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Wednesday, March 09, 2016

Centre has withdrawn its proposal to impose tax on Employee Provident Fund withdrawals

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Tax on Provident Fund withdrawn

The Centre has withdrawn its proposal to impose tax on Employee Provident Fund (EPF) withdrawals.

From the very beginning, Central Government Employees unions all over the country have been opposing the government’s decision to impose tax on the money that they had been saving during their entire careers. After the Union Budget, the Central Government workers unions vehemently opposed the plan.

On February 29,  Arun Jaitley, the Finance Minister, presented the Union Budget for 2016-17 in the Parliament. It was announced that tax will be imposed on 60 percent of the EPF. The decision was met with stiff opposition all over the country. The opposition parties demanded that the tax on Provident Fund be withdrawn.

Arun Jaitley informed that decision in this regard will be made during the debates on the Budget. Accordingly, during the Parliamentary debate yesterday, Arun Jaitley voluntarily announced the decision to withdraw the taxes on Provident Fund. He added that tax exemption for Rs.1.5 lakhs will be given for the contribution made for pension funds.

The decision to exempt 40 percent of the PF funds from taxes stays. When the government made the announcement to impose taxes, the opposition parties and trade unions all over the country accused it of imposing new taxes whenever it faced cash crunch.

The government had clarified that the decision to impose tax on PF savings was not meant for increasing the revenue of the government, but to encourage workers to join pension schemes. But, it has now announced that the tax has been withdrawn.

Members of the Parliament have welcomed the government’s decision to withdraw the taxes on PF savings. It has to be mentioned here that Arun Jaitley, in his statement, had said that the taxes will encourage people to save more.

Congress Vice President, Rahul Gandhi said that the government has succumbed to the pressure from the people and has withdrawn the taxes on PF savings.

Source: http://7thpaycommissionnews.in/

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OFB's Clarification on ACP / MACP based on discussion held on 08th & 09th May, 2015 at NADP Ambajhari - BPMS

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Workshop for uniform implementation of ACP/MACP instructions at NADP,Ambajhari on 8th & 9th May, 2015

OFB's Clarification on ACP / MACP based on discussion held on 08th & 09th May, 2015 at NADP Ambajhari


GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
ORDNANCE FACTORY BOARD
AYUDH BHAVAN
10A, SHAHEED KHUDIRAM BOSE ROAD
KOLKATA – 700 001

No.Per/I/ACP/MACP/2016
Date: 07-03-2016
To
The Sr. General Managers/General Managers
All Ordnance & Ordnance Equipment Factories

Sub: Workshop for uniform implementation of ACP/MACP instructions at NADP,Ambajhari on 8th & 9th May, 2015

a Workshop on uniform implementation of ACP/MACP instructions was held at NADP, Ambajhari on 8th & 9th Maay, 2015. The Points emanating from the said workshop and pertaining to Industrial Establishment are furnished here-under for guidance and necessary action;-

ISSUE
Remarks of OFB
1
Whether the employees who were placed from HS to MCM (4500 -7000) before 01.01.2006 but did not get ACP in the pay scale of Rs.5000-8000 may be extended with the benefit of grant of 3rd MACP either on completion of 30 years of service or by staying in the same pay band and grade pay for 10 years by granting 3% increment benefit in PB-2/- GP Rs.4200/- or otherwise.
Reference:
1.OFB Circular No.Per/I/01/CP/658 dated 10-07-2015

2.PCA (Fys) Circular No.Pay/Tech-II/04/2013/22 dated 31.07.2013

Clarification:
In such cases, MACP-III benefit will be admissible in the form of one increment of 3% No change of Grade pay from his existing grade pay of Rs.4200/- would be involved.
2
Whether the employees who were placed from HS to MCM (4500-7000) before 01.01.2006 but did not get ACP in the pay scale of Rs.5000-8000 may be granted Grade pay of Rs.4600/- under 3rd MACP
Reference:
1.OFB circular No.01/CR/A/I/658 dated 17-02-2014.

