, by indianmilitaryveterans

Dear Sir,

1.      I thank all Armed Forces veterans who sent their PPOs or details of pension to enable me to prove CGDA is wrong in recommending to Min of Def (ESW) that OROP be abolished. The reasons CGDA furnished for abolition of OROP at the cost of repetition are as under:-

(a)   7th CPC  equalized pension of Pre and Post – 2016 pensioners w.e.f. Jan 2016 hence OROP – 2018 is NOT required to be implemented.

(b)   Notional Pay method of Pension fixation has equalized pension of Pre & Post – 2016 pensioners.

(c)   OROP – 2013 has resulted in an anomaly where in the Post – Jul 2014 pensioners who do not come under OROP - 2013 get less pension than OROP pensioners. This anomaly is widespread hence OROP is to be abolished.

(d)   Post – Jul 2014 Lt Cols and Brigs draw less pension compared to OROP - 2013 Lt Cols and Brigs. This information was obtained by Air Mshl SY Savur through RTI Act 2005.

2.      I have requested retirees of all vintages to send me their PPOs or details of pension. Some of the pensioners have acceded to my request and sent me their PPOs or given me details of their pension. The analysis shows all the reasons furnished by CGDA are totally incorrect. My deduction is CGDA is simply misleading Min of Def (ESW) with sole aim to deny OROP - 2018. My analysis of PPOs received show me all ranks of retirees will benefit immensely by Rs 2,000 to 10,000 by OROP – 2018. Therefore, we must prove CGDA as wrong and get OROP – 2018.

3.      I, therefore, need more PPOs with or without notional pay of all ranks. Sometimes the PPOs are illegible. Therefore, all those retired in the period Jan 1986 to Jun 2019 are requested to send me your PPOs especially E-PPOs. I have seen many PPOs are illegible. In addition to sending me your PPO or E-PPO, kindly give me the following information: -

(a)   Service No.

(b)   Rank.

(c)   Name in Full as per PPO.

(d)   Qualifying Service in Years and months.

(e)   Date of Commission or enrollment.

(f)    Date of Retirement.

(g)   Pension sanctioned at the time of retirement.

(h)   Notional pay as given in E-PPO.

(j)    For JCOs / OR only those of Group – Y need to send me their PPOs.

(k)   Your PPO or E-PPO No with suffix.

4.      E-PPOs which show Notional Pay as on Jan 2016 are available in RODRA site of MP 5/6 of AGs Branch, Army HQ for Army Officers. Those Army Officers who are unable to register with RODRA and get E-PPOs are requested to contact me on phone anytime between 1900 and 2200 hrs on all days including Sundays and I shall try and get your E-PPOs.

5.      All those who sent me their PPOs or E-PPOs or given me details of pension need not send them again.

6.      The Min of Def (ESW) convened a Committee under Chairmanship of CGDA on 14 Jun 2019 with most of the members from DAD who will vehemently support abolition of OROP. We have only representatives of three Service HQs to place our views. Unless we are able to give hard facts to these Service HQs, we may lose OROP altogether. Time is running out for us. All Armed Forces veterans retired in the period Jan 1986 to Jun 2019 are requested to send this mail to all groups and WhatsApp Groups for faster dissemination so that I get more PPOs or E-PPOs or details of pension. I need some time to compile data and send them to our three Service representatives through Brig Kartar Singh, President, NCESMO.

7.      If the Committee of CGDA recommends with their weird logic to deny us OROP, then we have no other option but to go right upto Hon’ble Supreme Court to get OROP in the future. By the time we get judgment, 50% of present retirees would have gone to their heavenly abode.

8.      Please scan and send me your PPO or E-PPO and details as sought at para 3 to my e-mail id : Please hurry up as we have not time to lose.       

Warm Regards,
Brig CS Vidyasagar (Rtd)
TSEWA- 140

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Problem isn’t taxing disability pension of Armed forces, but demonising disability

, by indianmilitaryveterans

Dear All,

It is Indeed Rather Ironic and Regretful,that the Army commemorated 2018 as the ‘Year of the Disabled in the Line of Duty’, which include both war disabled and other disabled personnel...And in the Year 2019 , the same Army, Comes out "Hammer and Tongs" Against, its own Veterans both the war disabled and the  other disabled personnel...

I would like to post a link on what Maj Navdeep Singh and Ratna Viswantahan have to say on the subject,recently.


Navdeep Singh is an Advocate at the Punjab & Haryana High Court, and writes on public policy, military and legal issues. Ratna Viswanathan is a former civil servant who has served in the defence ministry. Views are personal.

To quote them-Some Extracts " 

The circular in question from the Central Board of Direct Taxes (CBDT) under the Ministry of Finance, mentions that tax exemption to disability pensioners would not be applicable to disabled personnel who retired on superannuation, but only to those who prematurely boarded out.

While the circular is counter-intuitive and may go against the spirit of established conditions of service for armed forces personnel, we are in no way questioning the sovereign right of the government to levy taxes. The moot point here is not the exemption but an unsigned note circulated from official handles, demonising military disability and branding pensioners as ‘unscrupulous’ and exploiters.

In any event, these disability benefits are either released by the government or on judicial directions, and to call them “unscrupulous” is both disrespectful and imminently imprudent.

Stressors in the military are universally on the rise and this is a reality the military has to deal with. The US military (which follows a six-monthly tour of operational areas for individual soldiers as compared to 24 to 36 months in our case) reported an increase of disability pensioners by 117 per cent from 1990 to date, and currently pays disability benefits to 4.75 million retirees. On the other hand, the number of such beneficiaries in India, with almost an equal strength of standing Army, is less than 0.2 million.

