AT LAST THE ITEF FEELS THE HEAT

ITEF, Central HQrs, New Delhi writes letter to the Board requesting to consider consequential vacancies for the RY 2013-14 itself.

Read the full text of the letter dated 28th July 2014 as follows.....

We write this with reference to the above two instructions  issued by the Board and also the discussions the JCA representatives had with your goodself in the Quarterly Review Meeting held on 14.7.2014.    Vide the second reference dated 27.05.2014, the CCAs were required to conduct the meetings of DPCs and effect promotions for the Group B & C cadres by 5th June, 2014 for vacancy year 2013-14.

We have been getting report from our field formations that though promotion orders have been issued in almost all charges, the Cadre Controlling Authorities in some charges have not taken the consequential vacancies while conducting DPC Meetings and effecting promotions.  The reason communicated to us by our units is that some of the CCAs have taken the stand that although the vacancies are for RY 2013-14 as the promotions are being effected in the year 2014-15, the consequential vacancies will fall in the year 2014-15.   The Stand taken by the CCAs is absolutely contrary to the Instructions of the Dept. Of Per. & Trg. dated 10.4.1989 with regard to determination of vacancies for DPC.   This will also create problem and confusion in fixing the inter-se seniority of Direct Recruitees  and Promotees and may lead to unnecessary litigation if the vacancy year for the consequential vacancies of a particular year is taken to a subsequent year in some regions.    We reproduce below further clarification of para 4.1 of the said instructions of the DOPT.

“In reiteration of the aforesaid provision (para 4.1) of the DPC guidelines, dated 10.4.1989, it is hereby clarified that such vacancies arising in a particular vacancy year, as noted in the aforesaid Para 4.1, would be considered together by the DPC.  These vacancies should also included newly created posts in the same vacancy year. Hence the DPC for a particular vacancy year held subsequent to the creation of such new posts in the same vacancy year would be required to take into consideration such newly-created posts also alongwith other already existing/anticipated vacancies arising in the same vacancy year.  As a sequel to it, the zone of consideration would also get enlarged in a corresponding manner in terms of Dept. Of  Per. & Trg. OM No. 22011/1/90-Estt.(D), dated 12.10.1990 and 22.4.1992”.

(Swamy’s manual on Establishment & Administration-Page 847)

Further the Dpt. Of Per & Trg in F.No. 22011/9/98-Estt(D) dated 6.10.1999 further clarified with regard to “Chain Vacancies” as under:

2. The aforesaid matter has been considered in consultation with the Union Public Service Commission.  Accordingly, it is clarified that the “chain vacancies” on account of retirement etc. in the higher grades in a vacancy (panel) year shall include:-

The vacancies which can be clearly anticipated as likely to become available in the concerned grade by promotion of Officers of the service to higher grades during that vacancy (panel)year, (Expected promotion to the higher grades under the Model Calendar for DPCs would normally be against vacancies arising by retirement in all the higher grades/hierarchy as per Paragraph 7 of the OM dated 8.9.1988).

(Swamy’s manual on Establishment & Administration-Page 889)

It is clear from the above that  the consequential vacancies of the promotions effected on newly created posts for RY 2013-14 should also be taken as anticipated vacancies while determining the regular vacancies for the same year.  Therefore, the position taken by some of the CCAs need to be elucidated.  We accordingly, request the Chairman to kindly direct the concerned to issue necessary clarification to the Pr. CCsIT to effect promotions for the consequential vacancies also during the same vacancy (panel) year and to maintain uniformity in the matter.

Thanking you,

Yours faithfully,

(KP Rajagopal)

Secretary General

CONGRATULATIONS TO Mr. K V CHOWDHARY AND BEST WISHES TO Ms. DEBASHREE MAJUMDAR

Mr. K V Chowdary tipped to be next CBDT Chairman

K V Chowdary , a senior officer of the Indian Revenue Service, is tipped to be appointed as the next Chief of the Central Board of Direct taxes (CBDT), replacing incumbent R K Tewari who retires this month.

K V Chowdary, a 1978 batch IRS officeris being tipped as the next CBDT Chairman, replacing incumbent R K Tewari who retires this month.

A 1978-batch Indian Revenue Service (IRS) officer, is currently serving as a member (Investigations) in CBDT.

Chowdary is credited with initiating a host of new steps to enhance and build up the intelligence andinvestigation set up of the Income Tax department.

