BUDGET 2014:HIGHLIGHTS!

Page 1 of 3 Budget 2014: Highlights PTI | Feb 17, 2014, 11.38AM IST Finance minister P Chidambaram has rejected the charge of policy paralysis as he presented his interim Union Budget in Parliament on Monday. Here are the highlights of the vote on account 2014. * Fiscal deficit for current fiscal to be 4.6% * Revenue deficit estimated at 3% for current fiscal * 140m people lifted out of poverty in last 10 years * Excise duty on SUVs cut from 30 to 24%, in large and mid-segment cars from 27- 24% to 24-20% * Excise duty on small cars, motorcycles and commercial vehicles cut from 12% to 8%; appropriate cut to be done on chassis, trailers * A Rs 100 crore scheme formulated to promote community radio stations: Chidambaram * RBI must strike a balance between growth and moderating inflation, Chidambaram says * We must focus on manufacturing, specially manufacturing for exports: Chidambaram * I am disappointed that we could not introduce GST: Chidambaram * No changes in tax laws in interim budget * Govt has obtained information in 67 cases of illegal offshore accounts of Indians: Chidambaram * Excise duty cut from 12 to 10 per cent in capital goods sector to stimulate growth * Excise duty on mobile handset to be 6% on CENVAT credit to encourage domestic production * Excise duty on small cars, motorcycles and SUVs reduced * Service tax relief storage for warehousing for rice * Blood banks to be exempt from service tax * Rs 500 crore estimated requirement for implementing one-rank-one-pay scheme Page 2 of 3 for armed forces in 2014-15 * Rs 6000 crore to rural housing fund, Rs 2000 crore for urban housing fund * Minority bank accounts have swelled to 43,53,000 by 2013-14 from 14,15,000 bank accounts 10 years ago * Rs 3711 crore for minority affairs; housing and urban poverty alleviation gets Rs 6000 crore * Social justice ministry gets Rs 6730 crore; panchayati raj ministry Rs 7000 crore * Moratorium on interest on student loans taken before March 31, 2009; to benefit 9 lakh borrowers * Public Debt Management Bill ready * Fiscal deficit target of 3% to be achieved by 2017 * Fiscal deficit to be contained at 4.6% of GDP in 2013-14. * CAD will be $45 billion in 2013-14 * Foreign exchange reserves up by $15 billion * Foodgrain production estimated at 263 million tons in 2013-14 * Agriculture credit will cross $45 billion against $41 billion in 2012-13 * 296 projects worth Rs 6,60,000 crore cleared by Cabinet Committee on Investment by end January 2014 * Merchandise export to grow by 6.8% to $326 billion * 3 more industrial corridors — Chennai-Bangalore, Bangalore-Mumbai, Amritsar- Kolkata — under various stages of implementation * GDP growth rate in Q3 and Q4 of 2013-14 will be at least 5.2% * Declining fiscal deficit, moderation of CAD, stable exchange rate and increase in project implementation result of hardwork * Power capacity rises to 234,600 MW in 10 years * Expenditure on education has risen from Rs 10,145 crore 10 years ago to Rs 79,251 crore this year Page 3 of 3 * Sugar decontrol, gradual correction of diesel prices, application for new bank licenses, sick electricity distribution companies restructured * Average growth under UPA's ten year rule was 6.2 per cent against 5.9 during NDA period of 1999-2004 * Average growth under UPA-I was 8.4 per cent and UPA-II 6.6 per cent * PSUs to achieve record capex of Rs 2,57,645 crore in 2013-14 * 500 MW fast breeder nuclear reaction in Kalpakkam to be ready shortly; 7 nuclear power reactors under construction * National Solar Mission to undertake 4 ultra mega solar power projects in 2014-15 * Rs 1,200 crore additional assistance to N-E states to be released before end of the year * Rs 1,000 crore grant for Nirbhaya Fund will be non-lapsable; another Rs 1,000 crore to be given next fiscal * Rs 3,370 crore to transferred to 2.1 crore LPG users * Govt committed to Aadhaar-based LPG transfer but scheme on hold temporarily * Aadhaar is tool for empowerment * Non-plan expenditure to exceed by a small amount in 2013-14 * 500 MW fast breeder test reactor in Kalpakkam to be ready shortly; 7 nuclear power reactors under construction * Plan expenditure will be Rs 5,55,322 crore in 2014-15, unchanged from last fiscal * Budgetary support to railways increased from Rs 26,000 crore to Rs 29,000 crore 2014-15 * Rs 2,46,397 crore allocated for food, fertilizer and fuel subsidy * Food subsidy will be Rs 1,15,000 crore for implementation of National Food Security Act * Defence allocation increased by 10 per cent to Rs 2.24 lakh crore