2. PCA(Fys) circular No.Pay/Tech-II/04/2014/02 dated 11.02.2014.
3.MoD ID No.11(5)/2009-D(Civ-I) dated 06.02.2014.

Clarification:
No, they are not eligible for Grade Pay of Rs.4600 under 3rd  MACP. Only the HS/MCM workers drawing pay scale of Rs.5000-8000 under ACPS upto 31.12.2005 are eligible for Grade pay of Rs.4600 under 3rd   MACP
3
The grade pay of HS/MCM workers, who did not get ACP in the pay scale of Rs.5000-8000 before 01.01.2006 but granted Grade pay of Rs.4600 under 3rd MACP, are to be reduced to 4200/- It is not clear in OFB or PC of A(Fys) Circular whether recovery can be done or otherwise.
Clarification: The recovery is to be made.
4
Whether Skilled workers may be considered for Grade Pay of Rs.2400 under ACP during the period from
01-01.2006 to 31.08.2008
Clarification:
Yes, they may be considered for Grade Pay of
Rs.2400 i.e. Grade Pay of next promotional hierarchy (HS-lI) under ACPS during
the period from 01.01.2006 to 31.08.2008 after
fulfillment of all promotional norms including
passing of trade test for HS-II grade.
5
Whether Skilled workers drawing pay scale of Rs.5000-8000 under ACPS upto
31.12.2005 may be granted Grade pay of Rs. =4600 under 3’d MACP at par with HS/MCM workers
Reference:
1.OFB Circular No.01/CR/A/I/658 dated 17-02-2014.

2.PCA(Fys) Circular No.Pay/Tech-II/04/2014/02 dated 11.02.2014.

3.MoD ID No.11(5)/2009-D(Civ-I) dated 06.02.2014.

Clarification: No, they are not entitled for the same as per MoD Order. However, the matter has been referred to MoD for consideration.
6
Whether the employees who were in the
Pay Scale of Rs.4000-6000 and thereafter granted Pay Scale of Rs.5000-8000 under ACP-II during the period from 01.01.2006 to 31.08.2008 may be considered for Grade Pay of Rs.4600 under 3rd MACPS.
Clarification:
No, they are not entitled for the same.
7
Whether the Artisan staff holding the HS grade in the pay scale of Rs.4000-6000 (Pre-2006) and promoted to the grade of HS-I (GP- 2800) & MCM (GP-4200) during cadre re-Structuring w.e.f 01.01.2006 may be considered for Grade Pay of Rs.4600 under 3rd MACPS.
Clarification:
Grade Pay of Rs.4600 will not be admissible to them as they have already been granted 3 promotions i.e. from SK to HS-II, HS-II to HS-I and HS-I to MCM.
8
There are some cases wherein the individuals had been appointed directly to the grade of HS after completion of SCT/SAT and did not get any promotion till 09.08.1999. How to give them ACP/MACP benefit is the question to be decided. A clarification may be given
Clarification:
Since these are very specific cases, any comment is not considered appropriate without verifying full details of career movements and other issues. However, ACP/MACP is to be considered by taking into consideration of date of appointment in HS grade and further movements.
9
At the time of restructuring of artisan cadre, the HS grade has been bifurcated to HS Gr-II (GP Rs.2400) and HS Gr-I (GP Rs.2800). The senior most 50% IEs of the erstwhile HS grade have been brought on to the category of HS-I and remaining IEs of erstwhile HS grade have been renamed as HS-II on 01.01.2006. Whether MACP can be considered by treating this movement from HS to HS Gr.I as not a promotion.
Reference:
Mod ID No.11(5)/2009-D(civ-I) dated 01.12.2010.

