Revision of Interest rates for small savings schemes.

No. 6-1/2011-NS.II (Pt.)
Ministry of Finance
Department of Economic Affairs
(Budget Division)

New Delhi, the 26th March, 2012.

OFFICE MEMORANDUM

Sub:- Revision of Interest rates for small savings schemes.

   The undersigned is directed to refer to Ministry of Finance’s O.M. of even number  dated 11th  November, 2011, vide which the various decisions taken by the Government on the recommendations of the Shyamala Gopinath Committee for Comprehensive Review of National Small Savings Fund (NSSF), were communicated to all concerned.

   2. One of the decisions of the Government based on the recommendations of the Committee relates to revision of interest rates every financial year, to be notified before 1st  April of that year. Accordingly, the rates of interest on various small savings schemes for the financial year 2012-13 effective from 1.4.2012, on the basis of the interest compounding/payment built-in in the schemes, shall be as under:

Scheme	Rate of interest w.e.f.1.12.2011	Rate of interest w.e.f.1.4.2012
Saving deposit	4.0	4.0
1 year time deposit	7.7	8.2
2 year time deposit	7.8	8.3
3 year time deposit	8.0	8.4
5 year time deposit	8.3	8.5
5year recurring deposit	8.0	8.4
5year SCSS	9.0	9.3
5year MIS	8.2	8.5
5year NSC	8.4	8.6
10 year NSC	8.7	8.9
PPF	8.6	8.8

3. Necessary notifications, including those requiring amendments to rules of small savings schemes will be notified separately.

4. This has the approval of Finance Minister.

sd/-
(Shaktikanta Das)
Addi. Secretary to the Govt. of India

Source:http://finmin.nic.in/the_ministry/dept_eco_affairs/budget/InterestRate_SmallSaving_26032012.pdf

Railway Service (Revised Pay) Rules, 2008 – Date of next Increment in the revised pay structure under Rule 10 of the RS(RP) Rules, 2008.

GOVERNMENT OF INDIA/BHARAT SARKAR
MINISTRY OF RAILWAYS/RAIL MANTRALAYA
(RAILWAY BOARD)

S.No. PC-VI/2801
No.PC-VI/2012/I/RSRP/1

RBF No.40/2012
New Delhi, dated 23.03.2012

The GMs/CAOs(R),
All Indian Railway & Production Units
(As per mailing list)

Sub:- Railway Service (Revised Pay) Rules, 2008 – Date of next Increment in the revised pay structure under Rule 10 of the RS(RP) Rules, 2008.

   In accordance with the provisions contained in Rule 10 of the RS(RP) Rules, 2008, there will be a uniform date of annual increment, viz, 1st July of every year. Employees completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. The first increment after fixation of pay on 1.1.2006 in the revised pay structure will be granted on 1.7.2006 for those employees for whom the date of next increment was between 1st July, 2006 to 1st January, 2007.

   2. The Staff Side has represented on this issue and has requested that those employees who were due to get their annual increment between February to June during 2006 may be granted one increment on 01.01.2006 in the pre-revised scale.

   3. On further consideration and in exercise of the powers available under RS(RP) Rules, 2008, the President is pleased to decide that in relaxation of stipulation under Rule 10 of these Rules, those Railway employees who were due to get their annual increment between February to June during 2006 may be granted one increment on 1.1.2006 in the pre-revised pay structure on 1.7.2006 as per Rule 10 of RS(RP) Rules, 2008. The pay of the eligible employees may be re-fixed accordingly.

   4. This issues with the concurrence of Finance Directorate of the Ministry of Railways.

   5. Hindi version will follow.

sd/-
(Hari Kishan)
Director Pay Commission-II
Railway Board

Source:www.nfirindia.com

All you wanted to know about Mutual fund ELSS

   There are so many tax saving investment options; how Mutual fund ELSS Schemes stand out from all other options?

   A Mutual Fund ELSS is similar to diversified equity funds. That means the fund manager can invest in shares of various companies across various industries. The difference is ELSS has got the added tax benefit, something a diversified equity fund does not offer.

   ELSS is part of the Section 80C instruments which are cumulatively eligible for a deduction from income up to Rs.1 Lakh. This gives the tax payers benefits from 10 per cent to 30 per cent (excluding the educational cess) based on their current tax slab.

   The other tax saving investments like NSC, PPF will give only 8% return p.a whereas the Mutual Fund ELSS has got the potential to deliver more than 12% return p.a. Also the lock-in period in Mutual Fund ELSS is 3 years and with NSC it is 6 yrs lock-in and with PPF it is 15 years. Among the various tax saving investment option, Mutual fund ELSS has got the least lock-in period.

   Ulips are also one of the tax saving investment options. But now everyone has realized that Ulips has got heavy front loaded charges. Moreover smart investors want to separate their insurance from their investments. They no longer see insurance as an investment; they see insurance as a protection plan. So the smart investors go only for pure term insurance and reject ulips.

This is how Mutual Fund ELSS stands out of the crowd.

   Before deciding to go for Mutual fund ELSS, here are some points to ponder over. First check your overall portfolio. Does it need more equity exposure? If yes then you can go for ELSS; if no then you can go for PPF or NSC.

   Second thing is to keep in mind, the equity investments are for long term, say 5 years or more. Though the lock-in period in ELSS is 3 years it is better to invest with a time horizon of 5 yrs or more.

   Also investors need to keep in mind, SIP is the best form of investing in mutual funds and ELSS is not an exception. So doing an SIP in ELSS is a good strategy to be followed.

   The poor performing ELSS has given around 10% annualized return in the last 5 years whereas the best performing ELSS has delivered around 25% annualized return in the last 5 years. So investors need to be careful in choosing the right ELSS scheme. Past performance, risk adjusted return, consistency are a few parameters to be evaluated in selecting a best performing ELSS scheme. Investors also can approach financial advisors for selecting the right scheme.

   There are two groups of ELSS investors. Majority of investors belong to the first group. They will wake up late to these tax saving investments. For salaried individuals, it is typical that they will be informed by their accounts department somewhere around end of January to provide proof of tax saving investment immediately or else extra tax will be deducted from their February salary. At the neck of the moment, the choice ends up being guided by convenience alone. They tend to think about tax first and investments later. As long as something saves tax, its real benefits and features as an investment are paid less attention to. That means the investments will be chosen more for convenience than for suitability.

   There is another group of investors. Though this group is a very small group, it is a very smart group. They will not rush for tax saving scheme at the last minute. They will plan in advance. That means they will have more time to choose the right product. They will save tax as well as choose a good investment option. They will also check whether this particular tax saving scheme will suit their overall portfolio or not; will this tax saving investment is going to fit into their comprehensive financial plan. That means they will consciously choose an investment which saves tax as well as helps them in achieving their financial goals like children’s higher education, buying a house, retirement plans.

   So…now just check up which group you are in.

The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Founder and Director of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.

A step by step guide to first financial plan.

   Prabu was a college student till yesterday. Today he has got a job. He has changed his costume from T-shirt and jeans to a formal wear with a tie. When he got his first pay cheque, his father advised him to save, his girl friend asked him to take her out on a date, and his friends wanted a party. Prabu was totally confused what to do with his first salary. What are all his actual priorities? Let us help him by laying out a step by step initial financial plan for him.

Get a PAN Card:

   PAN Card is an ID card issued by income tax department. This card is useful in filing your Income Tax returns. Apart from this, the PAN card is very much useful in opening a bank a\c, demat a\c, investing in mutual funds and the like. The required documents for getting a PAN card is a passport size photo, address proof and an identification proof. You need to apply with either UTI or NSDL. They are the two approved agencies by income tax department for issuing PAN card.

Personal Accident and Disability Insurance:

   Almost every day you can find a news column about road accident. It may be your colleague, your distant relative, your neighbor, your friend, your classmate. The stories of such incidents give us a reminder that the accidents can happen to anyone. The impact of these accidents on ones working life could be huge. Some accidents could reduce our employability temporarily or permanently. Personal accident and disability insurance policies will cover the financial losses arising out of accident and disability.

   You need to decide the coverage amount of this policy based on the estimated loss you may suffer because of accident. That is how much loss you may incur from employment temporarily or permanently because of the accident. This will cost you approximately Rs.1500 p.a for a coverage of Rs.10 lakhs.

Health Insurance:

   Most people don’t think about health insurance very often. But it comes to mind first when a loved one is sick. Under health insurance, the insurance company pays the medical bills if the insured person becomes sick and hospitalized. Health insurance can protect a family from financial damage in case of severe and serious illness.