If there is a concern that soldiers and officers disclose their disabilities at a later stage in their career and hide them, this is a reflection of the lack of tolerance in policy. Disclosure leads to being categorised as unfit, and ironically, this leads to less than fit soldiers in the military, which benefits nobody. It is a classic Catch-22 situation – if they disclose disabilities during the earlier part of their career, they are labelled as weak or boarded out; if they do so later when the disability gets accentuated, they are told that they are doing it to claim benefits. The problem is not with the disabilities, the problem is with the policies and the overall attitude.

By vilifying disabled military personnel, we are neither doing them nor ourselves as a country, any favour. It is well known that perception equals reality and if all of us, civil society as well as the establishment, turn around and trounce those who need to be cared for, it is indeed a sad state of affairs. Our disabled personnel need to be supported and treated with dignity and respect.

Please Read the Full Article by clicking on the Link


A Sunder Rajan


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ITR filing: Document checklist for filing Income Tax returns TIMESOFINDIA.COM

, by indianmilitaryveterans

Taxpayers are advised to file their ITR before July 31, 2019 to avoid any late charges/penalties The income tax department has made it mandatory to quote your Aadhaar number from April 1, 2019 while filing ITR

NEW DELHI: The deadline for filing income tax return (ITR) for the financial year 2018-19 is July 31, 2019. Taxpayers are, therefore, advised to file their ITR before July 31 to avoid any late charges/penalties. ITR filing procedure requires a lot of paperwork. Here are a list of documents that you must collect before filing the ITR for FY 2018-19.

1. Form 16
This year, ITR-1 is in sync with the new format of the Form 16. This means that the same details need to be copied from Form 16 to the ITR form. Form 16 consists of two parts - Part A and Part B. Part A comprises details of the tax deducted by your employer during the year, along with details of your PAN (Permanent Account Number). It also contains the PAN as well as TAN (Tax Deduction and Collection Account Number) of your employer. Part B of the form comprises break up details of your gross salary such as exempt allowances, perquisites, etc. However, if TDS has been deducted on payments other than salaries such as interest received from fixed deposits, recurring deposits, etc. over the specified limits as per the current tax laws, your bank (in case of fixed deposits) will issue your Form 16A, providing details of such deduction. In case of sale of property, the buyer will issue you Form 16B showing TDS deducted on the amount paid to you.

2. Form 26AS
Form 26AS contains details about the tax that has been deducted/deposited with the government on taxpayer's behalf by deductors (banks or employers). This is like your passbook which comprises information of all the taxes that have been deposited against your PAN. Form 26AS can be downloaded from the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website. You should ensure that all the taxes deducted in FY 2018-19 are reflecting against your PAN in the form.

3. Aadhaar Card
The income tax department has made it mandatory to quote your Aadhaar number from April 1, 2019, while filing ITR. However, if you have applied for Aadhaar but not received it, then you can provide the enrollment ID in your tax return. Get Breaking News alerts on TOI app Offline mode, real-time notifications, and news briefs OPEN APP 70191394

4. Salary Slips
ITR 2 it requires individuals to specify the nature of salary income such as basic, dearness allowance, house rent allowance, etc. Hence, it is advisable to keep your salary slips handy.

5. Interest certificates issued by banks, post office
This year, the ITR forms require you to disclose the source of interest income earned, like interest earned on savings account, fixed deposits or any other income. Obtain the interest certificates either from the banks, post office branch or any other financial institution to know the total interest earned. Alternatively, your updated account passbook comprising details of interest credited to your account till March 31, 2019 can also be used if interest certificates are not available.

6. Proofs of tax-saving investments made

Tax-saving investments made under section 80C, 80CCC and 80CCD(1) during the FY 2018-19 can help lower your tax liability. The maximum tax-break one can claim under these three sections combined cannot exceed Rs 1.5 lakh in a financial year. Employees' Provident Fund (EPF), Public Provident Fund (PPF), National Pension Scheme (NPS) are some of the commonly availed tax breaks under section 80C.

7. Capital Gains

Report all gains incurred from sale of property, mutual funds, equity shares in your ITR. Long-term capital gain (LTCG) arising from sale of equity shares and equity-oriented mutual funds during FY 2018-19 and held for more than one year will be taxable, if it exceeds Rs 1 lakh. LTCG on equity will be charged at 10 per cent without indexation benefit, from FY 2018-19 onward, if the total exceeds Rs 1 lakh.

8. Details of your bank account
Details of all bank accounts -- bank name, account number, account type, IFSC code -- held by you need to given while filing the ITR. Be sure to enter the correct IFSC code to ensure smooth receipt of refund, if any. 59179600

9. Statement of home loan from bank/NBFC
Home loan statements are needed both as a proof and as a source of information for filing your ITR. It provides details of how much principal and interest has been repaid by you. Details like amount of interest paid on the home loan along with the rental income earned from that house property, if any, should be provided. Such interest paid can lower your tax liability under section 24 as you can claim a deduction up to Rs 2 lakh.

10. Documentary proofs to claim deductions under section 80D to 80U

There are certain expenses on which you can claim deductions under different sections of the I-T Act. Health insurance premium paid for self, spouse, children in FY 2018-19 are eligible for deduction under under section 80D -- up to a maximum of Rs 25,000 a year. However, if you have paid for the health insurance premium of your parents, then you can claim an additional deduction of Rs 25,000 or Rs 50,000 -- depending upon the age of the parents.

