Leave Travel Concession -CCS Rules

Leave Travel Concession -CCS Rules

Leave Travel Concession Rules
as per 6th CPC - (w.e.f. 01.09.2008)
1. LTC Rules is allowed all Government servants irrespective of the distance between headquarters and their home town.
2. LTC Rules is allowed Hometown" means the town, village or any other place declared as such by the servant and accepted by the controlling officer.
3. LTC Rules is allowed only to those who have completed one year of service on the date of journey.
4. LTC Rules is allowed for self and family.
5. LTC Rules is allowed only to the family (in the case of an employee under suspension).
6. LTC Rules is allowed to journey to “Home Town” once in a block of two years.
7. LTC Rules is allowed journey to “Any place in India” once in a block of four years.
8. LTC Rules is allowed to expression "any place in India" will cover any place within the territory of India whether it is on the mainland, or overseas.
9. LTC Rules is allowed journey to “Any place in India” in lieu of one journey to Home Town.
10. LTC Rules is allowed availing during all leave periods
(Earn/Casual/S.Casual/Study/Maternity/Paternity).
11. LTC Rules is allowed all journeys to travel by Rail/Road/Air/Ship.
12. LTC Rules is allowed privilege not availed during a block may be availed before end of the next year.
13. LTC Rules is allowed allow family members independently in any number of batches.
14. LTC Rules is allowed traveling to “Any place in India” the employee and or members of the family may travel either to the same place or different places of their choice.
15. LTC Rules is allowed traveling to visit “Any place in India” or can visit his same Home Town also.
16. LTC Rules is allowed in the same two-year block, some members of family can avail Home Town concession while other “Any place in India”.
17. LTC Rules is allowed reimbursement by the entitled class or actually traveled class, whichever is less.
18. LTC Rules is allowed 90 per cent of the anticipated reimbursement amount may be granted as advance.
19. LTC Rules is allowed Grade Pay holders of Rs.2400,2600 and 2800 can go AC-II Tier class by train.
20. LTC Rules is allowed Grade Pay holders of below Rs.2400 can go AC-III Tier / First Class / AC-Chair Car class by train.

Earned Leave Encashment Facility :-
1. Earned Leave up to a maximum of ten days at a time may be enchased, subject to the condition that at least an equivalent duration of Earned Leave.

2. This is limited to a maximum of 60 days during the entire career and the total number of days so enchased will not be included for computing maximum quantum of leave encashable at the time of quitting service.
3. The balance at credit should be but less than 30 days after deducting the total of leave availed plus leave for which encashment was availed.
4. Where both husband and wife are government servants, encashment of leave will continue to be available to both, subject to maximum limit of 60 days.

Block Year :-
1. The LTC to home town is allowed once in a block of two calendar years, such as 2006-2007, 2008-2009 and so on.
2. The LTC to “Any Place in India” is allowed once in a block of four calendar years, such as 2006 - 2009 and so on.

Husband and Wife…
When both the husband and wife are Central Government servants:
1. They can declare separate Home Town independently.
2. They can claim LTC for their respective families, viz,. While the husband can claim for his parents / minor brothers / sisters, the wife can avail for her parents / minor brother / sisters.
3. Either of the parents can claim the concession for the children in a particular block;
4. The husband / wife who avails LTC as a member of the family of the spouse, cannot claim independently for SELF.

Family – definition…
1. The Government servant’s wife or husband and two surviving unmarried children or stepchildren wholly dependent on the Government servant, irrespective of whether they are residing with the Government servant or not.
2. Married daughters divorced, abandoned or separated from their husbands and widowed daughters and are residing with the Government servant and wholly dependent on the Government servant.
3. Parents and / or step-parents (stepfather and stepmother) whole dependent on the Government servant, whether residing with the Government servant or not:
4. Unmarried minor brothers as well as unmarried divorced abandoned, separated from their husbands or widowed sisters residing with and wholly dependent on the Government servant provided their parents are either not alive or are themselves wholly dependent on the Government servant.

Change of Home Town…
“The hometown once declared and accepted by the controlling officer shall be treated as final. In exceptional circumstances, the Head of the Department or if the Government servant himself is the Head of the Department, the Administrative Ministry, may authorise a change in such declaration provided that such a change shall not be made more than once during the service of a Government servant.”

The CCS Rule allow an employee to change the Permanent Address given in their Service Records for once in their service.

The employee can apply for this through their respective Head of Section enclosing the relationship and residential proof of the new address.
Care to be taken before applying for the change of address as this facility will be available only once in their service. After changing the Permanent Address the employee is eligible to apply for Home Town LTC.
Those employees who are residing on the outskirts of their work place, automatically they are ineligible for LTC HomeTown. For the benefit of these employees, a male employee can give the address of his wife’s native place or opposite, after the marriage of son or daughter, their residing place like that…
But the respective Head of Section has the right to turndown the application.

