Friday, 11 March 2016

Equal Pay for Equal Work

7th CPC Report “Equal Pay for Equal Work – Pay Matrix addresses these issues as well” One recurrent theme in the representations of various associations relates to ‘equity’ or ‘Equal Pay for Equal Work.’

Ideally, the remuneration package should establish horizontal equity: employees should feel that their pay is comparable with the remuneration structure of similarly placed positions outside their organization.
The employees should also feel that the pay structure shows linear progression pattern and thus the notion of vertical equity is also maintained.
The Pay Matrix addresses these issues as well. The Commission has designed the pay structure in such a manner that the pay progression recognises the importance of vertical relativities and also assigns a reasonable basis to such progression.

This has been done by assigning a uniform fitment factor of 2.57. The Commission feels that there is strong need to create a culture of performance in government – from establishing standards of performance, to measuring, and promoting people based on performance.

To emphasize on the culture of performance, the Commission has recommended that all the non-performers in the system should be phased out after 20 years.

The Commission has recommended that Performance Related Pay should be introduced in the government and that all Bonus payments should necessarily be linked with productivity.
The various Central Services have contended that this edge given to the IAS and the IFS is iniquitous and violates the principle of ‘equal pay for equal work.’ They have pointed out that the Civil Services Examination (CSE) conducted by the UPSC is an examination that is common for recruitment to around 18 Group `A’ Services and that the choice of Service exercised by the candidates is based upon very many factors. It is not necessary that only the top-most go to the IAS. It has also been pointed out that officers of most of the Services are, in their early years, posted to small places and are subjected to many transfers.

Therefore, the grant of the edge is seen as unfair. Analysis and Recommendations : This Commission has studied the entire issue and deliberated in detail on the issue in the Chapter 7.2. The Chairman has sought not only to retain the two increment edge within the proposed pay matrix for the IAS and Indian Foreign Service but also extended it to the Indian Police Service and the Indian Forest Service. Shri Vivek Rae, Member, Seventh CPC is not in agreement with extension of the edge in pay to the IPS and IFoS. Dr.Rathin Roy, Member, Seventh CPC is not in agreement with the concept of an edge in pay.

Ex-Servicemen Contributory Health Scheme

  The Comptroller and Auditor General of India (CAG), in its report on implementation of Ex Servicemen Contributory Health Scheme (ECHS) during the year ending March, 2015 has made observations mainly relating to administration of the scheme by Central Organisation of Ex-Servicemen Contributory Health Scheme (CO, ECHS), functioning of the empanelled hospitals, budgetary and manpower matters, bringing out issues such as overcharging, anomalies in submission of bills and non-adherence to Memorandum of Agreement by empanelled hospitals, short supply of medicines in Polyclinics, non-disposal of expired medicines, diversion of ECHS funds for service personnel hospitals and shortage of manpower in ECHS Polyclinics etc.

Corrective steps taken / being taken to overcome the shortcomings / deficiencies include outsourcing of pharmacy, authorization of local chemists, enhancement of financial power of Officer in-charge of ECHS polyclinic to obviate the shortage of medicines, processing of medical bills of all 28 Regional Centres on-line as per rules, appropriate use of ECHS funds by the service hospitals, adherence to the terms and conditions of Memorandum of Agreement by the empanelled hospitals, recruitment of the manpower in ECHS polyclinics, de-duplication of ECHS smart cards etc. This information was given by Minister of State for Defence Rao Inderjit Singh in a written reply to Shri MD Badaruddoza Khan and others in Lok Sabha today.

Source: PIB News

Shortage of Officers in Army

In Army (excluding Army Medical Corps, Army Dental Corps and Military Nursing Service), as on 01.07.2015, against the authorized strength of 49,631 officers, held strength of officers was 40,525 with a shortage of 9,106 officers. Age limit for entry into various entry schemes in Army is as under: S. No. Entry scheme Age limit (i) National Defence Academy 16½ to 19½ years (ii) Combined Defence Services 19 to 22 years (iii) Technical Graduate Course Entry 20 to 27 years (iv) National Cadet Corps Special Entry [Short Service Commission (Non Technical)] 19 to 25 years (v) University Entry Scheme 18 to 24 years (pre-final year) 19 to 25 years (final year) (vi) Short Service Commission (Non Technical) 19 to 25 years (vii) Short Service Commission (Technical) 20 to 27 years (viii) 10 + 2 (Technical Entry Scheme) 16½ to 19½ years (ix) Army Cadet College (from Other Ranks) 20 to 27 years (x) Special Commissioned Officers (from Other Ranks). 28 to 35 year Presently, there is no proposal to lower the age limit for entry of officers in Indian Army. This information was given by Defence Minister Shri Manohar Parrikar in a written reply to Shri Kirti Azad in Lok Sabha today. Source: PIB News