THE FINANCE BILL,2014

BILL No.7 OF 2014 THE FINANCE BILL, 2014 (AS INTRODUCED IN LOK SABHA) http://taxguru.in/ 1 2. The provisions of section 2 of, and the First Schedule to, the Finance Act, 2013, shall apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2014, as they apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2013, with the following modifications, namely:–– (a) in section 2,–– (i) in sub-section (1), for the figures “2013”, the figures “2014” shall be substituted; (ii) in sub-section (3), for the first, second and third provisos, the following provisos shall be substituted, namely:–– “Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 shall be increased by a surcharge, for purposes of the Union, as provided in Paragraphs A, B, C, D or Paragraph E of Part I of the First Schedule: Provided further that in respect of any income chargeable to tax under sections 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BB, 115BBA, 115BBC, 115BBD, 115BBE, 115E, 115JB or section 115JC of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for purposes of the Union, calculated,— (A) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, or co-operative society or firm or local authority, at the rate of ten per cent. of such income-tax, where the total income exceeds one crore rupees; (B) in the case of every domestic company,— (i) at the rate of five per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of ten per cent. of such income-tax, where the total income exceeds ten crore rupees; (C) in the case of every company, other than a domestic company,— (i) at the rate of two per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees; (ii) at the rate of five per cent. of such income-tax, where the total income exceeds ten crore rupees: Income-tax. AS INTRODUCED IN LOK SABHA ON 17TH FEBRUARY, 2014 Bill No.7 of 2014 THE FINANCE BILL, 2014 A BILL to continue the existing rates of income-tax for the financial year 2014-2015. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:— CHAPTER I PRELIMINARY 1. (1) This Act may be called the Finance Act, 2014. (2) Section 2 shall come into force on the 1st day of April, 2014. CHAPTER II RATES OF INCOME-TAX Short title and commencement. 5 10 15 20 25 30 35 17 of 2013. http://taxguru.in/ 2 Provided also that in the case of persons mentioned in item (A) of second proviso, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as income-tax on such income and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.”; (iii) in sub-section (13), in clause (a), for the figures “2013”, the figures “2014” shall be substituted; (b) in the First Schedule,–– (i) for Part I, the following Part I shall be substituted, namely:–– “PART I INCOME-TAX Paragraph A (I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,— Rates of income-tax 5 10 15 20 25 30 35 40 45 50 (1) where the total income does not exceed Rs. 2,00,000 (2) where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000 (3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 (4) where the total income exceeds Rs. 10,00,000 Nil; 10 per cent. of the amount by which the total income exceeds Rs. 2,00,000; Rs. 30,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000; Rs. 1,30,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000. (II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,— Rates of income-tax (1) where the total income does not exceed Rs. 2,50,000 (2) where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 (3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 (4) where the total income exceeds Rs. 10,00,000 Nil; 10 per cent. of the amount by which the total income exceeds Rs. 2,50,000; Rs. 25,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000; Rs. 1,25,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000. http://taxguru.in/ 3 10 15 20 25 35 40 5 30 (III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,— Rates of income-tax (1) where the total income does not exceed Rs. 5,00,000 (2) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 (3) where the total income exceeds Rs. 10,00,000 Nil; 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000; Rs. 1,00,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112, shall, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of ten per cent. of such income-tax: Provided that in the case of persons mentioned in this Paragraph, having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. Paragraph B In the case of every co-operative society,— Rates of income-tax (1) where the total income does not exceed Rs.10,000 (2) where the total income exceeds Rs.10,000 but does not exceed Rs. 20,000 (3) where the total income exceeds Rs. 20,000 10 per cent. of the total income; Rs. 