A Note on Salient features of C.G./ Employees and Pensioners health Insurance Scheme. The full text in the scheme is available in the official website of the Ministry of Health, accessible onhttp://www.mohfw.nic.in/RFP%20For%20CGEPHIS.pdf

Regulation of journeys by private airlines while availing Leave Travel Concession

Regulation of journeys by private airlines while availing Leave Travel Concession

NO.31011/2/2006-Esst.(A)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
***************

Dated the 11th March, 2010

Subject:- Regulation of journeys by private airlines while availing Leave Travel Concession

The undersigned is directed to refer to Department of Expenditure O.M.No 19024/1/2009-E.IV dated 13/7/2009 and thisDepartment's O.M. No. 31011/2/2006-Esst-(A) dated 27.7.2009 regarding journey by air while availing Leave Travel Concession (LTC), stipulating that in all cases of air travel (including LTC) both domestic and international where the Government of Indiabears the cost of air passage, the official concerned may travel by Air India only.

2. It is clarified that restriction of travel by Air India only need not apply to non-entitled officers who travel by air and claim LTC reimbursement by entitled class of rail.

3. The above orders will be applicable with effect from the date of issue of this Office Memorandum. Past cases already settled will not be re-opened.

4. This issues in consultation with Ministry of Finance (Department of Expenditure) vide their I.D. No. 19024/1/2009-E.IV dated 9.3.2010.

(P.Prabhakaran)
Deputy Secretary to the Government of India

Clarification regarding deduction in respect of contribution to pension scheme under Section 80 CCD

Clarification regarding deduction in respect of contribution to pension scheme under Section 80 CCD

F.No. 275/192/2009-IT (B)

New Delhi Dated the 9th February, 2010.

Sub: Clarification regarding deduction in respect of contribution to pension scheme under Section 80 CCD – matter reg.

A number of representations have been received regarding deduction under Section 80 CCD for contribution made under pension scheme in the light of Circular No-1 /2010 dated 11th Jan’2010 issued on the subject of Deduction of Tax at Source etc. It is clarified that in accordance with the provisions of Section 80 CCD, deduction in respect of contribution made by an individual in the previous year to his account under a pension scheme notified, is allowed in computation of his total income –

(a) in the case of an employee, ten per cent of his salary in the previous year; and (b) in any other case, ten per cent of his gross total income in the previous year.

2. It is further clarified that where the Central Government or any other employer makes any contribution to the account of employee for the pension scheme, the assessee shall also be allowed a deduction in the computation of his total income of the whole of the amount contributed by the Central Govt. or any other employer as does not exceed 10% of his salary in the previous year.

3. Salary for the purpose of above section (80 CCD) includes dearness allowance if the terms of employment so provide, but excludes all other allowances and perquisites.

4. It is further clarified that aggregate limit of deduction under this section (80 CCD) along with Sections 80 C, 80 CCC shall not in any case exceed Rs.one lakh.

Yours faithfully,

(Ansuman Pattnaik)
Director (Budget)

Government introduce a new Medical Scheme for Central Government Employees and Pensioners

Government introduce a new Medical Scheme for Central Government Employees and Pensioners

Government introduce a new Medical Scheme for Central Government Employees and Pensioners as in the name of CentralGovernment Employees and Pensioners Health Insurance Scheme (CGEPHIS). In all over India, pensioners are getting meager amount of Rs.100 as Medical Allowance (except CGHS beneficiaries). It is estimated that approximately 17 lakh servingemployees and 7 lakh pensioners shall be offered this Scheme and Government plan to enroll all serving employees andpensioners on compulsory / optional basis.

Some key points regarding the scheme:-

CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS HEALTH INSURANCE SCHEME (CGEPHIS)

BENEFICIARIES:
CGEPHIS shall be compulsory to new Central Government Employees who would be joining service after the introduction of theHealth Insurance Scheme.

CGEPHIS shall be compulsory to new Central Government retirees who would be retiring from the service after the introduction of the Insurance Scheme.

CGEPHIS would be available on voluntary basis for the following:
Existing Central Government Employees and Pensioners who are already CGHS beneficiaries. In this case they have to opt out of CGHS scheme. They will also have the option of choosing both CGHS and Insurance policy. In such case the total insurance premium has to be borne by the member.

