Tuesday, March 3, 2015

Government getting ready for 7th Pay Commission report – First reaction through Budget Speech by FM

But no signs of implementation from 1st January 2016 as no fund allocated for 7th CPC outgo in Budget 2015-16

Budget Speech of Finance Minister says “7th Pay Commission impact may have to be absorbed in 2016-17″.

Until now, Government did not consider the demands of Central Government Employees such as grant of interim relief, DA merger with pay etc.  However after Budget Speech employees have got a ray of hope as it is indicated that Govt has started finding funds to meet out the outgo on implementation of 7th Pay Commission in 2016-17.

The following is an extract of Budget Speech 2015-16 in which the need for funds for implementing 7th Pay Commission and its impact on GDP.

Budget  2015-2016

Speech  of Arun Jaitley Minister of Finance

February 28,  2015

Fiscal Roadmap

23. I want to underscore that my government still remains firm on achieving the medium term target of 3% of GDP.  But that journey has to take account of the need to increase public investment.  The total additional public investment over and above the RE is planned to be `1.25 lakh crore out of which `70,000 crore would be capital expenditure from budgetary outlays.  We also have to take into account the drastically reduced fiscal space; uncertainties that implementation of GST will create; and the likely burden from the report of the 7th Pay Commission.  Rushing into, or insisting on, a pre-set time-table for fiscal consolidation pro-cyclically would, in my opinion, not be pro-growth.  With the economy improving, the pressure for accelerated fiscal consolidation too has decreased.  In these circumstances, I will complete the journey to a fiscal deficit of 3% in 3 years, rather than the two years envisaged previously.  Thus, for the next three years, my targets are: 3.9%, for 2015-16; 3.5% for 2016-17; and, 3.0% for 2017-18.  The additional fiscal space will go towards funding infrastructure investment.

In document to study Medium Term Fiscal Policy Statement for further 3 years: Para 12:-

12. However, it is pertinent to note that the resource base of the Centre will be constrained following the implementation of the FFC. With steep jump in the sharing pattern of tax revenues, the revenues of the States, which is surplus in most of the cases, will be further augmented on one side and the Centre will face resource crunch in one of the difficult phases of consolidation underway. While, therevenues are constrained in the FY 2015-16, it would continue over the medium term framework in FY 2016-17 and 2017-18.

Moreover, the 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will be also be spanning out in the period. Thus, in the medium term framework the fiscal position will continue to be stressed. However, with necessary corrections on the Plan side under the new paradigm of Centre-State fiscal relationship and reforms on the subsidies, with better targeting and policy initiatives, it is expected that over the medium framework much of the fiscal correction would have taken shape, leaving room for building up better fiscal management thereupon. The change is monumental; and needs dextrous manoeuvring in this initial phase.

(c) Pensions

42. The expenditure on pension payments of the Central Government includes both defence as well as civil pensions. Pension payment, in nominal terms was estimated at ` 74,076 crore in RE 2013-14 and at the year-end it was accounted at ` 74,896 crore. In BE 2014-15, pension payment in nominal terms was estimated at ` 81,983 crore. In RE 2014-15, it has been revised at ` 81,705 crore. The pension payment of Central Government for the past few years has been growing faster than the salary expenditure. The main reason for this is that there is an increase in number of pensioners due to higher retirements and increased life expectancy. In view of the likely impact of VII Pay Commission, Pension payment of the Government likely to be about 0.7 per cent of GDP in FY 2016-17 and FY 2017-18 respectively
In document to study Medium Term Fiscal Policy Statement for further 2 years:
Expenditure Management Commission:

37. While Government has managed to control the expenditure through rationalization in the fiscal consolidation phase, quality of expenditure remains an area that needs to be addressed. The ongoing fiscal consolidation has been successful in taming the fiscal deficit; however there is still imbalance in the public finance on the revenue side. As discussed in earlier section, concerted efforts are required to accomplish the target set for the revenue deficit and effective revenue deficit in the new FRBM regime. This entails structural changes in the Plan spending and definitive measures to contain Non-Plan spending within sustainable limits. Moreover, in the medium term, award of VII Pay Commission and XIV Finance Commission pose significant downside risk to Public Finance. Thus, time has come to look into the places where Government spends money and output achieved from it. Government will constitute an Expenditure Management Commission, which will look into various aspects of expenditure reforms to be undertaken by the Government.