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs.10,000; Rs. 3,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 20,000. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of ten per cent. of such income-tax: Provided that in the case of every co-operative society mentioned in this Paragraph, having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. Paragraph C In the case of every firm,–– Rate of income-tax On the whole of the total income 30 per cent. Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of ten per cent. of such income-tax: Provided that in the case of every firm mentioned in this Paragraph, having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. Paragraph D In the case of every local authority,— Rate of income-tax On the whole of the total income 30 per cent. 45 http://taxguru.in/ 4 10 15 20 25 35 40 45 5 30 Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112, shall, in the case of every local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of ten per cent. of such income-tax: Provided that in the case of every local authority mentioned in this Paragraph, having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. Paragraph E In the case of a company,— Rates of income-tax I. In the case of a domestic company 30 per cent. of the total income; II. In the case of a company other than a domestic company— (i) on so much of the total income as consists of,— (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government (ii) on the balance, if any, of the total income 40 per cent. 50 per cent.; Surcharge on income-tax The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112, shall, be increased by a surcharge for the purposes of the Union calculated,— (i) in the case of every domestic company,— (a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of five per cent. of such income-tax; and (b) having a total income exceeding ten crore rupees, at the rate of ten per cent. of such income-tax; (ii) in the case of every company other than a domestic company,— (a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and (b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax: Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees: Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.”; (ii) in Part IV, in Rule 8,–– (A) for sub-rules (1) and (2), the following sub-rules shall be substituted, namely:— “(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2014, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2006 or the 1st day of April, 2007 or the 1st day of April, 2008 or the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act,— http://taxguru.in/ 5 50 10 15 20 25 35 40 45 5 30 (i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2006, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2007 or the 1st day of April, 2008 or the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2007, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2008 or the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013, (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2008, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2009, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013, (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2010, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013, (vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2012 or the 1st day of April, 2013, (vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2014. (2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2015, or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2007 or the 1st day of April, 2008 or the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014, is a loss, then, for the purposes of sub-section (10) of section 2 of this Act,— (i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2007, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2008 or the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2008, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2009 or