CHANGES IN INCOME TAX FORMS AY 2018-19 FY 2017-18

Income Tax department has notified the New ITR form for Ay 2018-19 Fy 2017-18.In new forms 25 specific changes has been made to enable Income tax department to get more information from Taxpayers. 

There is no change in the manner of filing of ITR Forms as compared to last year. All these ITR Forms are to be filed electronically. However, where return is furnished in ITR Form-1 (Sahaj) or ITR-4 (Sugam), the following persons have an option to file return in paper form:-

• (i) an Individual of the age of 80 years or more at any time during the previous year; or 
• (ii) an Individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the Return of Income.

E-filing of Income tax return has not been started yet for assessment year 2018-19 and expected to be started from 15th May,2018

Main changes has been covered as under.

1. Changes in Salary details in ITR-1.

Earlier only taxable salary is required to be filed under the head of salary income in Income Tax return .But now more details has been asked to be filed under salary Income. in our view this step has been taken keeping in view of fraudulent refund claimed by the salaried person in Mumbai and Bangaluru .

New columns in salary head in ITR has been added as under

• i Salary (excluding all allowances, perquisites and profit in lieu of salary)  
• ii Allowances not exempt 
• iii Value of perquisites 
• iv Profit in lieu of salary 
• v Deductions u/s 16 

Filling of above details are not very difficult for salaried persons but it will be confusing for few as many salaried person are not aware of what is to be included under Profit in lieu of salary or Value of perquisites and deduction u/s 16.

In our view all such information is provided in Form 16 itself except allowance not exempt.So my suggestion to govt is that govt should also amend form 16 so that it also shows the value of allowances not exempt.

2. Changes in Income under the head House property.

More details are required to be filled under this head in Income tax return form ITR-2 also. Now following  information is required to filled for income from house property

• i Gross rent received/ receivable/ letable value 
• ii Tax paid to local authorities 
• iii Annual Value (i – ii) 
• iv 30% of Annual Value 
• v Interest payable on borrowed capital 
• vi Income chargeable under the head ‘House Property’ (iii – iv – v)

All the columns explained in above in 1 and 2 was required to be filed in ITR-2 but now it has been insterted in ITR-1 also. So ITR-1(sahaj) is no more "Sahaj"(easy) Now.

3. The columns explained at Sr no 1 and 2 has also been inserted in ITR-4 return for presumptive income scheme also called as Sugam.

4.Non resident is required to file ITR-2 in case of  no income from business and profession and can not file return on ITR-1 .Further he has to provide details of bank account to get refund from income tax department.

5. New Column of Fees under section 234F  has been inserted in all relevant ITR. In ITR -1 it is given at D10 Fee u/s 234F

The Finance Act, 2017 vide section 234F levied fees of Rs.5,000 in case where return is furnished after the due date but on or before 31st December of the relevant assessment year and Rs.10,000, in other cases. However, it is also provided to restrict the fees to Rs.1,000, where the total income does not exceed five lakh rupees.

APPLICABILITY OF STANDARD DEDUCTION TO PENSIONERS

Educational Concession to the Children of Armed Forces Officers/ PBORS missing/disabled/killed in action: DESW Order

Educational Concession to the Children of Armed Forces Officers/ PBORS missing/disabled/killed in action: DESW Order

No. 6(l)/2009/Edu. Concession/ D(Res-II)

Government of India

Ministry of Defence

Department of Ex-Servicemen Welfare

Room No. 237, ‘B’ Wing

Sena Bhawan, New Delhi

Dated: 23rd March, 2018

To, 
The Chief of the Army Staff, 
The Chief of the Naval Staff, 
The Chief of the Air Staff, 
The Director General, Indian Coast Guard.

Subject : Grant of Educational Concession to the Children of Armed Forces Officers/Personnel Below Officer Ranks PBORS) missing/disabled/killed in action. 

In continuation of this Department’s letter of even no. dt 13.09.2017 on above subject (copy enclosed), it has been decided with the approval of competent authority that the cap of Rs. 10,000/- imposed on the combined amount of Tuition Fees and Hostel Charges vide para-5 of a above order is removed and the Educational Concession will continue to be admissible without the cap of Rs. 10,000/-per month. 

2. Therefore, para-5 of ibid letter stands deleted while all other provisions shall remain unchanged.

3. This issues with the concurrence of Ministry of Defence (Fin/Pen) vide their ID No. 10(23)/09/Fin/Pen dt. 23.03.2018.

Encl: As above 

(Santosh)

Joint Secretary to the Government of India

7th Pay Commission: No Salary Hike as Govt Rejects Reports on Increase in Minimum Pay, Fitment Factor

New Delhi, Mar 20: The government has rejected reports on an increase in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission or 7th CPC, saying it was not considering salary hike for its employees. There have been reports that the government was mulling to raise minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission. (Update: 7th Pay Commission: Employees’ Unions Plan Strike For Hike in Minimum Pay, Fitment Factor After Govt Rejects Salary Hike) Samajwadi Party MP Neeraj Shekhar sought to know “whether Government is actively contemplating to increase minimum pay from Rs.18,000/- to Rs.21,000/- and fitment factor from 2.57 to 3, in view of resentment among Central Government employees over historically lowest increase in pay by 7th Central Pay Commission (CPC).” In a written reply to the question in the Rajya Sabha, Minister of State Finance, P Radhakrishnan said the government was not considering a hike in minimum pay and fitment factor beyond the recommendations of the 7th Pay Commission. “The minimum pay of Rs.18,000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration,” said Radhakrishnan. Advertisement

The 7th Pay Commission had recommended a hike of 14.27 per cent in basic pay of central government employees, raising minimum pay from Rs 7,000 to Rs 18,000. The government approved the recommendations of the 7th Pay Commission despite resentment among central government employees, who have been a hike in minimum pay from Rs 18,000 to Rs 26,000 and fitment factor 3.68 times from 2.57 times.