(c) Pensions

39. The expenditure on pension payments of the Central Government includes both defence as well as civil pensions. Pension payment, in nominal terms was estimated at ` 74,076 crore in RE 2013-14 and at the year end it was accounted at ` 74606 crore, marginally above the RE figure. In BE 2014-15, pension payment in nominal terms estimated at `81,983 crore. The pension payment of Central Government for the past few years has been growing faster than the salary expenditure. The main reason for this is that there is an increase in number of pensioners due to higher retirements and increased life expectancy. Accordingly, keeping past trend in view the Pension Expenditure of the Government has been projected to grow at 10.4 per cent in FY 2015-16. In view of the likely impact of VII Pay Commission, higher growth is assumed in FY 2016-17.
Source: India Budget

Railway Board Order: Advance reservation period increased from 60 days to 120 days w.e.f.1.4.2015

Railway Board Order: Advance reservation period increased from 60 days to 120 days w.e.f.1.4.2015

It has been decided to increase the advance reservation period from 60 days to 120 days (excluding the date of journey) w.e.f. 01.04.2015. CRIS will make necessary changes in the software for this purpose under intimation to all Zonal Railways as well as Board’s office.

There will be no change in case of certain day time Express Trains like Taj Express, Gomti Express, special trains, etc. where lower time limits for advance reservations are at present in force. There will also be no change in case of the limit of 360 days for foreign tourists.

Board desire that the above change may be given wide publicity well in advance of its implementation. Suitable instructions to all concerned may be issued to ensure smooth change-over to the new time limit.

Time limit for Advance Reservations in Railways has been increased from 60 to 120 days effective from 1.4.2015

Railway board issued orders on increasing the time limit for advance reservation in IRCTC has been enhanced from 1st April 2015

Source: 90paisa blog

Central Government Employees: Email Policy of Government of India

Central Government Employees: Email Policy of Government of India

(Department of Electronic and Information Technology)
New Delhi, the 18th February, 2015
Subject: Email Policy of Government of India

F. No. 2(22)/2013-EG-II.—

1. Introduction
1.1 The Government uses e-mail as a major mode of communication. Communications include Government of India (GoI) data that travel as part of mail transactions between users [1] located both within the country and outside.
1.2 This policy of Government of India lays down the guidelines with respect to use of e-mail services. The Implementing Agency (IA) [2] for the GoI e-mail service shall be National Informatics Centre (NIC), under the Department of Electronics and Information Technology (DeitY), Ministry of Communications and Information Technology. The organisations exempted under Clause 14 will themselves become the Implementing Agency (IA) for the purpose of this policy.

2. Scope
2.1 Only the e-mail services provided by NIC, the Implementing Agency of the Government of India shall be used for official communications by all organizations except those exempted under clause no 14 of this policy. The e-mail services provided by other service providers shall not be used for any official communication.
2.2 This policy is applicable to all employees of GoI and employees of those State/UT Governments that use the e-mail services of GoI and also those State/UT Governments that choose to adopt this policy in future. The directives contained in this policy must be followed by all of them with no exceptions. All users of e-mail services can find further information in the supporting policies available on http://www.deity.gov.in/content/policiesguidelines under the caption “E-mail Policy”.
2.3 E-mail can be used as part of the electronic file processing in Government of India. Further information in this regard is available at: http://darpg.gov.in/darpgwebsite_cms/ Document/file/CSMeOP_1st_Edition.pdf.

3. Objective
3.1 The objective of this policy is to ensure secure access and usage of Government of India e-mail services by its users. Users have the responsibility to use this resource in an efficient, effective, lawful, and ethical manner. Use of the Government of India e-mail service amounts to the user’s agreement to be governed by this policy.
3.2 All services under e-mail are offered free of cost to all officials under Ministries / Departments / Statutory Bodies / Autonomous bodies (henceforth referred to as “Organization [3]” in the policy) of both Central and State/UT Governments. More information is available under “NIC e-mail Services and Usage Policy” at http://www.deity.gov.in/content/policiesguidelines/ under the caption “E-mail Policy”.
3.3 Any other policies, guidelines or instructions on e-mail previously issued shall be superseded by this policy.

