Friday, 24 May 2019

Know About How To Filling Your Salary Details In ITR-1 For FY 2018-19

Know About How To Filling Your Salary Details In ITR-1 For FY 2018-19

TR-1 is one of the most widely used forms by the salaried individuals to file their income tax return (ITR). The form is now available on the income tax department’s e-filing website. Therefore, you can easily file your ITR once your employer gives you Form-16 for FY 2018-19.
Not only is ITR-1 different from last year, even Form-16 has undergone changes this year. As per a notification issued by the Central Board of Direct Taxes (CBDT), the new format of Form-16 will have detailed information. This includes detailed break-up of tax-exempt allowances paid to you by your employer and deductions from salary income claimed by you and declared to your employer.
However, unlike last year, you don’t have to collect salary slips as ITR-1 and Form-16 are now synchronised, making it easier to fill in your details.
Here’s everything you need to know about filling your salary details in ITR-1 for FY 2018-19.
This year, ITR1 requires details of salary income to be provided under four sub-heads as follows:
a) Gross salary
b) Allowances to the extent exempt under section 10
c) Net salary (a-b)
d) Deductions under section 16

Once all the data is entered by you under the four sub-heads as mentioned above, the fifth sub-head, i.e., ‘Income chargeable under the head Salaries’, will be automatically calculated. Here is a look at each head in detail.
A) Gross salary
This head is further divided into three components:
(i) Salary as per section 17(1)
(ii) Value of perquisites as per section 17(2)
(iii) Profits in lieu of salary as per section 17(3)

The information required in ITR-1 can be found in Part-B of Form-16.
Part-B of Form-16 starts with the head ‘Gross Salary’. The break-up given under this head, ‘Gross Salary’, is the same as what is asked in ITR-1. You are just required to copy and enter the information in ITR-1.
B) Allowances to the extent exempt under section 10
This head contains information about the partially or fully tax-exempt allowances received from your employer such as house rent allowance (HRA) and leave travel allowance (LTA). In the ITR-1 form, in this section you have to fill information of only those allowances that are fully or partially tax-exempt. This information will be available in Part-B of Form-16 under the head ‘Allowances to the extent exempt under section 10’.
To understand which of the allowances you receive will reflect under ‘Allowances to the extent exempt under section 10’, you need to know if the allowances received by you as per your salary structure are either partially or fully taxable. For example, the dearness allowance (usually received by government employees) is fully taxable. If an allowance is fully taxable, then it will be added to the salary as per section 17(1).
On the other hand, HRA can be fully taxable if you are not living on rent or have not paid any rent. However, if you have paid rent for living in a rented accommodation, then a portion of HRA received by you can be tax-exempt if you meet the conditions specified. Click here to know about the tax-exempt limits of allowances.
This can be explained with an example. Suppose, in FY 2018-19, your employer has paid you Rs 1.2 lakh as HRA. However, out of this you have paid only Rs 96,000 as annual rent to your landlord. Rules governing HRA will determine the tax exempt portion of the total HRA you have received during the year. Let us assume that as per the rules, Rs 72,000 of HRA is tax exempt and Rs 48,000 is the taxable portion.
The sub-head ‘Allowances to the extent exempt under section 10’ in Part B of your Form 16 will show the tax exempt portion of HRA, i.e., Rs 72,000. This figure of Rs 72,000 is required to be copied and entered in the row with the same name in ITR-1 by selecting it from the drop down menu.
The drop down menu has 14 options and an individual is required to select and mention every tax-exempt allowance received as mentioned in Form-16.
C) Net Salary
Once you have entered the details in the above mentioned heads, then the ITR software will automatically calculate your net salary. This amount should match with the net salary mentioned in your Form-16.
D) Deductions under section 16
After net salary is calculated, you have to claim the deductions. Unlike the commonly known deductions such as those under section 80C, section 80D and so on, deductions under section 16 can only be claimed if you have salary income or pension. These deductions are:
a) Standard deduction
b) Entertainment Allowance
c) Tax on employment/professional tax

These deductions will be mentioned in Part-B of your Form-16. Standard deduction of Rs 40,000 will be available to you for FY 2018-19. Deduction on entertainment allowance received is available to government employees only. If you have paid any professional tax to the state government, then the tax amount paid can be claimed as deduction.
E) Income chargeable under the head ‘Salaries’
Once all the details are entered in the above mentioned rows, then the figure corresponding to ‘Income chargeable under the head Salaries’ will automatically be calculated by the ITR software. This auto-calculated figure should match with the amount mentioned in your Form-16.
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Changes In Form 16 For The Financial Year 2018-19

