Sunday, 20 November 2016


CIVIL APPEAL NO.2147 of 2011
T.S. Das and Ors.
Union of India and Anr.
Civil Appeal No.8566 of 2014

These appeals emanate from the divergent relief claimed by
the original applicants before the Armed Forces Tribunal
(Appellants in Civil Appeal No. 2147 of 2011 and Respondents in Civil Appeal No. 8566 of 2014), which, however, involve overlapping points for consideration. Hence, we deem it apposite to dispose of both these appeals analogously, by this common judgment.
Thus understood, all Sailors appointed prior to 3
Rd July, 1976 and whose tenure of initial active service/empanelment period expired on or after 3
Rd July, 1976 may be eligible for a Special Pension under Regulation 95, subject, however, to fulfilling other
requirements. In that, they had not exercised the option to take  is discharge on expiry of engagement (as per Section 16 of the Act of 1957) and yet were not and could not be drafted by the competent Authority to the Fleet Reserve because of the policy of discontinuing the Fleet Reserve Service w.e.f. 3rd July, 1976. The cases of such sailors (not limited to the original applicants before the Tribunal) must be considered by the Competent Authority within three
months for grant of a “Special Pension” from three years prior to the date of application made by the respective Sailor and release payment after giving adjustment of Gratuity and
Death-cum-Retirement-Gratuity (DCRG) already paid to them from arrears. They shall be entitled for interest @ 9% P.A. on the arrears, till the date of payment.
NNew Delhi,
DDatDated: 27th
OOctober, 2016



This article would bring you the idea of filing a Income Tax Form 10E which is mandatory to claim Relief under section 89(1) for OROP, DL-33 & Pay Commission arrears.
However we did not get the arrears till date except OROP. This article is to make our veterans conversant with the procedures. Receiving salary or pension in arrears might change your tax situation. You may fear it's going to move you up a tax slab. Or tax rates may be higher in the year arrears are received as compared to the year to which they belong. To protect you from any additional tax burden, due to delay in receiving income, the tax laws allow a relief under Section 89(1).
This relief can be directly claimed in your income tax return, if you have received any portion of your salary in arrears. The Income Tax Department has made it mandatory to file Form 10E if you want to claim relief under Section 89(1). As per Section 89(1), tax relief is provided by recalculating tax for both the years; the year in which arrears are received and the year to which the arrears pertain.
Your taxes are adjusted assuming arrears were received in the year in which they were due. Let's understand this calculation in detail. Tax for the year in which arrears are received is calculated both inclusive as well as exclusive of arrears. The difference is the tax on additional salary, let's call it x. Now tax is computed for every year to which the arrears pertain- including as well as excluding arrears. The difference is arrived at, let's call it y. If x is more than y, relief is available to the taxpayer.

Here are some important things to remember while claiming relief on arrears: Form 10E must be filed online on the Income Tax Department website .

Taxpayers who claimed relief last financial year but did not file Form 10E received a notice from the department for non-compliance. Your return is not processed until you submit this form. You must submit Form 10E before filing your income tax return. Many taxpayers are confused about which assessment year to choose while filing Form 10E.

Arrears may pertain to earlier years, however, one has to choose the assessment year in which arrears have been received. For example, if arrears are received in financial year FY 2015-16, choose assessment year as AY 2016-17.

Form 10E has to be submitted online and no copy is required to be attached with your tax return. However, you must file and keep all documents safely in your records. Your employer may ask for confirmation of submission of Form 10E before adjusting your taxes and allowing tax relief. It is not mandatory to submit this form to the employer. You can claim tax relief by filing this form at the time of submitting your tax returns. Salary is usually taxable when it is due or when it actually received, whichever is earlier. Arrears are usually announced from a back date and therefore cannot be taxed when due. Relief under Section 89(1) is also allowed to those who receive family pension in arrears. The calculation is the same as mentioned above. Do remember this very important step while filing your returns if you have received arrears during the financial year. Income Tax Notice for non-filing of Form 10E Starting income tax returns for financial year 2014-15 (assessment year 2015-16), the income tax department has made it mandatory to file Form 10E if you want to claim relief under section 89(1).

Download Form 10E. Taxpayers who have claimed relief under section 89(1) but have not filed Form 10E have received an income tax notice from the tax department with the following lines – The relief u/s 89 has not been allowed in your case, as the online form 10E has not been filed by you. The furnishing of Online form 10E is required as per sec.89 of the Income Tax Act look

How to file Form 10E Form 10E can be filed online. Here are the steps to file Form 10E online – Login to your User ID and password along with date of birth.
After you have logged in, click on tab named ‘e-File’ and select ‘Prepare & Submit Online Form (Other than ITR)’

The below screen shall appear. Select Form 10E from the drop down.  Now select the Assessment Year for which you want to file Form 10E.  The below screen shall appear with instructions on how to file Form 10E and you keep on clicking on the blue tabs and enter the relevant information. 