Indian Military Veterans

Churn It Up: How to Make Buttermilk at Home

Churn It Up: How to Make Buttermilk at HomeIn India, what we call buttermilk isn't exactly what it stands for. However, in common parlance, the delicious curd-based drink called chaas, has come to be known as buttermilk for lack of a better term. 
Traditionally made by churning out the butter from milk, or even curd (think of Lord Krishna's love for churned butter), one of India's favourite coolers has undergone plenty of changes over the years. What used to be made by diluting curd with water, is today made in various different ways across the country.
Chaas is brilliant as a digestive, and the addition of spices such as cumin only enhance its benefits. Commonly had during the warmer seasons, the desi buttermilk helps to balance one's body temperature, and is a healthy option if one is on a diet (mostly because sugar does not feature here). It brings with it all the benefits of curd, and watering it down helps to reduce the fat content.
The recipe for this tall drink varies from state to state. It's mostly called chaas in North India, mor in Tamil Nadu, mooru in Kerala, and majige in Kannada and Telugu. In West Bengal, it's called ghol, and incidentally is sweetened with sugar. While the plain salted one is the most popular method of making a simple chaas, addition of ingredients, apart from roasted cumin seeds, such as chopped coriander, chopped ginger, crushed mint leaves, green chillieschaat masalarock/black salt, does add a lot of flavour and benefits to this drink.

Defence Travel System (E-ticketing): Introduction, Users, Features & Audit

Indian Military Veterans

Government of India
Controller General of Defence Accounts
(Defence Travel System)
Phone No.: 011-26108268/26108269 /Fax No.: 011-26163403
No. EDP/600/E-ticketing/LAO
Dated: 29.02.2016
(Through CGDA’s website)
Subject: - Audit of Defence Travel System (E-ticketing): Local Audit Office 


The E-ticketing system has been developed to facilitate the Armed forces Personnel to book tickets through Defence Travel Portal. The project has been approved by MoD with the approval of Raksha Mantri. The first phase of the project is implementation of E-ticketing platform for the three services for Rail Travel in lieu of Railway warrants for Armed forces Personnel. The second phase of the project is to extending the system to Air Travel for Armed Forces Personnel. Defence Travel System is a cashless system for booking of tickets in respect of Defence personnel and their dependents for the government bonafied duties only. For booking of tickets RDS Account (Rolling Deposit Scheme) has been opened with IRCTC and amount due to Indian Railway at the time of booking is paid from this account.

Collection of Aadhaar numbers of retiring Government Employees

Indian Military Veterans

CPAO emphasizes the need for collecting Aadhaar Numbers of Retiring employees for implementing Jeevan Pramaan Scheme. Reports on the fresh PPOs received from the different PAOs reveal that the trend of incorporating Aadhaar numbers in fresh PPOs is not encouraging.CPAO calls for collecting Aadhaar Numbers of retiring Government Employees to fulfill the objective of Jeevan Pramaan
Central Pension Accounting Office has issued an OM to furnish the Aadhaar number and other particulars of the retiring Government Employee for seeding in their Pension account.


NEW DELHI-110066
PHONES: 26174596, 26174456, 26174438
CPAO/Tech/Jeevan Pramaan/2015-16/1770