Existing Central Government Employees and Pensioners who are not CGHS beneficiaries but are covered under CS (MA)

INSURANCE COVERAGE:
In-patient benefits – The Insurance Scheme shall pay all expenses incurred in course of medical treatment availed of by thebeneficiaries in an Empanelled Hospitals/ Nursing Homes (24 hours admission clause) within the country, arising out of either illness/disease/injury and or sickness.

NOTE: In case of organ transplant, the expenses incurred for the Donor are also payable under the scheme.

Pre & Post hospitalization benefit: Benefit up to 30 days Pre Hospitalization & up to 60 days Post Hospitalization respectively which would cover all expenses related to treatment of the sickness for which hospitalization was done.

FAMILY SIZE:
Serving/Retired Employees: Self, Spouse, Two dependent children and up to Two Dependent Parents. New born shall be considered insured from day one till the expiry of the current policy irrespective of the number of members covered subject to eligibility under maternity benefit.

Any additional dependent member in addition to above [Sr. No. 5 (1)] can be covered under the Scheme by paying the fixed amount of premium. This additional full premium shall be borne by the beneficiary.

IDENTIFICATION OF FAMILY:
Beneficiaries shall be identified by a “Photo Smart Card” issued by the insurer to all beneficiaries which would have all personal details, medical history, policy limits etc. of the CGEPHIS members. This card would be used across the country to access Health Insurance Benefits. The photograph embedded in the chip of the Smart Card will be taken as the proof for determining the eligibility of the beneficiaries.

SUM INSURED AND BUFFER / CORPORATE SUM INSURED
SUM INSURED:
The Scheme shall provide coverage for meeting all expenses relating to hospitalization of beneficiary members up to Rs. 5, 00,000/- per family per year in any of the Empanelled Hospital/Nursing Home/Day Care Unit subject to stated limits on cashless basis through smart cards. The benefit shall be available to each and every member of the family on floater basis i.e. the total reimbursement of Rs. 5.00 lakh can be availed by one individual or collectively by all members of the family.

Entitlements for various types of wards: CGHS beneficiaries are entitled to facilities of private, semi-private or general ward depending on their pay drawn in pay band / pension. These entitlements are amended from time to time and the latest order in this regards needs to be followed. The entitlement is as follows:-

Pay drawn in pay band/Basic Pension - Entitlement
Rs. 13,950/-(up to)……………………………… General Ward
Rs. 13,960/- to 19,530/- …………………… Semi-Private Ward
Rs. 19,540/- and above ……………………… Private Ward

CASHLESS ACCESS SERVICE:
The Insurer has to ensure that all CGEPHIS members are provided with adequate facilities so that they do not have to pay any deposits at the commencement of the treatment or at the end of treatment to the extent as the Services are covered underthe Scheme. The service provided by the Insurer along with subject to responsibilities of the Insurer as detailed in this clause is collectively referred to as the “Cashless Access Service.”

The services have to be provided by the Empanelled Hospitals/Nursing Homes/Day Care Clinics to the beneficiary based on Photo Smart Card authentication only without any delay. The beneficiaries shall be provided treatment free of cost for all such ailments covered under the Scheme within the limits/sub-limits of defined package rates and sum insured, i.e., not specifically excluded under the scheme.
ENROLMENT PROCESS
The process of enrolment shall be as under:
Serving Employees:
1. Departments and offices will call for options from employees to join voluntary CGEPHIS with or without existing CGHS/CS (MA) benefits.

2. Head of Department of the Administrative Ministry/Department would be the contact point for the Insurance Companies.

3. Enrolment forms giving details about self and family and authorization to the department for recovery of premium on a monthly basis would be consolidated by the Administrative Ministry / Department. The data of the beneficiary and dependent members to be covered along with 2 recent passport size photo and copy of enrolment form will be forwarded to Insurance Company on monthly basis.

4. Insurance Company will issue Smart Cards on the basis of information received of the beneficiaries for enrolment.

5. Such Smart Cards along with the enrollment kit shall be sent by the insurers directly to the insured persons at their respective mailing addresses at insurer’s cost within 7 days.

Insurance Premium:-
The beneficiary will have to pay an annual premium which will be determined after the formal introduction of the Scheme. It will vary according to the grade pay of the officer. The estimated annual premium for a standard family size will be in the range of Rs.8000 to Rs.12000 p.a. It is however proposed to be subsidized by the Government to a considerable extent.

CAT clears air on promotion benefits

CAT clears air on promotion benefits

If an employee, fulfiling the eligibility criteria for promotion to a particular post, works for a reasonable period on that post against a vacancy,, the government cannot deny him/her the actual promotion and accompanying financial benefits, the Central Administrative Tribunal (CAT) has held.