the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014, (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2009, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2010 or the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014, (iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2010, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014, (v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014, 55 http://taxguru.in/ 6 10 15 5 (vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013 or the 1st day of April, 2014, (vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, (viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2015.”; (B) for sub-rule (4), the following sub-rule shall be substituted, namely:–– ”(4) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in Part IV of the First Schedule to the Finance Act, 2006 (21 of 2006), or of the First Schedule to the Finance Act, 2007 (22 of 2007), or of the First Schedule to the Finance Act, 2008 (18 of 2008), or of the First Schedule to the Finance (No. 2) Act, 2009 (33 of 2009), or of the First Schedule to the Finance Act, 2010 (14 of 2010), or of the First Schedule to the Finance Act, 2011 (8 of 2011), or of the First Schedule to the Finance Act, 2012 (23 of 2012), or of the First Schedule to the Finance Act, 2013 (17 of 2013) shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).”. http://taxguru.in/ STATEMENT OF OBJECTS AND REASONS The object of this Bill is to continue the existing rates of income-tax for the financial year 2014-15. 2. Clause 2 of the Bill deals with the rates of income-tax and surcharge. The rates of income-tax and surcharge as specified in Part III of the First Schedule to the Finance Act, 2013 for the purpose of deduction of tax at source from salaries during the financial year 2013-14, for computing the “advance tax” payable during that financial year in relation to current incomes and for certain special purposes, are proposed to be continued for the purpose of assessments for the assessment year 2014-15. Further, the same rates are proposed to be continued for the purpose of deduction of tax at source from salaries during the financial year 2014-15, for computing the “advance tax” payable during that financial year on current incomes, and for the said special purposes. 3. The rates for deduction of tax at source during the financial year 2013-14 from incomes other than salaries specified in Part II of the First Schedule to the Finance Act, 2013, are also proposed to be continued for deduction of tax at source from such incomes during the financial year 2014-15. 4. Clause 2 of the Bill, accordingly, proposes to apply to the assessment year 2014-15 or, as the case may be, to the financial year 2014-15, the provisions of section 2 of, and the First Schedule to, the Finance Act, 2013, with consequential and other necessary modifications. P. CHIDAMBARAM. NEW DELHI; The 10th February, 2014. ___________ PRESIDENT’S RECOMMENDATION UNDER ARTICLES 117 AND 274 OF THE CONSTITUTION OF INDIA [Copy of letter No. 2(8)-B(D)2014 dated the 10th February, 2014 from Shri P. Chidambaram, Minister of Finance, to the Secretary-General, Lok Sabha.] The President, having been informed of the subject matter of the proposed Bill, recommends under clauses (1) and (3) of article 117, read with clause (1) of article 274, of the Constitution of India, the introduction of the Finance Bill, 2014 to the Lok Sabha and also recommends to the Lok Sabha the consideration of the Bill. 2. The Bill will be introduced in the Lok Sabha immediately after the presentation of the Budget on the 17th February, 2014. 7 http://taxguru.in/ LOK SABHA ________ A BILL to continue the existing rates of income-tax for the financial year 2014-2015. ________ (Shri P. Chidambaram, Minister of Finance.) http://taxguru.in/

Merger Of 50% DA/DR