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, by indianmilitaryveterans

Indian Military Veterans


On 1 July 2019, IESM delegation met Honourable RM Sh Rajnath Singh. Following members were part of delegation.
1. MAJ Gen Satbir Singh SM Chairman IESM
2. Gp Capt VK Gandhi VSM, Vice Chairman IESM
3. Wg Cdr Vinod Nebb VrC & bar
4. COL RD Sharma
5. Cdr SS Ahuja Gen Sec IESM
6. Hony Lt K Pandey jt SEC IESM
7. Mrs Sudesh Goyat
Meeting started at 1615, Gen Satbir Singh congratulated RM for victory in elections by BJP and his taking charge of a very important ministry. Delegation appreciated the good work done by the Govt in last five years and wished that India will grow in all fields under this Govt.
Gen Satbir then explained that IESM delegation had met him on 6 Sep 2013 at his residence in which he had promised full OROP. Sh Rajnath ji was BJP party President in 2013
Gen Satbir further explained that NDA Govt had approved OROP in 2014 but it had some anomalies. These have not been rectified so for and IESM delegation has come to meet RM with lot of expectation that Sh Rajnath ji as RM would definitely correct these anomalies.
Gp CAPT VK Gandhi then explained that because of fixing basic pensions of past pensioners at mean of pensions of 2013 has resulted in past soldiers getting less pension of around Rs 4500/ less than a soldier retiring in 2019 and a widow is getting around Rs 2500/ less.
Secondly five year equalisation has resulted in many disadvantages to past pensioners. These are
(a) Past pensioners will get less pension for five years.
(b) Past pensioners have not been given full reward of 7 CPC as pension of past pensioners pension as on 2013 has been multiplied with 2.57 to arrive at pension post 7 CPC whereas pension of past pensioners should have been updated to 31 Dec 2015 before multiplying with 2.57. This has resulted in financial loss to all ranks.
(b) Advantage of removal 33 yr rule has not been passed to past pensioners.
(c) Equalisation after five yrs will again result in basic of past pensioners being fixed at mean of 2018. Resulting in loss to them.
(d) Col & Brig tank officers were not given advantage of 2.67 multiplication factor which was given to present pensioners. This was denied on the ground that it will be given in next equalisation that is 2019.
Gp CAPT Gandhi further explained that Past pensioners are not demanding yearly increments as is being propagated by some officials. IESM is only requesting for bridging the gap between past pensioners and present pensioners. Past pensioners will be ever thankful to NDA Govt if their pensions are fixed at par with pensioners who are retiring today.
Gp CAPT Gandhi requested that next date for hearing in HSC for our petition is 6 Aug and hoped that RM will find solutions to the anomalies for OROP.
Gen Satbir volunteered that IESM will be ready to take back 22000 medals deposited with President of India as mark of protest on assurance of RM that our anomalies would be rectified.
Wg Cdr Vinod Nebb explained that he had met Honourable PM Sh Narendra Modi ji in a function and had requested for war memorial for Armed Forces and for declaration of 16 Dec as victory day for INDIA. He thanked the Govt for the magnificent war memorial at India Gate and requested that 16 Dec be declared as victory day in India.
Mrs Sudesh Goyat explained following problems of widows
1. There is a gap of almost six months for widows to start getting their pension on demise of their husband (pensioner). Provisional Pension should start immediately and can be adjusted later but should not take more than three months.
2. Widow of a deceased serving soldier be given a service quarter till completion of service tenure of her husband.
3. DESW and DAV must have women members with authority who can listen to problems of widows and provide swift solutions.
Gp CAPT Gandhi then requested that unnecessary controversy has been created by Govt to discontinue IT exemption for superannuated soldiers on disability pension. RM explained that this is instruction has been issued by MOF and not by MOD. However he will look into it.
Honourable RM heard patiently all the issues and wanted to understand the complications. He assured the delegation that he will do everything to raise the morale of Armed Forces. He assured that he will have replies to all problems and will confirm action taken in our next meeting.
ESM delegation thanked RM and expressed that we have come to him with lot of hope that he would definitely remove anomalies on OROP.
Date for next meeting would be fixed soon.
Gp Capt VK Gandhi VSM
Vice Chairman IESM
1 July 2019
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Explainer on the concept of Disability Pension, Invalidation, and the recent controversy over tax exemption thereupon, viewed historically

, by indianmilitaryveterans

Indian Military Veterans


Though I would be soon writing a detailed opinion piece again on military disabilities and our faulty approach on the same, it becomes important to put out some data and a few historical facts on the recent controversy.

The CBDT Circular: The CBDT has recently issued a circular stating that Income Tax Exemption on disability pension would only be allowed to those disabled personnel who are invalided from military service and not to those who are released on completion of tenure or superannuation. It seems that the term ‘invalided’ has been taken by the CBDT to mean those who are medically boarded out prematurely from military service before their actual retirement, discharge or superannuation. The controversy over this term is however not new. However, it becomes important to clarify this issue in its historical perspective since some of this information would not be available with the Finance Ministry, the CBDT, the Ministry of Defence and even the Defence Services.

History of Disability Pension: Wound, Injury and Disability Pension has remained applicable to military personnel (combatant as well as non-combatants and even ‘private servants’ of officers during old times), in one form or the other since the days of the Crown. As the terminology suggests, it was granted for disabilities suffered during the course of service or illnesses incurred while in service.

The term ‘Invalid’: The term invalid or invalided in military parlance simply referred to a person who became an Invalid (disabled) while in military service. It had no connection with “invaliding ‘out’ prematurely from military service”. A person who was disabled while in military service was termed as an Invalid and when such a person was discharged, whether prematurely or on completion of his terms, he was discharged through a medical board and termed “invalided from” service (and not invalided ‘out’ of service).