A Central Administrative Tribunal (CAT) bench headed by Chairman Justice V.K. Bali held that in such a situation, it would be arbitrary to deny salary and other benefits of the promoted post to the employee.

The bench ordered the Delhi Government to re-fix the salary and retirement benefits of six retired school teachers, who had been given notional promotion to the post of principal, albeit without any accruing financial benefits.

Rejecting the Delhi Government’s arguments that all promotions had to be prospective and retired employees had no right to actual promotion, the CAT allowed the petition filed by Gaurishankar Sharma, Budh Prakash Tyagi, Raj Kumar Uppal, Prabhu Dayal, Jagdish Prasad Sharma and Chintamani Mathur.

It directed the Delhi Government to fix the correct salary of the petitioners, from the dates each of them had been promoted notionally to principal and to fix par arrears of salary for the period they were in service.

The CAT also ordered payment of revised retirement benefits, with six per cent interest on arrears within four months. The petitioners had served as heads of schools over several years.

But the Departmental Promotion Committee (DPC), held after their retirement, recommended only notional promotion for them and accordingly, the government did not give them any financial benefit of promotion.

Aggrieved by the decision, they moved the CAT, seeking benefit of the pay scale of principal, from the date they were assumed charge of the post, plus the arrears of pay and allowances after proper pay fixation, with retrospective effect. They also demanded revision of their retirement benefits.

The government contended the DPC could not be convened due to procedural reasons while they were in service and making them principals was only a stopgap arrangement. It said petitioners were not eligible for revision of retirement benefits and back wages because their promotion was only notional.

But citing the Supreme Court’s rulings on the issue, the CAT rejected these arguments.

“By virtue of the fact that the Applicants have actually worked on the post of principal, they would …be eligible for payment of back wages also, besides salary for the post of principal, from the date they have been notionally promoted to that post,” it said.
Source: Hindustan Times

CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS HEALTH INSURANCE SCHEME (CGEPHIS)

CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS HEALTH INSURANCE SCHEME (CGEPHIS)

Government of India
Ministry of Health & Family welfare
Department of Health & Family welfare
Nirman Bhavan, New Delhi
DEMAND SURVERY

CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS HEALTH INSURANCE SCHEME (CGEPHIS)

OBJECT OF DEMAND SURVEY – Government of India is contemplating introduction of a Health Insurance Scheme for Central Government Employees and Pensioners and their dependent family members all over India. Ministry of Health & Family Welfare intends to assess the demand for the above Scheme from the prospective beneficiaries through this survey for taking further steps in this direction.

WHO CAN JOIN THE SCHEME – All the personnel of the Central Government including All India Service officers, serving and retired, and others who are covered under the existing CGHS (Central Government Health Scheme) and under CS(MA)Rules [Central services (Medical Attendance) Rules] Can join the Scheme. The Scheme is proposed to be implemented on voluntary basis for existing employees and pensioners and compulsorily for future employees and pensioners.

INSURANCE COVERAGE – The scheme shall provide coverage for meeting expenses of hospitalization and surgical procedures for beneficiary members up to Rs.5.00 lakh per family per year subject to limits, in any of the network hospitals. The benefit to the family will be on floater basis i.e. the total reimbursement of Rs.5.00 lakh can be availed of individually or collectively by members of the family.

Coverage of Pre-existing diseases: All diseases under the proposed scheme shall be covered from day one.

INSURANCE PREMIUM – The beneficiary will have to pay an annual premium which will be determined after the formal introduction of the Scheme. It will vary according to the grade pay of the officer. The estimated annual premium for a standard family size will be in the range of Rs.8,000 to Rs.12,000 p.a. It is however proposed to be subsidized by the Government to a considerable extent. The amount of premium shall be decided by the transparent process of bidding amongst the Insurance companies participating in the Scheme. In case of serving employees, the premium would be deducted by the Drawing & Disbursing Officer. In the case of pensioners, they would be required to authorize the Band branch from which they are drawing their pension, to deduct the insurance premium.

FAMILY SIZE
a) In case of serving employees, self, spouse, two dependent children and dependent parents would be covered. New born will be covered as a part of insured family member during the currency of the policy.

b) In case of retired employees, self, spouse, two dependent children and dependent parents would be covered.

NOTE:
1. Additional dependent family member can be covered under the scheme by paying an additional premium per additional family member. The premium shall be borne by the beneficiary and there would be no govt. subsidy for the same.

2. The definition of dependent shall be as per guidelines issued by Central Government from time to time.

Serving Central Government employees and Central Government pensioners, if interested in becoming a member of the proposed insurance scheme may send their details as per the format given below, to the Additional Director / Joint Director in the following cities nearest to his place, where CGHS is presently functioning, not later than 15th Feb. 2010.