He has earlier served as the Director General(Investigations) in Delhi, Income Tax ChiefCommissioner in Vishakhapatnam and Director (Investigations) in Nagpur.

When Chowdary was serving as the Director General(Investigations) in the national capital and was heading a number of high-profile I-T probes, including the 2Gspectrum allocation case and HSBC Geneva taxpayerslist.

Ms. Debashree Mazumdar

It is a matter of pride that Ms Debashree Mazumdar an employee of Income 

tax Department (West Bengal Region) has been selected to represent India in the Commonwealth Games 2014, which is's being held at Glasgow. Ms Mazumdar was recruited by Kolkata Income Tax Department in 2011. She has been declared best women Athlete in all the CRSCB All India Meets. She was in India Camps at NIS Patiala. The Indian athletics team for the Glasgow 2014 commonwealth games will have 32 athletes. There will be 15 men and 17 women athletes participating in this year's common wealth games. 

She is a team member in Womens 4x400 relay.

This event is sheduled on 1st August 2014 at 23.21 IST.

We wish all the best to Ms. Debashree Mazumdar.

LATEST NEWS FROM THE BOARD ON VARIOUS MATTERS

New Recruitment Rules for Group A,B and Group C posts:

The draft Recruitment Rules for Group “A” , “B” and "C" officers including A.O./P.S. of the Department had been submitted for approval of Hon’ble FM before referring to DoPT, and the Board informed the same are being pursued for early approval. It was also made clear that promotion to the Group ‘B’ and ‘C’ posts for recruitment year 2014-15 can’t be made on the model RRs. So consequential promotions can be given only on the approved and New Recruitment Rules. 

Re-look on the allocation of CR posts and not to reduce any posts in future in any charge:

On the reqest of the JCA, to re-look in the allocation of CR posts and not to reduce any posts in future in any charge, the Board has informed the JCA, that a committee is being constituted to look into the issues of reduction in post in Kolkata region and other issues. They were advised to bring the issue before the Committee.

No Advisory on the NRP implementation:

The Board has made it clear that it is not possible to issue an Advisory to the CCAs. It was informed that Advisory in the form of FAQs prepared by HRD was not touched by DoPT and DoLA while giving advice/clarification on the implementation of the decision of the Apex Court in month of March. The Board has categorically made clear that without the approval of DoPT the Board is not competent to issue such advisory as it would complicate the matter and there will be flood of litigation leading to more delay in the preparation of the All India Seniority List of ITO.  They were also informed that the issue of advisory in the form of FAQs will be relooked after discussion with HRD and thereafter advisory will be issued along with time limit.

Implementation of following schemes approved by the Board and still pending approval at IFU/DoE:

(i)   Six Air Conditioners per Range for staff rooms.

(ii)  Laptops to Inspectors.

(iii) Mobile handset to all personnel in the Department.

(iv) Increase in the reimbursement of local travel expenses to Inspectors and Notice Servers.

Pr. CCIT (Logistics) informed that the file containing the proposal of six Air Conditioners per Range has been received back several time from Department of Expenditure. The fresh queries raised by them are being replied shortly.

She also told that the file containing the proposal of Laptops to Inspectors and mobile handsets to all personnel in the Department has also been returned by Department of Expenditure with fresh queries and the file is being re-submitted with replies with reference to the queries raised by DoE.

It was decided that the proposal for increase in the reimbursement of local travel expenses to Inspectors and Notice Servers will be put up in the Board meeting before referring the proposal to DoE. (click here for copy of the draft minutes of the QRM held on 14th July 2014.)

Financial Benefit on promotion in the same grade pay and Advance Increment to Sr. Tax Assistants on passing ITI Examination:

The OM dated 15th July has been issued regarding financial benefit on promotion in the same grade pay. The proposal regarding Advance Increment to Sr. Tax Assistants on passing ITI Examination will be favorably expedited by HRD. (click her for copy of the OM)

Miscellanious Matters:

Post Migration of Data Centre, a team of officers of Directorate(Systems) will get in touch with complainants and get their feedback so as to understand whether the complaints have been closed after due satisfaction of user. The team's contact details were circulated.

A Committee to study the appellate orders to examine the filing of appeals by the Department before various forums of CsIT (A) & ITAT has been constituted and it has to suggest steps to reduce litigation before these forums. The Committee shall submit its report within 8 weeks from the date of its constitution.