Changes In Form 16 For The Financial Year 2018-19

Form 16 is the annual salary TDS (tax deducted at source ) certificate issued by an employer to employee. It consists of 2 parts, Part A and Part B. Part A contains the employer, employee and employment details such as PAN, address, summary of tax deducted and deposited quarterly, etc. Part B consists of the details of income from salary, allowances exempt and deductions claimed.
The Central Board of Direct Taxes (CBDT) has notified changes to Form 16 for the financial year 2018-19. Part B has been amended to include details about the allowances exempt under section 10 such as house rent allowance, leave travel concession, etc and deductions allowed under Chapter VI-A from section 80C to 80U of the Income Tax Act. The new format of Form 16 is made effective from May 12, 2019. Therefore, employers issuing Form 16 for the financial year 2018-19 will have to issue them in the new format.
Changes To Form 16
Under the new format of Form 16, Part B will contain information about the exempt allowances under section 10 namely, house rent allowance, leave travel concession, leave encashment, gratuity, etc.
Part B will also contain information about the deductions allowed under Chapter VI-A namely, section 80C – payments made towards life insurance premium, tuition fees for children, section 80CCD – contribution to pension scheme, section 80D – medical insurance premium, section 80E – interest paid on loan taken for higher education, section 80G – donations etc.
Impact on ITR filing
ITR-1
Salaried individuals resident in India can file their returns in ITR-1 for total income up to Rs 50 Lakh. Such individuals can report income from salary, one house property, income from other sources and agricultural income up to Rs 5,000 in the ITR-1 form.
The ITR-1 form requires broad details of the components of income from salary i.e., salary, perquisites and profits in lieu of salary. And a complete break-up of allowances exempted under section 10 and deductions under Chapter VI-A as mentioned above.
Taxpayers will be able to get this information from the Form 16 issued under the new format. If you use an online platform to file your ITR, these details can be automatically populated to your ITR, minimising your effort and helping you e-file accurately.
ITR-2
Salaried individuals who are not eligible to file their return in ITR-1 can file their return in ITR-2. Specifically, resident individuals having total income exceeding Rs 50 Lakh, Non-resident individuals and Individuals who are Director in any company or invested in unlisted equities have to file their return in ITR-2.
Salaried individuals who earn income from business or profession are required to file either ITR-3 or ITR-4.
In the filing under ITR-2, taxpayers have to submit complete break-up of the details of various components of salary furnishing the specified amounts falling under salary, perquisites and profits in lieu of salary. This information can be obtained from the annexure to Form 16 provided by an employer. A screen-shot of a typical example of the annexure is provided below:
In addition to the above, the details of allowances and deductions have to be furnished similar to the disclosure required under ITR-1.
Taxpayers have to provide employer-wise details in case of salary received from more than one employer in a financial year.
As discussed here, taxpayers who will receive the new format of Form 16 must ensure their tax filing is accurate for salary-related information as per new ITR forms for the AY 2019-20.
Source: cnbctv18
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Pension of ex-Govt employees to be net of Income Tax

Pension of ex-Govt employees to be net of Income Tax





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Fourth session of IP coaching class at Madurai, TN Circle

Fourth session of IP coaching class at Madurai, TN Circle





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Promotion and Posting of Postal Service (PS), Group 'B' officers to Junior Time Scale (JTS) of Indian Postal Service (IPos) - Dte Order dtd 23.05.2019

Promotion and Posting of Postal Service (PS), Group 'B' officers to Junior Time Scale (JTS) of Indian Postal Service (IPos) - Dte Order dtd 23.05.2019






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Thursday, 23 May 2019

Postal Savings Bank Ready Reference

Postal Savings Bank Ready Reference


Post Office Saving Bank Interest Rate (01.01.2019 to 30.06.2019)
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Government Employee Is Not Entitled To Full Pension/Death Cum-Retirement Gratuity On Or During Pending Disciplinary/Judicial Proceedings – Allahabad High Court

Government Employee Is Not Entitled To Full Pension/Death Cum-Retirement Gratuity On Or During Pending Disciplinary/Judicial Proceedings – Allahabad High Court


