Budget 2018: Pensioners, corporates could get tax breaks, no big bang reforms expected

Having carried out major reforms in the last three years, the Centre is looking for a pause, finance ministry officials have said.

Moneycontrol News @moneycontrolcom

Moneycontrol News  The Finance Ministry is working on offering tax breaks, and larger sops to pensioners as well as corporates in the 2018-2019 Union Budget, according to a report by the Business Standard. The direct taxes levied on the corporate sector could also see changes, the report suggests.
"We have gone through a series of steps in the past three years to bring some major changes in the economy. It is time to offer a pause," an official involved in the Budget process told the newspaper.

The Centre will also reportedly focus more on building 10 million houses for the poor, under the 'Housing for All' initiative, and work on the nationwide road-building programme after having implemented multiple reforms like GST and demonetisation, and simplified processes to improve ease of doing business.
According to the official, a pause has become necessary because, while the collections from GST have picked-up, they still have a long way to go.

Capt Amarinder singh protest tuition fee cap by MOD

  Ajay Banerjee

Tribune News Service

New Delhi, December 1

The armed forces, former Army Chief General VK Singh and Punjab Chief Minister Capt Amarinder Singh have separately sought that the Ministry of Defence (MoD) should not “cap” educational expenses paid to children of martyrs, or those disabled in action. Some 3,200 students studying in schools, colleges and professional colleges are beneficiaries under the scheme. The facility is from the lowest class like nursery till the child acquires the first degree (like BA, MBA, B.Com, B.SC, engineering or MBBS, among others). A letter dated September 13 this year, issued by the department of ex-servicemen, capped the fee for tuition and hostel at Rs 10,000 per month. With children of martyrs or disabled soldiers studying professional courses like MBBS, MBA, or engineers in private institutes, this fee cap may trouble several of them. The fee in private colleges in such courses runs into a couple of lakh each year, besides the hostel fee. The Tribune had first reported this matter on December 1. The scheme is applicable to the Army, Navy and the Indian Air Force. It never had a “cap”. The three armed forces have collectively written to the Defence Minister, seeking lifting of the cap, sources have confirmed. Punjab Chief Minister Captain Amarinder Singh has written to Defence Minister Nirmala Sitharaman asking the ministry to review its decision to restrict its educational expenses paid to children of martyrs. In the letter, the CM has called the decision to cap educational expenses paid to martyrs’ children at Rs 10,000 ‘immoral’ and ‘unprincipled’. He added: “The fee being paid to the children of martyrs and disabled soldiers was a small price in exchange for what they had given, and continued to give, to the nation”. Former Army Chief and Minister of State for External Affairs General VK Singh tweeted: “Have written on the issue to RM (Raksha Mantri). Am sure Babus of the MoD will rectify this as early as possible”. The scheme for government bearing the cost of education of martyrs’ children was announced on December 18, 1971 – two days after Pakistani forces surrendered at Dacca (now known as Dhaka) in the India- Pakistan war to liberate Bangladesh. In stages, children of officers and jawans killed or disabled in operations were added in the scheme.

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"Decision to cap educational expenses paid to martyrs’ children at Rs 10,000 is ‘immoral’ and ‘unprincipled’. The fee was a small price in exchange for what martyrs had given to the nation." — Capt Amarinder Singh, Punjab Chief Minister   "I have written on the issue to RM (Raksha Mantri). I am sure babus of the Ministry of Defence will rectify this as early as possible. " — General VK Singh, Union Minister of State

7th CPC Pre-2016 Pension Revision: CGDA has published the list of pensioners reg non-availability of correct bank and other details

7th CPC Pre-2016 Pension Revision: CGDA has published the list of pensioners reg non-availability of correct bank and other details

OFFICE OF THE CONTROLLER GENERAL OF DEFENCE ACCOUNTS

ULAN BATAR MARG, PALAM, DELHI CANTT.-110010

No. AN/IV/REV.PENSION 

Dated: 27.11.2017

Important Circular

Subject: Implementation of Govt's decision on the recommendations of The 7th Central Pay Commission- Revision of Pension of Pre-2016 Pensioners / Family Pensioners, etc.

