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AFT allows petition seeking NFU for defence officers at par with Group ‘A’ services

In a verdict, which meets the long-standing demand of thousands of defence services officers, the principal bench of the Armed Forces Tribunal (AFT) in New Delhi has allowed a petition demanding Non-Functional Upgradation (NFU) for defence officers on the pattern of civil services officers of Group ‘A’ services. The bench comprising the officiating chairperson of the AFT, Justic BP Katakey and Lt Gen Sanjiv Langer today delivered the judgement on the petition which had been reserved some weeks back. Col Mukul Dev of the Army’s Judge Advocate General’s (JAG) Branch was the principal petitioner in the case which also has around 500 serving Army officers as co-petitioners.

Speaking to The Indian Express, Col Rajiv Manglik (retd) advocate for the petitioners said, “NFU been allowed as given to defence officers on the pattern of civilian officers as given by the 6th Pay Commission and it will be applicable for all three services-Army, Navy and the Air Force. It has also been stated if NFU is implemented for civilians in 7th Pay Commission it will be given to armed forces officers also. The advocate also said that the bench has allowed arrears for NFU for a period not exceeding three years from the date of the judgement. “The AFT has also denied the leave to appeal in the Supreme Court to the respondents ie. the Union of India,” said Col Manglik.

The petitioner had contended that the morale of officers of the armed forces has been lowered by the government by non-grant of the NFU and thus lowering the established status of the armed forces officers since independence. He had also argued that the stagnation in the armed forces is more acute than the civil services and that the denial is in clear violation of Article 14 and 16 of the Constitution “as the equals since independence have been made unequals”.

It was also argued that the purpose of grant of NFU is not to equate the monetary benefits or earnings enjoyed by a particular service, but it is granted with the aim to remove the stagnation due to the acute shortage of vacancies and grant parity of promotional avenues within the IAS with stipulated lead of two years to the IAS.

The petitioner had said that the parity established since independence and upheld by the pay commissions in succession between the armed forces and the All India Services/ Group ‘A’ services and IPS in particular has been disturbed and the petitioner has been deprived of the benefits extended to his counter parts in parity in the civil services.

It had been contended that the armed forces officers cadre meets all the attributes attached to the Group ‘A’ organised service. The petition says that the NFU has been denied on the pretext that Military Service Pay (MSP) has been given to armed forces officers. Citing this as a “gross mis-concept” the petition said that the grant of NFU is to alleviate the acute stagnation in service, whereas the MSP and other allowances is due to the postings at various difficult terrain and living conditions.

It was also pointed out that there are a number of Group ‘A’ services, which do not meet all the criteria for the group, yet they have been awarded NFU. The services mentioned are Indian Legal Service and Indian Trade Service, Indian Statistical service, Indian Economic service and Central Information service.

What is NFU?
Non Functional Upgrade (NFU) entitles an IAS officer and other Group ‘A’ services officers of the civil services to get the pay scale of the highest promoted officer of their batch even if he or she is not promoted to the same rank. This higher grade is given two years after the batchmate achieves the promotion. The aim of giving NFU is to alleviate the stagnation in the service due to non-promotion. Due to the steep pyramid of promotion in armed forces hierarchy, a large number of officers do not make it to the next selection rank. However, NFU has not been made applicable to armed forces. The Delhi High Court in its recent judgement has held that NFU is also applicable to officers of the central paramilitary forces.

© The Indian Express Online Media Pvt Ltd

ILLEGAL DEDUCTION OF INCOME TAX BY SBI

Law Office of NAVDEEP   SINGH                                 

Advocate, Punjab & Haryana High Court

Office-cum-Residence : # 1063, Sec 2, Panchkula – 134112, Haryana

Phones : 099888-LEGAL, 093161-32817    Email : navdeepsingh.india@...

Your reference :                                                                        

 Our  reference :

 To:

Chairman-cum-Managing Director (CMD)

State Bank of India, Mumbai

                                                                                      01 September 2016

ILLEGAL DEDUCTION OF INCOME TAX ON DISABILITY PENSION BY THE STATE BANKOF INDIA IN CONTRAVENTION OF DIRECTIONS OF THE GOVT

1.    Shocking instances have come to light wherein your bank has indulged in deduction of Income Tax at source in case of Disability Pensioners. On further inquiry, it has been informed that the action is based upon some ‘advice’ rendered by a Chartered Accountant that income tax exemption is only available to those pensioners who have been invalided out before completion of their service for normal pension, that is, those released earlier than 20 years in case of Commissioned Officers and 15 years in case of ranks other than Commissioned Officers, and that the said exemption is not available on the service element of those who have been released/ retired/discharged with a pension after serving more than 20/15 years of service as above.