CBDT CONSTITUTES COMMITTEE FOR RECRUITMENT RULES AND PROMOTIONS

It seems the Delhi Circle JCA's agitation programme effected the Board. The CBDT in the last week has constituted a four members committee to examine the demands of Income Tax Employees regarding recruitment and promotion issue. The committee headed by Jt. Secretary(Admin), Finance Ministry, Shri S. K. Lohani will submit its reports by July 18 and on the basis of the committee’s recommendation the CBDT will take a call regarding long pending demands of the employees.

Meanwhile, The JCA comprising of ITGOA and ITEF has suspended their agitation till July 18. The JCA had organized a day long demonstration on Monday to protest against undermining both the Recruitment Rules and DOPT guidance regarding Recruitment and Promotions, arbitrary rules of the CBDT regarding promotion of the staff and neglecting their demand to fill large number of vacant posts in the department.

The effort of Delhi Circle, in favour of welfare of employees, is very much appreciable, as these efforts are made only by the associations of Delhi Circle level and not by the associations of any other regions & Central HQ level.


Courtesey: PBD.in

ACIT PROMOTION CORRELATED WITH PARMAR ISSUE

It seems the ITO to ACIT promotions were entangled in the N R Parmar issue. The UPSC/CBDT is doubting now whether holding DPC from the existing seniority list of ITOs, subject to revision of seniority of ITI/ITO based on the judgment of Hon’ble Supreme Court in N. R. Parmar will tantamount to contempt or not. to ? Basing on these apprehensions, the matter has been referred to DOLA/DOPT and since March 2014 the matter is being pursued by the ITGOA . The final outcome from DOLA suggesting  for holding DPC along with subject conditions of final seniority was received by the UPSC three weeks ago. As everybody expecting every thing was clear for conducting DPC, the latest hurdle aired is ..... the Board has come up with an  issue of ..some of the members are objecting/requesting for postphonement of DPC.

The ITGOA was chagrined at the indifferent attitude of the UPSC/CBDT. Also they have opeined the  root cause of this problem is the non implementation of N.R. Parmar judgement in a time bound manner. They have, earlier, taken up the issue with the CBDT for not only uniform implementation of the judgement but within a fixed time period including review DPCs in all the regions so that the issue reaches its finality.

It was further decided to visit all the Units and apprise about the indifferent attitude of the Board not only in the case of promotion to the cadre of ACIT but in all other issues. They believe that it is possible to reverse the indifferent attitude of the Board through unified efforts only.

The full details of the above issue and other issues they raised are detailed in the below circular.

CLICK HERE FOR ITGOA's CIRCUALAR DTD 4th JULY 2014

Budget 2014: 10 big changes in Personal Taxation that can transform the industry

                   Surabhi Marwah, Tax Partner, EY

10 July, 2014 or budget day is the day of reckoning for the new government and perhaps the only event of late that is likely to draw eyes away from the FIFA World Cup. There is a wide sense of expectation that this budget will set out the beginning of a new phase for corporate India and the common man alike with its focus on economic and tax reform and the much touted control of inflation in India. Whilst the 'wishlist' from the budget is significant, to say the least, this article aims to pen down 10 possible changes in personal taxation that have the potential to contribute towards the transformation of the industry .

The most significant change is the Recommendations of the Tax Administration Reform Commission (TARC), set up by the government to bring in more credibility amongst tax payers and streamlining income tax procedures. Key amongst these is the focus on improving tax payer experience with measures like setting up of a dedicated organisation, specialized and intensive training to be provided to the officers and staff of tax administration, an allocation of 10 per cent of the tax administration budget on tax payer services, providing pre-filled tax returns to all individuals who would have the option to accept or modify the details. The report also focusses on making radical changes to the process of issue of refunds and if implemented is sure to get a big Kudos from the industry and the tax payers.

The first report of the TARC comes as a breath of fresh air with its comprehensive focus on the recognition of the tax payer as a "customer". These changes if implemented soon and earnestly can have a major impact on the way the industry and the common man perceive the tax administration in India.

Income Tax exemptions: At the top of every individual's list is the hope and expectation of a realignment in the tax exemption limits and slabs. The exemption limit currently stands at Rs 2 lakh for both men and women who are less than 60 years of age. There are expectations that the threshold limit for exemption will be increased to Rs 3 lakh with a tax rate of 10% for individuals earning upto Rs 10 lakhs. This will go a long way in adding to the individual retirement funds as also help the government in channelizing resources for the country.