Office Memorandum
Subject: – Preparation of list of Government servants due to retire along with their Aadhaar numbers and incorporation of Aadhaar number in PPO Booklet.
Reference- (i) OM No. CPAO/Tech/Jeevan Pram:1a11/2015-16/305 dated-02.06.2015.
(ii) OM No. CPAO/Tech/Jeevan Pramaan/2015-16/662 dated-10.07.2015.
A reference is invited to earlier OMs issued on the captioned subject as mentioned above. Through these OMs, all Heads of Offices were requested to ensure that wherever available Aadhaar No. is provided to their Pay & Accounts Offices alongwith pension papers of the retiring government servants. In this regard provisions have already been made in CAM-52 (PPO Booklet) by adding the following columns after existing column No.5.
6. Permanent Account Number for Income Tax (PAN)
7. Aadhaar No. (if Available)
8. Mobile No. (if Available)
9. E-Mail ID (if Available)
2. It is reiterated that to avoid any delay in finalizing the pension cases, all the Head of Offices should have first-hand information of the Aadhaar number while preparing the list of retiring government officials as per the provision of Rule 56 of CCS (Pension) Rules and should provide the same to the Accounts Officer concerned not later than 31st January, 30th April, 31st July or 31st October of that year.
3. Reports on the fresh PPOs received from the different PAOs reveal that the trend of incorporating Aadhaar numbers in fresh PPOs is not encouraging. Quarterly trends reveal that during July-September, 2015 only 8.55 percent fresh pension cases had Aadhaar numbers which only marginally increased lo 9.70 percent in October-December, 2015 and drastically gone down to only 4.21 percent during January-February, 2016. This underlines the need of close monitoring of mentioning of Aadhaar numbers in fresh PPOs.
4. In order to achieve the objective of seeding of Aadhaar number with maximum number of fresh PPOs, all Pr. CCAs/CCAs/CAs/AGs/Administrators of UTs are once again requested to ensure that all fresh PPOs are sent to CPAO with Aadhaar numbers wherever available and quarterly list of would be retirees as mentioned in para 2 above also mention Aadhaar numbers.

(Subhash Chandra)
Controller of Accounts

Male Bank employees can avail 15 days paternity leave to take care of wife

Indian Military Veterans
Grant of Paternity Leave to bank employees has been accepted under the 10th Wage Negotiation Settlement signed between Indian Banks’ Association (IBA) and the Unions/Associations of employees.

Male employees with less than two surviving children shall be eligible for 15 days paternity leave during his wife’s confinement and may be availed upto 15 days before or upto 6 months from the date of delivery of the child.

This was stated by Shri Jayant Sinha, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

Read at

Income Tax Exemption for Pensionary benefits

Indian Military Veterans
Dear Veterans
Information, specific to Tax Exemption is reproduced below:-

The tax exemption of disability pension received by  Armed Force Personnel  are among those  exemptions under Income Tax Act for which you may not get a direct reference in  the Income Tax Act. However ,  such tax exemption are allowed by the executive instruction by either Finance Ministry notification or under the delegated powers to CBDT . Armed Forces personnel get the disability pension which is basically aggregate of two components-disability pension and service pension. Previously , thsi website had posted 3 Types of Pension to Armed Forces Completely Tax Free!
Disability Pension to Armed Forces : What is it ?
As per the website of Principal Controller of Defence Accounts (Pension), where an Armed Forces Personnel is invalided out of service, which is accepted as attributable to or aggravated by military service, he shall be entitled to disability pension consisting of Service Element & Disability Element as follows:-
Service Element
The amount of service element shall be determined as 50% of less emoluments drawn as given in para 6 of MOD letter dt- 12.11.2008 which is subject to minimum Rs 3500/- p.m.
Disability Element
·         The rates of disability elements for 100% disability for various ranks shall be 30% of emolument last drawn subject to Rs. 3510/- per month.
·         Disability lower than 100% shall be computed by reducing proportionately.
Disability Element on Invalidment
Where an Armed Force personnel is invalided out of service under circumstances mentioned in para 4.1 of Govt. letter dt. 31.01.01, the extent of disability shall be determined as follows for the purpose of computing the DE :-
Percentage as finally assessed by Competent Authority
Percentage to be reckoned for computing DE
Between 1 to 49
Between 50 & 75
Between 76 &100
Disability Element on Retirement/Discharge
Where an Armed Forces personnel is retained in service despite disability and subsequently retired/ discharged on completion of tenure or on attaining the age of retirement, he shall be entitled to Disability Entitlement at the rate prescribed for 100% disablement. For disablement less than 100% but not below 20%, the rates shall be reduced proportionately. No disability element shall be payable for disability less than 20% .
Is Disability Pension to Armed Forces Tax Free ?
Yes, although there is nothing in section 10 of the Income Tax Act , which is a general exemption section  under Income tax Act , the disability pension has been made tax free through Finance Ministry notification No 878-F (Income Tax) dated 21-3-1922 . The following instruction from CBDT explains that the entire disability pension is exempt
Instruction No 136F.No. 34/3/68-IT(AI)Govt of India Central Board of Direct Taxes New Delhi, dated the 14thJan 1970
From :Shri S N NautialSecretary, CBDT
To:All Commissioners of Income Tax
Subject : Exemption – Service and Disability Element of Disability Pension granted to a disabled officer of the Indian Army – whether exempted from Income Tax.
Reference is invited to the Board’s Letter F No 42/9/59-IT(AI), dated the 5Th Sept 1960 on the above subject wherein it was mentioned that in the cases falling under Item (29) of Finance Deptt Notification No 878-F (Income Tax) dated 21-3-1922, the‘disability element’ of the disability pension received by an officer of the Army will only be exempted from tax and that the ‘service element’ will be subjected to tax.
2. On reconsideration of the matter, in consultation with the Ministry of Law, the board are advised that item 29 of the notification does not differentiate between types of  pensions. Accordingly in the cases falling under item 29 of the above notification, entire disability pension will be exempted from income-tax.3.The above instructions may be brought to the notice of all assessing officers inyour charge.
Yours faithfully,Sd/-
(S N Nautial)
Secretary ,CBDT
Confusion on Exemption Disability Pension & Service Element
As the disability pension is aggregate of two elements- disability element and service element- a confusion was created in filed formation of tax authorities , whether the disability element only is tax free and not the service element. CBDT , therefore , in order to wipe out any confusion , issued another instruction F. No. 200/51/00-ITA-1 dt. 02.7.2001 to stress that both element of disability pension is tax exempt. Read the instruction below :