Clarification: Placement of 50% of the existing HS as HS-I w.e.f 01.01.2006 will be treated as promotion for the purpose of ACP/MACP
10
An employee was appointed as Lab (US) on 01.07.1991 in the pay scale of Rs.2550-3200. Then promoted to Lab (SS) on 20.01.2001 in the pay scale of Rs.2650-4000. Lab (US) and Lab (SS) has been merged into one grade of Lab (SS) w.e.f 01.01.2006 in the grade of Lab (US) to Lab (SS) prior to 01.01.2006 is to be ignored. Hence, revised ACP has been given w.e.f 01.01.2006 in the GP of Rs.1900 and counted towards 1stfinancial up-gradation under ACPS. He has been appointed by transfer to Tradesman (SS) on 31.07.2007 and then placed to Tradesman (Skilled) on 31.07.2009 and thus his GP of Rs.1900 granted earlier by way of ACP w.e.f. 01.01.2006 has been regularized by functional promotion/placement to skilled grade. Then he has been promoted to HS Gr-II w.e.f. 31.07.2009 in the GP f Rs.2400/- in cadre restructuring. Thus he got the 2ndfinancial upgradation by way of ACP and promotion. At this juncture he is approaching to ignore his 1st ACP in the GP of Rs.1900 allowed on 01.01.2006 since Trade (SS) to Tradesman (skilled) is to be ignored for all purposes and is requesting to treat the promotion to HS Gr.II  w.e.f 31.07.2009 as the 1stfinancial up-gradation and to the GP of Rs.2800 as the 2nd financial upgradation under MACP w.e.f 11.07.2011 on completion of 20 years. Clarification may be given whether the revised ACP given to him in the GP of Rs.1900 on 01.01.2006 can be ignored as requested.
Reference:
OFB Circular No.Per/I/ACP/MACP/2015 dated 04.01.2016.

Clarification:
After implementation  of 6th CPC pay structure the erstwhile grades of Un-Skilled (Pay scale 2550-3200) and Semi-Skilled (Pay Scale 2650 – 4000) have been merged with the grant of common grade pay of Rs.1800/- The next hierarchical Grade in this case is skilled grade (GP-1900). For granting ACP in this Grade the individual must possess the qualification for Skilled Grade. Since he only got up-gradation to the Skilled grade on 31.07.09, it is unlikely that he has passed the trade test for skilled grade prior to 01.01.2006.In view of the above, grant of ACP in the revised grade pay structure w.e.f 01.01.2006 to this employee is not in order. However, he may be granted MACP-I in the Grade Pay of Rs.1900/- w.e.f 01.09.2008. There will be no change in Grade Pay of the individual of Rs.1900/- from the date of skilled also on promotion. However, all the movements/promotions/financial up – gradations under ACPS from Labourer/Un-skilled grade to Tradesman/Skilled grade are to be ignored for the purpose of MACPS. The individual has been promoted to HS-II w.e.f. 31.07.2009. Accordingly, the individual may be considered for Grade Pay of Rs.2800 & Rs.4200 under 2nd MACP & 3rd MACP respectively on completion of required length of residency period for MACP, as he got only one promotion (i.e. from Skilled to HS-II) from his date of appointment.

However, the proposal of review of financial up-gradation under ACPS from 01.01.2006 to 31.08.2008 by giving relaxation of trade test due to merger of Labourer/Unskilled & Labourer/semi-skilled w.e.f 01.01.2006 wass forwarded to MoD for consideration MoD, in turn, forwarded the same to DoPT for consideration But the said proposal has not been accepted by DOPT.
11
Review of ACP benefit to Labourers who have completed 24 years of regular service prior to 01.01.2006 due to merging of Labourer/Unskilled & Labourer/Semi-Skilled w.e.f 01.01.2006
Reference:
OFB Circular No.Per/I/ACP/MACP/2015 dated 04.01.2016

