Archive for November, 2009

No raise in retirement age of Central govt employees: Cabinet Secretary

          Putting an end to speculation that the retirement age of Central government employees will be raised, the Centre has made it clear that it has no plans to raise the age for superannuation.
          "No, there is no such plan. There is no thinking at all. The status quo will continue," Cabinet Secretary K M Chandrasekhar said when asked whether there is any move in this regard.
Currently, the retirement age of Central government employees is 60 years.
          Chandrasekhar said there have been rumours that it would be raised but it was nothing but a "wishful thinking".
          "I tried to find out. But there is no file in (Department of) Expenditure, no file in DoPT (Department of Personnel and Training). There is nothing. It is more of a wishful thinking," he said in an interview.
         The Cabinet Secretary also said the government has no plans to bring an uniformity in the retirement age among the state government employees.
          "The states will decide their own retirement age," he said.
           All states have their own retirement age — starting from 55 years (Kerala) to 60 years (Uttar Pradesh, Assam etc). The Madhya Pradesh government teachers retire at the age of 62 years.
Source : Zee News.

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My City My History

Author – Ankita Sunil Lokhande, 7th A

St. Joseph High School, Solapur

TV Channel – Fox History & Entertainment


           The Solapur District was ruled by various dynesties such as Andhrabhratyas, Chalukyas, Rashtrkutas, Yadavas and Bahamanis. ‘SOLAPUR’ is believed to be derived from two words ‘SOLA’ meaning sixteen and ‘PUR’ meaning village. The present city of Solapur was considered to be spread over sixteen villages viz. Aadilpur, Ahmedpur, Chapaldev, Fatehpur, Jamdarwadi, Kalajapur, Khadarpur, Khandervkiwadi, Muhammadpur, Ranapur, Sandalpur, Shaikpur, Solapur, Sonalagi, Sonapur and Vaidakwadi.

           Recent research work however shows that the name SOLAPUR is derived not from the congregation of sixteen villages. It is evident from the inscriptions of Shivayogi Shri.Siddheshwar of the time of the Kalachuristis of Kalyani, that the town was called ‘Sonnalage’ which came to be pronounced as ‘Sonnalagi’. The town was known as Sonnalagi even upto the times of Yadavas. A sanskrit inscription dated Shake 1238, after the downfall of the Yadavas found at Kamati in Mohol shows that the town was known as Sonalipur. One of the inscriptions found in Solapur fort shows that the town was called

        Sonalpur while another inscription on the well in the fort shows that it was known as Sandalpur.

         During the Muslim period, the town was known as Sandalpur. It is therefore most probably that that during the course of time the name Solapur was evolved by dropping ‘na’ from the name Sonalpur.

        Subsequently the British rulers pronounced Solapur as Sholapur and hence the name of the district.

     The present Solapur district was previously part of Ahmednagar, Pune and Satara districts. In 1838 it became the Sub-district of Ahmednagar. It included Barshi, Mohol, Madha, Karmala, Indi, Hippargi and Muddebihal Sub-divisions. In 1864 this Sub-district was abolished. In 1871 this district was reformed joining the Sub-divisions viz. Solapur, Barshi, Mohol, Madha and Karmala and two Subdivisions of Satara district viz. Pandharpur, Sangola and in 1875 Malshiras Sub-division was also attached. After the State reorganisation in 1956 Solapur was included in Mumbai State and it became a full-fledged district of Maharashtra State in 1960.

       The importance of Solapur is unique in the history of India in the sense that this district enjoyed the freedom even before independence. The citizens of Solapur enjoyed the Independence for three days from 9th to 11th May 1930. The brief history runs like this. After the arrest of Mahatma Gandhi in May 1930, protests and demonstrations against the British Rule were held throughout the India. Large scale rallies and protests were done at Solapur also. Many citizens lost their lives in the Police firings. Due to this the irate mob attacked the Police Stations. Out of fear the Police and other officers ran out of Solapur. During this period the responsibility of law, order and security of citizens was on the shoulders of congress party leaders. Then city congress President Shri.Ramkrishna Jaju, with his other congressmen maintained the law and order for a period of three days from 9th to 11th May 1930.