Exemption of Income Tax, 1922: Income Tax was exempted in the year 1922 for invalid soldiers and the same terminology as above was used in the applicable military instructions as well as the exemption granted by the Finance Department.

Governor General’s Orders of 1926: Disability Pension attained exalted status in the year 1926, when GM Young, the then Secretary to the Government of India, Army Department, issued a notification in the name of the ‘Governor General in Council” stating therein that no public claim or public debt shall be recovered from the Wound, Injury or Disability Pension of an officer or soldier. It may be noted that this was applicable to disability pension across the board and the term ‘invalided’ was not even pressed into service.

Confusion caused by 1940 Regulations: The confusion on the term ‘invalided’ however raised its ugly head when Pension Regulations, 1940, were published. Here, the term ‘invalided’ was used in provisions related to disability pension giving an impression that the term applied only to those who were prematurely boarded out of the military. Although, the same regulations in the same breath also stated that a person retiring on completion of service limits would be granted benefits ‘as if he had been invalided’, again multiplying the confusion.

Corrective action by Government of India to clear the confusion: The problem created by the original (correct) definition of ‘invalided’ as also signified  by the notification issued by the Secretary, Army Department, and the one that came to be incorrectly understood by military accountants due to the publication of Pension Regulations 1940, however was resolved by the Government of India once and for all in the year 1950 when the Entitlement Rules, 1950, were promulgated and it was specifically underlined and provided that the term ‘invalidation’  for the purposes of disability pension shall mean all military personnel who at the time of release from service are in a medical category lower than the one in which they were recruited. Meaning thereby, all Low Medical Category personnel who were fit at the time of entry into service were conclusively declared to be falling under the category of ‘invalidation’ thereby bringing the definition back to its origins. These Rules of 1950 were officially appended with the existing Pension Regulations by the order of the Central Government. This was further provided in Ministry of Defence Letter No A/22255/AG/PS4 (d)/2725/Pen-C dated 05 November 1969. The same was reiterated later in the form of Rule 4 of Entitlement Rules, 1982. Needless to state, this action was very important and required since there can be multiple categories of disabled personnel within the Army and to perpetuate discrimination amongst them based upon the type of exit from service would amount to hair-splitting. Some such categories are- those who are prematurely boarded out since they are unable to cope up with life in the military after getting disabled, those who opt to continue and serve despite the disability and then retire on regular completion of terms/service limits, those who are discharged since no ‘sheltered appointment’ is available, those who opt out of service because of lack of promotion due to disability, those who are not promoted and hence retired early at the age prescribed for lower ranks etc

Litigation: The discrimination between disability benefits between those who are prematurely medically boarded out and those who opt to continue to serve the nation despite the disability also became a subject of many a litigation. Some such examples are Civil Writ 2967/1989 Mahavir Singh Narwal Vs Union of India as affirmed by the Supreme Court in SLP 24171/2004 disposed on 04 Jan 2008 wherein the Delhi High Court explained and interpretation the term ‘invalidation’ and the decision of the Supreme Court in Civil Appeal 418/2012 in Union of India Vs Ram Avtar and of course in Civil Appeal 5591/2006 KJS Buttar Vs Union of India.

Going back to the confusion of 1940: The term “invalidation” is hence adequately defined by the Rules of the Government and interpreted by Constitutional Courts. The CBDT, it seems, has however restrictively interpreted the term as per its confused definition as it existed between 1940 (When Pension Regulations, 1940 were promulgated) and 1950 (When Entitlement Rules, 1950 were put into force to clarify the term ‘invalidation’).

Demonisation of military disabilities: What we also see today is unnecessary demonisation of military disabilities. The incidence of aggravation of disabilities in military personnel is much higher than civilian employees simply due to the reason of frequent movements and unsettled life (which ironically continues even in peace family stations due to an extreme shortage of family accommodation), regimented lifestyle and barrack life away from family, inability to cater to domestic commitments, inability to fulfil sexual desires, curtailment of freedoms, applicability of a disciplinary code 24X7, exposure to stressful situations including operational areas etc. Disability hence is not a sign of weakness and even the bravest of the brave battle-hardened soldier can fall prey to it. As far as the rumour of Generals cornering disability claims is concerned, the incidence of a disability incurred in-service is bound to be higher in senior ranks simply because they retire in their late 50s (upto the age of 60) while soldiers start retiring in their 30s. The allegation of ‘fake’ or ‘feigned’ disabilities (though not the reason for the CBDT Circular) is also laughable since the incidence of disability is first endorsed by an Initial Medical Board, then by re-categorization medical boards and then finally by the Release Medical Board at the time of retirement. There are hence multiple doctors, all different and at different locations in the country, who endorse the existence of a medical condition and its percentage. So far as the thought as to why aggravated disabilities such as heart disease, hypertension, depression, neurosis, psychosis etc are eligible for disability benefits is concerned, the same is not some kind of a favour to our soldiers since it is provided in pensionary rules for military as well as other uniformed personnel that such disabilities are affected by stress and strain of service and eligible for disability benefits.