Ahmedabad - Guwahati - Mumbai
Allahabad - Hyderabad - Nagpur
Bangalore - Jaipur - Patna
Bhubaneshwar - Jabalpur - Pune
Bhopal - Jammu - Ranchi
Chandigarh - Kanpur - Shillong
Chennai - Kolkata - Trivandraum
Delhi - Lucknow - Jammu
Dehradun - Meerut
Alternatively they can also send their details at the following address:

V.P.Singh
Deputy Secretary
Ministry of Health & Family Welfare
Room No.529-A, Nirman Bhawan
New Delhi-110 108
E mail : vijay.singh62@nic.in
FORMAT OF DEMAND SURVEY FOR THE CENTRAL GOVERNMENT EMPLOYEES AND PENSIONERS HEALTH INSURANCE SCHEME (CGEPHIS)

1. Name :
2. Designation :
3. Office Address :
4. Mailing Address :
5. e-mail id (if available) :
6. Date of Birth :
7. Age as on 01.01.2010 :
8. Date of Retirement :
(for pensioners)
9. Whether CGHS beneficiary :
(Yes / No)
10. Nearest CGHS location :
11. Family size :
(Details including gender & age)

I am interested in joining the Health Insurance Scheme as and when it becomes operational.

Date:
Place:
Signature:

Posting of husband and wife at the same station

Posting of husband and wife at the same station

F.NO.28034/9/2009-Estt.(A)
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training)

North Block,New Delhi,
Dated the 30th September, 2009.

OFFICE MEMORANDUM

Subject: Posting of husband and wife at the same station.

*******

In view of the utmost importance attached to the enhancement of women's status in all walks of life and to enable them to lead a normal family life as also to ensure the education and welfare of the ·children, guidelines were issued by DOP&T in O.M No. 28034/7/86-Estt.(A) dated 3.4.86 and No.28034/2/97-Estt.(A) dated 12.6.97 for posting of husband and wife who are inGovernment service, at the same station. Department had on 23.8.2004 issued instructions to all Mins.lDeptts. to follow the above guidelines in letter and spirit.

2. In the context of the need to make concerted efforts to increase representation of women in Central Government jobs, these guidelines have been reviewed to see whether the instructions could be made mandatory. It has been decided that when both spouses are in same Central Service or working in same Deptt. and if posts are available, they may mandatorily be posted at the same station. It is also necessary to make the provisions at Paras 3(iv) and (vi) of the a.M. dated 3.4.86 stronger as it is not always necessary that the service to which the spouse with longer service belongs has adequate number of posts and posting to the nearest station by either of the Department may become necessary.

3. On the basis of the 6th CPC Report, Govt. servants have already been allowed the facility of Child Care Leave which is admissible till the children attain 18 years of age. On similar lines, provisions of a.M. dated 12.6.97 have been amended.

4. The onsolidated guidelines will now be as follows:

(i) Where the spouses belong to the same All India Service or two of the All India Services, namely lAS, IPS and Indian Forest Service (Group 'A'); The spouse may be transferred to the same cadre by providing for a cadre transfer of one spouse to the Cadre of the other spouse, on the request of the member of service subject to the member of service not being posted under this process to his/her home cadre. Postings within the Cadre will, of course, fall within the purview of the State Govt.

(ii) Where one spouse belongs to one of the All India Services and the other spouse belongs' to one of the Central Services:- The cadre controlling authority of the Central Service may post the officer to the station or if there is no post in that station, to the State where the other spouse belonging to the All India service is posted.

(iii) Where the spouses belong to the same Central Service:

The Cadre controlling authority may post the spouses to the same station. (iv) Where the spouse belongs to one Central Service and the other spouse belongs to another Central Service:-

The spouse with the longer service at a station may apply to his/her appropriate cadre controlling authority and the said authority may post the said officer to the station or if there is no post in that station to the nearest station where the post exists. In case that authority, after consideration of the request, is not in a position to accede to the request, on the basis of non-availability of vacant post, the spouse with lesser service may apply to the appropriate cadre authority accordingly, and that authority will consider such requests for posting the said officer to the station or if there is no post in that station to the nearest station where the post exists.

(v) Where one spouse belongs to an All India Service and the other spouse belongs to a Public Sector Undertaking:

The spouse employed under the Public Sector Undertaking may apply to the competent authority and said authority may post the said officer to the station, or if there is no post under the PSU in that station, to the State where the other spouse is posted.