Increase in the base and limit of Net wealth

Wealth tax is currently applicable at 1 per cent if net wealth exceeds Rs. 30 lakh. The Direct Tax Code (DTC) 2013 proposed to increase the exemption limit to Rs. 50 crores, tax rate of 0.25% and widening of the definition of 'assets'. This will act as an incentive to increased compliance as also brings the prevailing limits at par with the current economic scenario.

Increase in exemption limits for allowances and perquisites

Keeping in view the inflated costs of transportation and medical in India, it should be the endeavor of the new government to raise the exemption limits from Rs 800 to Rs 2,000/3,000 p.m for transport and Rs 15,000 to Rs 50,000 for medical reimbursements/allowances. This will help bring the current exemption limits on a level playing field with the expenditure levels.

Interest on home loans

An enhancement in the limits of the deduction on Interest for Home Loans on self occupied property from the existing limit of Rs 1.5 lakhs to Rs 3 lakhs will have an impact on the revival of the real estate market.

Measures to encourage investments

The threshold limit for exemption in investments under section 80C has remained stagnant at Rs 1lakh for quite a few years. The increase to Rs2.5/Rs 3 lakhs will promote savings as also benefit the equity market, life insurance sectors etc.

Increasing the allowable limit of exemption for donations

Donations are a critical part of social responsibility for individuals and as a measure to promote this it is recommended that the ceiling of 10% of Gross Total Income be done away with, thereby making donations attractive from a tax exemption perspective.

In addition to the above, the government should also focus on bringing in changes in keeping with the international trends. This is important given the focus on globalization and employee movements in and out of India. Key amongst these is:

Clarity with respect to Tax residency certificates especially in case of countries which do not follow a fiscal year.

Issue of comprehensive foreign tax credit guidelines which cover the timing difference between different jurisdictions and issues regarding availability of foreign tax credits at the time of withholding of taxes

Given the recent controversies and litigation, clarity relating to deputation of individuals to work in India in terms of taxation of reimbursements made under such arrangements.

It would not be an understatement to say that 10 July is firmly circled on everyone's calendar- the outcome much awaited.

(Digvishesh Pahwa, Senior Tax Professional, EY contributed to the article)

Tax exemption limit may be doubled under 80C to Rs 2 lakh

Seeking to boost household savings, the finance ministry is considering doubling the exemption limit for investments by individuals in financial instruments to Rs 2 lakh.

Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80 CCC of the Income-Tax Act.

Sources said the revenue department is assessing the burden on the exchequer in case of increase in the benefit limit. The announcement is expected in the Budget.

The budget for 2014-15 will be presented by finance minister Arun Jaitley in the Lok Sabha on July 10.

There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings.

The savings rate has come down from over 38 per cent of GDP in 2008 to 30 per cent in 2012-13.

The hike in the exemption limit, sources said, would provide much needed relief to the salary earners who are reeling under the impact of high inflation.

The Direct Taxes Code (DTC) too has recommended that the combined ceiling for investments and expenditures be raised to Rs 1.5 lakh per annum.

The financial instruments which enjoy exemption include life insurance premium, public provident fund, employees provident fund, National Savings Certificates, repayment of capital on home loan, equity linked saving schemes sold by mutual funds and bank FDs of five year maturity.

Source : Times of India

LETHERGIC ATTITUDE OF ADMINISTRATIONS ON PARMAR WORK

It is noticed that in most of regions the work of recasting of seniority of the Group B and C officials is going on in a lackadaisical attitude.  In Gujarat, which is supposed to be the front runner in the issue is lagging behind with silly reasons. It is reported by the ITEF there is a lack of coordination between the committee the Administration. They submitted a representation on 17th June to the CCIT requesting to expedite the process. The Committe was constituted to submit itz report by 31st May 2014, but till now it has neither submitted its report nor a considerable progress has been made.

In some other regions, it is reported that the adminstrations are busy with the new jurisdiciton excercise and in some other regions with promotions and transfers.

It is the testing time for the adminstrations to take all the challneges sitmultaneously. Every one believe in the competency of the adminstrations in their multitasking ability but only the doubful thing is their commitment in completing the task with in the stipulated time. As the Department is striving to meet the quarterly targets of the CAP, it is pertinent and essential to complete these adminstrative tasks at the earlist in the current year.

The readers are requensted to give their feed back on the progress in the Parmar mplementation committees in their respective regions, to the mail id of the authers of this site i.e. hemanth2190@gmail.com.