The Allahabad High Court has held that a Government servant is not entitled to full pension/death cum-retirement gratuity on/or during pending disciplinary/judicial proceedings against the government servant.
The full bench comprising of Justice Pankaj Mithal, Justice Suneet Kumar and Justice Rohit Ranjan Agarwal observed that the entitlement to full pension /death-cum-retirement gratuity to the government servant is subject to the outcome of the disciplinary/judicial proceedings and issue of final orders thereon by the competent authority. The bench was considering a reference to it on the issue of entitlement of the government servant to receive death cum-retirement gratuity on superannuation or otherwise pending judicial proceedings.
The court upheld a division bench judgment view that the term ‘pension’ would include ‘gratuity’ particularly in Article 351, 351-A of the Civil Service Regulations. Referring to these regulations, the bench observed:
  • Future good conduct is implied condition of ever grant of pension. Full pension is not to be given as a matter of course, or unless the service rendered has been thoroughly satisfactory.
  • Article 351 and/or 351-A can be invoked by the State Government or the Governor, as the case may be, if the pensioner (a) be convicted of serious crime; (b) be guilty of grave misconduct (c) caused pecuniary loss to the government in service. The power can be exercised in either of the eventualities. The action thereunder is punitive.
  • Pendency of disciplinary/judicial proceedings on the date of retirement, or instituted after retirement, provisional pension equal to maximum pension as mandated under Article 919-A may be sanctioned to the government servant for the period upto conclusion of the proceedings.
  • No gratuity is payable to the government servant during pendency of disciplinary/judicial proceedings/enquiry by Administrative Tribunal, until conclusion of the proceedings/enquiry and orders being passed thereon by the competent authority.
  • The Regulations mandates that government servant is entitled to provisional pension equal to maximum pension during pendency of the proceedings until conclusion. The Regulations does not mandate the entitlement of full pension/gratuity on the ground of ‘hardship’ being faced by the pensioner pending proceedings.
  • The nature of the charge/allegations against the government servant cannot be gone into during pendency of the proceedings. The government servant whether guilty of ‘serious crime’ and/or ‘grave misconduct’ in the opinion of the competent authority can be assessed/considered while passing final orders upon conclusion of the disciplinary/judicial proceedings.
  • The impact on pension/gratuity would arise after the competent authority has had the occasion to consider and issue final orders upon conclusion of the proceedings. The cause to the government servant arises thereafter and not at the stage pending proceedings /enquiry.
Source: livelaw
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7th Pay Commission: फिर बनी नरेंद्र मोदी सरकार तो इन कर्मचारियों का होगा ‘बेड़ा पार’? जानना चाहेंगे कैसे

7th Pay Commission: फिर बनी नरेंद्र मोदी सरकार तो इन कर्मचारियों का होगा ‘बेड़ा पार’? जानना चाहेंगे कैसे

7th Pay Commission, 7th CPC Latest News Today 2019: बताया जाता है कि अगर यह फॉर्मुला लागू कर दिया गया तब केंद्रीय कर्मचारियों को बड़ी राहत मिलेगी। जस्टिस एके माथुर ने यह साफ किया था कि सरकार प्राइस इंडेक्स में उपलब्ध डेटा के आधार पर कर्मचारियों की तनख्वाह की समीक्षा करे।
7thcpc-latest-news-hindi

Loksabha Elections 2019 से पहले कहा जा रहा था कि मोदी सरकार केंद्रीय कर्मचारियों को खुशखबरी दे सकती है, पर ऐसा कुछ भी नहीं हुआ।

7th Pay Commission, 7th CPC Latest News Today 2019: सातवें वेतन आयोग की सिफारिशों के तहत केंद्रीय कर्मचारी, प्रधानमंत्री नरेंद्र मोदी के नेतृत्व वाली एनडीए सरकार से उनके कार्यकाल के दौरान न्यूनतम वेतन समेत कई मांगों को लेकर आवाज उठाते रहे। पर उनके हाथ निराशा ही लगी। कयास लगाए जा रहे थे चुनाव के परिणामों से पहले सरकार की तरफ से उन्हें बड़ी खुशखबरी दी जाएगी मगर ऐसा नहीं हुआ। इसी बीच, आम चुनाव के बाद चुनावी एग्जिट पोल्स आए, जिनमें अधिकतर में मोदी सरकार की सत्ता वापसी के संकेत दिए गए। ऐसे में इस बार अगर एनडीए की सरकार बनती है, तब केंद्रीय कर्मचारियों के लिए इसके क्या मायने हैं और उन्हें क्या मिलेगा? क्या न्यूनतम वेतन 18 हजार से 26000 किए जाने की उनकी मांग पूरी की जाएगी?