4. Roles specified for implementation of the Policy
The following roles are specified in each organization using the GoI e-mail service. The official identified for the task shall be responsible for the management of the entire user base configured under that respective domain.
4.1 Competent Authority[4] as identified by each organization
4.2 Designated nodal officer[5] as identified by each organization
4.3 GoI e-mail service Implementing Agency (IA), i.e. National Informatics Centre or the exempt organisation as per Clause 14 of this policy.

5. Basic requirements of GoI e-mail Service
5.1 Security

a) Considering the security concerns with regard to a sensitive deployment like e-mail, apart from the service provided by the IA, there would not be any other e-mail service under GoI.
b) All organizations, except those exempted under clause 14 of this policy, should migrate their e-mail services to the centralized deployment of the IA for security reasons and uniform policy enforcement. For the purpose of continuity, the e-mail address of the organization migrating their service to the IA deployment shall be retained as part of the migration process. Wherever it is technically feasible, data migration shall also be done.
c) Secure access to the GoI email service
i) It is recommended for users working in sensitive offices to use VPN[7]/OTP[8] for secure authentication as deemed appropriate by the competent authority.
ii) It is recommended that GoI officials on long deputation/stationed abroad and handling sensitive information should use (VPN)/ (OTP) for accessing GoI e-mail services as deemed appropriate by the competent authority.
iii) It is recommended that Embassies and missions abroad should use Static IP addresses for accessing the services of the IA as deemed appropriate by the competent authority.
iv) More information is available under “Guidelines for E-mail Management and Effective E-mail Usage” at http://www.deity.gov.in/content/policiesguidelines under the caption “E-mail Policy”.
d) From the perspective of security, the following shall be adhered to by all users of GoI e-mail service:
i) Relevant Policies framed by Ministry of Home Affairs, relating to classification, handling and security of information shall be followed.
ii) Use of Digital Signature Certificate (DSC) [6] and encryption shall, be mandatory for sending e-mails deemed as classified and sensitive, in accordance with the relevant policies of Ministry of Home Affairs. Updation of current mobile numbers under the personal profile of users is mandatory for security reasons. The number would be used only for alerts and information regarding security sent by the IA. Updation of personal e-mail id (preferably from a service provider within India), in addition to the mobile number, shall also be mandatory in order to reach the user through an alternate means for sending alerts.
iii) Users shall not download e-mails from their official e-mail account, configured on the GoI mail server, by configuring POP [9] or IMAP [10] on any other e-mail service provider. This implies that users should not provide their GoI e-mail account details (id and password) to their accounts on private e-mail service providers.
iv) Any e-mail addressed to a user, whose account has been deactivated /deleted, shall not be redirected to another e-mail address. Such e-mails may contain contents that belong to the Government and hence no e-mails shall be redirected.
v) The concerned nodal officer of the organization shall ensure that the latest operating system, anti-virus and application patches are available on all the devices, in coordination with the User.
vi) In case a compromise of an e-mail id is detected by the IA, an SMS alert shall be sent to the user on the registered mobile number. In case an “attempt” to compromise the password of an account is detected, an e-mail alert shall be sent. Both the e-mail and the SMS shall contain details of the action to be taken by the user. In case a user does not take the required action even after five such alerts (indicating a compromise), the IA reserves the right to reset the password of that particular e-mail id under intimation to the nodal officer of that respective organization.
vii) In case of a situation when a compromise of a user id impacts a large user base or the data security of the deployment, the IA shall reset the password of that user id. This action shall be taken on an immediate basis, and the information shall be provided to the user and the nodal officer subsequently. SMS shall be one of the prime channels to contact a user; hence all users should ensure that their mobile numbers are updated.
viii) Forwarding of e-mail from the e-mail id provided by GoI to the Government official’s personal id outside the GoI e-mail service is not allowed due to security reasons. Official e-mail id provided by the IA can be used to communicate with any other user, whether private or public. However, the user must exercise due discretion on the contents that are being sent as part of the e-mail.
ix) Auto-save of password in the Government e-mail service shall not be permitted due to security reasons.
x) More details regarding security measures are available in “NIC Security Policy” at http://www.deity.gov.in/content/policiesguidelines under the caption “E-mail Policy”.
xi) The guidelines for effective e-mail usage have been described in “Guidelines for E-mail Account Management and Effective E-mail Usage” available at http://www.deity.gov.in/content/policiesguidelines under the caption “Email Policy”.

