Friday, February 14, 2014

Bonus/Mutual Fund/ Dividend: Additional income-tax on distributed Income under section 115R of the Income-tax Act

Bonus/Mutual Fund/ Dividend: Additional income-tax on distributed Income under section 115R of the Income-tax Act

Clarification regarding scope of additional income-tax on distributed Income under section 115R of the Income-tax Act -regarding.

Circular No. 6 /2014
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes

North Block, New Delhi
Dated the 11th of February, 2014.

Subject: - Clarification regarding scope of additional income-tax on distributed Income under section 115R of the Income-tax Act -regarding.

Section 115R of the Income-tax Act, 1961 ('Act') provides for levy of additional income-tax on distributed income to unit holders (hereinafter referred to as 'additional income-tax').

2. It has been reported that some field authorities are taking a view that mutual funds/specified companies are required to pay additional income tax under sub-section (2) to section 115R of he Act not only on income distributed by way of dividend but also on payments made at the time of redemption/repurchase of units as well as at the time of allotment of bonus units to existing investors.

3. The matter has been examined by the Board. Section 115R is placed under Chapter XII-E of the Act, which is titled as "SPECIFIC PROVISIONS RELATING TO TAX ON DISTRIBUTED INCOME" and prescribes special provisions for taxing 'distributed income', which is not taxed under any other provisions of the Act.


4. Sub-section (2) of section 115R of the Act provides that any amount of income distributed by (i) a specified company, or (ii) a mutual fund to its unit holders shall be chargeable to tax and such entities shall be liable to pay additional income tax on such distributed income at the rates prescribed therein. The income so distributed by such entities is the dividend paid to the unit holders and is liable to tax under this section. However, redemption of units or repurchase of milks would not attract levy of tax under sub-section (2) to section 115R of the Act as such income is not of the nature of income ''distributed" to the unit holders and hence lies outside the purview of this section.

5. Further, the income so distributed by the mutual fund or specified company in the hands of the recipient unit holder is specifically exempt from tax under section 10(35) of the Act. Proviso to section 10(35) of the Act stipulates that exemption of income under this section is not applicable to those cases where transfer of units takes place. The recipient of such income is liable to pay capital gains tax, if applicable, on transfer of such units as per relevant provisions of the Act and shall not be subject to additional income tax under section 115R of the Act.

6. Similarly, bonus units at the time of issue would not be subjected to additional income tax under section 115R of the Act since issue of bonus units is not akin to distribution of income by way of dividend. This may be inferred from provisions of section 55 of the Act which prescribes that 'cost of acquisition' of bonus units shall be treated as nil for purposes of computation of capital gains tax.

7. In view of above position, Central Board of Direct Taxes, in exercise of its powers under section 119 of the Act hereby clarifies that additional income-tax under sub-section (2) of section 115R of the Act is to be levied on income distributed by way of dividend to unit-holders of mutual funds or specified companies and receipts from redemption/repurchase of units or allotment of additional units by way of bonus units would not be subjected to levy of additional income tax under that section.

8. This may be brought to the notice of all concerned.

9. Hindi version to follow.

sd/-
(Rohit Garg)
Deputy Secretary to the Government of India


Source: http://law.incometaxindia.gov.in/DIT/Circulars.aspx

"BHAVISHYA" Pension Sanction and Payment Tracking System Launched on Pilot Basis

"BHAVISHYA" Pension Sanction and Payment Tracking System Launched on Pilot Basis

 Press Information Bureau
Government of India
Ministry of Personnel, Public Grievances & Pensions
14-February-2014
 Pension Sanction and Payment Tracking System Launched on Pilot Basis
The Department of Pension & Pensioners’ Welfare has launched a web based Pension Sanction and Payment Tracking System “ BHAVISHYA” which provides for on-line tracking of sanction and payment processes by the individual as well as the administrative authorities. The new proposed system will capture information relating to the pensioner’s personal and service data including contact details like mobile number and e-mail etc. It will also have electronic Forms required to be submitted to pension sanctioning authority. The system will keep retiring employees informed of the progress of pension sanction process through SMS/E-mail in future. The application will help in monitoring the delays which take place in sanction of pension and retirement benefits to a retiring Government Servant.

The software has been launched on a pilot basis in fifteen Ministries/Departments of the Government viz. Department of Home, D/o Electronics & Information Technology, M/o Statistics & Programme Implementation, M/o Steel, D/o Health, D/o Family Welfare, D/o Ayush,M/o Urban Development/o Textiles, D/o Commerce, D/o Industrial Policy & Promotion, Planning Commission, D/o Personnel & Training/o Administrative Reforms &Public Grievances and D/o Pension & Pensioners Welfare.