Rules for disability benefits in India

Disabilities in other democracies, their incidence and tax status: In this context, it would be instructive to examine military disabilities in other nations. An apt example would be the US which also has an operationally committed military and the pension rules are pretty much similar to ours and numerically the active duty personnel are roughly the same. As per the official data maintained by the Government, the incidence of disability in the military has gone up in the US by 117% from 1990 to 2018. Also, a total of 4.75 million veterans in the US are in receipt of disability benefits (See official data here). In our country, the number of disability pensioners is estimated to be less than 0.2 million.  The disability pension and compensation in the US isexempted from Tax as provided by Publication 525 of the Internal Revenue Service. Should we be concerned about the rise of incidence of disability in our soldiers and their deteriorating health profile and provide them with comfort, care and succour, or should we denigrate those who are suffering from illnesses and rather count pennies? More than others, I ask this from the serving military fraternity.

Veterans with Disability Benefits in the US

Tax Exemption to disabled veterans in the US

The above is meant to clarify the technical and factual details on the subject since most of the debate on the matter was following an emotional track. Emotions and high sounding words like ‘sacrifice’ etc etc aside, the matter has to be dealt under the right technical perspective and I am personally sanguine that the political executive would be able to address this issue if provided the correct inputs and data.  


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AICPIN of May 2019 and impact on central D.A., wef 01.07.2019

, by indianmilitaryveterans

Indian Military Veterans

AICPIN of May 2019 and impact on central D.A., wef 01.07.2019

The consumer price index for May 2019 has been increased by 2 points and reached at 314.
We know that Dearness Allowance is calculated on last 12 months' average of AICPIN No.
We are yet to get the number of June 2019 to calculate it finally. If the index remains at this point (314) for June 2019, D.A. will be 5% from 1st July 2019.
If the index slips even one point in the next month, increase in D.A. will come down to 4%.
But it may be assured that in any case. D.A. will not come down below 4%.
So we have to wait till 31st July 2019 (when the AICPIN data of June 2019 will be published by the labour bureau) to know the exact increase in D.A. ( 4% or 5%) with effect from July 2019
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, by indianmilitaryveterans

Indian Military Veterans


Of late we understand that many Post-2016 retirees  are getting /
 sanctioned with less pension than  Pre-2016 retirees.
For Example we give 2  cases  - which has come to our knowledge;

1.      One Subedar-   Group- X   QS: 28 yrs  
2.      Date of Discharge:  31-3-2016
e-PPO No:  185201600204-0104
Basic pension is fixed as  28900-………………….Post 2016

Now , the same   Sub-   Gp-X  QS: 28 yrs.    Of Pre-2016 retiree
Basic pension  as per OROP- 13215  Cir 555-Table-7
 Revised as per 7th CPC-  13215 X 2.57=  33963…..Pre-2016
See the difference   :  33963 -  28900 =5063.

Case No:2:
     One  Havildar- ACP-1    ( Hony.Nb.Sub)   Group- Y     QS: 26 yrs
                                              Date of Discharge:  31-3-2016
      e.PPO No:  180201600485- 0105
Basic pension sanctioned  : 23750…………….Post -2016

For the same Rank   -  Hav- ACP- 1    ( Hony.Nb.Sub)  of Pre-2016
Basic pension  as per Cir 430=   10029
Then as per OROP-  10405
As per 7th CPC=  10405 X 2.57=26741……….Pre-2016
Watch the difference……….26741- 23750= 2991

 Like wise there are so many veterans are visiting our office  for
As there is no chart available like Cir 430 /  555, we could not
Arrive the new rate as per 7th CPC.
We also note that still many post 2016 pensioners/ family pensioners 
are getting  Basic pension + 125% of DA only.

We have sought  Clarification from their Record offices and CDA,

We request our ESM organisations to help such affected veteran
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7th Pay Commission – Latest News

, by indianmilitaryveterans

Indian Military Veterans
Latest Update on 7th Pay Commission!
1. In a move that will benefit over 1.1 crore central government employees and pensioners, the Centre has hiked the Dearness Allowance by 3 per cent to 12 per cent. The previous DA hike was in August last year when the government had increased it to 9 per cent from 7 per cent.
2. Since the hike comes into effect retrospectively from January 1, the employees will also get arrear for the month of January. Now, the central government employees and pensioner will get Dearness Allowances at the rate of 12 per cent.
3. In a decision that will benefit thousands of academicians, Bihar CM Nitish Kumar has announced to give 7th pay commission salaries to madrassa teachers of the state.
4. The Ministry of Railways has also decided to constitute a Committee for the inclusion of fresh categories within the ambit of Risk and Hardship Allowance. The main function of the committee will be ‘To holistically examine the inclusion of fresh categories within the ambit of Risk and Hardship Allowance introduced by 7th CPC’.
Do you have any questions about tax or
finance you need help with?
5. To bring the uniformity in the retirement age, the ministry will be increasing the retirement age for the constable to commandant (senior superintendent of police) to 60 years from the present 57 years.
The Pay Commission was set up to suggest changes in the salary structure of central government employees. The seventh pay commission headed by AK Mathur was to be implemented in January of 2016. The 7th pay commission report suggested a 23.55% hikein the pay and allowances across all sectors. Government employees eagerly await the implementation of the 7th pay commission to witness the respective pay hikes and benefits in store for them.