   If you have a health insurance from your employer, that may not be sufficient. Employer may cover the employee and not his family members. And moreover these policies are not portable and cannot be individualized if you leave the job. Employer provided policies cannot be transferred to another employer in case you switch your job. Also employer provided policies will give you coverage as long as you are employed. Once you retire you may not be having coverage. It is really unfortunate that only after your retirement you need health insurance at the most. If you plan to take a fresh policy after retirement, insurance company will not cover the pre-existing diseases at that point in time. Though your employer provides a health insurance policy it is better for you to take a separate health insurance policy at least with a small amount of coverage.

   The coverage amount of the health insurance policy need to be decided based on your health consciousness, your family health history, and the class of hospital you choose for treatments.

Term Insurance:

   Generally as a beginner, there will not be any requirement for any life insurance. But if your parents are financially depending on you, then you need to cover yourself with life insurance. As a breadwinner, today you are there for your family to provide a lifestyle. In case of any mishappening to you, your family members should not compromise on their lifestyle. That is why it is advisable to cover yourself with life insurance if you have dependents.

   But don’t fall prey for ulips. Go for a pure term insurance policy. These policies give you a high coverage with low premium. The premium for a sum assured of Rs.10 lakhs will cost a 25 year old only Rs.2500 p.a. approximately.

Emergency Reserve:

   Once you have completed the above obligations, you need to build an emergency reserve or contingency fund. One aspect of financial planning involves planning for situations where there could be a temporary break in one’s professional income. This could happen, amongst other reasons, due to ill health or could even be self opted. Such planning requires creation of contingency fund. The size of a contingency fund is linked to one’s estimate of what could be the maximum duration of such a break. For instance some people plan for the possibility of a 3 months break, others for 6 months.

   This emergency fund gives a psychological security to you. In case you need to quit you r present job and need to search a new one, you can do that comfortably and confidently as you have an emergency fund for the intermediate period. You need not panic. If you have created a contingency fund, in the event of any emergency you need not pre-close your other investments and hence you avoid paying penalty or booking losses.

Tax Planning:

   You can save under section 80 C up to Rs.120000. Out of this Rs.20000 need to be invested in the infrastructure bonds and the balance Rs.100000 can be invested in NSC, PPF, insurance premium, and ELSS mutual funds., You can give maximum allocation to ELSS mutual funds, as you are so young and in the beginning of your career.

Other goals:

   You may have other goals like buying a laptop, higher studies, and vacation. You need to plan for all these goals. You need to keep in mind two things before deciding an investment. They are your risk tolerance and time horizon. How much risk you are afford to take and psychologically comfortable in taking? When do you need this money back? Based on the answers to these questions you need to choose the right kind of investment plan.

   Plan out your work and work out your plan. Normally we don’t plan to fail, but we fail to plan.If you work on your financial plan, when your friends are partying and taking their girlfriends out, you will be definitely going to be retired richer than your friends.

The author is Ramalingam K, an MBA (Finance)and Certified Financial Planner. He is the Founder Director of Holistic Investment Planners (http://www.holisticinvestment.in/mutualfund-sip ) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.

Stenographer Grade ‘C’ Limited Departmental Competitive Examination, 2010 - allocation of candidates — regarding.

MOST IMMEDIATE

No.5/7/2012-CS.II(C)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training

3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi-100003.
Date: 23rd March, 2012.

OFFICE MEMORANDUM

Subject:- Stenographer Grade ‘C’ Limited Departmental Competitive Examination, 2010 - allocation of candidates — regarding.

   The undersigned is directed to say that the final result of the Limited Departmental Competitive Examination 2010 in the grade of Private Assistant of CSSS has been declared by Staff Selection Commission and is available on the website of SSC. As per Rotational Transfer Policy for CSSS Personnel, an official at any level, on promotion, shall be posted out of the Ministry/Department if he/she has served in the same Ministry/Department in any capacity for a period exceeding the prescribed tenure for promotion laid down in this Department’s O.M. No.13/1/2009-CS-II dated 15.7.2011.

    2. All the Cadre Units are, therefore, requested to obtain personal information from the candidates who have qualified the Limited Departmental Competitive Examination 2010 in the grade of Private Assistant of CSSS in the enclosed proforma and forward the same to this Department positively by 30.3.2012 directly to CS-II Division by FAX (No.24622365) to enable this Department to make nomination of successful candidates to various Cadre Units. In case the requisite information is not received by the stipulated date, it would be presumed that the candidate concerned has no option to furnish and this Department will make nomination as per availability of vacancy.

sd/-
(Kameshwar Mishra)
Under Secretary to the Govt. of India

Source:http://circulars.nic.in/WriteReadData/CircularPortal/D2/D02csd/LDCE_2010.pdf

10 Things To Do Before You Retire

   Don’t put off today what you can’t afford to do tomorrow. In spite of the world wide pension crisis and a growing acceptance that we must plan and save for our retirement, the harsh reality is we are actually not saving enough. Research reports reveal that only 15% of the individuals are saving sufficiently for their retired life. Here are a few tips on things to do before you retire so that your retired life is more comfortable and enjoyable.

Get Rid of All Your Debts

   If you are taking a housing loan, personal loan, car loan or any other loan make sure that you will be repaying them on or before your retirement. You need to choose the term of the loan in accordance with your retirement age. You can enjoy your retired life when you have 100% financial freedom, not when you have to repay your loans.

Protect Your Emergency fund

   Emergency expenses can happen any time. But the possibility goes up during the old age. So we need to enhance the emergency reserve year on year based on the inflation and change in your expense levels. Emergency fund will give you a sense of security and also you need not touch your other investments during emergency where you need to pay pre-closure penalty. Also don’t forget to refill the emergency fund once you met an expense out of emergency fund.

Establish a Retirement Budget

   You need to visualize your retired life well in advance and need to create a budget for your retirement. That is you will not be going to office. So the expenses on transport and clothes may come down. Also you will have more time to spend. You may need to spend more on leisure travel and health care.

Examine Your Cash Flow

   Take a close look at your cash inflow as well as outflow. Is there going to be any income after retirement? Like rent, royalty…. Would there be any unwanted outflow during retired life? Like paying life insurance, or SIP. At times during your beginning of the career , you could have taken a policy where you need to pay premium up to the age of 60. But now you may plan to retire at 55 itself. So you need to realign your existing policy and other investments in sync with your retirement age.

Grow Your Retirement Corpus

   Find out how much corpus you need to have when you retire so that you will be having complete financial freedom. A professional financial planner will of great assistance to you in this regard.

Develop a withdrawal strategy

   How are you planning to withdraw your cash outflow during retirement from the retirement corpus? Monthly, quarterly, half yearly or annually? Through Sytematic Withdrawal plan in mutual funds or by way of dividend or interest. All these will have a great impact on the corpus you need to accumulate. So you need to decide in advance.

Minimize taxes

   Your retirement corpus and retirement income need to be tax efficient. You need to pay taxes for the interest accrued irrespective of that you withdraw the interest or reinvest under a cumulative option. But you need to pay income tax only when you withdraw from the mutual funds. Careful selection of investment vehicle can reduce your tax during the retired life.

Get Sufficient Mediclaim coverage

  The moment you retire, your employer will stop covering you under the group mediclaim. So you need to plan for your individual medical cover well in advance. At old age the medical expenses are inevitable. If you have not planned it properly the all your retirement plan will become a mess.

Consider Inflation adjusted annuities

   The monthly income you need when you retire is not going to be the same even after 5 years of your retirement. Inflation will increase your retirement expenses year after year. So year after year your retirement income needs to go up.

Oversee estate planning

   How your fixed assets and financial assets need to be distributed to your legal heirs? Create a WILL. You can avoid creating relationship problems to your next generation because of your left out wealth.

   The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Founder and Director of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.

Government employees to get 7 percent additional dearness allowance.

   Over four-million central government employees will go home with an increased pay packet from now, with the union cabinet Friday hiking the dearness allowance to 65 percent of the basic salary from the existing 58 percent with retrospective effect from  1st January this year.

   The hike, about 7 percent from the present rates, will also be applicable to central government pensioners.

   The increase in the allowances will cost the government exchequer Rs.7,474.53 crore annually, according to the decision taken at the cabinet meeting presided by Prime Minister Manmohan Singh here.

Release of additional instalment of Dearness Allowance and Dearness Relief.