5.2 E-mail Account Management
a) Based on the request of the respective organizations, IA will create two ids, one based on the designation and the other based on the name. Designation based id’s are recommended for officers dealing with the public. Use of alphanumeric characters as part of the e-mail id is recommended for sensitive users as deemed appropriate by the competent authority.
b) Government officers who resign or superannuate after rendering at least 20 years of service shall be allowed to retain the name based e-mail address i.e. userid@gov.in for one year post resignation or superannuation. Subsequently, a new e-mail address with the same user id but with a different domain address (for instance, userid@pension.gov.in), would be provided by the IA for their entire life.
More details pertaining to e-mail account management are provided in “Guidelines for E-mail Account Management and Effective E-mail Usage”” available at http://www.deity.gov.in/content/policiesguidelines under the caption “Email Policy”. The document covers creation of E-mail addresses, process of account creation, process of handover of designation-based ids, status of account after resignation and superannuation, data retention & backup and deactivation of accounts.

5.3 Delegated Admin Console
Organizations can avail the “Delegated Admin Console” service from IA. Using the console the authorized person of an organization can create/delete/change the password of user ids under that respective domain as and when required without routing the request through IA. Organizations that do not opt for the admin console need to forward their requests with complete details to the IA’s support cell (support@gov.in).

5.4 E-mail Domain & Virtual Hosting
a) GoI provides virtual domain hosting for e-mail. If an organization so desires, the IA can offer a domain of e-mail addresses as required by them. This implies that if an organization requires an address resembling the website that they are operating, IA can provide the same.
b) By default, the address “userid@gov.in” shall be assigned to the users. The user id shall be created as per the addressing policy available at http://www.deity.gov.in/content/policiesguidelines/ under “E-mail Policy”.
c) Organizations desirous of an e-mail address belonging to other domains (e.g. xxxx@deity.gov.in, yyyy@tourism.gov.in) need to forward their requests to the IA

5.5 Use of Secure Passwords
All users accessing the e-mail services must use strong passwords for security of their e-mail accounts. More details about the password policy are available in “Password Policy” at http://www.deity.gov.in/content/policiesguidelines under the caption “E-mail Policy”.

5.6 Privacy
Users should ensure that e-mails are kept confidential. IA shall take all possible precautions on maintaining privacy. Users must ensure that information regarding their password or any other personal information is not shared with anyone.

6. Responsibilities of User Organizations

6.1 Policy Compliance
a) All user organizations shall implement appropriate controls to ensure compliance with the e-mail policy by their users. IA shall give the requisite support in this regard.
b) The user organizations shall ensure that official e-mail accounts of all its users are created only on the e-mail server of the IA.
c) Nodal officer of the user organization shall ensure resolution of all incidents related to the security aspects of the e-mail policy. IA shall give the requisite support in this regard.
d) Competent Authority of the user organization shall ensure that training and awareness programs on e-mail security are organized at regular intervals. Implementing Agency shall provide the required support.

6.2 Policy Dissemination
a) Competent Authority of the concerned organization should ensure dissemination of the e-mail policy.
b) Competent Authority should use Newsletters, banners, bulletin boards etc, to facilitate increased awareness on the e-mail policy.
c) Orientation programs for new recruits shall include a session on the e-mail policy.

