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No Income Tax Deduction from Disability Pension

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Indian Military Veterans
No Income Tax Deduction from Disability Pension
It has been reported in the press that some banks were deducting tax from pension of disabled ex-servicemen in violation of Government instructions.

RBI was requested to have the matter investigated and remedial action taken. After examination, RBI discovered that in one specific instance, due to oversight, the pensioner’s disability pension was wrongly taken into account while calculating Income Tax.

RBI has issued instructions to all agency banks to strictly adhere to the provisions of para 88.3 of Defence Pension Payment Instructions 2005, regarding exemption of Income Tax of the disability pension of the pensioners of Armed Forces. Banks have been advised to issue suitable instructions to all their pension disbursing branches that Income Tax should not be deducted from the disability pension paid to the pensioners of the Armed Forces.

BSC/DN-520
(Release ID :34174)

Please click here for more details

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Payment of arrears of Pension for the period 01.01.2006 to 23.09.2012-BPS writes to MOS (PP)

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Indian Military Veterans

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7th CPC invitation to Bharat Pensioners Samaj

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Indian Military Veterans

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Implement CAT orders 01.11.2011 reg modified parity. Com. Shiva Gopapal Mishra Genl. Secy. NC JCM writes to MOS (P) supporting BPS stand

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Indian Military Veterans


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Income Tax Exemption Limit Raised by Rs.50,000 – Does it meet the Central Government employees’ expectations?

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Indian Military Veterans
Income Tax Exemption Limit Raised by Rs.50,000 – Does it meet the Central Government employees’ expectations?

Finance Minister Arun Jaitley announced that the Income Tax exemption limit for individual taxpayers, below the age of 60 years has been raised from Rs. 2 lakhs to Rs. 2.5 lakhs. 

The General Budget 2014-15 presented by the Union Finance Minister Shri Arun Jaitley on 10th this month, most Central Government employees were hoping that the Income Tax exemption limit for salaried pupil would be raised to atleast Rs 3 lakhs this time. But the Finance Minister delivered a shock and disappointment to everyone with an increase of a mere Rs. 50,000.

Prior to the election, based on the speeches and statements issued by the now Finance Minister, there were talks that the non-taxable income limits would be raised to Rs. 5 lakhs. 

Central Government employees, who were constantly disappointed in the past few years, were not ready to believe it. But they reluctantly hoped that the amount would be raised by Rs. 1 lakh. 

The fact that it was increased by only Rs. 50,000 had disappointed many. It could have been much worse had there not been any increase at all or if it was a consolatory hike of Rs. 10,000. 

The Minister explained that he couldn’t offer anything more for the time being due to acute cash crunch for the newly elected Government. But he assured everybody that it is just the beginning, and that there will be plenty of positive changes in the future. Since this is the first budget presented by the new Government and since he has already granted exemption of Rs. 50,000, his promise is very believable.  

It is worth mentioning that tax exemption under Section 80C is going to be increased from Rs. 1 lakh to Rs. 1.5 lakhs. It is a painful fact that tax exemptions for savings had not been increased for a number of years. There were rumours that the Government is planning to hike the exemption by Rs. 1 lakh, but the Finance Minister has offered much-needed consolation by increasing it by Rs. 50,000. 

Although the change is not a huge one for thousands of Government employees who have been waiting for tax relief for a number of years, they are bound to feel mildly reassured. 

The table given below shows the non taxable salary slab for the past eight years. 

YEARMINIMUM INCOME CEILING
2009-101,60,000
2010-111,60,000
2011-121,80,000
2012-132,00,000
2013-142,00,000
2014-152,50,000

Source : CGEN.in

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Dearness Allowance rises to 107% from July 1, 2014 onwards..!

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Indian Military Veterans
Additional DA from July 2014 : Dearness Allowance rises to 107% from July 1, 2014 onwards..!

The Dearness Allowance for Central Government employees and pensioners may increase to 107% from July 1, 2014 onwards.

Following the increase in the CPI(I-W) BY 2001 = 100 price index, the twice-every-year Dearness Allowance that is issued to the Central Government employees, the second additional Dearness allowance may possible to  increase to 107% from 01.07.2014 onwards.

Last week, the Labour Bureau released the Consumer Price Index for Industrial Workers Base Year 2001=100 for the month of May 2014. The number now stands at 244, following a 2-point increase from the previous month, reflecting a 0.83% hike in prices. Another reason for the increase in number is the 1.65% consolidated rise in price of food groups.  Rice, Coconut Oil, Fish Fresh, Poultry, Milk, Onion, Vegetables & Fruits, Sugar, Cigarette, Electricity Charges, etc. are responsible for the increase in index. However, this increase was restricted to some extent by Petrol putting downward pressure on the index.

The year-on-year inflation measured by monthly CPI-IW stood at 7.02 per cent for May, 2014 as compared to 7.08 per cent for the previous month and 10.68 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 7.66 per cent against 7.76 per cent of the previous month and 13.24 per cent during the corresponding month of the previous year.

The below table is clearly indicated the movement of AICPIN with increasing additional Dearness allowance month wise…

AICPIN for the month of May 2014 begged at 244

Month/
Year
AICPIN (IW)
Base Year
2001=100
Increased/
Decreased
Points in
AICPIN
Total Points
Increased
Total of
12 Months
12 Months
Average
% Increase
over 115.763
Approximate
DA
Total DA %DA% Increase
Month wise 
Jan-14237-22802233.5117.74101.711011
Feb-1423812817234.75118.99102.791022
Mar-142391
2832236120.24103.861033
Apr-14242332848237.33121.57105.021055
May-14244552864238.67122.91106.171066

Read also our exclusive articles : Monthly wise report on additional Dearness Allowance from July 2014...

EXPECTED DA JUL 2014 - JANUARY STATUS
EXPECTED DA JUL 2014 - FEBRUARY STATUS
EXPECTED DA JUL 2014 - MARCH STATUS
EXPECTED DA JUL 2014 - APRIL STATUS
EXPECTED DA JUL 2014 - MAY STATUS

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CSD PRICE LIST

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