   The Union Cabinet today gave its approval to release an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners w.e.f. 1.1.2012 representing an increase of 7% over the existing rate of 58% of the Basic Pay/Pension, to compensate for price rise. The increase is in accordance with the accepted formula, which is based on the recommendations of the 6th Central Pay Commission. The combined impact on the exchequer on account of both dearness allowance and dearness relief would be of the order of Rs.7474.53 crore per annum and Rs.8720.32 crore in the financial year 2012-13 (i.e. for a period of 14 months from January, 2012 to February, 2013).

Source: PIB

Government Formulating Policy for Raising Retirement age in Sick & Loss Making CPSEs.

   On the basis of recommendations of Board for Reconstruction of Public Sector Enterprises (BRPSE), the Department of Public Enterprises (DPE) is formulating a policy for enhancement of age of superannuation from 58 to 60 years for employees of such sick and loss making Central Public Sector Enterprises (CPSEs) whose revival packages have been approved by the Government and which will continue to be in Public Sector after implementation of revival package. The above policy would be notified after inter-ministerial consultations and approval of competent authority.

   The above information was given by the Minister for Heavy Industries & Public Enterprises Shri Praful Patel in a written reply in the Lok Sabha today.

PIB

E-Tickets through Mobile Phone.

   Indian Railways Catering and Tourism Corporation (IRCTC), a public sector undertaking under the Ministry of Railways, has launched the scheme for booking Railway e-tickets through mobile phone through its website i.e. irctc.co.in/mobile. The broad features of the schemes are as follow:-

    Users can use their existing IRCTC user ID and password.

    After booking tickets through the mobile phones, users receive a reservation message with the ticket details.

    The service charges of IRCTC are similar to e-tickets i.e. Rs. 10/- per ticket for second/sleeper class and Rs. 20/- per ticket for all other classes.

   This information was given by the Minister of State for Railways Shri K. H. Muniyappa in written reply to a question in Lok Sabha today.

Source:PIB

Submission of Immovable Property Return for the year 2011 (as on 1.1.2012) by the Central Secretariat Service Officers.

IPR MATTER
REMINDER

No.26/02/2011-CS.I(PR)
Government of India
Ministry of Personnel, Public Grievances and Pensions,
Department of Personnel & Training
CS,I Division

2nd Floor, Lok Nayak Bhawan,
Khan Market, New Delhi,
Dated: 21st March, 2012.

OFFICE MEMORANDUM

Subject:- Submission of Immovable Property Return for the year 2011 (as on 1.1.2012) by the Central Secretariat Service Officers.

   Attention is invited to this Department O.M. of even number dated 4.1. 2012 on the subject mentioned above and to say that the Immovable Property Return (IPR) for the year 2011, as on 1.1.2012, in respect of CSS Officers (Under Secretary and above level) was required to be furnished by 31.1.2012 and to be forwarded to this Division by 28.2.2012 for records. However, the IPRs in respect of a large number of officers have not yet been received in this Division as yet. The list of officers whose IPR for the year 2011 have not been received in this Division is annexed with this OM.

   2. Attention is also invited to this Department O.M. No.11012/11/2007- Estt.A dated 27th September, 2011 notifying that Class ‘A” officers, who do not submit the property return by the prescribed time would be denied vigilance clearance and will not be considered for promotion and empanelment for senior level posts in Government of India.

   3. Administrative Ministries/Departments are, therefore, requested to obtain the IPRs for the year 2011 in respect of the defaulting officers and send the same to this Division without any further delay. It is also requested that appropriate action be taken in case of officers who failed to submit the IPRs on stipulated time besides ensuring that appropriate entry regarding late submission/non submission of IPRs is made in the relevant Annual Performance Appraisal Report (APAR) of the concerned officer in terms of this Division O.M. No.10/01/2011-CS.l(PR) dated 19th January, 2012.

sd/-
(Rajiv Manjhi)
Deputy Secretary to the Govt. of India

More Details Click here....

Additional DA from 1.1.2012, Cabinet likely to approve today.

   We expected the same that didn’t happen last week, but Today Cabinet may approve 7% additional Dearness allowance from 1.1.2012 for Central Government staff and pensioners.

   Normally, the decision on announcing DA to the central government employees was to take place on the 2nd week of March and September every year. But this procedure was being postponed for various reasons. Last year, the announcement of DA from July 2011 was also postponed. The decision on the additional DA from March 2012 is expected to be finalized on 22.03.2012 at the Cabinet meeting scheduled on that day. 

   As of now, an increase of 7% is expected which will raise the DA from 58% to 65%. As usual, the DA for March will be paid in April and the arrears for the other two months will be paid separately.

Grant of Privilege Passes to the staff in the grade pay Rs.1800/-.

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)   

E(W)2010/PS-5-8/4

 
New Delhi, the dated 2nd March, 2012.

The General Secretary,
National Federation of Indian Railwaymen,
3, Chelmsford Road,
New Delhi — 110055.

Sir,
Sub.: Grant of Privilege Passes to the staff in the grade pay Rs.1800/-.

Ref.: NFIR’s letter No.1/15 dated 6.2.2010.

   The matter has been examined in consultation with Finance Directorate. It has been observed that since all the posts carrying GP 1800 in PB-1 have been classified as Group ‘C’, the employees retiring from these Group ‘C’ posts in PB-1 GP Rs. 1800 would automatically be entitled for Post Retirement Complimentary Passes /widow passes as per Group ‘C’ entitlement.

   Hence, there appears to be no need for issue of any general clarification

Yours Faithfully,

sd/-
For Secretary, Railway Board.

Source:www.nfirindia.com

Mobile Polyclinics for Ex-Servicemen.

   Providing Medicare to Ex-servicemen and their dependents is an ongoing process and the endeavor of the government is to continuously upgrade the quality of medicare services being provided. The Government has approved opening of additional 199 polyclinics including 17 mobile polyclinics besides the existing 227 polyclinics to improve accessibility of Ex-servicemen to medical facilities. Out of 199 polyclinics, 43 polyclinics have already been operationalised.

   Opening of new polyclinics is based on the ESM population in a particular area. Mobile polyclinics are proposed for remote/hilly areas where the ESM population is less and scattered. Presently 342 districts have been covered with 426 ECHS polyclinics (270 operational & 156 proposed) including 17 mobile polyclinics. The newly sanctioned polyclinics will be operationalised across the country including Himachal Pradesh in a phased manner over a period of time.

   This information was given by Minister of State for Defence Shri MM Pallam Raju in a written reply to Shrimati Viplove Thakur in Rajya Sabha today.

Source: PIB

Job Opportunies in Social Sector.

   The Union Labour & Employment Minister Shri Mallikarjun Kharge has informed the Rajya Sabha that Reliable estimates of employment and unemployment are obtained through quinquennial labour force surveys conducted by National Sample Survey Office. Last such survey was conducted during 2009-10 .As per two most recent round of surveys, about 23.4 per cent and 25.3 percent of persons were estimates to employed in services sector. Against these estimates persons employed in social sector comprising education, health and social work and other community , social and personal service activity combined together were 6.0 per cent and 5.3 percent ,respectively during the corresponding period.

   As per data collected under Employment Market Information programme of Directorate General Of Employment & Training, employment in the organized sector, both public and private, increased from 26.4 million in 2004-05 to 28.7 million in 2009-10.

   The Minister was replying to a written question whether it is a fact that organisations working in the social sector in the country are continuously increasing the job opportunities; if so, Government’s reaction thereto; whether it is also a fact that job opportunities are not being increased in the corporate sector in comparison to these organisations; and the details thereof and the rate of increase of job opportunities in social and corporate sector in the year 2011?

Source: PIB

All you wanted to know about Mutual fund ELSS

   There are so many tax saving investment options; how Mutual fund ELSS Schemes stand out from all other options?

   A Mutual Fund ELSS is similar to diversified equity funds. That means the fund manager can invest in shares of various companies across various industries. The difference is ELSS has got the added tax benefit, something a diversified equity fund does not offer.

   ELSS is part of the Section 80C instruments which are cumulatively eligible for a deduction from income up to Rs.1 Lakh. This gives the tax payers benefits from 10 per cent to 30 per cent (excluding the educational cess) based on their current tax slab.

   The other tax saving investments like NSC, PPF will give only 8% return p.a whereas the Mutual Fund ELSS has got the potential to deliver more than 12% return p.a. Also the lock-in period in Mutual Fund ELSS is 3 years and with NSC it is 6 yrs lock-in and with PPF it is 15 years. Among the various tax saving investment option, Mutual fund ELSS has got the least lock-in period.

   Ulips are also one of the tax saving investment options. But now everyone has realized that Ulips has got heavy front loaded charges. Moreover smart investors want to separate their insurance from their investments. They no longer see insurance as an investment; they see insurance as a protection plan. So the smart investors go only for pure term insurance and reject ulips.