Reference: PCDA(P) Allahabad letter No. G1 / C /0199/ Vol.-I / Tech, dated 30.05.2017 and this office Important Circular of even no. dated 05.06.2017.

LPC-Cum-Data-Sheet for revision of pension of Pre-2016 Pensioners / Family Pensioners was forwarded to PCDA (P) Allahabad for issue of e-PPO. PCDA(P) Allahabad has returned a number of LPC-Cum-Data-Sheets with the following reasons:

i. Incomplete / Incorrect bank A / c number. 

ii. Date of Death of Pensioners not available

2. A list of the Pensioners / family pensioners are enclosed as Annexure "A".

3. All the Pensioners / family pensioners are therefore requested to kindly provide following information / documents to this Office so that revised LPC-Cum-Data-Sheet may be forwarded to PCDA(P) Allahabad:

a. Complete Bank details viz Bank A / c No., Name of Bank, Branch Name, IFS Code, Death Certificate, if applicable.

4. The information may be sent through fax, Email or by post as per the details given below:

• FAX No.: 011-25674777
• Email: an4-pay.cgda[at]nic.in
• Postal address: The CGDA, Ulan Batar Road, Palam, Delhi Cantt.

5. For any enquiry/ clarification on the subject, pensioners / family pensoiners may contact Shri Mahesh Kumar, Sr. Accounts Officer (AN) on Phone No. 01 1- 25665560.

(Mustaq Ahmad)

Dy.CGDA(Admin)

CLICLK HERE TO REFER THE LIST OF NAMES

 

Voice of ESM Welfare Society is pleased to inform you that, 

Delhi High court has directed the Govt. to act on the representation of Voice of Ex-Servicemen Society with regard to *grant equal rate of MSP to all Combatants ranks (i.e. Officers, JCOs and ORs)* of all the three services *with in eight weeks.* And also said that, petitioners have the liberty to approach court if they are aggrieved.

JCOs and ORs who are the most deprived section and with this judgment *we have gained a great respect towards  Indian Judiciary* which is one of the piller of Great Indian Democracy. 

Regards,

for *Voice of Ex serviceman society Team*

(A national level organisation for the welfare of JAWAN-JCOs)

  Details of discussion held between RM & the
 Team of Hon. Lt. Narsingh

 

 Moble: +919996694688                                                
  Nar Singh Dass, Ex- MCPO-1(Hony S/Lt),

 Email: narsinghkarhana@gmail.com               
   23   Nov, 2017

  To,

     Smt. Nirmala Sitharaman Ji,

     Hon’ble Raksha Mantri,

    104, South Block, Ministry of Defence,

    New Delhi-110011.

   Subject:-  List of anomalies, arising out of implementation of OROP and 7^th CPC.

Respected Madam,

       There are very serious anomalies in the pensions of Honorary Commissioned Officers/ Junior Commissioned Officers and Other Ranks of Army, Navy and Air Force on implementation of One Rank One Pension (OROP). There are some anomalies in implementation of 7^th CPC this includes lower Grade Pay/ Pay Level and incorrect calculation of Entry Level Pay for JCOs during 7^th CPC and previously also. List of anomalies are forwarded here with for your kind consideration and favorable action please:-

          ONE RANK ONE PENSION (OROP).

1.     Rounding of Qualifying Service:- Refer Para 10 and 11 of PCDA(P) Circular No.555 dated 4^th Feb, 2016 regarding Rounding of Qualifying Service. Qualifying Service is not uniform as per this Circular for Pre 22-04-1960, Post 22-04-1960, Post 28-06-1983, so there are 03 Pensioners categories created now with same Rank, same Group and same length of service for all Pre-2006 retirees. While calculating the length of qualifying service for all types of pensionary benefits a fraction of a year equal to 03 months and above but less than 09 months is treated as one half (1/2) year period, and 09 months or more but less than a year is treated as a completed one year for determining the amount of pension w.e.f. 28-06-1983. Prior to 28-06-1983, the broken

                                                           -2-

period of service of 180 days or more is to be treated as one half (1/2) year wef. 22-04-1960. In view of above, if qualifying service has been mentioned as 17 years 10 months in PPO/Corr. PPO, it is rounded up to 18 years for post 28-06-1983 retirees, 17.5 years for pre- 28-06-1983 up to 22-04-1960 and 17 years for pre- 22-04-1960 retirees. But for Post 2006 it is based on just 50% of Last Pay Drawn, so likewise it is One Rank Four Pension for pre-2016.

