Welcome to the official blog of AIPSA. This blog is meant for use by members of All India Postal Stenographers' Association******E-mail: parambilmohan@gmail.com
================ Blog maintained by : P. Radhamohan Nair, Private Secretary to Post Master General, (Retired) Northern Region, Calicut, Kerala Circle=================

Monday, February 20, 2017

7th Pay Commission: Committee on Allowances likely to present its report today, HRA 30% for metro expected, revised allowances from April 1

The Committee on Allowances, headed by Finance Secretary Ashok Lavasa, was given time till February 22 to present its report.

It has been nearly eight months since the Narendra Modi government cleared the recommendations of the Seventh Pay Commission .
After a long wait, the Committee on Allowances is likely to submit its report to Finance Minister Arun Jaitley on Monday.
The committee, headed by Finance Secretary Ashok Lavasa, was given time till February 22 to table its report.
The revised allowances are likely to be effective from April 1.
The house rent allowance (HRA), which forms a crucial part of government employees' salary, is expected to be fixed at 30 per cent of the basic pay for employees in metros which have a population of 50 lakh and above.

HERE IS ALL YOU NEED TO KNOW:

  • The Seventh Pay Commission had recommended 24 per cent of the basic pay as HRA against the 30 per cent of basic pay under the Sixth Pay Commission.
  • The Committee on Allowances was formed in July last year to review the recommendations of the pay commission after employees protested against the proposed slash in the HRA. The pay commission also recommended doing away with 53 of the 196 allowances and merging a few others.
  • The committee was initially given four months to table its report, which was later extended to February 22, 2017. If reports are to be believed, the Central government is likely to move ahead with the committee's report after March 15 when Assembly elections will be over.
  • If the government decides to pay a 30 per cent of basic pay as HRA to its employees, the cost estimate comes to Rs 29,300 crore in the first year.
  • The hiked salary is given in two parts to government employees, in the form of basic pay and allowances.
  • While the increase in basic pay is calculated on a back-date basis, making employees eligible for arrears, the hike in allowances is applicable from the date the government implements it. As a result, employees are not entitled to arrears in this case.
  • It is widely believed that the government has effectively saved a lot of money this financial year by not making an announcement on allowances. Government employees, on the other hand, have expressed their disappointment over being denied their full remuneration over a prolonged period.
Source: IndiaToday, Yahoo News

Instructions to stop irregular Rule-37 transfers.

How to claim tax benefit on tuition fees under Section 80C

         Sending kids to school has an inbuilt tax advantage for the parents as the tuition fee qualifies for tax benefit under Section 80C of the Income Tax Act, 1961. The amount of tax benefit is within the overall limit of the section of Rs 1.5 lakh a year. 

For tax purposes, the fee (amount) reduces the total gross income, and thereby the tax liability. Say, you fall in the highest income slab and pay not only a 30.9 per cent tax rate, but also Rs 80,000 a year as schools fees, the tax saved would amount to Rs 24,720 in that year 

Here's how to get the maximum benefit out of tuition fees

Are all institutions eligible? 
Tuition fees paid at the time of admission or anytime during the financial year to any university, college, school or educational institution based in India qualifies for tax benefit. 

What kind of education? 
It has to be a full-time education, including any play school activities, pre-nursery and nursery classes. The institution can be either private or a government sponsored one. 

What is not covered? 
At times, parents have to make payments, other than tuition fees, to the educational institutions. Payments like development fees or donation or capitation fees, etc., are not covered and do not qualify for tax benefit. Also, if you haven't paid the fees on time, the applicable late fee paid will not be eligible. 

Tax benefit for how many children? 
The benefit applies for the fees paid for up to two children. So if a couple has four children, both can claim tax benefit as both have a separate limit of two children each. 

Which parent gets the tax benefit? 
The parent who makes the payment gets the tax advantage. If both parents are working and pay taxes, both can claim individually up to the amount of fees paid. 

If both are working and want to take the benefit under Section 80C for the amount paid by them respectively, they can do so. So if the fee paid is Rs 2 lakh, of which the father has paid Rs 50,000, while the mother has paid Rs 1.5 lakh, both can claim the amount individually as per the payment made by them. 

Conclusion 
As the upper limit for Section 80C tax benefit is Rs 1.5 lakh a year, see how much of that gets exhausted through tuition fees and then decide on further tax savers. While the tax benefit on tuition fees is incidental and helps you to save tax during the early days of your child's education, do not forget to create a long-term investment plan for his higher education. 