1. Updates on 7th Pay Commission

The 7th Pay Commission - Over 23 Lakh Pensioners to Get Benefit of up to Rs. 18,000
By recommendations from the seventh pay commission, the government has revised the pension limits for both teaching and non-teaching staff of central and state universities. This decision by the government will benefit a current strength of 25,000 pensioners of central universities, deemed universities and University Grants Commission (UGC) -maintained universities. An additional eight lakh teaching and 15 lakh non-teaching staff retired from state public and affiliated universities – that wish to or have adopted the pay scales prescribed for Central Universities will also benefit from this decision.
How House Rent Allowance (HRA) Structure has Impacted Inflation - 7th Pay Commission
According to a research paper by RBI’s department on monetary policy. The increase in-house rental allowance for central government employees recommended by under the 7th central pay commission has impacted the Consumer Price Index (CPI) inflation by nearly 35 basis points at its peak. Consumer Price Index (CPI) is a method that studies the weighted average of prices of a range of consumer goods and services, such as food, transportation, medical care and many more. It is calculated by taking into account price variations for each item in the predetermined range of goods and taking an average of them.
New Benefit for Railway Employees Under the 7th Pay Commission
Leave Travel Concession (LTC) for the first time can be now availed by railway employees.  Government employees and their spouses working in the Indian Railways are not entitled to LTC as the facility of “Free Pass” is available to them.
Will Central Government Employees to Receive Revised Allowances from July,2018? - 7th Pay Commission
Central government employees are now benefitted by a 25 per cent increase in basic pay but with a slightly lowered HRA. The Ashok Lavasa Committee had reviewed the recommendations made by the 7th Pay Commission, specifically pertaining to allowances and submitted its findings to the finance minister.
Central Government Staff May Get Revised Allowance - 7th Pay Commission
Starting July 2018, the government will start disbursing revised allowances in accordance with the Seventh Pay Commission to over 4.9 million central government employees. The revised allowance will include HRA, accidental allowance, outstation detention allowance, trip allowance, and ghat allowance. The Lavasa committee was asked to examine the 7th Pay Commission’s recommendation to abolish 53 allowances out of the 196 and absorb another 36 allowances into existing ones. The Lavasa committee is awaiting comments from the ministries of defence, railways and posts on 14 of these allowances.  

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2. Recommendations of the 7th Pay Commission:

  • Minimum pay for government employees: The minimum pay of a new government recruit at an entry level is now Rs. 18,000 per month. As for a newly recruited Class I Officer, the minimum salary now stands at Rs.56,100 per month.
  • Maximum pay for government employees: The 7th Pay Commission recommends to increase the maximum pay for government employees to Rs.2.5 lakhs for the apex scale of employees such as Cabinet Secretary and others at the same scale.
  • Pay Matrix: Once the 7th Pay Commission is implemented, the salary of a  government employee will not be decided by the previous system of Grade Pay but by the level in the new Pay Matrix.
  • New Pay Structure: The New Pay Structure recommended by the 7th Pay Commission has included all existing levels in the pay matrix and has not introduced any new levels or hierarchy.

3. 7th Pay Commission Summary

  1. The 7th pay commission will establish a new pay matrix and pay scale that will ensure pensioners and government employees get a 2.57% hike on their existing incomes and a central government employee will enjoy a salary that is double than the previous one.
  2. The new basic salary parameter for entry-level government employees will hereafter begin from Rs.18,000 from the previous amount which began at Rs.7,000. The apex positions in the government such as a cabinet secretary will bear a pay scale of Rs.2.5 lakh as introduced in the 2018 Budget. In addition, House Rent Allowance (HRA) would rise up to 27%, 18%, and 9% respectively, if a 50% dearness allowance is implemented.
  3. The 7th Pay Commission’s new “Fitment factor” will stand at a 3% annual increment for all employees.
  4. The Pay Matrix is a Central Government employee’s status in the particular office and this matrix will henceforth be used instead of the earlier grade pay standard.
  5. As per the new recommendations of the 7th Pay Commission, the maximum wages and remuneration have been raised for Government employees. The Apex scale employees will receive an increased salary amount of Rs.2.25 lakh per month and for the officers in the Cabinet, the maximum remuneration is Rs.2.5 lakh.
  6. The pay matrices for employees/ personnel of the defence and other forces begin at a minimum payable wage of Rs. 21,700 and a maximum of Rs. 2,50,000. This structure has been determined and established by the finance minister.
  7. Shifts and changes in the pay scales and matrices of the government salary structure will impact the financial condition of the country. The whole cost of this entire exercise will be handled by the Indian Government. The Union Budget 2018 set aside an amount of Rs.73,650 crore for this very purpose and along with this, the Railway sector will bear a cost of Rs.29,300 crore.

4. How to Calculate 7th Pay Commission

To calculate the salary in the new structure, you can use one of many  7th Pay Commission calculators which suggests that one can compute their total salary/pay package in the following manner:Pay commissionThe 7th Pay Commission changes will come into effect on August 2018. This will mark the era of the 7th Pay Commission coming into effect. All revised salaries, remunerations, and allowances will take effect from the previous months (July) salaries that will be paid by August. There is still no clarity on the aspect of employees arrears that will be discharged at a single go or if they will come as installments.
Considering to manage a core of central government employees. The government since 2016 had hiked the salaries of these employees. Taking into consideration the growth rate of inflation, the employees believed that the salary hike was not substantial enough to meet high living costs and in turn requested the government to revise the salary structure under the 7th pay commission. Government employees believe that help is on the way and soon.
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Disabled and Superannuated Soldiers affected by Circular of Min of Fin dated 24 Jun 2019 on Exemption of Income Tax