 2.     Terms of Engagement:- Refer Para 7 and Appendix- X of PCDA (Pension) Circular No. 555 dated 4^th Feb, 2016 regarding Term of Engagement in case of HCO’s/ JCO’s/ OR’s of Army/Navy/Air Force. The Terms of Engagement is different in three Services. Terms of Engagement implies “Maximum Qualifying Service for grant of Service Pension”. Terms of Engagement from time to time keeps changing. It should be uniform across the three sister services.

  3.     Anomalies in the Service Pension Tables of Regular and TA  Subedars:- Refer Service Pension table No. 7 and 8 of Circular No. 555, as per these tables Service

Pension for the rank of Subedar Regular (Army/Navy/Air force) is less than the Subedar of Territorial Army (TA) as under:-

Rank              QS                Group              Regular                  TA

Subedar        28 to 29                  Y                        12268/-                  12660/-

Subedar        29.5                         Y                        12460/-                  12660/-

4.     Reservist Pensioners:- Refer Para 4, Sub Para 4.2 of PCDA(Pension) Circular No. 555 dated 4^th Feb, 2016 regarding Non- Applicability of pension to Reservist Pensioners. In

OROP this time Service Pension tables are prepared from 0.5 years onwards for all the ranks wef. 01-07-2014 except for Reservist Pensioners. Qualifying Service of a Reservist is always 10 years or more. There was no increase in the Service Pension of Reservists as per OROP. Their Pension was 3500/- in 6^th CPC and now it is only 9000/-

as per 7^th CPC. It is suggested that Reservist Pension should be increased to the QS of 10 years for ‘Y‘ Group Sepoy ie. 6188/- and if service is more than 10 years than it should be as per the table of Sepoy of ‘Y’ group as per Circular No. 555.

 5.     Base /Calendar Year:- Refer Para -3, sub Para -i of GoI, MoD, Dept. of Ex-Servicemen welfare letter No. 12(1)/2014/D(Pen/Pol)-part-II dated 7^th Nov, 2015

                                                              -3-

 regarding Base/Calendar year 2013 for Re-fixing pension for OROP. By doing this we are at loss by one increment.  Base/Calendar year should be 2014 instead of 2013.

 6.     Average of Minimum and Maximum Pension:- Refer Para -3, sub Para -ii of GoI, MoD, Dept. of Ex-Servicemen Welfare letter No. 12(1)/2014/D(Pen/Pol)-part-ii dated 7^th Nov, 2017 regarding Re-Fixation of all pensioners on the basis of the average of Minimum and Maximum pension of personnel retired in 2013. Pensions of all Pre- 30-06-2014 pensioners should be Re-fixed on the basis of Maximum Pension of personnel retired in 2014 instead of 2013 for OROP.

 7.     Seniority in the ranks not maintained:- Refer any tables of PCDA (Pension) Circular No. 555 dated 04^th Feb, 2016 for JCO’s/OR’s seniority of the ranks is not at all  maintained. In some cases pension is same from 15 years to 28 years of Qualifying Service. Pension tables of all JCO’s / OR’s should be again re-computed for arriving at correct pension.

 8.     Equalization of Pension after five years:- Refer Para-3, sub Para-V of GoI, MoD, Dept. of Ex-Servicemen welfare letter No. 12(1)/2014/D(Pen/Pol)-Part-ii dated 7^th Nov, 2015 regarding equalization of pension after five years. True meaning of OROP is that a pensioner of same Rank, same Group and same length of Service should draw same pension in 3 sister services. This is only possible when pension is equalized every year.