7. Responsibilities of Users

7.1 Appropriate Use of E-mail Service

a) E-mail is provided as a professional resource to assist users in fulfilling their official duties. Designation based ids should be used for official communication and name based ids can be used for both official and personal communication.
b) Examples of inappropriate use of the e-mail service
i) Creation and exchange of e-mails that could be categorized as harassing, obscene or threatening.
ii) Unauthorized exchange of proprietary information or any other privileged, confidential or sensitive information.
iii) Unauthorized access of the services. This includes the distribution of e-mails anonymously, use of other officers’ user ids or using a false identity.
iv) Creation and exchange of advertisements, solicitations, chain letters and other unofficial, unsolicited e-mail.
v) Creation and exchange of information in violation of any laws, including copyright laws.
vi) Wilful transmission of an e-mail containing a computer virus.
vii) Misrepresentation of the identity of the sender of an e-mail.
viii) Use or attempt to use the accounts of others without their permission.
ix) Transmission of e-mails involving language derogatory to religion, caste, ethnicity, sending personal e-mails to a broadcast list, exchange of e-mails containing anti-national messages, sending e-mails with obscene material, etc.
x) Use of distribution lists for the purpose of sending e-mails that are personal in nature, such as personal functions, etc.
Any case of inappropriate use of e-mail accounts shall be considered a violation of the policy and may result in deactivation [11] of the account. Further, such instances may also invite scrutiny by the investigating agencies depending on the nature of violation.

7.2 User’s Role
a) The User is responsible for any data/e-mail that is transmitted using the GoI e-mail system. All e-mails/data sent through the mail server are the sole responsibility of the user owning the account.
b) Sharing of passwords is prohibited.
c) The user’s responsibility shall extend to the following:
i) Users shall be responsible for the activities carried out on their client systems, using the accounts assigned to them.
ii) The ‘reply all’ and the use of ‘distribution lists’ should be used with caution to reduce the risk of sending e-mails to wrong people.
iii) Back up of important files shall be taken by the user at regular intervals. The IA shall not restore the data lost due to user’s actions.

8. Service Level Agreement
The IA shall provide the e-mail services based on the Service Level Agreement (SLA) available at http://www.deity.gov.in/content/policiesguidelines under the caption “E-mail Policy”.

9. Scrutiny of e-mails/Release of logs

9.1 Notwithstanding anything in the clauses above, the disclosure of logs/e-mails to law enforcement agencies and other organizations by the IA would be done only as per the IT Act 2000 and other applicable laws.

9.2 The IA shall neither accept nor act on the request from any other organization, save as provided in this clause, for scrutiny of e-mails or release of logs.

9.3 IA will maintain logs for a period of two years.

10. Security Incident Management Process

10.1 A security incident is defined as any adverse event that can impact the availability, integrity, confidentiality and authority of Government data. Security incidents can be due to factors like malware, phishing [12], loss of a device, compromise of an e-mail id etc.

10.2 It shall be within the right of the IA to deactivate or remove any feature of the e-mail service if it is deemed as a threat and can lead to a compromise of the service.

10.3 Any security incident, noticed or identified by a user must immediately be brought to the notice of the Indian Computer Emergency Response Team (ICERT) and the IA.

11. Intellectual Property

11.1 Material accessible through the IA’s e-mail service and resources may be subject to protection under privacy, publicity, or other personal rights and intellectual property rights, including but not limited to, copyrights and laws protecting patents, trademarks, trade secrets or other proprietary information. Users shall not use the Government service and resources in any manner that would infringe, dilute, misappropriate, or otherwise violate any such rights.

12. Enforcement

12.1 This “E-mail policy” is applicable to all Government employees as specified in clause 2.2.

12.2 Each organization shall be responsible for ensuring compliance with the provisions of this policy. The Implementing Agency would provide necessary technical assistance to the organizations in this regard.

13. Deactivation

13.1 In case of threat to the security of the Government service, the e-mail id being used to impact the service may be suspended or deactivated immediately by the IA.

13.2 Subsequent to deactivation, the concerned user and the competent authority of that respective organization shall be informed.

14. Exemption

14.1 Organizations, including those dealing with national security, that currently have their own independent mail servers can continue to operate the same, provided the e-mail servers are hosted in India. These organizations however need to ensure that the principles of the e-mail policy are followed. However, in the interest of uniform policy enforcement and security, it is recommended that these organizations should consider migrating to the core service of the IA.

14.2 Indian Missions and Posts abroad may, however, maintain alternative e-mail services hosted outside India to ensure availability of local communication channels under exigent circumstances such as disruption of internet services that can cause non-availability of Government e-mail services.

14.3 Organizations operating Intranet [13] mail servers with air-gap are exempted from this policy.

15. Audit of E-mail Services
The security audit of NIC email services and other organizations maintaining their own mail server shall be conducted periodically by an organization approved by Deity.