       Secondly, the Solapur Municipal Council was the first Municipal Council of India to host the National Flag on the Municipal Council building (Now Municipal Corporation) Solapur in 1930.

        The brief history runs like this. Taking the spirit of Dandi March from Mahatma Gandhi, the freedom fighters of Solapur decided to host the National Flag on the Solapur Municipal Council. Accordingly, senior freedom fighter from Pune Shri.Annasaheb Bhopatkar hosted the National Flag on 6th April 1930 on Municipal Council. This was the first and the unique incidence of such kind throughout the country. The British rulers, due to irritation declared the Marshall Law at Solapur and arrested many leaders and innocent citizens on false charges. The freedom fighters Shri.Mallappa Dhanshetti, Shri.Kurban Hussain, Shri.Jagnnath Shinde and Shri.Kisan Sarda were arrested on charges of killing two Policemen of Mangalwar Police Station. The lower court sentenced the punishment of hanging till death for these freedom fighters. The High Court also confirmed the same decision and these four freedom fighters were hanged till death on 12th January 1931. As a mark of respect to these freedom fighters, the Statues of these freedom fighters have been installed in the heart of the City and the location has been named as Hutatma Chowk.

       Solapur is famous textile town, especially owing to its talented weavers’ community. A melting pot with a confluence of Marathi, Telugu and Kannada languages, Solapur district leads in beedi production.

        The supreme sacrifice by the revolutionaries of Solapur has made it immortal. So much so that the Martyrs’ Memorial here is saluted daily by thousands of visitors.

So I am proud of my city.





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Pay scale of Pharmacists – Recommendation of the Fast Track Committee

While approving the Report of the Sixth Central Pay Commission, the Government referred the matter related to the demands made in regard to pay scales of certain common category posts of Pharmacists was one of the items referred to the Committee. The recommendation of the Fast Track Committee regarding the pay scales of the common category posts of Pharmacists has since been reviewed. The Committee has recommended that the entry grade of Pharmacists in Central Government should remain at grade pay of Rs.2800 in the pay band PB-1. However, on completion of 2 years service in the entry grade, all the incumbents should be granted non-functional upgradation to the next higher grade having grade pay of Rs.4200 in the pay band PB-1

The recommendation of the Fast Track Committee regarding the pay scale of Pharmacists has been considered by the Government and it has been decided to accept the same. Accordingly, the following pay structure is approved for the common category posts of Pharmacists cadre w.e.f. 1.1.2006 :-
Pharmacist (Entry Grade) 4500-7000 Grade Pay of 2800 in PB-1 Entry grade for Pharmacist Cadre: Essential minimum educational qualifications of 10+2 plus 2 years Diploma in Pharmacy and Registration with State Pharmacy Council.
Pharmacist II 5000-8000 Grade Pay of 4200 in PB-2 Pharmacist Gr.II and I will be merged and designated as Pharmacist (Non-Functional Grade.) This grade to be granted to Pharmacist (Entry Grade) on non-functional basis after 2 years of service in the grade pay of Rs.2800
Pharmacist I 5000-8000 Grade Pay of 4200 in PB-2 Pharmacist Gr.II and I will be merged and designated as Pharmacist (Non-Functional Grade.) This grade to be granted to Pharmacist (Entry Grade) on non-functional basis after 2 years of service in the grade pay of Rs.2800
Consequent upon the implementation of the above pay structure, promotion from Pharmacists (Entry Grade) to the next higher grade of Pharmacist (Non-Functional Grade) having grade pay of Rs.4200 will be delinked from vacancies and will become non-functional and time-bound. In the case of Organizations like the Ordnance Factory Board, where all the Pharmacists posts are presently in the grade pay of Rs.2800 in the pay band PB-1, the implementation of the above pay structure will result in the introduction of the new Non-Functional Grade having grade pay of Rs.4200 in the pay band PB-2

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Vidyalaya Vikas Nidhi charged by Kendriya Vidyalayas can be reimbursed

No. 1201 111 612009-( Allowance)
Government of India
Ministry of Personnel, P.G. and Pensions
(Department of Personnel & Training)
New Delhi,                 Date 13  November, 2009


Govt issued fresh clarification that Vidyalaya Vikas Nidhi charged by Kendriya Vidyalayas will also form part of para l(e) of the DOP&T OM No.120111312008-Estt. (Allowance) dated 2" September, 2008 and
can be claimed for reimbursement under the scheme of Children Education Allowance subject to the annual ceiling of Rs. 12000 per child. Where Vidyala Vikas Nidhi has not been admitted for reimbursement in past cases, the same may now be considered for reimbursement, subject to the other conditions.