2.    Firstly, your attention is invited to Instruction No 2/2001 issued by the Central Board of Direct Taxes in this regard which amply explains the issue (Appx A). Your attention is also invited to Paragraph 88.3 of the Pension Payment Instructions issued to all your banks by the Government (Appx B) which leaves no scope of doubt regarding exemption of income tax from the entire disability pension, including service element. Moreover, the interpretation of your bank in this regard is absolutely incorrect, absurd and militates against the rules and norms promulgated by the Government as above. It may be recalled that Income Tax exemption on complete disability pension is available to defence personnel since the 1920s.

3.    On discussion, it emerges that the confusion has been created due to the terminology of ‘Service Element’ which is hereby clarified for your benefit in the following lines. Disabled personnel who are granted disability benefits at the time of release from service are known as Disability Pensioners.  The said Disability Pension consists of two elements- service element and disability element. Both elements taken together are known as Disability Pension. There is no minimum qualifying service required for the grant of Service Element with effect from 01 January 1973. The calculation of service element however is different in cases of those personnel released from service before completion of pensionable service limits vis-a-vis those who are released on completing pensionable service limits. In case of the latter, the service element is granted at a rate equal to Service Pension. The fact that the pension granted for service in both cases is known as Service Element becomes clear from a bare perusal of Regulation 183 of the Pension Regulations, 1961, which contains two clauses, that is, 183(1)(a) for those who are released with sufficient service to earn a pension, and 183(1)(b) for those who are released before completing sufficient service to qualify for normal service pension. The said Regulation is enclosed as Appx C. Please note from the Regulation that in both cases the service part of the pension is known as Service Element. Even the normal service pension rates reflected under Regulation 183(1)(a)(i) are categorized as ‘Service Element’.

4.    The fact that the service part of pension, whether a person is released prior to completion of service limits or after completion of service limits (20/15 years), is known as ‘Service Element’ also becomes clear from a perusal of the recent Circular No 554 (Appx D) issued by the Principal Controller of Defence Accounts (Pensions) to all banks, including yours. Paragraphs 1(i) and (ii) and then 1(iv) & 1(v) as well as Paragraph 6 of the same clearly stipulate that in case of disability pensioners, the amount of service part of the pension is known as ‘Service Element’ irrespective of the fact whether a person has lesser or more than 20/15 years of service. In simple words, the service element of pension in cases of those disabled personnel who have completed pensionable limits is equal to normal service pension, but being disability pensioners, it is nomenclatured as ‘Service Element’.

5.    Even otherwise, it would be important to point out that disabled personnel released prior to completion of pensionable terms as well as those who are released on completion of terms or at own request are all treated at par as far as disability pension is concerned. In fact, all those who are in low medical category at the time of release are to be treated as ‘invalided’  as per rules (Also Appx C) as has also been held as per interpretation of teh pre-existing rules by the Hon’ble Delhi High Court in CW 2967/1989 Mahavir Singh Narwal Vs Union of India decided on 05 May 2004 as affirmed by the Hon’ble Supreme Court in SLP 24171/2004 on 04 January 2008 and also in the recent decision of the Hon’ble Supreme Court in Civ Appeal 11208//2011 Union of India Vs Angad Singh Titaria decided on 24 Feb 2015.

6.    In view of the above, you are requested to inform all your branches to cease and desist from flouting guidelines of the Central Board of Direct Taxes in this regard and direct them to honour income tax exemption on both service as well as disability elements of disability pensioners as was being done till now. It may be appreciated that the opinion of your Chartered Accountant cannot override existing law and rules that have been followed since times immemorial.

7.    You are requested to issue directions to refund the illegally deducted amount to all affected disabled pensioners within a period of 7 days from the receipt of this letter.

Thanking You

Sd/-

Navdeep Singh

Advocate, High Court

EXEMPTION OF INCOME TAX FOR DISABLED VETERANS

Instruction No 2/ 2001

F.No. 200/51/99-ITA.I

Govt of India Ministry of Finance

Deptt of Revenue

Central Board of Direct Taxes

New Delhi, the 2ndJuly, 2001

To: All Chief Commissioners of Income-Tax

       All Directors General of Income-Tax

Subject: Exemption from Income Tax to disability pension, i.e., “disability element” and “service element” of a disabled officer of the Indian Armed Forces – Instructions regarding

Sir,

References have been received in the Board regarding exemption from Income Tax to disability pension, i.e., “disability element” and “service element” of a disabled officer of the Indian Armed Forces.2.It appears that field formations in certain cases are not uniformly allowing disability pension in spite of Board’s Instruction No 136 dated 14thJanuary 1970 (F No 34/3/68-II(AI) ).3.The matter has been re-examined in the Board and it has been decided to reiterate that the entire disability pension, i.e, disability element and service element of a disabled officer of the Indian Armed Forces continues to be exempt from Income Tax.4.This may be brought to the notice of all officers working under you.