There had been reports that the government was mulling to raise minimum pay to Rs 21,000 and fitment factor 3.00. However, the government has now clarified that no such proposal was being considered.

http://www.india.com/news/india 

DOPT ORDER –  Extending the scope of Anomaly definition – 7th CPC

No.11/2/2016-JCA
Government of India
Ministry of Personnel, Public Grievances and Pensions
Department of Personnel & Training
Establishment {JCA} Section

North Block, New Delhi
Dated the 14th March, 2018

OFFICE MEMORANDUM

Subject: Setting up of Anomaly Committee to settle the anomalies arising out of the implementation of the Seventh Pay Commission's recommendations — extending the scope of definition regarding.

The undersigned is directed to refer to DoPT's Office Memorandum of even number dated 20/02/2017 on the subject as cited above, and to incorporate the following further modification in the definition of what would constitute an anomaly:

"where the amount of revised allowance is less than the existing rate or any other anomaly observed while implementing the revised allowance"

2. With the incorporation of the above para in the OM, the definition of anomaly will read as follows:-

(1) Definition of Anomaly

Anomaly will include the following cases

a) Where the Official Side and the Staff Side are of the opinion that any recommendation is in contravention of the principle or the policy enunciated by the Seventh Central Pay Commission itself without the Commission assigning any reason;

b) Where the maximum of the Level in the Pay Matrix corresponding to the applicable Grade Pay in the Pay Band under the pre-revised structure as notified vide CCS(RP) Rules 2016, is less than the amount an employee is entitled to be fixed at, as per the formula for fixation of pay contained in the said Rules;

c) Where the Official side and the Staff Side are of the opinion that the vertical and horizontal relatiyities have been disturbed as a result of the 7th Central Pay Commission to give rise to anomalous situation.

d) Where the amount of revised allowance is less than the existing rate or any other anomaly observed while implementing the revised allowance

3. The rest of the contents of the OM issued by DoPT under reference no. No. 11/2/2016-JCA dated 16.08.2016 shall remain unchanged.

(D.K.Sengupta)
Deputy Secretary (JCA)
CLICK HERE TO REFER DOPPW 'S DEVIATION FROM EARLIER STAND 

GOVERNMENT OF INDIA MINISTRY OF FINANCE RAJYA SABHA UNSTARRED QUESTION NO-1170 ANSWERED ON-06.03.2018

Govt is not in mood to increase 7th CPC Minimum Pay & Fitment Factor

(a) whether Government is actively contemplating to increase minimum pay from Rs.18,000/- to Rs.21,000/- and fitment factor from 2.57 to 3, in view of resentment among Central Government employees over historically lowest increase in pay by 7th Central Pay Commission (CPC); 

(b) if so, the details thereof and the date from which it would be implemented; and 

(c ) if not, the reasons for the callous attitude of Government towards Government Employees? 

ANSWER 

MINISTER OF STATE FOR FINANCE ( SHRI P RADHAKRISHNAN ) 

(a),(b)&(c ): The minimum pay of Rs.18,000/- p.m. and fitment factor of 2.57 are based on the specific recommendations of the 7th Central Pay Commission in the light of the relevant factors taken into account by it. Therefore, no change therein is at present under consideration.

Compulsory military service for those seeking govt jobs, says Parliamentary Standing Committee

 

All those who want a cushy government job either with state or central government - may have to put in a compulsory five years with the armed forces to make-up for the shortage of personnel in the armed forces.
The Indian Army alone is short of over 7,000 officers and over 20,000 men. Likewise, the Indian Air Force has a shortage of nearly 150 officers and over 15,000 men and the Indian Navy is short of 150 officers and nearly 15,000 men.
The central government alone has about 30 lakh employees with the Indian Railways, while the state governments employ about another two crore people.
Compulsory military service for those who want a subsequent employment with the government is being considered by the Department of Personnel and Training (DoPT)- a wing of government that reports to the Prime Minister. The wing is tasked with administering and making policy for all government servants.
The proposal to make military service compulsory for future government servants was moved by the Ministry of Defence as an emergency measure to fill the shortfall in the armed forces.
Compulsory military service for aspirants of government employment has been recommended by the Parliamentary Standing Committee.
The Committee while recommending five years compulsory military service to such aspirants wanting directly to join central and state government gazetted services have taken into account the fact that there are perennial and alarming shortages of officers and men in the Armed Forces, which needs to correct, a recently tabled report of the Parliamentary Standing Committee observed.
The Parliamentary Committee has also asked the Ministry of Defence to push with the DoPT with more vigour and earnestness. Apparently, the Ministry of Defence has not taken up the matter with due seriousness.
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