(vi) Where one spouse belongs to a Central Service and the other spouse belongs to a PSU:-

The spouse employed under the PSU 'may apply to the competent authority and the said authority may post the officer to the station or if there is no post under the PSU in that station, to the station nearest to the station where the other spouse is posted. If, however, the request cannot be granted because the PSU has no post in the said station, then the spouse belonging to the Central Service may apply to the appropriate cadre controlling authority and the said authority may post the said officer to the station or if there is no post in that station, to the station nearest to the station where the spouse employed under PSU is posted.

(vii) Where one spouse is employed under the Central Govt. and the other spouse is employed under the state Govt.:-

The spouse employed under the Central Govt. may apply to the competent authority and the competent authority may post the said officer to the station or if there is no post in that station to the State where the other spouse is posted.

(viii) "The husband

& wife, if working in the same Department and if the required level of post is available, should invariably be posted together in order to enable them to lead a normal family life and look after the welfare of their children especially till the children attain 18 years of age. This will not apply on appointment under the central Staffing Scheme. Where only wife is a Govt. servant, the above concessions would be applicable to the Govt. servant.

5. Complaints are sometimes received that even if posts are available in the station of posting of the spouse, the administrative authorities do not accommodate the employees citing administrative reasons. In all such cases, the cadre controlling authority should strive to post the employee at the station of the spouse and in case of inability to do so, specific reasons, therefor, may be communicated to the employee.

6. Although, normal channels of representations/complaints redressal mechanism exist in the Min.lDeptts., added safeguards to prevent noncompliance may be provided by ensuring that the complaints against nonadherence to the instructions are be decided by the authorities at least one level above the authorities which took the original decision when they are below the level of secretary to the Govt. of India/Head of the PSU concerned and all such representations are considered and disposed off in time bound manner.

7. Hindi version will follow.

(C.B.Paliwal)
Joint Secretary to the Govt. of India

Submission of Immovable Property Return for the year 2009

No.22/5/2009-CS.I(PR)

Government of India

Ministry of Personnel, Public Grievances and Pensions

Department of Personnel & Training

II Floor Lok Nayak Bhavan, New Delhi
Dated the 28th January, 2010

OFFICE MEMORANDUM

Subject:-Submission of Immovable Property Return for the year 2009 (as on 01.01.2010) - regarding.

The undersigned is directed to say refer to the subject noted above and to say that Immovable Property Returns for the year 2009 (as on 1.1.2010) are required to be submitted by all the Group 'A' & Group 'B'(Gazetted/Non-Gaz.) officers in the prescribed proforma latest by 31st of January, 2010. All the Group 'A' CSS officers are requested to send a copy the IP Return which they would be submitting to their respective cadre/sub-cadre administration, to the CS-I Dvision also for our records.

(A.K.Cashyap)
Under Secretary to the Government of lndia

Some facts regarding calculation of income from house property:-

Question:- Can I get both, exemption of HRA as well as deduction in respect of home loan?I have purchased a residential house, while I continue to stay in a rented place in my current city of residence. I have no plans to move to the new house. I pay interest on the loan taken to purchase the new property, which I understand-is deductible for income tax. Can I claim exemption of HRA received as well asdeduction of interest payable on the home loan?

Reply:- Contrary to popular opinion, there is no restriction under the I-Tax Act with respect to claims for both.A number of salaried consumers take a home loan to acquire a residential property, but do not stay in that property for various reasons. They stay in rented premises for which they pay rent. If they are receiving a house rent allowance from their employer, a questionfrequently arises-whether they can claim exemption of their HRA based on the rent actually paid by them, as well as the interest payable on the loan taken to acquire the ownedproperty.This is such a widespread question that it rightly justifies an elaborate reply of this kind. If some portions of the reply are difficult to understand, don't worry. The technical portion of the reply really needs to be understood by your HR Department so that they can give you the benefit while calculating the amount of tax deductible at source from your salary. You can also get this benefit while paying the advance tax on your business income.To answer this question, we need to look at the relevant part of the I-Tax Act and the rules.The exemption of HRA is covered under Section 10 (13A). Simply speaking, the only conditions for allowing theexemption of HRA are:Rent must actually be paid by the assessee (legal term for the person whose tax liability is being worked out) for the rented premises which he occupiesThe rented premises must not be owned by him.As long as the rented premises are not owned by the assessee, the exemption of HRA will be available up to the limits specified in the relevant rules. There is no mention here about any effect on the exemption because of ownership of any other property.Let us now turn to the deduction of interest payable on a home loan. Contrary to popular perception, the interest is not a straight deduction allowed from the salary income. The deduction is actually allowed while calculating theincome from house property; although the effect (as we will see below), in the case of self occupied property, is the same as allowing it as direct deduction from salary income.The relevant sections are Section 22 to Section 27. Again putting it very simply, the calculation of income from house property is done as under:Rental income (net of municipal taxes) = Annual ValueALess : 30% of A as a standard deductionSLess: interest payable on any loan taken for acquisition or construction of this propertyI

Income from House property A-S-IH
1) The point that we must remember is that income can also be negative or in other words, include a calculation of loss.