Yours faithfully

       Sd/-

(B L Sahu)

OSD (ITA-I)

CHECK THE CORRECTNESS OF THE DL-33 ARREARS RECEIVED BY YOU

CIRCULARS OROP CIRCULAR 555

CIRCULAR 547

CIRCULAR 430

CIRCULAR 501

7th CPC MOD PENSION RESOLUTION

CIRCULAR 567 (MINIMUM FITMENT TABLE & EFP)

PCDA CIRCULAR 568 DL-33 ORDERS FOR PAYMENT

PCDA CIRCULAR 570 7TH CPC PAYMENT ORDER

DL-33 IAF X GROUP CALCULATOR

DL-33 IAF Y GROUPCALCULATOR

DL-33 NAVY CALCULATOR

DL-33 ARMY X GROUP CALCULATOR

DL-33 ARMY Y GROUP CALCULATOR

7TH CPC BASIC & ARREARS CALCULATOR

HOW TO CLAIM TAX RELIEF ON ARREARS

INCOME TAX RELIEF ON ARREARS CALCULATOR

TREATMENT OF MSP FOR PAY FIXATION & PENSION IN R/O VETERANS RE-EMPLOYED IN CG/RAILWAY

GUIDE LINES FOR PAY FIXATION & TREATMENT OF MSP FOR PAY FIXATION & PENSION IN R/O VETERANS RE-EMPLOYED IN BANKS & OTHER FINANCIAL INSTITUTIONS

SBI LIFE CERTIFICATE

THE VOICE OF PENSIONERS COPY RIGHTS @ RESERVED

PARLIAMENT MARCH BY CENTRAL GOVT EMPLOYEES

OROP protest: 4 veterans stay atop water tower in Delhi for 10 hrs

Four retired non-commissioned officers today threatened to jump off a water tower near old Delhi railway station over the issue of One Rank One Pension (OROP), several hours before they came down from the structure on assurance from defence ministry officials, police said.
Four members of ‘Sabka Sainik Sangharsh Samiti’ climbed the water tower around 8 AM and threatened to jump off it, but with police intervention, they were pacified and eight-ten people who were accompanying them were taken to the office of Ministry of Defence to meet the officers and put forth their demands, said a senior police officer.

Those who had climbed the water tower have been identified as Gurcharan Singh, Kabal Singh, Satpal Singh and Kartar Singh and they had come from Punjab, said the officer.
They had climbed the water tank around 8 AM and even threatened to commit suicide by jumping off the tank, the officer added. Later a meeting was facilitated between the members of the body and the ministry officials by the police and the four men got down from the water tower around 6 PM, police said.
“They thanked us for facilitating the meeting and left for their hometown after the delegation that had gone to meet ministry officials apprised them about the meeting and assured them that they had got a patient hearing from the concerned officials,” the officer said.

http://www.jantakareporter.com/india/orop-water-tower-delhi/84091/

Currency Reforms of Sher Shah Suri

The coins and currency reforms of Sher Shah Suri (Sher Khan) are one of his most outstanding achievements. Sher Shah Suri found on his accession that the currency system had practically broken down. There was debasement of the current coins and the absence of a fixed ratio between the coins and various metals. There was another difficulty, namely, that coins of all previous reigns, in fact of all ages, were allowed to circulate as legal tender.

Sher Shah Suri took steps to issue a large number of new silver coins which, subsequently, became known as dam. Both the silver rupee and copper dam had their halves, quarters, eighths and sixteenths. Next, he abolished all old and mixed metal currency coins. He fixed a rate between the copper and silver coins. His silver rupee coins weighed 180 grains, of which 175 grains were pure silver. This rupee minus its inscription lasted throughout the Mughal period and was retained by the English East India Company up to 1835. V.A. Smith rightly observes: "it is the basis of the existing British currency" (up to 1947).

Sher Shah's name and title and place of mint were invariably inscribed on the coins in Arabic characters. Some of his coins bore his name in Devanagari script and some had the names of first four Khalifas in addition. Gold coins of pure metal of various weights, such as 166.4 grains, 167 grains and 168.5 grains, were executed. The ratio of exchange between the dam and the rupee was 64 to 1. The ratios between the various gold coins and the silver ones were fixed on a permanent basis.
These coins and currency reforms of Sher Shah Suri proved very useful and did away with a great deal of inconvenience which was experienced by the general public and particularly by the trading community. These reforms have elicited high praise from modern numismatists.

