also be positively considered.

11. Issue of outsourcing with special reference to CPC and processing of returns will be discussed with JCA in detail, with all factual inputs and an amicable settlement will be arrived at after discussion with Chairman.   

The Member (P) also assured to give minutes of the meeting with above assurances, within a week's time and has proposed a monthly meeting with JCA for discussing all pending issues. Then he also requested the JCA to re-consider the ongoing agitation program in view of the above mentioned progress and assurances on all the issues in the charter of demand. 

Analyzing the entire situation and also considering the opinion of our JCA partners, that we have to give the Board and also our membership, some breathing time and create a congenial atmosphere for enabling the assurances to fructify, it was decided to call-off the ongoing agitation