, by indianmilitaryveterans

Indian Military Veterans

Dear Sir,
1.      I see many mails and WhatsApp chats from veterans about recent circular of Min of Fin, Dept of Revenue, CBDT dated 24 Jun 2019. I can appreciate the anguish of the disabled soldiers super annuated who will henceforth not be eligible to get Income Tax exemption. Many have blamed Lt Gen Chopra, former DGAFMS whose DO letter of 2014 to Defence Secretary might have led to the abolition of income tax exemption to the disabled soldiers who are superannuated. I have also seen a number of TV debates on this issue.
2.      The Pension Regulations 1961 and 2008 are very clear about the term Invalided. Even those who superannuate with disability attributed or aggravated by military service are deemed to have been invalided. Therefore, our apprehension that such super annuated soldiers will not get IT exemption may be misplaced.
3.      Disabled soldiers lose out on important courses and also they do not get promoted as they are LMC. They do not get any benefit while in service due to their disability. The only benefit they get is once they retire they get disability element and exemption of IT. We know the stress levels of working in Armed Forces in senior ranks is very high. There are many instances when senior officers have died prematurely due to such unbearable stress of achieving the targets set for them. Therefore, to say disability affects only junior or middle ranked personnel is not borne by facts.
4.      I am not a disabled soldier. My income tax for the year 2018 – 19 is Rs 1,20,000 like most of you. Yet, I strongly advocate that disabled soldiers need to be compensated in their retired life.
5.      I have also seen different take from Col AK Ram Singh on disability and on the DO letter of former DGAFMS. I congratulate him for taking a different stand. I read the ibid letter of former DGAFMS. He simply says a fact which we are loathe to accept. He mentioned that recently the trend of Maj Gens and Lt Gens just to get IT exemption on the verge of their retirement get themselves declared as disabled by coercing the medical officers who work under them.
6.      Let me put across few cases. There is no doubt that the trend to get disability is not restricted to Maj Gens and Lt Gens but has also gone to former Service Chiefs too. This former COAS is from Regt of Artillery. He goes on official tour to USA in January where he witnesses the firing practice of medium guns. He comes back and reports that he became deaf due to the sound of American medium guns and gets himself disability element three months before his retirement.. Needless to say he is also a beneficiary of Adharsh scam of houses in Mumbai meant for war widows.
7.      You also know many officers hide their disabilities to get promotion. A former Army Cdr knew that he is going to be next COAS as he is the senior most. At that time the appointment of COAS was based on seniority based on the date one has become an Army Cdr. He was getting treated quietly for his heart ailment so that he becomes COAS in due course. After assuming the coveted appointment of COAS within six months in Army House, Delhi, he dies in IAF Golf course on Race course road, New Delhi.
8.      A Bengal Sapper was having heart problem but got selected for staff course in DSSC, Wellington sometime in 1982 or 83. He was quietly getting himself treated for heart ailment so that he goes to Wellington. The lure of Instructor grading is so high that he was playing squash with an instructor in DSSC. On one evening he collapsed in the Squash Court and was evacuated to MH, Wellington where he was declared as Brought Dead. His wife was in the family way with their second child. The desire to get instructor grading in DSSC course cost him his life. He was just 34 years old.
9.      I know the case of an ASC Officer in 502 ASC Bn when I was serving in my unit in 2 Mtn Div in 1983 - 85. He was having heart problem. But his No 4 Selection Board results came and he was declared as fit to become Lt Col. But he was already LMC. He went to MH Jorhat, pleaded with medical specialist to make him SHAPE – 1. The medical specialist felt what will he lose if he clears him. His papers were cleared and he was declared SHAPE – 1. He was happy now that he is SHAPE -1, he will become a Lt Col soon and command an ASC Bn. When the driver came to pick him up in the morning next day in Sub Area Officers’ Mess, he found the officer was lying on the floor in the bathroom. When evacuated to MH Jorhat, he was declared brought dead. He was SHAPE-1 for just less than 24 hrs. The lure of promotion cost his life. He was not even 42 years old when he died.
10.    You may know many cases than what I listed here. Therefore, the accusation that senior officers of the rank of Maj Gens and Lt Gens become disabled just before retirement as made out by former DGAFMS is not false in my view.
11.    I also know many officers who decide to forgo their promotions when they are disabled. They believe it is better to be a living Major than a dead Maj Gen.
12.    But the judgment of Hon’ble Supreme Court of 2013 is very clear on this subject. If you are found fit at the time of enrolment or commissioning and then become disabled in the service it is to be treated as disability attributed or aggravated by military service. Therefore, the courts of law will throw out the circular of Min of Fin dated 24 Jun 2019 through the nearest window. Therefore, disabled and super annuated soldiers need not worry on this account.
Warm Regards,
Brig CS Vidyasagar (Rtd
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, by indianmilitaryveterans

Indian Military Veterans

Dated 28.06.2019 :  Income Tax Department has  now introduced  a facility  in their e-filing site     wherein  ITR1 / ITR4  forms are pre-filled by them based on the   information available with them through 26AS .   This facility will be a boon for   a salaried person / pensioner earning  interest on deposits also. The following details will be pre-filled by the Income Tax Department . 

1.  PAN Number , Name and date of Birth 
2. Address . AAdhaar number , Mobile Number and e-mail address 
3. Tax Paid , TDS and TCS  Details  ( From FORM 26AS ) 
4. Salary Income , Allowance and Deductions ( From Form 24Q ) 
5. House Property Details  ( From ITR of Previous Year ) 
6.  Interest Income &  TDS (  From 26AS ) 
7.  Tax relief under Sec 89  
8. Bank account Details  ( From  ITR of previous year  ) 
9 . verification Details  .   

However    IT  Department advises  you to  verify the pre-filled data carefully and add any other taxable income which is not pre-filled.  . Further  Last date for filing of TDS statement and issue of TDS certificate by Deductor is 30th June, 2019 and 10th July, 2019 respectively. In case the TDS data  or any other data is yet to be submitted by the Deductor , taxpayers are expected to fill these details themselves.   