******
Source: PIB

CITU cnogratulates the bank and Central Govt Employees for their Contrywide two Days Strike Action

CITU cnogratulates the bank and Central Govt Employees for their Contrywide two Days Strike Action
 CENTRE OF INDIAN TRADE UNIONS
A K PADMANABHAN, President
TAPAN SEN, M.P., General Secretary
Press Release
13th February 2014

CITU CONGRATULATES THE BANK AND CENTRAL GOVT EMPLOYEES
FOR THEIR COUNTRYWIDE TWO DAYS STRIKE ACTION

The Centre of Indian Trade Unions congratulates 10 lakh employees and officers of country's banking sector for their historic two days strike action on 10-11 February 2014 led by the all in united platform of employees and officers-the United Forum of Bank Unions. The main demands of the bank employees and officers had been negotiated settlement on wage revision which has fallen overdue. The Bank employees also demanded to put a stop in mass scale outsourcing of banking services along with hectic deregulation of the banking sector much to the detriment of the interests of the national economy. The UFBU had once deferred the strike dates, demonstrating their eagerness for a negotiated and respectable settlement. Rut arrogance of the Finance Ministry as well as bank management compelled the employees and officers to go in for countrywide two days strike and the strike was almost total on both the days throughout the country reflecting the firm resolve of the bank employees and officers and their unions to fight to the last for legitimate rights of the employees as well as in defence of the state-owned banking sector of the economy. CITU resolves to continue all out support to the united struggles of the bank employees and officers while hailing them for the two days historic strike action on 10-11 February 2014.

The CITU also congratulates the Central Govt employees for their successful countrywide strike action on 12-13 February 2014 to press for their demands pertaining to scrapping of the anti-employee new-pension scheme, immediate action on merger of DA with basic pay, announcement of interim relief, regularization of the gramin-dak-sevalcs and filling of the huge number of vacancies in the central government offices etc. The two days strike was called by the Confederation of Central Govt Employees and Workers and other organizations which has been responded magnificently by the central government employees enmasse throughout the country. There are about 64 main departments of the central government establishments spread over 22 states and union territories employing around 14 lakh employees. By the end of the second day, the strike was almost total in 8 states, 90 per cent in 6 states, above 70 per cent in 6 states and around 40 to 60 per cent in 2 states. Such a massive strike action demonstrated the determination of the mass of the central govt employees to defend their legitimate rights and also fight against the trend of mass scale contractorisation and casualisation of jobs keeping several lakhs of vacancies in the central govt establishments unfilled. CITU reiterates its continued support to the struggle of central govt employees while again commending them for their heroic countrywide two days strike action.


CITU demands upon the Govt of India to take note of the massive resentment among the workers and employees in both banks and central govt establishments and promptly act in addressing legitimate demands of the bank and central govt employees while reversing their retrograde policies on both the sectors.  
Issued by

(TAPAN SEN )
General Secretary


Source: www.citucentre.org

Joint Committee for resolving pay and allowances of URCs employees

Joint Committee for resolving pay and allowances of URCs employees

GOVERNMENT OF INDIA
MINISTRY OF  DEFENCE
RAJYA SABHA

UNSTARRED QUESTION NO-2229
ANSWERED ON-12.02.2014

Joint Committee for resolving pay and allowances of URCs employees

2229 . SHRI NARENDRA KUMAR KASHYAP

(a) whether Government has formed any Joint Committee of members of the Unit Run Canteens (URCs) employees union and representatives of tri services for resolving the issue of pay and allowances of URCs employees at par with Government servants, if so, the details thereof;

(b) whether Government has granted an interim relief of 15 per cent increase in the salaries of URCs employees, if so, the details thereof;

(c) whether the Joint Committee has presented its report to Government; and

(d) if so, the details thereof and the action taken by Government on the recommendations of the Committee?

ANSWER

MINISTER OF DEFENCE (SHRI A.K. ANTONY)

(a) A Committee has been constituted by the Services for resolving the issue of pay and allowance of URC employees.

The Unit Run Canteen employees are getting paid as per the rules regulating the terms and conditions of the services of the civilian employees of the URCs, issued by Army Headquarters in April 2003. These rules were made as per the directions of Hon’ble Supreme Court of India dated 4th January, 2001, in the case of Union of India and ors. v/s. M.Aslam and ors.