  This is how Mutual Fund ELSS stands out of the crowd.

   Before deciding to go for Mutual fund ELSS, here are some points to ponder over. First check your overall portfolio. Does it need more equity exposure? If yes then you can go for ELSS; if no then you can go for PPF or NSC.

   Second thing is to keep in mind, the equity investments are for long term, say 5 years or more. Though the lock-in period in ELSS is 3 years it is better to invest with a time horizon of 5 yrs or more.

   Also investors need to keep in mind, SIP is the best form of investing in mutual funds and ELSS is not an exception. So doing an SIP in ELSS is a good strategy to be followed.

   The poor performing ELSS has given around 10% annualized return in the last 5 years whereas the best performing ELSS has delivered around 25% annualized return in the last 5 years. So investors need to be careful in choosing the right ELSS scheme. Past performance, risk adjusted return, consistency are a few parameters to be evaluated in selecting a best performing ELSS scheme. Investors also can approach financial advisors for selecting the right scheme.

   There are two groups of ELSS investors. Majority of investors belong to the first group. They will wake up late to these tax saving investments. For salaried individuals, it is typical that they will be informed by their accounts department somewhere around end of January to provide proof of tax saving investment immediately or else extra tax will be deducted from their February salary. At the neck of the moment, the choice ends up being guided by convenience alone. They tend to think about tax first and investments later. As long as something saves tax, its real benefits and features as an investment are paid less attention to. That means the investments will be chosen more for convenience than for suitability.

   There is another group of investors. Though this group is a very small group, it is a very smart group. They will not rush for tax saving scheme at the last minute. They will plan in advance. That means they will have more time to choose the right product. They will save tax as well as choose a good investment option. They will also check whether this particular tax saving scheme will suit their overall portfolio or not; will this tax saving investment is going to fit into their comprehensive financial plan. That means they will consciously choose an investment which saves tax as well as helps them in achieving their financial goals like children’s higher education, buying a house, retirement plans.

   So…now just check up which group you are in.

The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Founder and Director of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.

Eight simple way to plan your Tax

   Eight Simple Ways to Plan your Taxes. You have got only a few more months to complete this financial year. Very soon you will get a call from your company to submit the proofs for tax saving investments. So why don’t you spend some time on organising your tax plan?

   1) Proper Allocation of Annual compensation

   Restructuring your salary with some additional components can reduce your tax liability. This restructuring doesn’t require any additional cash outflow. The following components can be efficiently used to reduce your income tax liability.

    Transport allowance to the extend of Rs.800 is exempt

    Medical expenses which are reimbursed by the employer are exempt to the tune of Rs.15000

    Food coupons like sodexo or ticket restaurant are exempt from tax up to Rs.5000

    Individuals who are all living in a rented accommodation can include House Rent Allowance ( HRA ) as a part of their salary

    Leave Travel Allowance (LTA) can be part of your salary as this can be claimed twice in a block of 4 years.

2) Effective Utilization of Tax Exemption

   As far as possible utilize the maximum exemptions available under section 80 C, 80 CCF and 80 D. The maximum exemption available under section 80 C is Rs. 100000.

   Under this section Rs.100000 investment or contribution can be made in PPF, NSC, Life insurance premium, 5 year FD with banks and Post offices, Mutual Fund ELSS, Principal Repayment of housing loan, and the tuition fees paid for children’s education.

   Under Section 80 CCF, you can invest up to Rs.20000 in infrastructure bonds.

   Under Sec 80 D, the premium paid towards the mediclaim policies are exempt. The maximum limit of exemption is Rs.15000 and for senior citizens the limit is Rs.20000 and for covering senior citizen parents there is an additional exemption to the extend of Rs.15000.

3) Properly Structure your Housing Loan

   The Principal repayment of a housing loan is eligible for a deduction up to Rs.100000 u/s 80C. The interest paid on a housing loan is eligible for a deduction up to Rs.150000 u/s 24B. If the housing loan is for a sizeable amount, then it is possible that the principal repayment and interest may exceed the specified tax exemption limit. To utilise the maximum tax benefit, an individual can consider going for a joint home loan with his/her spouse or parent or sibling. This will make sure that both the co-owners can claim tax deductions in the proportion of their holding in the loan.

4) Tax Plan in Sync with Overall Financial Plan

   You should not do your tax plan in isolation. You need to do it in sync with your overall financial plan. So a tax plan is not only to just save taxes and also it should assist you in achieving your other financial goals like children’s higher education, buying a home or retirement.

5) Avoid Last Minute Rush

   In fact the right time to do the tax plan is the beginning of the financial year. If you postpone your tax planning even now and do it in the last minute, then you will not be able to choose the right investment. In the last minute rush, you will be forced to choose a scheme which gives the proof immediately. Is the investment sound and profitable? Is there any other better options? You will not be able to choose the best scheme and you may settle with a mediocre one.

6) Invest Some Quality Time

  Before investing your money, you need to invest your time. You need to take some quality time to understand the various tax saving options and compare their benefits and limitations.

7) Check for Future Commitments

   Some tax saving options like NSC or ELSS need only onetime investment. Some other tax saving options like PPF, Ulips need periodical investments year after year. You need to be careful in choosing a tax saving scheme where you need to commit for periodical future payments. You need to check on a few things like; do you need such a future commitment? Will you be able to meet the future commitments at ease? The law may change and you may not get any tax exemption for your future payments. Would you consider the scheme irrespective of tax benefit for the future payments?

8) Changed Your Job; Redo your Tax Plan

   Did you switch your job in the middle of the financial year? Then you need to redo your tax plan with consolidating the income from both the companies. It is advisable to inform the new company about the income during the particular financial year from the old company. So that your new company will deduct the right amount of TDS. Otherwise you may need to pay extra tax at the end of the financial year.

   Whenever you change your job, you need to have a sitting with your financial planner or tax advisor. So that the required changes in your tax plan can be done proactively.

   With proper tax planning you can reduce your tax liability; save more; invest better and become wealthier.

The author is Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Founder and Director of Holistic Investment Planners (http://www.holisticinvestment.in/mutualfund-sip ) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.

Recognition of Sumananjali Nursing Home, Aurangabad (Maharashtra) for treatment of Central Government employees under CS(MA) Rules,1944.

No. S. 14021/4/2008-MS
Government of India
Ministry of Health & Family Welfare

Nirman Bhavan, New Delhi
Dated 7th March, 2012.

OFFICE MEMORANDUM

Subject:- Recognition of Sumananjali Nursing Home, Aurangabad (Maharashtra) for treatment of Central Government employees under CS(MA) Rules,1944.

   The undersigned is directed to say that a number of representations have been received in the Ministry of Health & Family Welfare for renewal of recognition of Sumananjali Nursing Home, Aurangabad (Maharashtra) for treatment of Central Government Employees and their family members under CS(MA) Rules, 1944.

   2. In view of the hardships faced by CS(MA) beneficiaries for their own treatment and the treatment of their family members at Aurangabad (Maharashtra), the matter has been examined in the Ministry and it has been decided to empanel Sumananjali Nursing Home, Aurangabad (Maharashtra) under Central Services (Medical Attendance) Rules, 1944.

   3. The Schedule of charges for the treatment of Central Government Employees and the member of their family under the CS(MA) Rules, 1944, will be the rates fixed for CGHS, Pune. The approved rates are available on the website of CGHS (www.mohfw.nic.in//cghs.html) and may be downloaded/printed.

4. The undersigned is further directed to clarify as under:-

   (a) “Package Rate” shall mean and include lump sum cost of in-patient treatment//day care/diagnostic procedure for which a CS(MA) beneficiary has been permitted by the competent authority or for treatment under emergency from the time of admission to the time of discharge, including (but not limited to)-(i) Registration charges, (ii) Admission charges, (iii) Accommodation charges including patient’s diet, (iv) Operation charges, (v) Injection charges, (vi) Dressing charges, (vii) Doctor/consultant visit charges, (viii) ICU/ICCU charges, (ix) Monitoring charges, (x) Transfusion charges, (xi) Anesthesia charges, (xii) Operation theatre charges, (xiii) Procedural charges / Surgeon’s fee, (xiv) Cost of surgical disposables and all sundries used during hospitalization, (xv) Cost of medicines, (xvi) Related routine and essential investigations, (xvii) Physiotherapy charges etc, (xviii) Nursing care and charges for its services.