How to Get Pre-filled  Forms ? 

1. Login in  to the website  
2. Go to   Dropdown Meny of "' MY ACCOUNT "
3. Chose " Download Pre-filled XML " 
4. Select Assessment year 2019-20 and   Form no ITR1 / ITR4  
5. Once you press continue button ,  you will get DOWNLOAD XML . 


Dated 26.06.2019 :  Income Tax Department has since revised IT Return forms ITR 2 , ITR 3 and ITR 5 for FY 2018-19 in order to accommodate entries arising out of Long term Capital gains (LTCG) .

In case of long term capital gains (LTCG) arising on sale of equity shares or unit of equity oriented fund or unit of business trust on which STT is paid, separate computation of capital gains should be made for each scrip or units of mutual fund sold during the year and aggregated amount should be provided in the returns  . Hence  item No. B4 (ITR 2)/B5( ITR 3)/  B5(ITR 5) (in case of residents) or item No. B7 (ITR 2)/B8(ITR3) /. B8(ITR5)   (in case of non-residents)  have been introduced by IT Department . The Utility  available  in IT   Department's website  has been updated and relevant validation rules are relaxed .

Employer  is obliged to issue to its employees Form 16  (Certificate for tax deducted at source for salary) before  15th June    of the assessment year   so that  employee can file his Income tax return before the due date For FY 2018-19 ( AY 2019-20  )  . DUE  DATE  TO SUBMIT IT RETURN IS 31.07.2019 .     (Employers  are since given extended time up to 10th, July 2019  for issuing revised Form 16  by the IT  Department) 

Please obtain following information from the employer if you have  perquisites exempted from Income Tax : 
1. Death–cum-retirement gratuity   received  
2. Commuted value of pension  received  
3. Earned leave encashment on  retirement  
4. Amount received/receivable on  voluntary retirement or termination of service
5. Leave Travel concession/assistance  
6. Tax paid by employer on non-monetary perquisite  
7.House rent allowance . 
8. Prescribed allowances or   benefits specifically granted to meet expenses
incurred in performance of duties of office or employment  . 
9. Prescribed allowances or   benefits granted to meet personal expenses in
performance of duties of office or employment  or to compensate for increased cost of living.  
10 .Allowances or perquisites paid or  allowed as such outside India by the
Government to a citizen of India for rendering  services outside India  .
11. Remuneration received as an  official, by whatever name called, of an
Embassy, High Commission etc 
12 .  Any other allowance received 

Banks / Financial institutions   are  obliged to issue to  their deposit holders  employees Form 16A.

For detailed illustrations issued by IT Department:
Every individual or Hindu Undivided Family ( HUF )  is obliged to submit  Income Tax returns if they meet following criterion  . 

1. Income exceeding Rs 2,50,000  in case of individuals below 60 years 
2. Income exceeding Rs 3,00,000  in case of individuals  above 60 years and below 80 years 
3. Income exceeding Rs 5,00,000  in case of individuals above 80 years  

Note : Income means  total income  in the financial year 2018-19 before allowing deductions under chapter VI -A of Income tax act . 

Submission of IT Return is not complete without  verifying the same .  For various ways of verification.
ITR 1  , ITR 2 , ITR 3  and ITR 4  can be  e-filed on Incometaxefiling site .   

As per amended  section 270A  of Income Tax act ,  mis-reporting of income may be fined 50  % of tax upto 200%
                                                                                                                                                                                                                                                                                Due  Date for filing IT Returns for individuals for FY 2018-19 is   31st , July 2019 .

a. You require following documents before  starting to fill up IT Returns  . As some time is required to collect from the relevant issuers  ,  you may contact them  at the earliest  if you have not obtained so far . If you don't have AADHAR , APPLY NOW AND OBTAIN ENROLLMENT ID OF AADHAR APPLICATION 

2.Salary certificate / Form 16 issued by employer  in the new format ,
 3.Interest certificates ,
4. Life Insurance premium certificates , health Insurance premium  paid certificates , 
5. Bank account statements  for housing loans and savings bank accounts etc 
6. TDS Certificates  from employers / Deposit holders 
7. Form 26 AS   which shows the tax  amount already credited to your account
8. Capital gain certificates / statements from your stock brokers  
9. Copy of last year return submitted  .
10. Your bank name , account number  and IFSC code of the bank branch 
11 . Any other relevant documents if you have any other income 

b. Link your Aadhar number to  income tax e-filing website 

c. Verify  Taxes paid  already   in Form 26AS    and confirm that all tax deducted     for you  by  your employer /  bank as given   in   Form 16 or Salary receipt   is credited to your account with income tax department .   You can view   26 AS   ( Tax  Credit )   in the income tax department's website   by logging in  . 

​d.  Tax returns are made simple now . If you are eligible to file IT Returns  ITR 1  (SAHAJ ) , you can now prepare and submit on line itself on the income tax e-filing website  You may yourself file on line or use or utilise the service of  Tax Return  Preparers ( TRPS )  authorised by Income  Tax Department ., if you are  not  confident of using the on -line services .   Otherwise you may use your chartered accounts for the job . 

The benefits of filing  tax returns early is 
1. You will have sufficient time to collect relevant documents ,  prepare , cross check and then submit . You can reduce errors . 
2. As the income tax servers would be relatively free , last minute slowdown of computers   due to heavy rush for submissions . 
3. Processing of your returns by IT department would be faster and you will get refunds faster . 
4. You will   be avoiding penalties , interest etc levied on belated submission .

So take steps now to  have advantages of filing IT Returns early.




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