2) In the case of self-occupied property, the annual value \"A\" is taken as \"nil\" (therefore S automatically becomes nil as 30% of 0 is 0) and I is restricted to a maximum of Rs.1, 50, 000. Therefore, in the case of self occupied property; the result of calculation of \"income from house property or H will always be a loss to the extent of the interest payable on the home loan or Rs.1, 50, 000 (whichever is lower).

3) Where the property is given on rent, the annual value will be calculated based on the rental and the final income(or loss) from house property will be calculated as given above. Please note that in such a case, there is no restriction on the maximum amount of deduction available in respect of I.4) Where the property is lying vacant and is neither rented out nor self-occupied, the rental that could have been derived (had it been rented out) has to be taken as the rental income in respect of such property and the calculation has to be done as in point 3 above. Off course, the calculation of such a notional value has several practical difficulties. If similar property in the neighborhood has been given out on rent, which can serve as a good basis to calculate this figure. There are also a large number of case laws which have gone into the method of calculation of such notional value. You may need expert taxation advice to calculate this figure.

5) \"Income from house property\" is either taxed (if it is positive) or if it is a loss, it is allowed to be setoff against the income from other heads including salary (and hence the popular misconception that interest on home loans is allowed as a deduction from salary income as the impact, in the case of self occupied properties, is the same as a direct deduction of the interest from salary income).
6) There is nothing in the section that affects the exemption of HRA at all. Also, there are no conditions that restrict the availability of deduction of interest based on the assessee's stay in any other premises.7) At most, some people might point to Section 23 (2) which is relevant for the purpose of allowing the annual value of a self-occupied property to be taken as nil as discussed in point 2 above. Let us examine these objections in some detail. If the discussion from here on is too technical, do not worry. There is no need for you to understand it in detail.8) There are two circumstances under which the annual value of a self-occupied/vacant property is treated as nil.Firstly, where the owned property is located in a city different from where the assessee works and because of this he is unable to occupy the owned premises and stays in a rented premises in the city in which he works-he will be able to take the annual value of such a owned property as nil even though, the owned property is not occupied by him for self residence.Secondly, where the property is located in the same city as the rented premises-but is in his occupation and used for the purposes of his own residence. The question that arises is, how can the assessee claim to occupy the ownedproperty for self residence; when he is also staying in the rented premises? In fact, Section 23(4) clearly recognizes the fact that more than one house property can be occupied and used by the assessee at the same time for the purposes of his own residence.The next question is what constitutes the occupation of the owner for the purposes of his own residence? The only direct judgment on the issue, of what constitutes occupation of the owner for the purposes of his own residence; is by the Allahabad High Court in the case of CIT vs. Rani Kaniz Abid reported in [1972] Tax LR 587. The facts and decision were as follows:The assessee owned a house in Karachi. The assessee was not residing in that property but she used to go there occasionally. The property was occupied by her married daughter and son-in-law, who were residing in Karachi. Even though the property was in actual occupation of her daughter and son-in-law, the evidence on record disclosed that she had retained the property for her personal occupation and she occasionally went and resided therein. This the Tribunal found on the basis of an endorsement made in her passports in the relevant years. It was, therefore, clear from the facts brought on record that the assessee visited Karachi at intervals and resided in the propertyalong with her daughter and son-in-law. The court, therefore, came to the conclusion that she retained the house for her occupation while permitting her daughter and son-in-law to reside therein. In the background of these facts, the court came to the conclusion that she was entitled to the benefit under Section 23(2) of the I-T Act.From this judgment, one can conclude that as long as you retain the right to occupy the owned premises and go and reside there occasionally (say on weekends or during vacations - also means the property is in a habitable condition) and can show some proof for that (electricity bills showing consumption in line with your stay period, letters received at that address during that period, bills for items bought by you from neighborhood shops/hotels during the stay, copies of telephone bills showing (STD) calls made from a fixed line phone from that premises during the period of stay, etc.); you should not face any difficulties in treating the annual value of such properties as nil.9) If the property is in the same city and has not been occupied by you at all, then there is an additional burden. In respect of such a property, you will need to do the calculation of income from house property based on a notional rent that would have been derived if you had actually rented out the owned premises and calculate the Income (or loss) from house property accordingly. See point 4 above. In this case also there is no restriction on the deductibility of the interest on home loan.10) If the property is rented out, there is no issue at all. The income (or loss as the case maybe) from house property will be calculated as given above.In all cases, the deductibility of interest paid on the home loan is not under doubt. Only the annual value could be different, based on where your case falls.11. The principal amount repaid on all loans taken from specified entities such as banks/employer companies, to acquire/construct residential house property(ies) is allowed as a deduction under Section 80C; up to the overall limit of Rs. 1,00,000-mentioned in that section. This is not at all affected by the exemption of HRA in any manner.The entire discussion can be summarized as follows:
Status of owned property(1)Owned property located in(2)Deduction available for interest payable on loan taken to acquire/ construct the property(3)Annual value taken as(4)Other deductions available(5)Income / Loss from house property will be equal to(6)1Given out on rentDoes not matterYes, without any limitActual rent received less municipal taxes30% of the annual value(4)-(5)- (3)2Used for occasional self occup- ation by self (also means that the property is in habitable condition )or lying vacant or unused maybe, not in habitable conditionAnother city, different from the city in which you workYes, up to a maximum of Rs. 1,50,000NIL30% of NIL is NILAlways loss equiv- alent to lower of (3) or Rs. 1,50,0003Used for occasional self occup- ation by self (also means that the property is in habitable condition )Same City in which you workYes, up to a maximum of Rs. 1,50,000NIL(see point no. 8 above your HR department may need the case law cited above)30% of NIL is NILAlways loss equiv- alent to lower of (3) or Rs. 1,50,0004Lying vacant and unused maybe not in habitable conditionSame city in which you workYes, without any limitNotional rent that you could have derived, had you rented out the property less municipal taxes30% of annual value(4)-(5)- (3)