Thereafter the Hon’ble Supreme Court in its order dated 28.4.2009, in the case of R.R. Pillai v/s the Commanding Officer HQ SAC(U) and ors., held that, employees of the URCs are not government servant.

(b) The basic pay of URC employees was enhanced by 50% w.e.f. 1.2.2009, again 15% w.e.f. 1.12.2009 and by another 15% w.e.f. April 2013.

(c) & (d): The Committee has submitted its report for consideration of Chiefs of Staff Committee (COSC) through QMG. Government has not received the recommendation of COSC.

Source: RAJYA SABHA Q&A
via: karnmk.blogspot.in

Dopt Orders-Representation of SC, ST, OBC, Minorities and the Women on Selection Board / Committees

Dopt Orders - Representation of SC, ST, OBC, Minorities and the Women on Selection Board / Committees
 F.No.42011/2/2014-Estt.(Res)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel &Training

New Delhi, dated the 13th February, 2014
OFFICE MEMORANDUM 

Subject: Representation of SC, ST, OBC, Minorities and the Women on Selection Board / Committees.

The undersigned is directed to draw attention of the Ministries/Departments to this Department's O.M. No.42011/15/1995-Estt(SCT) dated 1lth July, 1995. Para 2 provided as follows:-

" 2. In partial modification of the above instructions it has now been decided that wherever a Selection Committee Board exists or has to be constituted for making recruitment to ten or more vacancies in Group 'C' or Group 'D' posts or services it shall be mandatory to have one Member belonging to SC/ST/OBC and one Member belonging to Minority Community in such Committees/Boards. Further, one of the Members of the Selection Committees Boards whether from the general category or from the minority community or from SC, ST,OBC should be a lady failing which a lady member should be co opted on the Committee Board. It may please be ensured that where the number of vacancies against which the selection is to be made is less than ten no effort should be spared in finding SC/ST/OBC officer, minority community officer and a lady officer as explained in para (2) for inclusion in such Committees/Boards. "

2. The matter has been reviewed and in partial modification of above instructions, it has now been decided that wherever a Selection Committee/Board exist or has to be constituted for making recruitment to 10 or more vacancies in any level of posts or services, it shall be mandatory to have one Member belonging to SC/ST, one Member belonging to OBC category and one Member belonging to Minority Community in such Committees/Boards. Further, one of the members of the Selection Committees/Board, whether from the general category or from the minority community or from the SC/ST/OBC community should be a lady failing which a lady member should be co-opted on the Committee Board. It may also be ensured that where the number of vacancies against which selection is to be made is less than ten, no effort should be spared in finding the SC/ST, OBC officer and the Minority Committee Officer and a lady officer, for inclusion in such Committees Boards.

3. Similar instructions in Public Sector Undertakings and Financial Institutions including Public Sector Banks will be issued by Department of Public Enterprises and Ministry of Finance respectively.

sd/-
(Sandeep Mukherjee)
Under Secretary to the Government of India
Source: www.persmin.gov.in
[http://ccis.nic.in/WriteReadData/CircularPortal/D2/D02adm/42011_2_2014-Estt.-Res.pdf]

Defence employees proposed indefinite strike from 17.02.2014 withdrawn

Defence employees proposed indefinite strike from 17.02.2014 withdrawn

MERELY PASSING RESOLUTIONS OR CONDUCTING STRIKE BALLOT WILL NOT BRING SOLUTION TO THE PROBLEMS FACED BY THE CENTRAL GOVERNMENT EMPLOYEES!

Defense employees proposed indefinite strike from 17.02.2014 withdrawn

Only sectional demands discussed by defence ministry. No discussion or ensurance about DA merger, Interim Relief, Date of effect of 7th CPC and New Pension Scheme. On the other hand, despite of 96 percent Railway employees voted in favour of indefinite strike on the issues of Pay Commission, DA Merger, Interim Relief, New Pension Scheme etc, Railway unions have not taken it seriously.

CONFEDERATION IS THE ONLY ORGANISATION WHICH IS CONDUCTING UNCOMPROMISING FIGHT AGAINST THE POLICIES OF THE CENTRAL GOVT. AND ALSO FOR THE JUSTIFIED DEMANDS OF THE CENTRAL GOVT. EMPLOYEES. AND WE CONDUCTED THE TWO DAY STRIKE SUCCESSFULLY.

LET US KEEP UP THIS FIGHTING SPIRIT AND CONTINUE OUR STRUGGLE IN THE COMING DAYS.

Source: http://aiamshq.blogspot.in/

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