   (b) Cost of Implants is reimbursable in addition to package rates as per CGHS ceiling rates for implants or as per actual, in case there is no CGHS prescribed ceiling rates.

   (c) Treatment charges for new born baby are separately reimbursable in addition to delivery charges for mother.

   (d) Hospitals empanelled under CS(MA) Rules, 1944 shall not charge more than the package rates.

   (e) Expenses on toiletries, cosmetics, telephone bills etc. are not reimbursable and are not included in package rates.

5. Package rates envisage duration of indoor treatment as follows:

Upto 12 days	for Specialized (Super Specialities) treatment
Upto 7 days	for other Major Surgeries
Upto 3 days	for Laparoscopic surgeries/normal Deliveries
1 day	for day care/Minor (OPD) surgeries

    No additional charge on account of extended period of stay shall be allowed if that extension is due to infection on the consequences of surgical procedure or due to any improper procedure and is not justified.

   In case, there are no CGHS prescribed rates for any test/procedure, then AIIMS rates are applicable. If there are no AIIMS rates, then reimbursement is to be arrived at by calculating admissible amount item-wise(e.g. room rent, investigations, cost of medicines, procedure charges etc) as per approved rates/actual, in case of investigations.

   6. (a) CS(MA) beneficiaries are entitled to facilities of private, semi-private or general ward depending on their basic pay. The entitlement is as follows:-

Sl.No.	Pay drawn in pay band	Ward Entitlement
1.	Upto Rs. 13,950/-	General Ward
2.	Rs. 13,960/-to 19,530/-	Semi-Private Ward
3.	Rs.19,540/- and above	Private Ward

   (b) The package rates given in rate list are for semi-private ward.

   (c) The package rates prescribed are for semi-private ward. If the beneficiary is entitled for general ward there will be a decrease of 10% in the rates; for private ward entitlement there will be an increase of 15%. However, the rates shall be same for investigation irrespective of entitlement, whether the patient is admitted or not and the test, per-se, does not require admission.

   7. The hospital shall charge from the beneficiary as per the CGHS prescribed rates or its own rate list whichever is lower.

   8. (a) The maximum room rent admissible for different categories would be:

General ward	Rs. 1000/-per day
Semi-private ward	Rs. 2000/- per day
Private ward	Rs. 3000/- per day
Day care (6 to 8 Hrs.)	Rs. 500/- (same for all categories)

   (b) Room rent mentioned above at (a) above is applicable only for treatment procedures for which there is no CGHS prescribed package rate.

   Room rent will include charges for occupation of bed, diet for the patient, charges for water and electricity, linen charges, nursing charges and routine up keeping.

   (c) During the treatment in ICCU/ICU, no separate room rent will be admissible.

   (d) Private ward is defined as a hospital room where single patient is accommodated and which has an attached toilet (lavatory and bath). The room should have furnishings like wardrobe, dressing table, bed-side table, sofa set, etc. as well as a bed for attendant. The room has to be air-conditioned.

   (e) Semi Private ward is defined as a hospital room where two to three patients are accommodated and which has attached toilet facilities and necessary furnishings.

   (f) General ward is defined as halls that accommodate four to ten patients.

   (g) Normally the treatment in higher category of accommodation than the entitled category is not permissible. However, in case of an emergency when the entitled category accommodation is not available, admission in the immediate higher category may be allowed till the entitled category accommodation becomes available. However, if a particular hospital does not have the ward as per entitlement of beneficiary, then the hospital can only bill as per entitlement of the beneficiary even though the treatment was given in higher type of ward.

   If, on the request of the beneficiary, treatment is provided in a higher category of ward, then the expenditure over and above entitlement will have to be borne by the beneficiary.

   9. In case of non-emergencies, the beneficiary shall have the option of availing specific treatment/investigation from any of the recognised hospitals of his/her choice (provided the hospital is recognised for that treatment procedure/test), after the specific treatment/investigation has been advised by Authorised Medical Attendant and on production of valid ID card and permission letter from his/her concerned Ministry/Department.

   10. The hospital shall honour permission letter issued by competent authority and provide treatment/investigation facilities as specified in the permission letter.

    11. The hospital shall also provide treatment/investigation facilities to the Pensioner CGHS beneficiaries and their dependent and eligible family members at their own rates or rates approved under CS(MA) Rules, whichever is lower. The hospital shall provide treatment to such pensioner CGHS beneficiaries after authentication through verification of valid CGHS Cards.

   12. However, pensioner CGHS beneficiaries would make payment for the medical treatment at approved rates as mentioned above and submit the medical reimbursement claim to the Addl. Director, CGHS through the CMO i/c of the CGHS Wellness Centre, where the CGHS Card of the beneficiary is registered.

   13. lncase of emergencies, the beneficiary shall have the option of availing specific treatment/investigation from any of the recognised hospital of his/her choice (provided the hospital is recognised for that treatment procedure/test), on production of valid ID card, issued by competent authority.

   14. During the in-patient treatment of the CS(MA) beneficiary, the Hospital will not ask the beneficiary or his attendant to purchase separately the medicines/sundries/equipment or accessories from outside and will provide the treatment within the package rate, fixed by the CGHS which includes the cost of all the items.

   15. If one or more minor procedures form part of a major treatment procedure, then package charges would be permissible for major procedure and only 50% of charges for minor procedure.

   16. Any legal liability arising out of such services shall be the sole responsibility and shall be dealt with by the concerned empanelled hospital. Services will be provided by the Hospital as per the terms given above.

   17. Ministry of Health & Family Welfare reserves the right to withdraw/cancel the above recognition without assigning any reason.

   18. The order takes effect from the date of issue of the O.M.

   19. The authorities of Sumananjali Nursing Home, Aurangabad (Maharashtra) will have to enter into an agreement with the Government of India to the effect that the Hospital will charge from the Central Government employees at the rates fixed by the Government and they will have to sign a Memorandum of Understanding (MOU) (2 copies enclosed only for Hospital) within a period of 3 months from the date of issue of the above mentioned OM failing which the Hospital will be derecognized. Subject to above, the Hospital can start treating Central Government employees covered under CS(MA) Rules, 1944.

   20. This issues with the concurrence of the Finance Division vide their Dy.No.5424 dated 28.02.2012.

sd/-
(Sanjay Pant)
Under Secretary to the government of India

Source:http://mohfw.nic.in/showfile.php?lid=1015

Resolution - accumulations at the credit of subscribers to the GPF and other similar funds - 2011-2012.

(PUBLISHED IN PART I SECTION 1 OF GAZETTE OF INDIA)
F.NO. 5(1)-B(PD)/2011
Government of India
Ministry of Finance
(Department of Economic Affairs)

New Delhi, the 19th March, 2012

RESOLUTION

   It is announced for general information that during the year 2011 2012, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 8% (Eight per cent) for the period from 1.4.2011 to 30.11.2011 and 8.6% (eight point six percent) with effect from 1.12.2011.  The funds concerned are:—

1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (India).
3. The All India Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The Indian Ordnance Department Provident Fund.
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund.

   2. Ordered that the Resolution be published in Gazette of India.

sd/-
(Brajendra Navnit)
Deputy Secretary (Budget)

Source:http://finmin.nic.in/the_ministry/dept_eco_affairs/budget/resolution11.pdf

Loans and Advances by the Central Government - Interest rates and other terms and conditions.

MOST IMMEDIATE

F.No.5(3)-B(PD)/2011
Government of India
Ministry of Finance
Department of Economic Affairs

New Delhi, the 19th March, 2012

OFFICE MEMORANDUM

Subject:- Loans and Advances by the Central Government - Interest rates and other terms and conditions.

   Reference this Ministry's Office Memorandum F.No.5(3)-B(PD)2010 dated 31st December, 2010 on the captioned subject.

2. The lending rates prescribed in the aforesaid Office Memorandum have been reviewed.  The revised rates of interest applicable from 1st April, 2011 are given in the Table below:-

Click here to View the Table and More Details.....

Advances to Government servants — Rate of interest for purchase of conveyances during 2011-2012.

F.No. 5(2)-B(PD)/2011
Government of India
Ministry of Finance
Department of Economic Affairs

New Delhi, the 19th March, 2012

OFFICE  MEMORANDUM

Subject :- Advances to Government servants — Rate of interest for purchase of conveyances during 2011-2012.