सूत्रों के हवाले से मीडिया रिपोर्ट्स में कहा गया, “न्यूनतम वेतन नहीं बढ़ाया जाएगा, क्योंकि सरकार संसद में पहले ही स्पष्ट कर चुकी है कि मौजूदा वेतन आयोग का कार्यकाल खत्म हो चुका है।” वहीं, बीजेपी पर अक्सर आरोप लगता रहा है कि उसने केंद्रीय कर्मचारियों की मांगों पर अधिक ध्यान ही नहीं दिया। इससे पहले, 2003 में अटल बिहारी वाजपेयी की सरकार के समय आयोग से जुड़ा पे पैनल लागू करने की कोशिश हुई, पर सरकार तब विफल रही थी। एक साल बाद फिर यानी कि 2004 में भी कुछ वैसे ही प्रयास किए गए, मगर तब भी यह लागू न हो सका था। मांगें पूरी न होने पर केंद्रीय कर्मचारियों की नाराजगी तब और बढ़ गई थी।

यहां तक कि कई बार मांगों को लेकर आवाज बुलंद करने और विरोध प्रदर्शन के बाद भी हालात जस के तस रहे। हालांकि, सरकार कई मौकों पर ऐक्रॉयड फॉर्मुले (Aykroyd Formula) की बात करती दिखी। बताया जाता है कि अगर यह लागू कर दिया गया तब केंद्रीय कर्मचारियों को बड़ी राहत मिलेगी। जस्टिस एके माथुर ने यह साफ किया था कि सरकार प्राइस इंडेक्स में उपलब्ध डेटा के आधार पर कर्मचारियों की तनख्वाह की समीक्षा करे। आयोग ने इसके अलावा सिफारिश की थी कि 10 साल के लंबे इंतजार पर समीक्षा करने के बजाय पे मैट्रिक्स की समय-समय पर समीक्षा की जानी चाहिए। केंद्रीय कर्मचारियों के वेतन की समीक्षा भी ऐक्रॉयड फॉर्मुले के आधार पर करने की बात कही गई थी।
बता दें कि हिमाचल प्रदेश के शिमला में लेबर ब्यूरो ही समय-दर-समय पर सामान और चीजों के बदलते दामों की समीक्षा करता है। यानी केंद्रीय कर्मचारियों को वेतन आयोग के बनने के लिए 10 साल का लंबा इंतजार नहीं करना होगा, जो उनकी तनख्वाह और पेंशन की समीक्षा करेगा। सिफारिश के मुताबिक, वेतन बढ़ोतरी और अन्य संशोधन की प्रक्रिया भी हर साल होगी। हालांकि, सरकार का फैसला किधर और क्या होगा? यह तो स्पष्ट नहीं है, लेकिन अगर सरकार ऐसा करेगी, तब सीधे तौर पर केंद्रीय कर्मचारियों को आने वाले समय में अच्छी खबर जरूर मिलेगी।
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Notional Increment for pensionary benefits on 1st July on retirement on superannuation wef 30th June: CAT, Madras Bench Order in MA/310/00071/2019 (in) (&) OA/310/00170/2019

Notional Increment for pensionary benefits on 1st July on retirement on superannuation wef 30th June: CAT, Madras Bench Order in MA/310/00071/2019 (in) (&) OA/310/00170/2019

Notional Increment for pensionary benefits on 1st July on retirement on superannuation wef 30th June: CAT, Madras Bench Order in MA/310/00071/2019 (in) (&) OA/310/00170/2019
Central Administrative Tribunal
Madras Bench
MA/310/00071/2019 (in) (&) OA/310/00170/2019
Dated 13th March Two Thousand Nineteen
P R E S E N T
Hon'ble Mr. R.Ramanujam, Member(A)
&
Hon'ble Mr.P.Madhavan, Member(J)
1. K.Kandasamy
2. K.Rajarajacholan
3. M.Samathuvam
4. R.Kannan                 .. Applicants
By Advocate M/s.P.Chandrasekaran
  
Vs.
  1. Union of India, rep by the
    Chairman, CBEC,
    North Block,
    New Delhi 110 001.
  2. Union of India, rep by the
  3. Department of Personnel & Training,
    North Block, New Delhi.
  4. The Principal Chief Commissioner of Central Tax,
    121, Mahatma Gandhi Salai,
    Nungambakkam, Chennai 600 034.
  5. The Chief Commissioner of Customs,
    (Preventive),
    No.1, Williams Road, Cantonment,
    Trichy 620 001.
  6. The Commissioner of GST Central Excise,
    No.1, Foulks Compound,
    Anaimedu, Salem 636 001.
  7. The Commissioner of Customs
    Preventive),
    No.1, Williams Road, Cantonment,
     Trichy 620 001.                                     ... Respondents
ORDER
[Pronounced by Hon'ble Mr.P.Madhavan, Member(J)]

