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.