Tax deduction HRA received by employee:-


Employees generally receive a house rent allowance (HRA) from their employers. This is a part of the salary package, in accordance with the terms and conditions of employment.

HRA is given to meet the cost of a rented house taken by the employee for his stay.

The Income Tax Act allows for deduction in respect of the HRA paid to employees. The exemption on HRA is covered under Section 10(13A) of the Income Tax Act and Rule 2A of the Income Tax Rules. It is to be noted that the entire HRA is not deductible.

HRA is an allowance and is subject to income tax. An employee can claim exemption on his HRA under the Income Tax Act if he stays in a rented house and is in receipt of HRA from his employer.

In order to claim the deduction, an employee must actually pay rent for the house which he occupies . The rented premises must not be owned by him. In case one stays in an own house, nothing is deductible and the entire amount of HRA received is subject to tax.

As long as the rented house is not owned by the assessee, the exemption of HRA will be available up to the limits specified in the relevant rules.

According to the Income Tax Act, the amount of HRA exempt is the least of: The actual amount of allowance received by the assessee in the relevant period during which the rented accommodation is occupied by him.

The amount by which the rent expenditure actually incurred by the assessee exceeds one-tenth of the amount of salary due to the assessee in the relevant period 40 percent of the salary due to the assessee in the relevant period.

To compute the amount salary means basic salary. It also includes dearness allowance if the terms of employment provide for it, and commission based on a fixed percentage of turnover achieved by the employee. The deduction will be available only for the period during which the rented house is occupied by the employee and not for any period after that.

Here is an illustration for the year 2009-10 .

Assume an assessee gets a salary of Rs 5 lakhs as basic salary and Rs 2.5 lakhs as HRA. He pays an actual rent of Rs 1.5 lakhs. In such a case, the amount of HRA exempt would be calculated as:

Actual HRA received - Rs 2.5 lakhs Excess of rent paid over 10 percent of salary i.e., Rs 1.5 lakhs less Rs 50,000 (10 percent of salary) - Rs 1 lakh 40 percent of salary (40 percent of Rs 5 lakhs) - Rs 2 lakhs As out of these Rs 1 lakh is the least, it will be allowable as a deduction from salary for the year. The balance HRA of Rs 1.5 lakhs will be subject to tax.

The deduction is allowable only for the period during which the rented accommodation is taken by the employee.
Source:The Economic Times

Disclosure of 'file noting' under the Right to Information Act

No.1/20/2009-IR

Government of India

Ministry of Personnel, Public Grievances & Pensions

Department of Personnel & Training

North Block, New Delhi

Dated: the 23rd June, 2009

Subject: Disclosure of 'file noting' under the Right to Information Act

The undersigned is directed to say that various Ministries/Departments etc. have been seeking clarification about disclosure of file noting under the Right to Information Act, 2005. It is hereby clarified that file noting can be disclosed except file noting containing information exempt from disclosure under section 8 of the Act.

Yours faithfully,

(K.G. Verma)

Director

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