MA for joining the applicants together and filing a single application is allowed.
2. The above OA is filed seeking the following relief:-
“To direct the respondents to grant one Notional Increment for the period from 01.7.2016 to 30.6.2017 to the applicants 3 & 4 and 01.7.2017 to 30.6.2018 to the 1st and 2nd applicants as they have completed one full year of service though their increment fell on 01.7.2017 and 01.7.2018 respectively, for the purpose of pensionary benefits.”
3. According to the applicants, they retired from service on 30th June of their respective years of superannuation and since they will be completing an year of service on 1st of July they are entitled to one more increment and it has to be counted for pensionary benefits.

4. The very same question came up before this Bench in OA 1710/2018 & Batch and the claim raised by the applicants therein was rejected on the basis of the law laid down by the Hon'ble Apex Court. The Hon'ble Supreme Court in Chief General Manager v. U.V.George & Others (2008) 14 SCC 699 had laid down the law relating to the retirement of a Central Government employee under FR 56. It was held that a person is considered as retired on his attaining 60 years and they are permitted to continue till 30.6.18 only for the purpose of pay and allowances only. “We are unable to countenance with the decision of the Tribunal and the High Court. As already noticed they were retired w.e.f. 16.12.95 and 03.12.95 respectively, but because of the provision under FR 56(a) they were allowed to retire on the last date of the month, the grace period of which was granted to them for the purpose of pay and allowances only. Legally they were retired on 16.12.95 and 03.12.95 respectively and therefore, by no stretch of imagination can it be held that their pensionary benefits can be reckoned from 1.1.96. The relationship of employer and employee was terminated in the afternoon of 16.12.95 and 3.12.95 respectively.”

5. The same principle was followed by the Hon'ble Madras High Court in A.V.Thiyagarajan vs. The Secretary to Government (W.P.No.20732/2012 dated 27.11.2012) and by Hon'ble Karnataka High Court in Union of India & 3 Others v. YNR Rao (WP 18186/2003). In YNR Rao's case it is observed in Para-5 that -
“5. But for the provisions of FR 56, which provides that a Government Servant shall retire from service on the afternoon of last date of the month in which he had attained the age of 58 years, the respondent, who was born on 9.3.1937 would have retired on 8.3.1995. The provision for retirement from service on the afternoon of the last date of the month in which the Government Servant attains the age of retirement instead of on the actual completion of the age of retirement in FR 56 was introduced in the year 1973-74 for accounting and administrative convenience. What is significant is the proviso to clause (a) of FR 56 which provides that an employee whose date of birth is first of a month, shall retire from service on the afternoon of the last date of the preceding month on attaining the age of 58 years. Therefore, if the date of birth of a government servant is 1.4.1937 he would retire from service not on 30.4.1995, but on 31.3.1995. If a person born on 1.4.1937 shall retire on 31.3.1995, it would be illogical to say a person born on 9.3.1937 would retire with effect from 1.4.1995. That would be the effect, if the decision of the Full Bench of the CAT, Mumbai, is to be accepted. Therefore, a government servant retiring on the afternoon of 31.3.1995 retires on 31.3.1995 and not from 1.4.1995. We hold that the decision of the Full Bench (Mumbai) of the CAT that a government servant retiring on the afternoon of 31st March is to be treated as retiring with effect from the first day of April, that is same as retiring on the forenoon of first of April, is not good law.”
The grace period so given cannot be tagged with his substantive service for counting further increments.

6. Further, Rule 10 of CCS (Pension) Rules does not permit to take into consideration emoluments which fell due after retirement.

7. From the above, it can be seen that an employee legally retires on attaining superannuation (60 years) and as per the decision, the relationship of employer employee is terminated. They continue thereafter as a grace period given to the employee under FR 56. There is no provision to consider this grace period alongwith his service prior to his retirement. So, we are of the view that the applicants had failed to make out a prima facie case. We are bound to follow the law laid down by the Hon'ble Supreme Court and there is no merit in the contentions raised by the applicants.

8. Hence we dismiss the OA accordingly. No costs.
(P.Madhavan)
Member(J)
 (R.Ramanujam)
 Member(A)
13.03.2019
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