16. Review
Future changes in this Policy, as deemed necessary, shall be made by DeitY with approval of the Minister of Communication & IT after due inter-ministerial consultations.
R. S. SHARMA, Secy


1 Users Refers to Government/State/UT employees who are accessing the Government e-mail services.
2 Implementing agency (IA) For the purpose of this policy, the implementing agency is “National Informatics Centre” under the Department of Electronics and Information Technology, Ministry of Communications and Information Technology, Government of India
3 Organization For the purpose of this policy, organisation refers to all ministries/departments/ offices/statutory bodies/autonomous bodies, both at the Central and State level. Government organizations offering commercial services are not included.
4 Competent Authority Officer responsible for taking and approving all decisions relating to this policy in his Organization
5. Nodal Officer Officer responsible for all matters relating to this policy who will coordinate on behalf of the Organization
6 DSC A digital signature is a mathematical scheme for demonstrating the authenticity of a digital message or document. A valid digital signature gives the recipient reason to believe that the e-mail was created by a known sender, such that the sender cannot deny having sent the e-mail (authentication and non-repudiation) and that the e-mail was not altered in transit (integrity).
7 VPN A virtual private network extends a private network across a public network, such as the Internet. It enables a computer to send and receive data across shared or public networks as if it were directly connected to the private network, while benefitting from the functionality, security and management policies of the private network
8 OTP A one-time password (OTP) is a password that is valid for only one login session or transaction. OTPs avoid a number of shortcomings that are associated with traditional (static) passwords
9 POP POP is short for Post Office Protocol, a protocol used to retrieve e-mail from a mail server.
10 IMAP IMAP is short for “The Internet Message Access Protocol”, a protocol used to retrieve e-mail from a remote mail server. Unlike POP, in IMAP, Messages are displayed on your local computer but are kept and stored on the mail server. IMAP allows you to sync your folders with the e-mail server which is not possible using POP.
11 Deactivation Deactivation of an account means that the account can no longer be accessed. All e-mails sent to a deactivated account shall bounce to the sender
12 Phishing Phishing is a fraudulent attempt, usually made through e-mail, to steal a user’s personal information. Phishing e-mails almost always tell a user to click a link that takes the user to a site from where the personal information is requested. Legitimate organisations would never request this information via e-mail. Users should never click on a link. A user should always type a URL in the browser even if the link appears genuine.
13 Intranet An intranet is a private network that is contained within an organization. For the purpose of this policy, computers connected to an intranet are not allowed to connect to internet.

Download Ministry of Communication and Information Technology Notification F. No. 2(22)/2013-EG-II. dated 18.02.2015

Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” and charging of income-tax in special cases during the financial year 2015-2016.

Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” and charging of income-tax in special cases during the financial year 2015-2016.

The rates for deduction of income-tax at source from “Salaries” during the financial year 2015-2016 and also for computation of “advance tax” payable during the said year in the case of all categories of assesses have been specified in Part III of the First Schedule to the Bill. These rates are also applicable for charging income-tax during the financial year 2015-2016 on current incomes in cases where accelerated assessments have to be made, for instance, provisional assessment of shipping profits arising in India to non-residents, assessment of persons leaving India for good during the financial year, assessment of persons who are likely to transfer property to avoid tax, assessment of bodies formed for a short duration, etc.
The salient features of the rates specified in the said Part III are indicated in the following paragraph—

A. Individual, Hindu undivided family, association of persons, body of individuals, artificial juridical person. Paragraph A of Part-III of First Schedule to the Bill provides following rates of income-tax:-
(i) The rates of income-tax in the case of every individual (other than those mentioned in (ii) and (iii) below) or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act (not being a case to which any other Paragraph of Part III applies) are as under:—
Upto Rs.2,50,000 Nil.
Rs. 2,50,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.
(ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—
Upto Rs.3,00,000 Nil.
Rs. 3,00,001 to Rs. 5,00,000 10 per cent.
Rs. 5,00,001 to Rs.10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.
(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at anytime during the previous year,—
Upto Rs. 5,00,000 Nil.
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge at the rate of twelve percent. of such income-tax in case of a person having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Source: http://indiabudget.nic.in/ub2015-16/memo/mem1.pdf

