Advance Increment for passing Dept. Exam restored.

Following is the letter from Ashok Salunkhe, Secretary General, ITEF regarding the restoration of advance increments for  passing Dept. Examination.

Itef/24/2009

Dated: 12^th March, 2010

Dear Comrade,

As intimated to you, the question of grant of Advance increment for passing the Departmental Examination was taken up with the Chairman, CBDT, when the undersigned met him on 4^th March, 2010. He had assured to resolve this issue within a week’s time. The Board has now issued the order, the copy of which is scanned and placed hereunder, according to which the advance increments would continue to be granted for all those who pass the Departmental Examinations as is indicated in F.No.1-11020/47/2007- Ad-IX dated 09.09.2009. Consequent to the issuance of the said order, the Principal Chief Controller of Accounts, CBDT vide their letter No. PCCA/CBDT/CDN-I/Advance injcrement/2009-10 3518-48 dated 12/03/2010 has directed all Zonal Accounts Officer to act upon the said direction of the Board. The copy of the letter of Principal Chief Controller of Accounts is also placed hereunder.

With greetings,

Yours fraternally,

Sd/

Ashok Salunkhe

View the Order.

Cabinet clears raising gratuity for private employees to Rs. 10 lakh

The Union Cabinet on Thursday decided to raise the ceiling of gratuity payable to employees in the private sector from Rs. 3.5 lakh to Rs. 10 lakh.

The proposal was cleared at the Cabinet meeting presided by Prime Minister Manmohan Singh. With this decision, private sector employees have been brought on a par with the Central government employees who were granted hike by the Sixth Pay commission. The Centre is likely to table a bill amending the gratuity law during the current Budget session of Parliament.

Labour and Employment Minister Mallikarjun Kharge held a number of consultations with stakeholders to arrive at a consensus on the issue. 

Source : The Hindu.

Contribution to CGHS is deductible u/s 80D for the A.Y. 2011-12.

Deduction for Contribution to Central Government Health Scheme The Central Government Health Scheme (CGHS) is a medical facility available to serving the retired government employees. The CGHS facility is similar to the hospitalization and other healthcare facilities covered under insurance policies issued by health insurance companies.


As per the provisions of the Act, an individual can claim deduction for payment of health insurance premium of Rs 15,000 if the insurance is for himself, spouse and dependant children. The individual will get an additional deduction of Rs 15,000 if the contribution is made for his parents. The deduction in case of a senior citizen is Rs 20,000.




The government has now sought to extend the benefit of deduction to contributions made under the CGHS and is welcome change for the retired government employees. This deduction shall be covered within the overall limit of existing deductions under the Act which was not there earlier.
Source: Economic Times

Income Tax Rates for the A.Y. 2011-12 [Financial Year 2010-11]

I In case of individual (other than II and III below) and HUF

	Income Level	Income Tax Rate
i.	Where the total income   does not exceed Rs.1,60,000/-.	NIL
ii.	Where the total income exceeds  Rs.1,60,000/- but does not exceed Rs.5,00,000/-.	10% of amount by which the total income exceeds  Rs. 1,60,000/-
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs. 34,000/- + 20% of the  amount by which the  total income exceeds  Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-.	Rs. 94,000/- + 30% of the  amount by which  the total income exceeds Rs.8,00,000/-.

II. In case of individual being a woman resident in India and below the age of 65 years
at any time during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.1,90,000/-.	NIL
ii.	Where total income exceeds Rs.1,90,000/- but does not exceed Rs.5,00,000/-.	10% of the amount  by which the total income exceeds  Rs.1,90,000/-.
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-.	Rs. 31,000- + 20% of the amount by which  the total income exceeds  Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-	Rs.91,000/- + 30% of  the amount by which  the total income exceeds Rs.8,00,000/-.

III. In case of an individual resident who is of the age of 65 years or more at any time
during the previous year:-

	Income Level	Income Tax Rate
i.	Where the total income does not exceed Rs.2,40,000/-.	NIL
ii.	Where the total income exceeds Rs.2,40,000/- but does not exceed Rs.5,00,000/-	10% of the amount by  which the total income  exceeds Rs.2,40,000/-.
iii.	Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.8,00,000/-	Rs.26,000/- + 20% of the  amount by which the  total income exceeds  Rs.5,00,000/-.
iv.	Where the total income exceeds Rs.8,00,000/-	Rs.86,000/- + 30% of  the amount by which the total income exceeds Rs.8,00,000/-.

Surcharge: The surcharge on Income Tax for Individuals for total income exceeding
Rs.10 lacs stands removed.
Education Cess: 3% of the Income-tax.

No major change in Income Tax. Only change in slabs to benefit taxpayers.

n a relief to individual tax payers, the government today changed the slabs cutting the rate to 10 per cent for income up to Rs 5 lakh, while leaving the threshold limit for tax-free income unchanged at Rs 1.6 lakh. Income between Rs 5 lakh to Rs 8 lakh will attract 20 per cent tax against the current slab of Rs 3 lakh to Rs 5 lakh. Hitherto, the income between Rs 1.6 lakh and Rs 3 lakh was taxed at the rate of 10 per cent.
In case of income over Rs 8 lakh, tax would be levied at a rate of 30 per cent — which was applicable on income above Rs 5 lakh. The tax concessions would put more money in the hands of consumers.
Finance Minister Pranab Mukherjee also extended income tax exemption to investment in infrastructure bonds by up to Rs 20,000, over and above the existing limit of Rs 1 lakh.
In a major relief to the corporate sector, the government proposed to reduce the surcharge on corporate tax to 7.5 per cent from 10 per cent now.
However, it has increased the Minimum Alternate Tax (MAT) from existing 15 per cent to 18 per cent on book profits of those companies which do not pay tax because of various exemptions.

Source : Business Standard