"Sher Shah is entitled to the honour of establishing the reformed system of currency which lasted throughout the Mughal period, was maintained by the East India Company down to 1835, and is the basis of the existing British currency. He finally abolished the inconvenient billon coinage of mixed metal, and struck well-executed pieces in gold, silver, and copper, to a fixed standard of both weight and fineness. His silver rupees, which weigh 180 grains, and contain 175 grains of pure silver, being thus practically equal in value to the modern rupee, often have the king's name in Nagari characters in addition to the usual Arabic inscriptions." (V. A. Smith, Imperial Gazetteer of India, ii, pp. 145-6.)

"His coins also illustrate the rapidity with which he conquered the countries settled under his rule. The land survey, construction of roads, and establishment of mint towns seem to follow almost in the wake of his conquering armies." ( Qanungo, Sher Shah, p. 383.)
".........He reformed the coinage, issuing an abundance of silver money, excellent in both fineness and execution. That is a good record for a stormy reign of five years. If Sher Shah had been spared he would have established his dynasty, and the ' Great Mughals ' would not have appeared on the stage of history." (The Oxford History of India, pp. 327-29.)

Why is Muhammad Bin Tughlaq called an intelligent fool?

“Muhammad Bin Tughlaq was one of the most interesting personalities of Medieval Indian history. He ruled from 1324 to 1351 AD. Muhammad Bin Tughlaq was interested in Persian poetry, mathematics, medicine, and astronomy and was also noted a philosopher. He was well-versed in the religious topics and fluent in both Arabic and Persian. From the beginning of his kingship, the countrymen had a huge expectation from him. He took some very bold and strong measures to reform the Sultani administration at the advent of his rule.

He took great steps in revenue reformation. He decided to shift his capital from Delhi to Devagiri, which is now known as Daulatabad. Daulatabad is situated in Central India. Though controversial, Muhammad Bin Tughlaq showed a great sense of pragmatism in this decision. He not only saved his capital from the Mongol raids but also ensured the proper administrative rule in both the northern and southern part of the India.

His rule is also significant for the introduction of token currency. He understood the importance of currency as a medium of commercial exchange and that is why he took keen interest to circulate gold and silver coins. The gold coin was introduced as Dinar. Tughlaq’s silver coin was named Adl. However, it was difficult to maintain the supply of gold and silver coins on a large scale. So, Tughlaq replaced those coins and started the circulation of copper and brass coins as the token currency which had the same value of gold or silver coins in 1330-32 CE. He was well aware that the state had to act as a responsible guarantor for the token money by ensuring high degree of security which will prevent others from making fake currencies.

But the administrators failed in maintaining the security measures. These coins totally lacked the artistic design and perfection in finishing and even the administrators of the king took no measure to keep the design secured and protected. In fact, the coins just had some inscriptions and no royal seals. These loopholes make them easier to copy. Thus, ordinary people easily copied the design and started making coins in their house. Soon the entire market was flooding with the fake coins. The ordinary people started to pay the state revenue with their home made coins and this caused a great problem for the state treasury. Within a very short period of time the state treasury was full of fake coins. Historians have argued that the value of the coins decreased for such wholesale forgery and it became worthless like the stones.”

MINIMUM PAY & MF LIKELY TO BE HIKED

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

RAJYA SABHA

UNSTARRED QUESTION NO-1526

ANSWERED ON-29.11.2016

Pay hike after implementation of Seventh Central Pay Commission

1526 . Dr. Sanjay Sinh

(a) the salient features of the Seventh Central Pay Commission;

(b) the percentage of increase in the salaries of employees after the implementation of the recommendations of Seventh Central Pay Commission;

(c) the percentage of increase in the salaries of employees after the fourth, fifth and sixth Central Pay Commission;

(d) whether the extent of pay hike this time is very less as compared to the previous pay hikes; and

(e) whether Government would reconsider it in view of the resentment among employees and pay anomalies?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI ARJUN RAM MEGHWAL)

(a): The Seventh Central Pay Commission (7th CPC) has recommended the minimum pay of Rs. 18,000 per month and uniform fitment factor of 2.57 for all employees. The system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for Civil, Defence and Military Nursing Services personnel. The Commission has recommended abolishing 52 allowances and subsuming of another 36 allowances either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by a Risk and Hardship Matrix. The Commission has also recommended revised pension formulation for all personnel who have retired before 01.01.2016 to bring about complete parity of past pensioners with current retirees.

(b) to (e): Salary of all employees will increase by at least 14.29 per cent after the implementation of Seventh Central Pay Commission (7th CPC) recommendations. The 7th CPC has mentioned that increases given in Minimum Pay were 27.6%, 31.0% and 54.0% by Fourth, Fifth and Sixth Central Pay Commissions, respectively.

The anomalies arising out of implementation of the recommendations of the 7th CPC will be examined by the Anomalies Committee which has already been constituted. Based on the report of the Committee, the matter will be considered by the Government and appropriate decision will be taken.

Source: http://rajyasabha.nic.in/