Thursday, February 18, 2010

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 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



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

Thursday, February 4, 2010

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:

Wednesday, February 3, 2010

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