   The undersigned is directed to state that the rates of interest for advances sanctioned to the Government servants for purchase of conveyances during 2011-2012 i.e. from 1st April, 2011 to 31st March, 2012 are revised as under:-

                                                                                                            Rate of interest
                                                                                                               per annum

(i) Advance for purchase of conveyance other than
motor car (viz. motor cycle, scooter etc.)                                                         9%

(ii) Advance for purchase of motor car                                                            11.5%

sd/-
(A.K. Bhatnagar)
Under Secretary (Budget)

Source:http://finmin.nic.in/the_ministry/dept_eco_affairs/budget/RoIPurchConvey11.pdf

Clarification on booking of tickets from an agency other than the authorized travel agents by non-entitled officers/staff.

Controller General of Defence Accounts, Ulan Batar Road, Palam, Delhi Cantt-110010

IMPORTANT CIRCULAR

No. AN/XIV/14162/TA/DA/LTC

Dated; 19.3.2012

To
All PCsDAs/CsDA
(Thru CGDA mail server)

Sub:- Clarification on booking of tickets from an agency other than the authorized travel agents by non-entitled officers/staff.

   References are being received in this HQrs office seeking clarification on regulating of LTC claims in respect of officials who are not entitled to travel by air but carry out the journey by air (Air lndia/Pvt airlines) on LTC etc. due to unavoidable or other circumstances. Clarifications are also being sought as to whether a non-entitled officer should compulsorily book their air tickets from the authorized agents viz. M/S Barmer & Lawrie & M/S Ashoka Travels etc. as brought out in this HQrs office important circular of even number dated 16/09/20 10 and 24/8/2011.

   2. In this connection attention is invited to this HQrs office letter No.AN/XIV/14162/VI CPC/Circular/Vol.III dated 12/3/2010, forwarding a copy of Govt. of India, DoP&T OM No.31011/2/2006-Estt.(A) dated 11th March 2010 on the above subject. It has been clarified by DoP&T that “restriction of travel by Air India only need not apply to non-entitled officials concerned who travel by air and claim LTC reimbursement by entitled class of rail.”

   3. Accordingly, it is clarified that the restriction as laid down by the Govt. to travel only by Air India and booking of tickets compulsorily through web site of Air India/M/S Barmer & Lawrie/M/S Ashoka Travels is applicable only for officers who are entitled to travel by air and whose cost of air passage is borne by the Govt. It is however, further clarified that in the event of non-entitled officials travelling on LTC by air (Air lndia/Pvt. Airlines for J&K) while availing special concessions for J&K/NER, the booking of tickets/travel has to be done as per the extant orders on the subject.

   This issues with the approval of Jt.CGDA(AN)

Sd/-
(R. K. Bhatt)
For CGDA

Source:http://www.cgda.nic.in/adm/ltc-190312.pdf

Central Civil Services (Revised Pay) Rules, 2008 - Date of next increment in the revised pay structure under Rule 10 of the CCS(RP) Rules, 2008.

MOST IMMEDIATE

No.10/02/2011-E.III/A
Government of India
Ministry of Finance
Department of Expenditure

New Delhi, the l9th March, 2012.

OFFICE MEMORANDUM

Subject:- Central Civil Services (Revised Pay) Rules, 2008 - Date of next increment in the revised pay structure under Rule 10 of the CCS(RP) Rules, 2008.

   In accordance with the provisions contained in Rule 10 of the CCS (RP) Rules, 2008, there will be a uniform date of annual increment, viz, 1st July of every year. Employees completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. The first increment after fixation of pay on 1.1.2006 in the revised pay structure will be granted on 1.7.2006 for those employees for whom the date of next increment was between 1st July, 2006 to 1st January, 2007.

   2. The Staff Side has represented on this issue and has requested that those employees who were due to get their annual increment between February to June during 2006 may be granted one increment on 01 .01 .2006 in the pre-revised scale.

   3. On further consideration and in exercise of the powers available under CCS(RP) Rules, 2008, the President is pleased to decide that in relaxation of stipulation under Rule 10 of these Rules, those central government employees who were due to get their annual increment between February to June during 2006 may be granted one increment on 1.1.2006 in the pre-revised pay scale as a one time measure and thereafter will get the next increment in the revised pay structure on 1.7.2006 as per Rule 10 of CCS(RP) Rules, 2008.The pay of the eligible employees may be re-fixed accordingly.

   4. In so far as the persons serving in the Indian Audit and Account Department are concerned, these orders are issued in consultation with the Comptroller & Auditor General of India.

sd/-
(Renu Jain)
Director

Source:http://finmin.nic.in/the_ministry/dept_expenditure/notification/misc/DateofIncrement_RevPayRules2008.pdf

Minimum Monthly Pension.

   The Pension Implementation Committee, a sub committee of the Central Board of Trustees, Employees’ Provident Fund [CBT (EPF)], has recommended that the minimum monthly pension under EPS, 1995 be increased to Rs. 1000/- per month as an interim measure. The issue was placed for consideration of the CBT(EPF) in its 198th meeting held on 22.02.2012 wherein the Board decided to defer the discussion.

   As on 31st March, 2011, the number of employees getting pension benefits from the Employees’ Provident Fund Organisation is 36,00,089.

   This information was given by Minister of Labour and Employment Shri Mallikarjun Kharge in reply in reply to a written question whether there is a proposal to provide fixed minimum pension to all the employees who are covered under Employees` Provident Fund Organisation (EPFO); if so, the details thereof along with the minimum amount the Government is planning to give to the pensioners; whether the Government has decided to revise the existing scheme in view of the demands of the workers for a reasonable hike in their EPF pension; the time by which the enhanced pension is likely to be disbursed; and the number of employees who are getting pension benefits from the EPFO at present?

Source: PIB

Pension Scheme in Ordnance Factories.

   The new pension scheme has been implemented in all the ordnance factories including Jabalpur based ordnance factories.

   HVF NPS Reformation Association, Avadi filed an OA before CAT Madras Bench challenging the implementation of New Pension Scheme introduced by the Government of India as unconstitutional and violative of Article 14, 16 & 21 of the Constitution of India contending, inter alia, that new pension scheme does not guarantee any minimum return on investment of employees. A strike had been called on 28.2.2012 by All India Defence Employees Federation, Indian National Defence Workers Federation and BharatiyaPratirakshaMazdoorSangh jointly demanding to scrap the new pension scheme.

   No proposal for considering the implementation of old pension scheme in ordnance factories is under consideration

   This information was given by Minister of State for Defence Shri MM PallamRaju in a written reply to Shri Rakesh Singh in Lok Sabha today.

Source: PIB

Medical Facilities to Gorkha Pensioners.

   The Government has extended the benefits of Ex-servicemen Contributory Health Scheme (ECHS) to Nepal Domiciled Gorkha (NDG) pensioner Ex-servicemen and their dependents. Medical facilities will be provided through 3 ECHS polyclinics at Kathmandu, Pokhara and Dharan. One mobile clinic will also be attached with each of the polyclinic. The polyclinics will provide outpatient treatment and patient requiring hospitalization will be referred to empanelled hospitals in Nepal. Cashless treatment will be provided by these hospitals as is the case in India. The manpower for ECHS Polyclinics and the mobile clinics will be engaged on contractual basis. NDG Ex- servicemen residing in India already have coverage of this scheme since its inception.

   This information was given by Minister of State for Defence Shri MM PallamRajuin a written reply to Shri Manicka Tagore in Lok Sabha today.

PIB

Promotion of Youths to join Forces.

  The details of shortage of manpower in the three Services of the Armed Forces are as follows:

Army	Navy	Air Force
10526	17711	8289

    Government has taken a number of measures to encourage the youth to join the Armed Forces, including conduct of Recruitment Rallies, Media Campaigns, etc. The number of youth aspiring to join the Armed Forces has shown an increasing trend over the last few years.

            This information was given by Minister of Defence Shri AK Antony in a written reply to KunwarRewati Raman Singhand others in Lok Sabha today.

Source: PIB

Enhancement of remuneration to contractual teachers engaged in Railway Schools.

Government of India
Ministry of Railways
(Railway Board)

No.E(W)2007/SC2/7

Delhi, dated; l6-03-2012.

The General Managers(P),
All Indian Railways &
Production Units.
(As per standard mailing list)

Sub:- Enhancement of remuneration to contractual teachers engaged in Railway Schools.

Ref: Board’s letters of even number dated 02-11-2007 & 22-05-2009.

   Please refer to Board’s above mentioned letters, wherein guidelines were issued regarding engagement of part time teachers on contract basis against short term vacancies of teachers in Railway Schools.

   2. Terms and conditions applicable to appointment of such contractual teachers were also detailed in above referred letter including the remuneration admissible to them.