7th Pay Commission likely to submit report in October 2015

After 14th Finance Commission, 7th pay panel’s report looms

Finance ministry fears that its revenue will be affected in 2016-17 as it has to absorb new pay panel recommendations

New Delhi: After the recommendations of the Fourteenth Finance Commission (FFC) forced the government to reduce its plan expenditure in the 2015-16 budget, the Union finance ministry fears its revenues will remain constrained in 2016-17 as well since it has to absorb the recommendations of the Seventh Pay Commission (SPC) in that year. 

The Seventh Pay Commission will submit its report by October 2015. 

Click here for details of provision for 7th CPC in union Budget -2015-16

“The 7th Pay Commission impact may have to be absorbed in 2016-17. The phase of consolidation, extended by one year, will also be spanning out in this period. Thus, in the medium-term framework, the fiscal position will continue to be stressed,” the finance ministry said in the macroeconomic framework statement laid before Parliament along with the budget on Saturday.
The government appointed the Seventh Pay Commission on 28 February 2014 under chairman justice Ashok Kumar Mathur with a timeline of 18 months to make its recommendations. Though the deadline for submitting the report ends in August this year, the Seventh Pay Commission is likely to seek extension till October.
The Sixth Pay Commission which was constituted in October 2006 had submitted its report in March 2008.
As a result of the recommendations of the Sixth Pay Commission, pay and allowances of the Union government employees more than doubled between 2007-08 and 2011-12—from Rs.74,647 crore to Rs.166,792 crore, according to the Fourteenth Finance Commission estimates.
“As a ratio of GDP, it jumped from a little over 0.9% in 2007-08 to 1.2% in 2008-09 and about 1.4% in 2009-10 on account of both pay revision and payment of arrears. However, it moderated to little over 1% in 2012-13,” the Finance Commission said.
The recommendations of the Sixth Pay Commission were implemented by states with a delay mainly between 2009-10 and 2011-12, with “significant expenditure outgo” in arrears on both pay and pension counts, the FFC said.
The FFC said that while the finance ministry projects an increase in pension payments by 8.7% in 2015-16, a 30% increase is expected in 2016-17 on account of the impact of the Seventh Pay Commission, followed by an annual growth rate of 8% in subsequent years.
However, it maintained that given the variations across states and the lack of knowledge about the probable design and quantum of award of the Seventh Pay Commission, it is neither feasible, nor practicable, to arrive at any reasonable forecast of the impact of the pay revision on the Union government or the states. “Further, any attempt to fix a number in this regard, within the ambit of our recommendations, carries the unavoidable risk of raising undue expectations,” added the Finance Commission.
A senior Pay Commission official, speaking under condition of anonymity, said its recommendations will surely have significant impact on the revenues of the central government. “The 14th Finance Commission was at a disadvantage since it did not have the benefit of the recommendations of the Pay Commission unlike its predecessors,” he added.
N.R. Bhanumurthy, professor at the National Institute of Public Finance and Policy, said the FFC has tried to factor in the impact of the recommendations of the SPC on the central government expenses. “The FFC report shows the capital outlay of the central government will dip in 2016-17 to 1.4% of GDP from 1.64% a year ago due to the implementation of the Pay Commission recommendation before it starts rising to 2.9% of GDP by 2019-20,” he added.
The FFC said that all states had asked it to provide a cushion for the pay revision likely during the award period. The FFC advocated for a consultative mechanism between the centre and states, through a forum such as the Inter-State Council, to evolve a national policy for salaries and emoluments.
The FFC also recommended that pay commissions be designated as Pay and Productivity Commissions, with a clear mandate to recommend measures to improve productivity of employees, in conjunction with pay revisions. “We recommend the linking of pay with productivity, with a simultaneous focus on technology, skills and incentives. We urge that, in future, additional remuneration be linked to increase in productivity,” it said.
The Pay Commission official quoted earlier said it has been mandated to recommend incentive schemes to reward excellence in productivity, performance and integrity, which it will do. “Though previous Pay Commissions have talked about linking pay with productivity, the earlier governments have not accepted such recommendations. Since this government has shown strong political will, we hope they will accept our recommendations,” he added.