First- spread out the amount of arrear or advance received over the specific financial year to which they relate and re-calculate the income tax for each year had the arrears been received during the concerned financial year itself.
Second-calculate incometax for each of the financial years without taking into account the arrear or the advance received.
Third- deduct the total of income tax arrived at 2 nd step from step-1.
Fourth-calculate incometax for the Financial year in which the arrear is received, including the arrears/advance received.
Fifth- calculate incometax for the Financial year in which the arrear is received, excluding the arrears/advance received.
Sixth- deduct income tax arrived at step-5 from income tax arrived at step-4

Seventh- deduct income tax arrived at step-3 from income tax arrived at step-6 The figure so arrived is the amount of the relief under section 89(1)  Administrator Latest from Administrator

OROP, the still pending struggle

OROP implies that uniform pension be paid to the Armed Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancements be automatically passed on to the past pensioners.

You have never lived until you have almost died, and for those who choose to fight, life has a special flavor, the protected will never know! — said Capt R Subramanium Kirti Chakra once. Between Morocco and Malaysia, India is among the very few genuine democracies where troops remain in barracks and willingly follow what their civilian government dictates. China and Pakistan, our immediate neighbours, have strong military participation in government. In ancient times, if a soldier had to beg for his rights, it was considered that the King and the state had failed the promise to the nation’s guardians who otherwise promised to remain loyal and apolitical.

The recent Uri attacks and the surgical strikes have again hit India’s conscience about the soldiers sacrifice. It is most unfortunate that a soldier reportedly committed suicide because of incorrect payment related to One Rank One Pension (OROP). OROP implies that uniform pension be paid to the Armed Forces personnel retiring in the same rank with the same length of service irrespective of their date of retirement and any future enhancements be automatically passed on to the past pensioners. After nearly 30 years of struggle by ex-servicemen, the government of India issued OROP implementation orders on 07 November 2015.

The ex-servicemen found the OROP announcement short of the definition, and seeing the resentment, a one-man judicial committee under the Chairmanship of Justice L Narasimha Reddy, retired Chief Justice of the Patna High Court was set up. After many hearings and interactions, the committee submitted its report on 26 October 2016.

The four main issues pending for resolution are:
1) Base fixation of pension as of calendar year of 2013 instead of FY of 2014, else it would result in loss of one increment.
2) Fixation of pension at the highest pension of each rank in the year and not at the average figure between highest and lowest.
3) Payment should be fixed from April- July 2014 as per budget norms of the government. Changing the date would result in loss of three months emoluments for OROP. Alternatively the base pension should also as applicable in July 2014.
4) Pension equalisation should be every year instead of five years. All the political parties support the OROP but approvals have been lingering simply because of bureaucratic delays and machinations.

Armed Forces have also been very unhappy with the 7th Pay commission recommendations including the proposed change in norms for disability pension and the relative status. Non Functional Upgrade (NFU) has been implemented for all civil services since 2008, but the same has been denied to the Armed Forces. Bureaucracy has often tried to incorrectly interpret Pay Commissions and court orders to reduce benefits to the Armed Forces and to lower their relative status. Servicemen had to fight and win the ‘Rank pay’ case in the Apex court. It is unfortunate that large number of ex-servicemen and widows have to fight in courts for rightful pension. The public opinion and the media are strongly for the Armed Forces.

For the first time, ex-servicemen had to resort to hunger strike at Jantar Mantar in New Delhi, and similar agitations in other cities. Many ex-servicemen returned their gallantry medals in protest, and others are openly venting strong views on Television channels and on social media. This is impacting the morale of a much disciplined force which is the port of last call for national security and disaster management. PM Modi has already cleared OROP to 85 per cent satisfaction. Remaining incremental costs are minimal. India awaits a political will to resolve the remaining.

The author is a retired Air Marshal of the Indian Air Force and is a member of the Armed Forces Tribunal.

7th Pay Commission: Final touches given to Allowances of central govt employees; may soon see disbursal

New Delhi: The Committee set up to review the Allowances sanctioned to central government employees under 7th Pay Commission is likely to have finalised Allowances for central government employees. “Today there had been a crucial meeting of the Committee on Allowances. They may finalize all the allowances in today’s meeting itself or some of them”, said Shiv Gopal Mishra, General Secretary, Joint Consultative Machinery for Central Government Employees, in a circular to its fraternity. Mishra referred to the “crucial meeting of the Committee on Allowances” held on November 16.

The government had formed a committee headed by finance secretary Ashok Lavasa which has been mandated to submit its views on the 7th Central Pay Commission's proposals on Allowance. The committee had held its first meeting on July 22 and had a four-month deadline to complete its task. The CPC examined 196 allowances and given its recommendations on abolishing or raising some of them while recommending others to be subsumed with other perks.

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