   3. In modification of existing instructions, Ministry of Railway has now decided to enhance the remuneration admissible to contractual teachers, appointed on contract basis in Railway Schools at the rates indicated as under:-

Post Graduate Teacher	` 220/- per period subject to maximum of five periods in a day.
Trained Graduate Teacher	` 210/- per period subject to maximum of five periods in a day.
PRT	` 170/- per period subject to maximum of five periods in a day.

   Contractual teachers once engaged in a school will not be renewed in the next academic session and the revised remuneration will be effective from 20-10-2011.

   The existing terms and conditions would remain the same.

   This issues with the concurrence of Finance Directorate of Ministry of Railways.

sd/-
(Debasis Mazumdar)
Joint Director Estt.( Welfare)
Railway Board

Source:http://www.airfindia.com/Orders%202012/Enhancement%20in%20Remuneration%20of%20contractual%20teachers_16.03.2012.pdf

4,000 Houses for Central Armed Police Forces Personnel to be Constructed.

   4,000 residential quarters are to be constructed for Central Armed Police forces. Rs. 1185 crores has been allocated for this purpose in the Union Budget 2012-13 presented in Lok Sabha recently.

   In this project, 228 sites have been identified across the country where lands are available with the CAPFs and construction can be taken up. These sites have been grouped into 39 clusters, which have further been clubbed into 4 lots. Approximately 57787 houses and 348 barracks are proposed to be constructed. Earlier it was proposed to construct 64643 houses and 536 barracks at 262 sites in 5 lots. The remaining 6856 houses and 188 barracks will be now constructed through CPWD/PWOs as a part of works programme of CAPFs.

   Ministry of Home Affairs is taking steps to provide adequate housing to the CAPFs. In the 11th Five Year Plan the Planning Commission approved an allocation of Rs.2500 crore for Police Housing under Residential Building (Plan). In the first four years the allocation at BE stage for Annual Plan 2007-08, 2008-09, 2009-10 and 2010-11 was Rs.150.00 crore, Rs.250.00 crore, Rs.270.00 crore and Rs.297.40 crore respectively. In 2011-12, an amount of Rs.487.90 crore was allocated under the scheme at BE stage which has been augmented to Rs.719.29 crore at the RE stage.

PIB

Highlights of Union Budget 2012-13.

 
·         Budget identifies five objectives relating to  growth recovery, private investment, supply bottlenecks, malnutrition and governance matters.

·         GDP growth to be 7.6 per cent (+ 0.25 percent) during 2012-13.

·         Amendment to the FRBM Act proposed  as part of Finance Bill.  New concepts of “Effective Revenue Deficit” and “Medium Term Expenditure Framework” introduced.

·         Central subsidies to be kept under 2 per cent of GDP; to be further brought down to 1.75 per cent of GDP over the next 3 years.

·         Proposed: Mobile based fertilizer management system; LPG transparency portal; scaling up and rolling out of Aadhar enabled payment for government schemes in at least 50 districts.

·         Rs. 30,000 crore to be raised through disinvestment.

·         Efforts to reach broadbased consensus on FDI in multi-brand retail.

·         Rajiv Gandhi Equity Saving Scheme: to allow income tax deduction to retail investors on  investing in equities.

·         Rs. 15,888 crore to be provided for capitalization of public sector banks and financial  institutions.

·         A central  “Know Your Customer” depository to be developed.

·         Swabhimaan: remaining habitations to be covered; to be extended to more habitations; ultra small branches to be set up in Swabhimaan habitations.

·         Investment in 12th Plan in infrastructure to go uptoRs. 50,00,000 crore; half of this is expected from private sector.

·         Tax Free Bonds of Rs. 60,000 crore to be allowed for financial infrastructure projects.

·         Allocation of Road Transport and Highways Ministry enhanced by 14 per cent to Rs. 25,360 crore.

·         Financial package of Rs. 3,884 crore for waiver of loans to handloom weavers and their cooperative societies; mega handloom clusters in Andhra, Jharkhand; weaver service centres in Mizoram, Nagaland and Jharkhand ; powerloom mega cluster in Maharashtra; Rs. 500 crore pilot schemes for geo-textiles in North-Eastern region.

·         Rs. 5,000 crore India Opportunities Venture Fund to help small enterprises.

·         Allocation to agriculture enhanced; RKVY gets Rs. 9,217 crore; BGREI gets Rs. 1,000 crore; Rs.2242 crore project to improve dairy productivity; Rs. 500 crore for coastal aquaculture.

·         Various other agricultural activities merged into 5 missions.

·         Target for agricultural credit raised to Rs. 5,75,000 crore.

·         Interest subvention for short-term crop loans to farmers at 7 per cent interest continues; additional 3 per cent for prompt paying farmers.

·         Rs. 200 crore for awards to incentivise agricultural research.

·         Provisions under rural housing fund increased to Rs. 4,000 crore from Rs. 3,000 crore
·         Interest subvention of 1 percent on housing loans uptoRs. 15 lakh extended for one more year.

·         AIBP allocation raised by 13 per cent to Rs. 14,242 crore.

·         National Mission on Food Processing to be started in cooperation with State Governments.

·         Scheduled Caste Sub Plan allocation increases by 18 per cent to Rs. 37,113 crore; Tribal Sub Plan by 17.6 per cent to Rs. 21,710 crore.

·         Multi-sectoralprogramme to address maternal and child malnutrition in 200 high burden districts.

·         58 per cent rise in allocation to ICDS, at Rs. 15,850 crore.

·         Rural drinking water and sanitation gets 27 per cent rise in allocation to Rs. 14,000 crore; PMGSY gets 20 per cent rise to Rs. 24,000 crore.

·         Projects covering length of 8800 km to be awarded under NHDP against 7,300 km during 2011-12.

·         RTE-SSA gets Rs. 25,555 crore allocation, showing an increase of 21 per cent; 6000 schools to be set up at block level as model schools in the 12th Plan; Credit Guarantee Fund to be set up for better flow of credit to students.

·         National Urban Health Mission is being launched.

·         34 per cent increase in allocation to National Rural Livelihood Mission, to Rs. 3915 crore.

·         Rs. 1000 crore allocated for National Skill Development Fund.

·         Bharat Livelihood Foundation to be established to support livelihood interventions particularly in  tribal areas.

·         Widow pension and disability pension raised from Rs. 200 to Rs. 300 per month.

·         Grant on death of primary breadwinner of a BPL family in the age group 18-64 years doubled to Rs. 20,000.

·         Defence services get Rs. 193407 crore; any further requirement to be met.

·         4000 residential quarters to be constructed for Central Armed Police Forces.

·         UID-Aadhar to get adequate funds for enrolment of 40 crore persons, in addition to the 20 crore persons already enrolled.

·         White Paper on Black Money to be laid in the current session of Parliament.

·         Tax proposals mark progress in the direction of movement towards DTC and GST.

·         Income tax exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit of 20 per cent tax slab raised from Rs.8 lakh to Rs.10 lakh.

·         Interest from savings bank accounts deductible upto Rs.10,000; deduction of upto Rs.5,000 for preventive health check-up.

·         Senior citizens without business income exempt from advance tax.

·         Investment linked deduction of capital expenditure enhanced for certain businesses; new sectors eligible for investment linked deduction.

·         Turnover limit for compulsory tax audit for SMEs raised from Rs.60 lakh to Rs.1 crore.

·         STT on cash delivery reduced by 20 per cent to 0.1%.

·         General Anti Avoidance Rule being introduced to counter aggressive tax avoidance.

·         A number of measures proposed to deter generation and use of unaccounted money.

·         All services to attract service tax except those in the negative list.

·         Central Excise and Service Tax being harmonized.

·         Standard rate of excise duty raised from 10 per cent to 12 per cent; service tax rates raised from 10 per cent to 12 per cent; no change in peak customs duty of 10 per cent on non-agricultural goods.

·         Relief in indirect taxes to sectors under stress; agriculture, infrastructure, mining, railways, roads, civil aviation, manufacturing, health and nutrition, and environment get duty relief.

·         Certain cigarettes and bidis attract higher excise duty; large cars attract higher customs duty.

·         Excise imposed on unbranded jewellery also; measures to minimize impact on small artisans  and goldsmiths; branded silver jewellery exempted from excise duty.

·         Net gain of Rs.41,440 crore due to taxation proposals.

·         Total expenditure budgeted at Rs. 14,90,925 crore; plan expenditure at Rs. 5,21,025 crore – 18 per cent higher than 2011-12 budget; non plan expenditure at Rs. 9,69,900 crore.

·         Fiscal deficit targeted at 5.1 per cent of GDP, as against 5.9 per cent in revised estimates for 2011-12.