This Department has also been receiving references seeking clarification whether Children Education Allowance can be claimed in respect of any two children by Government Servants who have more than two children.

It is clarified that Children Education Allowance is admissible for the two eldest surviving children only, except when the number of children exceeds two due to second child birth resulting in multiple births.

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Features of MACP (Modified Assured Career Progression Scheme)


REFERENCE: 1. DOPT OM No: 35034/3/2008- Estt(d) dated 19/05/09.

2. RBE No: 101/2009 (no.pc-v/2009/acp/2) dated 10/06/09.

3. PBC No: 112/2009 (no. p(pc)524-pc/voliv) dated 18/06/09.

(Railway Board has sought for clarifications to DOPT – elucidation awaited)


  1. The scheme would be operational from 01.09.08. In other words, financial up gradations as per old ACP of October 1999 would be granted till 31.08.08. (Para 8)
  2. A Screening Committee would be constituted and follow a time schedule to meet twice in a financial year preferably in the month of January (April to September) and of July (October to March).( (Para 6).
  3. Financial up gradation under MACPS is purely personal to the employee and staff shall have no relevance to his seniority position. As such no stepping up of pay in the PB & GP would be admissible with regard to junior getting more pay than the senior on account of pay fixation under MACPS.(Para 9 & 20).
  4. No past cases would be reopened. The differences in pay scales on account of grant of financial up gradations under old ACP and new MACP within the same cadre shall not be construed as anomaly (Para 10).
  5. There shall be three financial up gradations under MACPS counted from the direct entry grade on completion of 10, 20 and 30 years. (Para 1 of Annexure).
  6. All cadres including Group A (excluding organized Gr.A services) are eligible for grant of MACP. (Para 3).
  7. The financial up gradation under the MACPS would be admissible up to the highest grade pay of 12,000 in PB-4. (Para 3 of Annexure).
  8. The pay shall be raised by 3% of the total pay in the pay band and the grade pay drawn before such up gradation.  There shall be no further fixation at the time of regular promotion if it is the same grade pay as granted under MACPS. Financial up gradation will be in next higher grade pay in the hierarchy of Grade Pay and not in the promotional hierarchy (as it was earlier). (Para 4).
  9. An employee who completes 10 years of service in a particular grade will qualify for grant of MACP. Service rendered in a lower grade will not be counted for grant of MACP after completion of total qualifying service of 10 years. For example if an employee gets regular promotion to the next grade after completion of 5 years of service in a particular grade, he will have to wait till the completion of 15 years of regular service for 2nd MACP. Likewise 3rd MACP for him will be given after completion of 25 years of regular service (Illustration 1 Para 28 (i) and (ii)).
  10. However, after 1st regular promotion or 1st MACP, completion of 10 years of regular service in a grade or total qualifying service of 20 years or 30 years whichever falls earlier will be the milestone for grant of next MACP (Illustration 3 Para 28 B).
  11. The service rendered by the existing employees prior to implementation of the MACPS viz., prior to 1.9.2008, will also be taken in to account for calculating the 10, 20 and 30 year milestones for granting MACP.(Para 9 of Annexure).
  12. Similarly, employees who were granted financial up gradation under previous ACP scheme i.e., prior to the introduction of MACPS with effect from 1.9.2008, will be eligible for financial up gradation under MACPS after completion of 20 years and 30 years of service, irrespective of regular promotion given to them if any, between their 10 to 20 years of service or between 20 years and 30 years of service. For example if an employee was given 1st ACP under old ACP Scheme after completion of 12 years of service and a regular promotion after completion of 18 years of service, he will be eligible for 2nd MACP after completion of 20 years of service. (Para 9 of Annexure and Illustrations in Para 5 and Para 28).