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Meeting of IESM Delegation with RM Sh Manohar Parrikar on 2 Mar 2015

Meeting of IESM Delegation with RM Sh Manohar Parrikar on 2 Mar 2015

Dear Members
IESM delegation of five members met RM Sh Manohar Parrikar today at 1400 h. The salient points of the issues discussed in the meeting are given below and are attached. I am sure this will satisfy most of the queries of veterans arising out of budget speech given on 28 Feb 15. This is now clear that one needs to be optimistic and OROP will be out soon. However hold your celebrations till Notification of OROP is out as there is many a slip between the cup and the lip.

Meeting of IESM Delegation with RM Sh Manohar Parrikar on 2 Mar 2015

IESM contacted Sh Manohar Parrikar Raksha Mantri at the end of the budget presented on 28 Feb 15 and communicated to him that ESM in general are disappointed because OROP has not been mentioned in the budget speech of Finance Minister and allocation of funds for OROP has not been announced. RM explained on telephone that OROP has been approved in two budgets and hence it is considered approved and therefore there was no need to mention in the budget speech. He was kind enough to invite the IESM delegation at 1400h on 2 March 15 to clear any doubts if we had any.

Following five members of IESM met Sh Manohar Parrikar RM at 1400h on Monday 2 March 2015.
1. Maj Gen Satbir Singh SM
2. Col Kirit Joshipura
3. Col Anil kaul VrC
4. Wg Cdr CK Sharma
5. Gp Capt VK Gandhi VSM
6. Major DP Singh was also invited by RM for discussion on disability pension issue.

RM made everyone comfortable in the beginning itself that OROP for Armed Forces and Ex-servicemen is NDA Government’s commitment and he has worked out the expenditure for the OROP. He advised that there was no need to cover this issue in budget presented by NDA Government on 28 Feb 15 as it already stands approved by Parliament as part of budget for financial year 14-15. He confirmed that he had discussed the issue with officers of MOD and ironed out all issues of OROP. He also confirmed that OROP is genuine demand of Armed Forces and must be met in full; hence there is no difference in thinking of Armed Forces and MOD. Accordingly file has been prepared and is in process for approval from Ministry of Finance. After approval of the file from Finance Minister, it will be put up for approval of CCPA (Cabinet Committee for Political Affairs). RM has confirmed that MOD has recommended giving OROP for X group and Y group separately. He also confirmed that all ranks including widows have been included in the OROP. He further confirmed that he is attempting to meet the date line for issuance of Government letter (OROP Notification) given by him on 1 Feb 15 meeting with IESM delegation.

There was no doubt left in our minds after such a clear statement by RM and IESM delegation was convinced that OROP is now in safe hands will see the day light soon. General Satbir Singh thanked him and told him that it is first time that the demands of ESM are being given proper consideration and attention. IESM delegation then discussed following issues with RM.

1. Increase in Widow’s pension w.e.f 24 Sep 12; General Satbir Singh informed him that widow’s pension was not increased in 2012 when pension for all ranks was increased as per recommendations of 6 CPC. Widows must be given that increase in pension. RM expressed concerned on this issue and asked the delegation to give him the note for his consideration.

2. Major’s Pension Retired pre 1996; It was brought to RM’s attention that MOD is not paying Lt Col pension to Major rank officers who retired pre 1996 on completion of 21 years of service. Major Thomas of pre 1996 retirement had gone won the case in AFT and had been paid enhanced pension. It should be applicable for all Majors who had retired pre 1996 and had completed 21 years of service. RM asked for a detailed note on the issue for his consideration.

3. Major’s Pension who had retired on completion of 20 yrs but with less than 21 yrs of service; RM was informed that there will be only few hundred Majors who will fall in that category and MOD must consider giving them Lt Col Pension with Major’s grade pay as a special case. RM demanded a paper on this issue also for his consideration.

4. IESM will be sending the detailed paper on above issues to RM at the earliest.
IESM delegation was encouraged with the response and encouragement given by RM. One can now say that OROP is in safe hands will soon be approved.
Gp Capt VK Gandhi VSM
Gen Sec IESM
2 Mar 2015

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