Estimate the amount needed for higher studies and create a savings plan towards that goal, preferably through SIPs in 3-5 equity diversified mutual funds scheme. To ensure that the goal is met, do buy adequate life cover, preferably through a pure term insurance plan.

Source : The Economic Times

Continuance in ad-hoc promotion in Junior Administrative Grade of IPOS Group 'A'


                              To view please Click Here.

Final Seniority List of Stenographer Grade-I as on 01.01.2011


                       To view please Click Here.

Difference between Tier 1 and Tier 2 Account in New Pension Scheme (NPS)



What is the difference between Tier 1 and Tier 2 Account in NPS? Many Government employees or others subscribed to NPS. However, the majority of them do not know what is the meaning and difference of Tier 1 and Tier 2 Accounts of NPS.

Let us first brief about NPS.

NPS or New Pension Scheme is a retirement product launched by Government of India. It is managed by PFRDA (Pension Fund Regulatory and Development Authority). This product helps you to create retirement corpus.

Any citizen of India (whether resident or NRI) can invest in this scheme. The age of the subscriber must be within 18-60 years of age. However, an individual of unsound mind or existing members of NPS are not allowed to open new account.
Therefore, an individual can open only ONE NPS account.

How to open NPS Account?

You have to fill the application form and provide the relevant KYC documents at your nearest POP-PS (You will find the list in PFRDA portal).

However, if you want to open new Tier 2 account, then the process is different. You have to approach POP-PS with copy of PRAN (Permanent Retirement Account Number) and Tier 2 activation form.

The subscriber has to make the first contribution while opening the account. Minimum contribution for Tier 1 is Rs.500 and Rs.1, 000 for Tier 2.

Note-Now you can open NPS account online and also contribution can be made it online through eNPS portal. Refer my latest post on the same “eNPS – How open and invest in NPS account online?“.

What are the investment choices?

Asset Class E-Invests predominantly in the equity market. You may say high return and high risk.

Asset Class C-Invests in fixed income instruments other than Government Securities. Risk is medium in this category.

Asset Class G-Invests in Government Securities. So lower risk and lower return.
Along with that, you have two different options to choose regarding allocation.

Active Choice-You have the option to choose your investment among E, C or G asset classes. However, if you opted for E asset class, then the maximum equity exposure is 50% only.

Auto Choice-If you don’t want to take active part in switching asset class, then PFRDA will do it according to your age. It is predefined.

You can change both scheme preference and investment choices at any point of time. But it is allowed only once in a year.
Please remember that there is no ASSURED RETURN from NPS.

Your retirement fund will be managed by fund managers appointed by PFRDA. Currently there are six fund managers. They are as below.

ICICI Prudential Pension Funds Management Company Limited, Kotak Mahindra Pension Fund Limited, Reliance Capital Pension Fund Limited, SBI Pension Funds Limited, UTI Retirement Solutions Limited, and Annuity Service Provider (ASP).
You can change your fund manager at any point of time. This change is allowed only one time in a year.

Along with that, PFRDA tied with IRDA approved Life Insurance companies to pay the pension once the subscriber reaches 60 years of age. They are as below.
Life Insurance Corporation of India, SBI Life Insurance Co. Ltd., ICICI Prudential Life Insurance Co. Ltd., Bajaj Allianz Life Insurance Co. Ltd., Star Union Dai-ichi Life Insurance Co. Ltd., Reliance Life Insurance Co. Ltd. and HDFC Standard Life Insurance Co. Ltd.

Following conditions apply:

Subscriber is not covered under employer assisted retirement benefit scheme and also not covered by social security schemes under any of the following laws:

Employee Provident Fund and Miscellaneous Provision Act, 1952

The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948

The Seamen’s Provident Fund Act, 1966

The Assam Tea Plantation Provident Fund and Pension Fund Scheme Act, 1955

The Jammu & Kashmir Employee Provident Fund Act, 1961

Subscriber contribution in NPS is minimum Rs. 1000 and maximum Rs.12000 per annum, for both Tier1 and Tier II taken together, provided subscriber makes minimum contribution of Rs.1000 per annum to his Tier 1 account
Based on the limitations mentioned above, I think most people reading this blog will be ineligible.

How to exit from NPS?