  13. Promotions earned /upgrading granted under the ACP scheme in the past to those grades which now carry the same grade pay due to merger of pay scales /up gradations of posts recommended by the Sixth Pay Commission shall be ignored for the purpose of granting up gradation under MACPS.(Para 5 of Annexure).
  14. Financial benefit an employee gets as a result of pay fixation during MACP will be 3% of basic pay (pay in pay band plus the grade pay before MACP) and the difference in Grade pay before MACP and grade pay after MACP.Option for fixation of pay is also available. (Para 4 and 7 of Annexure).
  15. If an employee gets a regular promotion to a grade which carries same grade pay which he is receiving now after grant of MACP, no further pay fixation will be allowed at the time of said regular promotion. If an employee gets a regular promotion to a grade which carries higher grade pay than the grade pay he is receiving now after grant of MACP, no further pay fixation will be allowed on account of the fact that his pay would have been fixed at the time of grant of MACP itself. However, difference in the grade pay he is getting now and the next grade pay in the hierarchy will be allowed as monetary benefit at the time of promotion. (Para 4 of Annexure).
  16. In the case of employees who have been either promoted or given ACP prior to 6CPC implementation from a grade to another grade, pay scales of which have been merged now after 6CPC implementation, the said promotion or ACP shall be ignored and those employees are to be considered for financial up gradations equivalent to the number of milestones they have completed viz., 10 years , 20 years and 30 years milestones as the case may be prescribed in the MACPS for financial up gradations. (Para 5 and illustration thereof).
  17. In cases where ACP was granted as per previous ACP scheme, but whereas after 6CPC implementation the next higher post which the employee got through ACP has been upgraded with higher grade pay, the pay of such employees in the revised pay structure will be fixed with reference to the higher grade pay granted to the post. To illustrate, in the case of an employee, who was granted 1st ACP in old ACP scheme to the grade which carried the pre-revised scale of Rs.6500-10500 corresponding to the revised grade pay of Rs.4200 in the pay band PB-2, he would now be granted grade pay of Rs.4600 in the pay band PB-2 consequent upon up gradation of the post to the grade pay of Rs.4600 in PB-2. However, from the date of implementation of the MACPS viz., from 1.9.2008, all the financial up gradations under the Scheme should be done strictly in accordance with the hierarchy of grade pays in pay bands as notified. (Para 6.2 of Annexure).
  18. Grade Pay of Rs.5400 in PB-2 and Grade pay of Rs.5400 in PB-3 are two different Grade Pay for the purpose of MACP (Para 8.1 of Annexure1 to MACP Order dated 19.05.09.)
  19. Bench Mark (CCR/ACR Grading) is “Good” up to GP 6600 thereafter is should be “Very Good”. (Para 17 of Annexure1 to MACP Order dated 19.05.09).
  20. ‘Regular Service’ for the purpose of MACPS shall commence from the date of joining of a post in regular basis either on direct recruitment or on absorption /reemployment basis. (Para 9 of Annexure1 to MACP Order dated 19.05.09).
  21. If financial up gradations will not be allowed under MACPS after 10years due to DAR proceedings, this would have consequential effect on the subsequent financial up gradations. (Para 15 of Annexure1 to MACP Order dated 19.05.09).
  22. On grant of financial up gradations under MACPS, there shall be no change in designation, classification or higher status. (Para 16 of Annexure1 to MACP Order dated 19.05.09).
  23. If a regular promotion has been denied by the employee before becoming entitlement of financial up gradation, no financial up gradation shall be allowed. However financial up gradation will be allowed due to stagnation and subsequently refuses the promotion. (Para 25 of Annexure1 to MACP Order dated 19.05.09).

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How to Drive Self Propelled Accident Relief Medical Van (SPARME)





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All 20 RRB Chairmen changed by MAMATA, in a doubt that they are LALU’s men