Clarification:
The proposal of review of financial up-gradation under ACPS from 01.01.2006 to 31.08.2008 by giving relaxation of trade test due to merger of Labourer/Unskilled & Labourer/Semi- Skilled w.e.f 01.01.2006 had been forwarded to Mod  for consideration. MoD, in turn, forwarded the same to DoPT for consideration. But the said proposal has not been accepted by DoPT.
12
Whether erstwhile NIE Gr.D re-designated as IE(Lab/SS), thereafter as Tradesmen/SSK and up-graded to Tradesmen/SK are eligible for GP of Rs.2000/- under 1st MACP on completion of 10 years from the date of their appointment as NIE.
Clarification: Yes, they may be considered for the same as all the movements from his appointment are to be ignored for the purpose of MACPS.
13
Whether ACP benefit grante4 between
01 .01.1996 and 0l .01 .2006 due to merger of HS-II & HS-I post is to be ignored or considered as promotion for the purpose of MACP
Clarification: The movement from HS-II to HS-I
prior to 01.01.1996 will not be treated as promotion for the purpose of ACP/MACP. But the said movement on of after 01.01.2006 is to be treated as promotion for the purpose of ACP/MACP
14
Fixation benefit of promotion to MCM Grade Pay of Rs.4200 (P-2) due to change of pay band from PB-I to PB-2 after availing MACP Grade Pay of Rs.2800. After availing financial up-gradation under MACPs, if the govt. Servant gets his regular promotion in the hierarchy of his cadre, on regular promotion, he will only be granted the differences of grade pay. No additional increment will be granted at this stage. It is observed that only illustration has been shown (in MACP Orders ) within PB-I to PB-2 (from GP Rs.2800, PB-I under MACP to Gp Rs.4200 PB-2 on promotion). So, in this situation financial benefit i.e. 3% increment may be considered at the time of regular promotion due to change of pay band.


Clarification: The orders on the issue do not provide for such benefit.
15
Whether any exemption for trade test can be granted for allowing ACP benefit between 01.01.2006 to 31.08.2008
Clarification: Already clarified against Point No. 11
16
NIEs(Gr.D) drawing GP of Rs.1900 granted on MACP transfer to IEs cadre. Whether in this case the movement from GP 1800 to 1900 irrespective of more of entry is to be ignored or otherwise for future MACP benefit.
Clarification: The movement from Rs.1800/- to Rs.1900/- (before transfer from NIEs to IEs) irrespective of the mode of entry is to be treated as one promotion/up-gradation for MACP. But, as and when the individual will be granted functional up-gradation to skilled grade, his previous movement from 1800/- to 1900/- may be ignored.
17
One employee is once being treated as MCM (placement) upto 31.12.2005 and then the same employee is being treated as MCM (promotion) on 01.01.2006. This would require clarification. In the 6th CPC, the grade pay of MCM was initially given to GP of Rs.2800/- and subsequently placed/revised/upgraded to GP of Rs.4200/- w.e.f 01.01.2006. whether such placement/revision. up-gradation can be treated as promotion for any purpose like ACP/MACP
Clarification:
The grade of MCM was not in the hierarchy before 01.01.2006 and movement from HS to MCM was treated as placement and accordingly, eligible HS workers got pay scale of Rs.5000-8000 (i.e. the pay scale of CM-II) under ACP-II. But MCM grade (GP-Rs.4200) is now in the hierarchy w.e.f. 01.01.2006 and the movement from HS-I to MCM is to be treated as promotion for all purpose. But, change of Grade Pay from 2800 to 4200 to MCM workers w.e.f. 01.01.2006 due to cadre restructuring in terms of Mod Order dated 14.06.2010 are not to be treated as promotion.
18
The IEs appointed as Labourer/Un-Skilled were promoted to Labourer/Semi –skilled or granted ACP-I in the pay scale of Rs.2650-4000 and thereafter granted ACP-II in pay scale of Rs.3050-4590 (i.e Skilled grade) prior to 01.01.2006. But, Labourer/Un-skilled & Labourer/Semi-skilled have been merged into labourer/Semi-skilled (GP-Rs.1800/-) w.e.f 01.01.2006. whether financial up-gradation under ACPS in respect of the said IES may be reviewed w.e.f. 01.01.2006.
Clarification:
It can not be reviewed as passing of trade test was mandatory in ACPS and the proposal of relaxation of trade test in such cases has not been accepted by MoD/DoPT.
19
A person became eligible for financial up-Gradation under ACPS prior to 31.08.20008, but he was under currency of penalty upto 24.10.2008. whether he may be given the benefit under ACPS w.e.f. 25.10.2008 i.e. after completion of penalty period.
Since ACP scheme was applicable upto 31-08-2008, prima facie he is not eligible for same. Treatment of the period of suspension, if any, after revocation would also be the criteria. However, in case of any doubt, the case details may be forwarded to LAO/PC of A(Fys) for examination.

This issues with the concurrence of PC of a (Fys).

sd/-
(S.K.Singh)
Director/IR
For director General, Ordnance Factories

Source: BPMS

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