Once you attain the age of 60 years, you can withdraw up to 60% of accumulation as lump sum and rest 40% will be converted into pension.
If you want to exit from NPS before 60 years of age, then you are allowed to withdraw only 20% accumulated amount. You have to buy a pension product with that 80% fund.

However, in case the death of the subscriber, a nominee is allowed to withdraw 100% of NPS.

I wrote a post on recent changes about new withdrawal of exit rules of NPS. Refer below post.

National Pension System (NPS)-New Partial Withdrawal and Exit Rules

This is the brief about NPS.

Let us come back to the main purpose of this post. I tried to put it the difference in below image.

Note-

-As per recent PFRDA circular dated 8th August, 2016, the minimum contribution in Tier 1 Account is now reduced to Rs.1,000 a year. There will be no minimum investment limit for Tier 2 account (Earlier, it was Rs.250). Also you no need to maintain the minimum balance in Tier 2 account (Earlier, it was Rs.2,ooo).
-From Budget 2016, the 40% withdrawal at the time of your retirement from NPS will be tax-free. Rest 60% of the corpus will be treated taxable income as per old rules. Hope this above table cleared your doubts. 

Conclusion-You notice that when it comes to taxation, NPS is one of the worst products. Everybody concentrating on the tax benefits of NPS while investing. However, they forget the tax issues at retirement or at withdrawal. Along with that, liquidity is an issue with NPS. For Government employees and corporate employees, no option but to invest.

Employment News : 18 February 2017 to 24 February 2017


STATE BANK OF INDIA
Name Of Post : Probationary Officers
No.of Vacancies : 2313
Last Date :06.03.2017

BHARTIYA RESERVE BANK NOTE MUDRAN PRIVATE LIMITED
Name Of Post : Assistant Manager and Industrial Workman Grade I (Trainee)
No.of Vacancies : 407
Last Date :28.02.2017

INDIAN AIR FORCE
Name Of Post : Various Group ‘C’ Civilian Posts
No.of Vacancies : 60
Last Date :21 Days After Publication

INDIAN SPACE RESEARCH ORGANISATION
Name Of Post : Various Scientists Engineers ‘SC’ Post
No.of Vacancies : 49
Last Date :04.03.2017

ORDANANCE FACTORY MEDAK
Name Of Post : Electrician, Fitter, Machinist, Welder etc
No.of Vacancies : 370
Last Date :10.03.2017

MINERAL EXPLORATION CORPORATION LIMITED, NAGPUR
Name Of Post : Assistant Geologist, Assistant Chemist, Assistant Geophysicist
No.of Vacancies : 35
Last Date :03.03.2017
Source : http://employmentnews.gov.in

Apply for passports at selected Post Offices from next month

The External Affairs Ministry is making all required arrangements for roll-out of the scheme in some of the select cities in first half of March.
From next month, people in select cities will be able to apply for passports in post offices under an ambitious initiative of the External Affairs Ministry. This is aimed at making the passport issuance process hassle-free and ease burden on passport offices across the country which are grappling with large volume of applications. In the first phase of the project, passport services will be made available in select post offices in Rajasthan, West Bengal, Tamil Nadu, Karnataka and Jharkhand and some other states.


The External Affairs Ministry, which issues passports, is making all required arrangements for roll-out of the scheme in some of the select cities in first half of March. Currently, 89 Passport Seva Kendras (PSK) are operating across the country as extended arms of the 38 Passport Offices. According to the MEA, the government rendered 1.15 crore passport and other related services during 2016.
In Rajasthan, passport services will be available in Kota, Jaisalmer, Bikaner, Jhunjhunu and Jhalawar while in West Bengal it will be in Asansol, Nadia, North Dinajpur North Kolkata. In Jharkhand, services will be offered in Deoghar, Jamshedpur and Dhandbad. “It is our effort that Post Office Passport Sewa Kendras announced in the first phase should start functioning before 31.3.2017,” External Affairs Minister Sushma Swaraj tweeted.
In Tamil Nadu, passport services in post office will be rolled out in Salem and Vellore while in Karnataka, it will be in Belgaum, Davangere, Hassan, Gulbarga and Mysuru. According to MEA, the objective of the government has been to cater to the demand for passports and to reach out to the people located far away from the passport offices. The MEA had recently liberalised norms for certain categories of citizens as part of efforts to streamline the passport issuance process.