सभी आरआरबी चेयरमैनों को एकसाथ हटाना बेहद विवादस्पद निर्णय

आखिर रेलमंत्री सुश्री ममता बनर्जी ने सभी २० आरआरबी चेयरमैनों को एकसाथ हटाने का आदेश ५ नवम्बर को जारी कर दिया. रेलमंत्री का यह निर्णय एक बेहद क्रूर और विवादास्पद निर्णय माना जा रहा है. जबकि होना तो यह चाहिए था कि यदि उन्हें इन चेयरमैनों को हटाना ही था तो सर्वप्रथम उन्हें हटाया जाता जिनका कार्यकाल पूरा हो गया था, फिर इसके बाद दूसरी लात में उन्हें हटाया जाता जिनका कार्यकाल पूरा होने वाला था. इस प्रकार इस मिड टर्म में इन अधिकारियों के बच्चों कि पढाई बर्बाद होने से बच जाती. क्योंकि इन अधिकारियों में अधिकाँश को तो अभी आरआरबी में पदस्थ हुए एक साल भी नहीं पूरा हुआ था.
इसके अलावा इन अधिकारियों का यह असमय ट्रान्सफर किसी भी नियम – कानून के अनुरूप भी नहीं है. सिर्फ इस आशंका या आरोप के चलते इन सभी अधिकारियों को एकसाथ हटा देना कतई उचित नहीं कहा जा सकता कि ये सब पूर्व रेलमंत्री लालू प्रसाद यादव के आदमी थे. अब यदि इनमें से कोई एक भी अधिकारी रेलमंत्री के इस क्रूर निर्णय को थोड़ी सी हिम्मत दिखाकर अदालत में चुनौती दे दे तो रेल मंत्रालय को लेने के देने पड़ सकते हैं.
हमारे विश्वसनीय सूत्रों का कहना है कि इस सब कारगुजारी के पीछे त्रिन मूल कांग्रेस के एक सांसद मुकुल राय का हाथ है. सबसे पहले उन्होंने ईडी/आरआरबी के पद से श्री आनंद माथुर को हटवाया जो कि इस पद पर अभी मुश्किल से ६ महीने पहले ही पदस्थ हुए थे. अब इस पद पर जिन्हें लाया गया है एक तो वह स्टोर सर्विस के हैं दूसरे उनकी छवि भी बहुत अच्छी नहीं बताई जाती है. इसके अलावा नए पदस्थ किये गए चेयरमैनों में आईआरपीएस सर्विस के मात्र ३ अधिकारियों को ही लिया गया है जबकि इससे पहले जो निर्णय हुआ था इसके अनुसार आरआरबी चेयरमैनों के पद पर ज्यादातर आईआरपीएस सर्विस के अधिकारियों को ही पदस्थ किया जाना था.
इससे पहले जब १९ अक्तूबर को १८ आरआरबी चेयरमैनों को शिफ्ट करने कि फाइल मूव कि गयी थी तब ‘रेलवे समाचार’ ने इस बारे में सीआरबी सहित सेक्रेटरी/रेलवे बोर्ड और सभी बोर्ड मेम्बरों को मोबाइल सन्देश भेजकर ऐसा कोई विवादास्पद निर्णय न लेने तथा उपरोक्त तरीके से चेयरमैनों को हटाने के बारे में अविलम्ब रेलमंत्री के संज्ञान में यह मामला लाये जाने के लिए सभी बोर्ड मेम्बरों को अवगत कराया था। जिसके परिणाम स्वरुप तब यह मामला स्थगित कर दिया गया था. ५ अक्तूबर को जिस दिन यह फाइल पुनः रेलमंत्री के एपीएस श्री गौतम सान्याल को भेजी गयी थी उस दिन भी ‘रेलवे समाचार’ ने ऐसा ही एक सन्देश भेजकर सभी बोर्ड मेम्बरों को अवगत कराया था. मगर जिनकी इस मामले में सबसे ज्यादा जिम्मेदारी बनती है जब वह मेंबर स्टाफ स्वयं मेंबर ट्रेफिक बनने के ख्वाब में अपनी सारी हड्डियों को दोहरा करते हुए साष्टांग हुए जा रहे हों तब सिस्टम को चौपट होने से कौन बचा सकता है?
सुश्री ममता बनर्जी ने रेलमंत्री का पद ग्रहण करने के तुंरत बाद मीडिया को दिए गए अपने पहले बयान में कहा था कि वह रेलवे बोर्ड का पुनर्गठन करेंगी और सीआरबी तथा सेक्रेटरी, रेलवे बोर्ड को भी हटा सकती हैं. इनमें से वह किसी को भी नहीं हटा पायीं, क्योंकि सीआरबी पर पीएमओ का और सेक्रेटरी पर लालू का ठप्पा लगा हुआ है. जबकि सेक्रेटरी/रेलवे बोर्ड के पद पर बैठा अधिकारी न सिर्फ कई अधिकारियों से जूनियर है बल्कि महाभ्रष्ट भी है, इस बात से न सिर्फ सभी रेल अधिकारी वाकिफ हैं बल्कि स्वयं रेलमंत्री भी अब इस तथ्य से भली – भांति अवगत हैं. इससे पहले ‘रेलवे समाचार’ भी सेक्रेटरी के भ्रष्टाचार और उनका लालू का पिट्ठू होने के सारे तथ्य विस्तार से प्रकाशित कर चुका है.
रेलमंत्री ममता बनर्जी को पश्चिम बंगाल की अपनी राजनीति से फुर्सत नहीं है जबकि बोर्ड में पदस्थ उनके तमाम सिपहसालार रेलवे की तमाम तकनीकी कार्य प्रणाली से नावाकिफ हैं. तथापि सुश्री ममता बनर्जी रेल मंत्रालय को पार्ट टाइम ही चलाना चाहती हैं, जो कि नामुमकिन है. इसलिए यदि चारों तरफ लगातार रेल दुर्घटनाएं हो रही हैं और इससे सुश्री ममता बनर्जी की ‘क्षणिक बुद्धि’ छवि और भी ज्यादा ख़राब हो रही है तो उसका दोष स्वयं ममता बनर्जी पर ही जा रहा है. रेलमंत्री का अपने रेल मंत्रालय की तरफ ध्यान न देने का ही परिणाम है की रेलवे में चारों तरफ भ्रष्टाचार का बोलबाला हो रहा है.– रेलवे समाचार