·         Central Government debt at 45.5 per cent of GDP as compared to Thirteenth Finance Commission target of 50.5 per cent.

·         Medium-term Expenditure Framework Statement to be  introduced; will set forth 3-year rolling target for expenditure indicators.
 
Source: PIB

Exemption Limit for Individual Taxpayers Raised to Rs. 2 Lakh.

Exemption Limit for Individual Taxpayers Raised to Rs. 2 Lakh
Upper Limit of 20 Per Cent Tax Slab Raised to Rs. 10 Lakh
Deduction up to Rs. 10,000 Proposed for Savings Bank Interest
Senior Citizens not Having Income from Business Exempted from Payment of Advance Tax

   The exemption limit for the general category of individual taxpayers has been enhanced to Rs. 2,00,000 from Rs. 1,80,000 in the General Budget 2012-13, presented by the Union Finance Minister Shri Pranab Mukherjee in the LokSabha here today. This measure will provide tax relief uptoRs. 2,000 to every taxpayer in this category.
 
The Finance Minister, Shri Mukherjee introduced the DTC (Direct Taxes Code) rates for personal income tax, marking progress in the direction of movement towards DTC and GST (Goods and Services Tax).
 
            It has also been proposed to raise the upper limit of 20 per cent tax slab from Rs. 8 lakh to Rs. 10 lakh. The proposed personal income tax slabs are:

Income uptoRs. 2 lakh	NIL
Income above Rs. 2 lakh and uptoRs. 5 lakh	10 per cent
Income above Rs. 5 lakh and upto Rs.10 lakh	20 per cent
Income above Rs. 10 lakh	30 per cent

   In another relief to the individual taxpayers, a deduction of uptoRs. 10,000 has been proposed for interest from savings bank accounts. This would help a large number of small taxpayers with salary incomes uptoRs. 5 lakh and interest from savings bank accounts uptoRs. 10,000 as they would not be required to file income tax returns.
 
            It has also been proposed to allow deduction of Rs. 5,000 for preventive health check up.
 
            For senior citizens not having income from business, it has been proposed to exempt them from payment of advance tax.

Source: PIB

Railways Take Measures to Prevent Misuse of General and Tatkal Reserved Tickets.

 

The following steps have been taken Indian Railways to prevent the misuse of general and Tatkal reserved tickets:

1.    Revised Tatkal scheme has been implemented w.e.f. November 21, 2011 which necessitates passengers to indicate prescribed proof of identity at the time of booking and carry the same during the journey. Other measures under the scheme include non issuance of duplicate tickets, prohibition of booking Tatkal tickets by agents between 0800 hrs. and 1000 hrs. and not granting refunds on confirmed Tatkal tickets.

2.    With a view to preventing cases of travelling on transferred tickets, Indian Railways have made carrying one of the prescribed proofs of identity (in original) mandatory, during journey by AC-III tier, AC-II tier, AC Chair Car, Executive and 1st AC classes, by any one of the passengers travelling on a tickets.

The following are the prescribed proofs of identity:

    Voter Photo Identity Card issued by Election Commission of India

    Passport

    PAN card issued by Income Tax Department

    Driving Licence issued by RTO

    Photo Identity card having serial number issued by Central/State Government

    Student Identity Card with photograph issued by recognized school/college for their students.

    Nationalised Bank Passbook with photograph

    Credit Cards issued by Banks with laminated photograph.

    Unique Identification Card “Aadhaar”

   This information was given by the Minister of State for Railways Shri K. H. Muniyappa in written reply to a question in Lok Sabha Yesterday.

Source: PIB

Government finalising guidelines for Performance Related Incentive Scheme (PRIS) to Central Government Employees.

Appraisal of Performance of Civil Servants

   The Sixth Central Pay Commission has recommended the introduction of new performance based pecuniary benefit, over and above the regular salary, for Government employees. The benefit will be called Performance Related Incentive Scheme (PRIS) and will be payable taking into account the performance of the employees during the period under consideration. The recommendation has been accepted by the Government. Guidelines are being worked out through inter-departmental consultation.

   Rule 16(3) of the All India Services (DCRB) Rules, 1958has been amended on 31st January, 2012 which provides that the Central Government may in consultation with the State Government concerned, require a Member of the All India Service (AIS) to retire from Service in public interest, after giving such Member at least three month’s previous notice in writing or three month’s pay and allowances in lieu of such notice:-

   (i)    After the review when such Member completes 15 years of qualifying Services; or

   (ii)    After the review when such Member completes 25 years of qualifying Services; or

   (iii)    Attains the age of 50 years, as the case may be; or

   (iv)    If the review referred to in (i) or (ii) above has not been conducted, after the review at any other time as the Central Government deems fit in respect of such Member.

   So far as Central Government employees are concerned, Government in public interest may retire any Government Servant after he has attained the age of 50/55 years or after completion of 30 years service by giving him notice of not less than three months in writing or three months pay and allowances in lieu of such notice.

   This was stated by the Minister of State for Ministry of Personnel, Public Gruievances and Pensions and the Minister of State in the Prime Minister’s Office, Shri V. Narayanasamy in a written reply in Rajya Sabha today.

Process of settlement of claims in view of declaration of rate of interest for the financial year 2011-12 — Regarding.

Employees Provident Fund Organisation
(Ministry of Labour & Employment, Govt. of India)
Bhavishya Nidhi Bhawan, 14-Bhikaiji Cama Place, New Delhi - 110066

No.:WSU/10(1)2011/Changes in MAP

Dated:15-03-2012.

To
All Regional Provident Fund Commissioners,
In-charge of the ROs/SROs

Subject:- Process of settlement of claims in view of declaration of rate of interest for the financial year 2011-12 — Regarding.

Sir,

   This is in reference to the Head Office circular No. Invest.1/3(2)/133/11-12-ROI/51350 dated 14.03.2012 (placed at Sl. No. 602 of ‘Office Orders & Circulars 2011-12’ on EPFO’s website) vide which rate of interest @8.25% pa. for the financial year 2011-12 has been conveyed. The IS Division has already released Application S/w Patch Ver 3.29.1” dated 15-03-2012 for the same.

   Accordingly, all the RPFCs/Officers-Incharge of ROs/SROs are hereby directed to settle the claims by crediting the interest @8.25% for the financial year 2011-12. The claims, which are already in the pipeline before release of S/w Patch Ver 3.29.1, need not be returned to the Dealing Assistant (Initiator) for the change in the rate of interest. Such claims are to be approved by crediting interest @ 8.25% qa (for the Financial Year 2011-12), at the level of Section Supervisor, Accounts Officer or APFC, as the case may be. The Section Supervisor, Accounts Officer or APFC, as the case may be, shall record the final amount on the claim form
under his signature.

Yours faithfully,

sd/-
(Rajesh Bansal)
Financial Advisor & Chief Accounts Officer

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Revision of stitching charges of uniform/livery items supplied to the canteen employees working in Non-Statutory Departmental Canteens/Tiffin Rooms located in Central Govt. Offices - regarding.

No.18/1/2011-Dir.(C)
Government of India
Ministry of Personnel, P.G. and Pensions
(Department of Personnel and Training)

Lok Nayak Bhawan, Khan Market,
New Delhi, dated 23th January, 2012.

OFFICE MEMORANDUM

Subject :- Revision of stitching charges of uniform/livery items supplied to the canteen employees working in Non-Statutory Departmental Canteens/Tiffin Rooms located in Central Govt. Offices - regarding.

   The undersigned is directed to refer to this Department’s O.M. No.18/3/2003-Dir., dated 8.7.2005 and 5.5.2006 wherein stitching charges to be provided for woolen pant and woolen salwar in respect of employees of Non-Statutory Departmental Canteens/Tiffin Rooms functioning under Central Government Offices were prescribed. These stitching charges have since been reviewed in consultation with Home(Finance) and it has been decided to revise stitching charges for woolen pant to ` 180/- and for woolen salwar to ` 60/-. These would be admissible once in two years.

   2. The rate of stitching charges for other iterms of uniforms as admissible to canteen employees would be as per the rates notified by this Department vide O.M. No.14/1/2010-JCA2, dated 18.4.2011(copy enclosed).

   3. This issues with the concurrence of Home Finance Division vide their ID No. CF-93287, dated 19.01.2012.

   4. Hindi version will follow.

sd/-
(Pratima Tyagi)
Director(Canteens)

Source:http://circulars.nic.in/WriteReadData/CircularPortal/D2/D02adm/Canteen_230112.pdf