F. No. 42j2j2014-P&PW(G) Government of India Ministry of Personnel, Public Grievances & Pensions Department of Pension & Pensioners' Welfare 3rd Floor, Lok Nayak Bhavan, Khan Market, New Delhi - 110003 Date: J.I'>Y January, 2014 OFFICE MEMORANDUM Subject: Action Taken Report (ATR) on the minutes of the 23rd meeting of Standing Committee of Voluntary Agencies (SCOVA). Please find enclosed herewith a copy of Action Taken Report (ATR) on the decisions of the 23rd meeting of the Standing Committee of Voluntary Agencies (SCOVA) held on 20th September, 2013 in New Delhi under the Chairmanship of Hon'ble MOS(PP) for kind perusal. Enclosure: As above. ( Sujasha Choudhury) Deputy Secretary (P) Telefax: 24644637 To, 1. Director, NIC, 3rd floor, Lok Nayak Bhawan, New Delhi for placing this Office Memorandum on this Department's website www.pensionersportal.gov.in ~ Circulars --+ SCOVA. 2. Pensioners Associations under SCOVA : Standing Group (5 Associations) (i) Secretary, National Council (Staff Side) JCM, 13-C, Ferozshah Road, New Delhi - 110001. (ii) President, All India Retired Railwaymen's Federation, Block 303, Railway Colony High School, Chilkallguda, Secunderabad - 500025, Andhra Pradesh (iii) President, All India Federation of Pensioners Association, G-2, Soundarya, New No. 51, Old No. 22, Kavarai Street, Saidapet West, Chennai - 600015, Tamilnadu. (iv) Secretary General,Bharat Pensioners' Samaj, Post Box No. 3303, Jangpura P.O. New Delhi - 110 014. (v) Vice President & Honorary Secretary, Air Force Association, Air Force Station, Race Course Camp, New Delhi - 110 003. Rotating Group ( 10 Associations) (i) President,Disabled War Veterans (India), B6/6, DLF City, Phase I, Gurgaon, Haryana - 122002. (ii) President, Association of Retired Officers of IA&ID, H. No. 2154, Sector 38-C, Chandigarh. (iii) Secretary General, All India Central Government Pensioners Association, EP-233, Naya Bazar, Jalandhar City, Punjab. (iv) Secretary, Karnataka Posts and Telecommunications Pensioners Association (R), 1397, 23rd Main, Banashankari II Stage, Bengaluru. (v) President, Co-ordination Committee of Central Government Pensioners' Association, 68-B, K. G. Bhawan, Malanga Lane, Kolkata-12, West Bengal. (vi) General Secretary, All India Central Government Pensioners' Association, 355, Ganga Mandir, Cuttack, Orissa. (vii) General Secretary, Central Government Pensioners' Association, Kerala, "Pension Kendra", II Floor, Capital Towers, Patturaickal In., Thrissur - 680022, Kerala. (viii) General Secretary, Central Government Pensioners Welfare Association, Jammu Olympic Association Building, Parade, Jammu (J&K). (ix) Secretary General,AII India Organisation of Pensioners Kanpur, 120/469, Lajpat Nagar, Kanpur, Uttar Pradesh. (x) President, All India Central Government Pensioners' Association, 1785, Sadashivpeth, Phadkeshankul, Near Pune, Vidyarthi Griha, Pune - 411030 (Maharashtra) Ministry of Personnel. Public Grievances & Pensions (Department of Pension & Pensioners' Welfare) ACTION TAKEN REPORT ON THE DECISION OF THE 23rd MEETING OF STANDING COMMITTEE OF VOLUNTARY AGENCIES(SCOVA) HELD ON 20.09.2013. S.No 1. Issue raised in 23rd SCOVA meeting as per minutes SI. No 1 of ATRof para 5: Status of issue of revised PPOs to pre- 2006 pensioners. Gist of Decision taken in the 23rd SCOVA meeting a} CPAO informed that as on 08.08.2013, 71,334 cases (34,733 pre-1990 and 36,601 pre-2006), of Civil Ministries/Deptts, are pending for revision. Approximately, 82% work of Civil Ministries/ Departments have been completed. Efforts are brinh made to approach the pensioners through advertisements, however, as pension has already been revised by the banks, response from pensioners was not encouraging. To strengthen the monitoring at the level of the Secretary of the administrative Min/Deptt, this item has been made a part of the monthly D.O to the Cabinet Secretary. Target date:- 31st Dec,2013. b} Ministry of Railways informed that they have completed the revision of 5,87,035 out of 10,93,772 cases.. Hon'ble MOS (PP) desired that the Ministry of Railways should give advertisements in Page 1 of 7 Follow up Action D{oP&PW MOS(PP) took up the issue with the Defence Minister & Railway Minister vide DO letters dated 14.10.2013. CPAO The target date for completion of the work was 31.12.2013. CPAO has given information on the basis of e-scroll received from banks. The number of cases has increased for revision. Since more and more case or pre-1990 has been added to CPAO data base. The major reason of non-revision of these cases in nonavailability of records of pensioners in ministries/Departments, Banks and even with pensioners, Approximately, been completed Ministries/Departments. 