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14 tax-free incomes for FY 2009-10 for details visit

In a few months’ time the taxman will coming knocking on your door. However, he cannot tax you on the following 14 important items of income and receipts, as they are fully exempt from income tax and which a resident individual Indian assessee can use with profit for the purpose of tax planning.

1. Agricultural income

Under the provisions of Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income tax.

However, for individuals or HUFs when agricultural income is in excess of Rs 5,000, it is aggregated with the total income for the purposes of computing tax on the total income in a manner which results into "no" tax on agricultural income but an increased income tax on the other income.

2. Receipts from Hindu undivided family (HUF)

Any sum received by an individual as a member of a Hindu undivided family, where the said sum has been paid out of the income of the family, or, in the case of an impartible estate, where such sum has been paid out of the income of the estate belonging to the family, is completely exempt from income tax in the hands of an individual member of the family under Section 10(2).

3. Allowance for foreign service

Any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India, rendering service outside India, are completely exempt from tax under Section 10(7).

This provision can be taken advantage of by the citizens of India who are in government service so that they can accumulate tax-free perquisites and allowances received outside India.

4. Gratuities

Under the provisions of Section 10(10) of the IT Act, any death-cum-retirement gratuity of a government servant is completely exempt from income tax.

In respect of private sector employees, however, gratuity received on retirement or on becoming incapacitated or on termination or any gratuity received by his widow, children or dependants on his death is exempt subject to certain conditions.

The maximum amount of exemption is Rs 3,50,000. Of course, this is further subject to certain other limits like the one half-month’s salary for each year of completed service, calculated on the basis of average salary for the 10 months immediately preceding the year in which the gratuity is paid or 20 months’ salary as calculated. Thus, the least of these items is exempt from income tax under Section 10(10).

5. Commutation of pension

The entire amount of any payment in commutation of pension by a government servant or any payment in commutation of pension from LIC pension fund is exempt from income tax under Section 10(10A) of IT Act.

However, in respect of private sector employees, only the following amount of commuted pension is exempt, namely:

(a) Where the employee received any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive; and

(b) In any other case, the commuted value of half of such pension.

It may be noted here that the monthly pension receivable by a pensioner is liable to full income tax like any other item of salary or income and no standard deduction is now available in respect of pension received by a tax payer.

6. Leave salary of central government employees

Under Section 10(10AA) the maximum amount receivable by the employees of central government as cash equivalent to the leave salary in respect of earned leave at their credit upto 10 months’ leave at the time of their retirement, whether on superannuation or otherwise, would be Rs 300,000.