[F. No. 200/51/00-ITA-1 dt. 02.7.2001 from Ministry of Finance Deptt. Of Revenue Central Board of Direct Taxes, New Delhi.]
Subject: Exemption from income tax to disability pension, i.e. ” disability element” and “service element” of a disabled officer of the Indian Armed Forces- Instructions regarding.
Reference have been received in the Board regarding exemption from income tax to disability pension, i.e. “disability element” and “service element” of a disabled officer of the Indian Armed Forces.
2. It appears that field formations in certain cases are not uniformly allowing disability, pension in spite of Board’s Instruction No.136 dated 14th January, 970 (F.No.34/3/68-IT(A.1)).
3. The matter has been re-examined in the Board and it has been decided to reiterate that the entire disability pension, i.e. ” disability element” and “service element” of a disabled officer of the Indian Armed Forces continues to be exempt from income tax.
4. This may be bought to the notice of all the officers working under you.
B.L. Sahu
Officer on Special Duty (ITA .1

No TDS on Disability Pension to Army Personnel
As it happens in India, everyone becomes the super authorities against the common man. The government received complaint that certain banks are deducting the tax on the disability pension . So , government issued a press release that no TDS is required on the said disability pension paid to Armed Forces personnel. Read below the  excerpt.
Press Release, dated 20-12-2007
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.
The disability pension given to Armed Forces Personnel are having two components-disability element & service element. Both are tax free vide Ministry of Finance notification read with clarification from CBDT and also there can not eb any TDS as the amount is fully tax free

3 Types of Pension to Armed Forces Completely Tax Free!

Armed forces of this country –be it Army, Navy, Air Force or CRPF or BSF and others are doing great service in the most difficult circumstances. As a mark of respect to them, this blog publishes article on tax issues and completely free to read.  I have already published two of the related posts – disability pension to armed forces and Pensions received by certain awardee. However, the kind of feedback, it is considered necessary to post a consolidated post on the subject of tax free pensions to Armed Forces Personnel.

Disability Pension is Tax Free & TDS Free!