83.55% work by the has Civil Minis/ Pre Deptts 1990 Pre PPOs 2006 yet to be revised Civil Mini 43,457 Deptts 27,935 71,392 1,50,373 cases have also been revised in terms of DoPPW order no 1/20/2011- P&PW(E) dated 28.01.2013 for enhancement of pension of Pre-2006 pensioner w.e.f 24.09.2012. Ministry of Railways. Target date was 31st Dec, 2013. Approximately 90% PPOs have been revised till 31.12.2013. Status of Corrigendum PPOs revised till 31st Dec,2013 is as under: S.No Issue raised in 23rd SCOVA meeting as per minutes Gist of Decision taken in the 23rd SCOVA meeting Follow up Action c) Department of Posts Department of Posts informed that the after reverification the number of pre-2006 pensioners have come down to 1,96,000 and now the DOP has completed 84.78% of the work. 29,855 cases are pending. The DOP are going through a transition from non digitisation to digitisation form, and the Department has already started ERP solution, by putting all the legacy data into ERPsolution. concerned regional languages. MOS(PP) will take up the issue with the Railway Minister, demiofficially Target date :31st Dec,2013. Target dater-an'" Nov, 2013. d) Department Telecommunication informed that as on date 53,000 cases remain to be revised. The main problem was that DOT has to depend on BSNL for the records. The Secretary of DOT will address all heads of circles of BSNL to expedite the cases by constituting a Coordination Committee at each CCA.. 31st December, 2013 has been kept as a target date for BSNL to provide all the documents relating to it. Target date March 2014. Page 2 of 7 Total PPOs PPOs PPOs yet to revised be revised 10.02 8.951akh 1.07 lakh lakh The remaining 1.07 lakh cases are very old cases and due to want of records their revision could not completed before 31.12.2013. Target Date was 30th Nov, 2013. 94.83% revision of Pre-2006:has been accomplished. Status of Corrigendum PPOs revised till 31st Dec,2013 is as under. PPOs PPOs yet to be revised Total PPOs revised 1,73,858 8,986 of % Telecommunications Necessary instructions have been issued by Secretary (T) to BSNL and CCA Offices to expedite settlement of pending pension cases. A coordination committee has also constituted at each of the circles. Fortnightly monitoring of pendency of Pre-2006 cases is being done at DOT(HQ) level. 29985 cases are pending as per report for fortnight ending 15.01.2014. S.No Issue raised in 23rd SCOVAmeeting as per minutes Gist of Decision taken in the 23rd SCOVA meeting Follow up Action e) 4.5 lakh cases CGDACM 10 Defence) (approx.) of Post-2006 pensioners have been Status of Corrigendum PPOsrevised till 31st computerised. Digital Dec,2013 _ records of 5.88 lakh pensioners have also been Total PPOs PPOs yet to created in respect of Pre- PPOs revised be 'revised 2006 cases under Project SANGAM. 181akh 10.51akh 7.5 lakh Digitisation of pension data will be completed by 31st March, 2014, the revision exercise for all cases is proposed to be completed by September, 2014. (Action: CPAO, Mlo Railways, 0/0 Posts, 0/0 Telecom, Mlo Defence & D/oP&PW) Some banks have yet to furnish their database. Intervention of Ministry of Defence/Deptt. Financial Services have also been sought for Pr.CDA(Pensions) Allahabad have also made a advertisement vide their Circular No. 114 for eliciting information for left out Defence Civilian pensioner/family pensioners. All out efforts are being made for issue of revised PPOs to pre-2006 retiree pensioners/family pensioners within the time frame stipulated by the Ministry. 0/0 Ex Servicemen Welfare By 31st March, 2014, 17.5 lakh Corr.PPOs would be ready in respect of armed forces pensioners. To simplify the pension sanction and issue of PPOs, a 0.0 reply has been sent to MoS(PP) from Raksha Mantri on 03.11.2013. A Committee headed by Secretary (ESW) is looking into the matter for developing an Integrated Pension Management System for armed forces pensioners. 2. iii) SI. No. 3 of MIC Health & FW ATR: (13) The Orders of Ministry of Health reiterating that all the pensioners are at liberty to opt themselves with any of the nearest CGHS hospital/ dispensary may be widely circulated. Arbitrary orders dated 01/08/1996 and 01/09/1996 issued by Ministry of Health and Director of CGHS may In respect of point 13 & 16(i) the representative of Ministry of Health & FW informed that the matter regarding withdrawal of OMs dated 01.08.1996 and 01.09.1996 (which provide that the P&T pensioners not partiCipating in CGHS while in service may not be extended this facility) is sub-judice. (Action: Mlo Health & FW) Page 3 of 7 As regards (13) and 16(i) : the matter is still sub-judice. S.No Issue raised in 23rd SCOVA meeting as per minutes