7. Voluntary retirement or separation payment

Under the provisions of Section 10(10C), any amount received by an employee of a public sector company or of any other company or of a local authority or a statutory authority or a cooperative society or university or IIT or IIM at the time of his voluntary retirement (VR) or voluntary separation in accordance with any scheme or schemes of VR as per Rule 2BA, is completely exempt from tax.

The maximum amount of money received at such VR which is so exempt is Rs 500,000. As per Finance (No. 2) Act, 2009 an assessee cannot enjoy both the exemption in respect of VRS upto Rs 500,000 and also a deduction under Section 89.

8. Life insurance receipts

Under Section 10(10D), any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy, other than u/s 80DDA or under a Keyman Insurance Policy, or under an insurance policy issued on or after 1.4.2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured, is fully exempt from tax.

However, all moneys received on death of the insured are fully exempt from tax Thus, generally moneys received from life insurance policies whether from the Life Insurance Corporation or any other private insurance company would be exempt from income tax.

9. Payment received from provident funds

Under the provisions of Sections 10(11), (12) and (13) any payment from a government or recognised provident fund (PF) or approved superannuation fund, or PPF is exempt from income tax.

10. Certain types of interest payment

There are certain types of interest payments which are fully exempt from income tax u/s 10(15). These are described below:

(i) Income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notification in the Official Gazette, specify in this behalf.

(iia) In the case of an individual or a Hindu Undivided Family, interest on such capital investment bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf (i.e. 7% Capital Investment Bonds);

(iib) In the case of an individual or a Hindu Undivided Family, interest on such Relief Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf (i.e., 9% or 8.5% or 8% or 7% Relief Bonds); (iid) Interest on NRI bonds;

(iiia) Interest on securities held by the issue department of the Central Bank of Ceylon constituted under the Ceylon Monetary Law Act, 1949;

(iiib) Interest payable to any bank incorporated in a country outside India and authorised to perform central banking functions in that country on any deposits made by it, with the approval of the Reserve Bank of India or with any scheduled bank;

(iv) Certain interest payable by Government or a local authority on moneys borrowed by it, including hedging charges on currency fluctuation (from the AY 2000-2001), etc.;

(v) Interest on Gold Deposit Bonds;

(vi) Interest on certain deposits are: Bhopal Gas victims;

(vii) Interest on bonds of local authorities as notified, and

(viii) Interest on 6.5% Savings Bonds [Exempt] issued by RBI

(ix) Stipulated new tax free bonds to be notified from time to time.

11. Dividends on shares and units – Section 10(34) & (35)

With effect from the Assessment Year 2004-05, the dividend income and income of units of mutual funds received by the assessee completely exempt from income tax.

12. Long-term capital gains of transfer of securities – Section 10(38)

With effect from FY 2004-05, any income arising to a taxpayer on account of sale of long-term capital asset being securities is completely outside the purview of tax liability especially when the transaction has been subjected to Securities Transaction Tax.

Thus, if the shares of any company listed in the stock exchange are sold after holding it for a minimum period of one year then there will be no liability to payment of capital gains.

This provision would even apply for the old shares which are held by an assessee and are sold after the Finance (No.2) Act, 2004 came into force.

13. Amount received by way of gift, etc – Section 10(39)

As per the Finance (No.2) Act, 2004, gift, etc. received after 1-9-2004 by individual or HUF in cash or by way of credit, etc. is being subjected to tax if the same is not received from relative, etc. However, Section 56(2) provides that the amount received to the extent of Rs 50,000 will, however, be exempt from the purview of income tax.

Similarly, amount received on the occasion of marriage from a non-relative, etc. would also be exempted. It may be noted that the gift from relatives. as mentioned in the Section can be received without any upper limit.

14. Tax exemption regarding reverse mortgage scheme – sections 2(47) and 47(x)

Any transfer of a capital asset in a transaction of reverse mortgage for senior citizens under a scheme made and notified by the Central Government would not be regarded as a transfer and therefore would not attract capital gains tax. The loan amount would also be exempt from tax.

These amendments by the Finance Act, 2008 apply from FY 2007-08 onwards.

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