Armed Forces personnel get the disability pension, which is aggregate of two components-disability pensions and service pension. On the question of its being tax free, the first thing to note is the fact that the tax exemption on the disability pension is not provided under section 10 or anywhere in the Income Tax Act. The disability pension has been made tax-free by executive instructions of the government.
You can read on this issue on the post titled No Tax or TDS on Disability Pension to Armed Forces

Pension Received by Gallantry Award Winners or His Family

The pension received by gallantry award holder and also family pension received by the member of the family of gallantry winner’s is tax free as per section 10(18) of the Income Tax Act . , Read the provision below :
 10 (18)any income by way of—
(i)  pension received by an individual who has been in the service of the Central Government or State Government and has been awarded “Param Vir Chakra” or “Maha Vir Chakra” or “Vir Chakra” or such other gallantry award as the Central Government may, by notification77 in the Official Gazette, specify in this behalf;
(ii)  family pension received by any member of the family of an individual referred to in sub-clause (i).
Explanation.—For the purposes of this clause, the expression “family” shall have the meaning assigned to it in the Explanation to clause (5);

 Section 10(18) l Gallantry Award Notification

No. SO 1048(E), dated 24-11-2000, as amended by Notification No. SO 81(E), dated 29-1-2001.
119. Income by way of pension received by an individual who has been in service of Central Government or State Government and has been awarded any gallantry award
In exercise of the powers conferred by sub-clause (i) of clause (18) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby specifies the gallantry awards for the purposes of the said section, mentioned in column 2 of the table below awarded in the circumstances as mentioned in corresponding column 3 thereof.
Sl. No.
Name of gallantry award
Circumstances for eligibility
Ashok Chakra
When awarded for gallantry.
Kirti Chakra
– do –
Shaurya Chakra
– do –
Sarvottam Jeevan Raksha Padak
When awarded to civilians for bravery displayed by them in life saving acts.
Uttam Jeevan Raksha Medal
– do –
Jeevan Raksha Padak
– do –
President’s Police Medal for Gallantry
When awarded for acts of exceptional courage displayed by members of police forces, Central police or security forces and certified to this effect by the head of the department concerned.
Police Medal for Gallantry
– do –
Sena Medal
When awarded for acts of courage or conspicuous gallantry and supported by certificate issued to this effect by relevant service headquarters.
Nao Sena Medal
– do –
Vayu Sena Medal
– do –
Fire Services Medal for Gallantry
When awarded for acts of courage or conspicuous gallantry and supported by certificate issued to this effect by the last Head of Department.
President’s Police and Fire Services Medal for Gallantry
– do –
President’s Fire Services Medal for Gallantry
– do –
President’s Home Guards and Civil Defence Medal for Gallantry
– do –
Home Guards and Civil Defence Medal for Gallantry
– do –

 What is the Meaning of Family For Exemption Purpose

The meaning of family members is Explained under Section 10(5) of the Income Tax Act .
(i)             the spouse and children of the individual ; and
(ii)           (ii)the parents, brothers and sisters of the individual or any of them, wholly or mainly dependent on the individual

  Pension for Death on Duties of Armed Forces Personnel

Section 10(19) of the Income Tax Act provides that amount of pension received by the family members of armed forces personnel including Para-,military personnel who dies in certain circumstances in course of performing his /her duties , shall be tax free . The excerpt of the provision is given below :

(19)        family pension received by the widow or children or nominated heirs, as the case may be, of a member of the armed forces (including paramilitary forces) of the Union,where the death of such member has occurred in the course of operational duties, in such circumstances and subject to such conditions, as may be prescribed

 What are Condition Prescribed ?

Section 10(19) speaks of exemption of family pension when the death of Armed Forces or Para-Military personnel – has occurred in the course of operational duties in certain Circumstance which is prescribed in Rule 2 BBA
 (i) acts of violence or kidnapping or attacks by terrorists or anti-social elements;
(ii) action against extremists or anti-social elements;
(iii) enemy action in international war;
(iv) action during deployment with a peace keeping mission abroad;
(v) border skirmishes;
(vi) laying or clearance of mines including enemy mines as also mine sweeping operations;
(vii) explosions of mines while laying operationally oriented mine-fields or lifting or negotiation minefields laid by the enemy or own forces in operational areas near international borders or the line of control;
(viii) in the aid of civil power in dealing with natural calamities and rescue operations;
(ix) in the aid of civil power in quelling agitation or riots or revolts by
What Precaution Must Be taken for Exemption Deceased Family ?
As per Rule 2BBA (2), obtain a certificate  from the Head of the Department where the deceased member of the armed forces(including paramilitary forces) last served, or the service headquarters, as the case may be, that the death of such member has occurred in the course of operational duties in circumstances mentioned above 

 The Information book let from Army Hq web site is attached. Please refer to the page 14 of the book let for the Income Tax Exemptions allowed on Pensionary benefits.

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