Gist of Decision taken in Follow up Action the 23rd SCOVA meeting (Ui) S.No 6 of ATR Ministry of Health & FW D/oP&PW & MIC Health & FW Regarding additional informed that due to the dispensaries. financial and logistic constraints it is not possible to open more dispensaries. Ministry is however mooting a proposal to open CGHS dispensaries at all State Capital not yet covered by CGHS. MOS(PP) said that for opening of dispensary at Panchkula, the matter from his level will be taken up again. M/o Health & FW informed that with the merger of 19 P&T dispensaries with CGHS, the problem of nonavailability of hospilalisation facility has been mitigated to a large extent. be withdrawn and the benefit of CGHS facilities be allowed to the pensioners of Department of Post and Department of Telecom. 16(i) Medical facilities for existing P&T pensioners. Hon'ble MOS(PP) addressed a D.O letter dated 10.10.2013 to Hon'ble M/o Health & FW for opening a dispensary at Panchkula. Hon'ble M/o Health & FW has informed vide DO letter dtd 30.11.2013 that it would not be possible to agree to open a dispensary at Panchkula. Regarding empanelment of hospitals, the Ministry of Health & FW informed that in smaller cities, the empanelment of hospitals has been done only in those places where CGHS dispensaries are available. This is because the number of patients in such cities is sizeable. ~ CGHS empanels pvt. Hospitals only in the cities where it is in operation, as a matter of policy. On the question of computerisation of CGHS ~ Regarding Jammu, The process is in advanced stage Page 4of7 S.No Issue raised in 23rd SCOVA meeting as per minutes. Gist of Decision taken in the 23rd SCOVA meeting dispensary at Jammu, the Ministry of Health & FW informed that the matter is under process. (Action: M/o Health & FW) Follow up Action 3. vi) of Para 5 0/0 P&PW & M/o Health & FW SI. No 7 of ATR Nomination facility for reimbursement of expenses incurred under CGHS. In D/o P&PW letter dated 30.07.2013, Ministry of Health was informed that seeking Affidavits/NOC etc. on stamp paper from the legal heirs/family members may cause avoidable inconvenience to them. The feasibility of reimbursing the hospitalization expenses in respect of the deceased employee/pensioner to the nominee for the purpose of GPF, gratuity, CGEGIS, etc. could, therefore, be examined. M/o Health & FW was again requested to re-consider the matter. Ministry of Health &FW informed that in the light of the observations of D/oP&PW, the issue is being re-examined. ~ M/o of Health & FW have issued an OM no S-1l01l/12/2013-CGHS(P) dated 25.09.2013 providing the facility of Nomination for re-imbursement of medical expenses in the event of death of Principal CGHScard holder. 4. ix) SI. No 10 of 0/0 P&PW & % Telecomm. ATR Anomaly in fixation of pension to DoT employees absorbed in BSNL, who retired between 1.10.2000 and 31.7.2001. The representative of D/o Telecomm. informed that the matter has been re-examined by them and a fresh proposal will be sent to D/o P&PW' for consideration 30.09.2013. (Action : D/o Telecommunications & ot« P&PW) before Page5 of 7 A proposal was received from Department of Telecom on 19.11.2013. DoP&PW has sought some more information/clarifications on the proposal on 19.11.2013. D/o Telecomm. has sent the requisite information which is under examination in D/oP&PW. S.No Issue raised in 23rd SCOVAmeeting as per minutes Gist of Decision taken in the 23rd SCOVAmeeting Follow up Action 5. x) SI. No 11 of ATR Merger of 78.2% lOA with basic pension benefit to the absorbed BSNL Pensioners:- The representative of 0/0 P&PW & 0/0 Telecomm. Department of Telecommunications informed that the matter has been re-examined by them and a fresh proposal will be sent to % P&PW for consideration before 30.09.2013. (Action: 0/0 Telecom & 0/0 P&PW) A proposal was sent by % Telecom on 20.12.2013. D/oP&PW has communicated its 'No Objection' to the proposal subject to the approval of Deptt. Of Expenditure. 0/0 Telecomm. has referred the proposal to 0/0 Expenditure on 08.01.2014. Approval of 0/0 Expenditure is awaited by % Telecomm. 6. (23.2) Extension of benefit of upgraded Grade Pay to pre- 2006 retirees of 5-12 grade. Ministry of Finance has informed that the grade pay of Rs. 4600 is not the corresponding grade pay in respect of the pre-revised pay scale of Rs 6500- 10,500. This grade pay is the corresponding grade pay of the upgraded post in the pay sca le of 7,450- 11,500. The corresponding grade pay for pre-revised pay scale of 6,500-10,500 is Rs. 4200, since the benefit of upgraded pay scale is not to be given to the pre- 2006 pensioners, the pension of pre-2006 pensioners who retired in the pay scale of 6500- 10,500 cannot be fixed with reference to the minimum of fitment table with grade pay of Rs. 4600. Pensioners Associations informed that there are some CAT orders allowing benefit of grade pay of Rs. 4600 to the pre- 2006 pensioners who retired in the pay scale of 6,500-10,500. It was decided that since the matter is sub-judice, the final decision would be taken subsequent to court decisions. (Action: Department of Expenditure,D/o P&PW) Page 6 of 7 Action Awaited from % Expenditure S.No Issue raised hi 23rd SCOVAmeeting as per minutes Gist of Decision taken in the 23rd SCOVAmeeting Follow up Action 7. 8. (23.4) Broad Banding of Disability Element for Pre-1996 cases. (23.7) Extension of benefit of OM dt. 28.1.2013 w.e.f 1.1.2006 instead of 24.9.2012. The matter was processed and referred to MoD(Fin) for concurrence. But MoD (Fin) returned the matter back for knowing the financial implications involved. CGDA, expressed its difficult in furnishing the requisite information. MoD(Fin) was persuaded to process the matter without the financial implications. The case has been referred to M/o Finance by MoD(Fin) in March,2013. The DESW has been in constant touch with the D/o Expenditure to get the case finalized. Secretary (Pension) requested the Ministry of Finance to expedite the disposal of cases. ( Action: Mlo Finance, ot« Expenditure & DI0 Ex-Servicemen Welfare) It was stated that a SLP filed by the D/o P&PW has been dismissed by the Hon'ble Supreme Court on 29.07.2013. The Department was considering further course of action in consultation with the Ministry of Finance and Ministry of Law. (Action:D/o P&PW) Page7 of 7 Action Awaited from:- 1) 0/0 Expenditure 0/0 Ex Servicemen Welfare The case is being pursued vigorously with Department of Expenditure. A D.O letter has also been sent to Secretary (Exp) from Secretary(ESW) in Dec,2013. However, concurrence is awaited D/oP&PW D/oP&PW issued OM dtd. 28.1.2013 as per the decision of the Cabinet while considering pensionary matters of Defence personnel as proposed by MoD. Review petition against the order dtd. 29.7.2013 of Hon'ble Supreme Court was dismissed. Hence, a Curative Petition is also being filed in the Hon'ble Supreme Court An SLP filed against order dtd 29.4.2013 in Delhi High Court has been tagged with Civil Appeal of 2011 file by MoD. Next date of hearing is 4th Feb,2014.

News Of 3 SLPs

1. THE AUTHORITIES CLEARLY ADMIT THAT THE THREE SLPs NOW COMING UP FOR LISTING FOR ADMISSION ON 4 FEB 2014 ARE "SIMILAR" TO OUR SLP / RP WHICH WERE DISMISSED .....PARTICULARLY THE RP 2492 OF 2013 WHICH WAS DISMISSED ON 12 NOV 2013. IF SO, HOW COME THEY WANT TO MISLEAD THE HSC BY FILING THE 3 SLPS - WITHOUT ANY VALID POINT OR JUSTICE... 2.It is also strange, that the "MATTER BEING SIMILAR", THE LAW MINISTRY HAVE ADVISED THEM TO GO FOR FILING A CURATIVE PETITION. What does this mean?...Delay- wasting Court time..... 3.The HSC must be pointed out the dichotomy and the deliberate mischievous attempt to drag on to implement JUSTICE.....on one side SLPs are being filed on "MATTER OF SIMILAR NATURE" to encroach upon the valuable time of the court and on the other hand , even if they fail to succeed on this attempt, they want to go for CURATIVE petition on the RP already

Expected DA/DR W.E.F.01-01-2014

Expected DA/DR wef 01.01.014 = 100% i.e. 10% rise

Tuesday, February 4, 2014 7th Pay Commission announced Prime Minister Approves Composition of 7th Central Pay Commission Under the Chairmanship of Justice Ashok Kumar Mathur, Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal The Finance Minister Shri P. Chidambaram has issued the following statement: “The Prime Minister has approved the composition of the 7th Central Pay Commission as follows: 1. Shri Justice Ashok Kumar Mathur - Chairman (Retired Judge of the Supreme Court and Retired Chairman, Armed Forces Tribunal) 2. Shri Vivek Rae - Member (Full Time) (Secretary, Petroleum & Natural Gas) 3. Dr. Rathin Roy - Member (Part Time) (Director, NIPFP) 4. Smt. Meena Agarwal - Secretary (OSD, Department of Expenditure, Ministry of Finance)” ***** DSM/MJPS/KA (Release ID :102978)