 9.     ACP-I/II/III benefit:- Refer Para-11, sub Para- a), b) and C) of PCDA(Pension) Circular No. 555 dated 4^th Feb, 2016 regarding grant of ACP benefits. As per above

Circular Hony Naik, Hony Havildar and Hony Naib Subedar have separate tables for all types of Pensions, where as for Post-2006 retirees if ACP is granted to them their pension is revised as per the tables of Naik, Havildar and Naib Subedar. ACP I/II/III benefit should also be extended to all Pre- 2006 Hony Naiks, Hony Havidars and Hony Naib Subedars as like ACP Naiks / ACP Havildars and ACP Naib Subedars.

    DOWNGRADATION  IN  STATUS  OF  JCOs

 10.                          a)  Status of JCOs:- JCOs of Armed Forces have been accorded statutory of Status of Gazetted Officer by an act of Parliament vide Section 3(xii) of Army Act 1950. However their status has got seriously degraded over the years due to incorrect

                                                                   -4-

fixation of their due to incorrect fixation of their Pays/Grade Pay/Pay Level. While Civilian employees have moved to higher Grade Pay/Pay Level due to post Pay Commission modification by Govt. based on JCM Mechanism, the Pay of JCOs of Armed Forces remained un-revised as JCM Mechanism is not applicable to them. Page 144 of 7^th CPC Report explaining as to how pay of a Non- Gazetted Assistants has been increased by Govt. post Pay Commission awards.

    b)  This has created a serious anomaly where in statutorily Gazetted JCOs of Armed forces have been placed in lower Pay Level than Non- Gazetted Civilian Employees. The Gazetted N Subs are in Pay Level- 6 where as Non- Gazetted Assistants are in Pay Level- 7, this needs to be rectified soon, because above anomaly is not only unjustified but legally untenable also. It is in gross violation of Govt. Instructions and judgments by Court of Law on this subject issue. It is requested that as there is no JCM like Mechanism existing for Defence a high powered committee should be set to resolve this grave anomaly because it is as well as effecting Ex-Servicemen pensions also.

  7^th CENTRAL PAY COMMISSION

11.    Incorrect calculations of Entry Level Pay of JCO’s and equivalence in Navy and Air Force.

a)    The existing system of Pay Band and Grade Pay of 6^th CPC has been replaced with separate Pay Matrices for Defence, Military Nursing Service and Civilians personnel in 7^th CPC from 01.01.2016 onwards.

b)    Fixation of Pay of each employee in the new Pay Matrix as on 01.01.2016 has been revised by multiplying his/ her basic pay (Pay in the Pay Band + Grade Pay) by a factor of 2.57.

c)       In each Pay Level (Rank Level) a MF of 2.57 for Havildar and below, 2.62 for JCO,s and 2.67 for Hony Lt to Brigadier was applied on Basic Pay + Grade Pay of 6^th CPC to determine Entry Level Pay.

d)    Entry Pay to any pay band could either be through an upward movement from lower pay band or through direct entry. While pay of a person moving from a lower pay band to a higher one on promotion would be regulated by the pay fixation formulation prescribed (pay was fixed at the minimum of the pay band plus grade pay).

e)     Refer Para 5.1.19 for rationalization applied in Present Pay structure is at Table No. 4 (Copy enclosed) of 7^th CPC report.

                                                             -5-

f)      Prior to 7^th CPC there used to be separate scale for “X” and “ Y” group of same ranks of JCO’s and even separate scales for the same equivalence rank Navy and Air Force also.

g)    7^th CPC brought in new formula of Common Pay Scales for each Pay Level (Rank Level) for all the “X” and “Y” Groups.

h)    For Entry Level Pay there is a loss to JCO’s in calculation with MF of 2.62 on minimum pay level awarded (copy attached)

i)       Real time loss in calculation of Entry Level Pay for JCO’s is as under:-

               RANK                                       Group                     ELP            LOSS

i)          N Sub/ CPO/ JWO                   X / Y             41100 – 35400 = 5700/-

ii)       Sub/ MCPO-2/ WO                 X / Y             46200 -  44900 = 1300/-

iii)     Sub Maj/ MCPO-1/ MWO      X / Y             50500 -  47600 = 2900/-                 

12.  Revision of Pension as per First formulation (Option-1):- Refer Para-4 of GoI, MoD, Dept. of Ex-Servicemen Welfare letter No.17(01)/2017(02)/D(Pension/Policy) dated 5^th Sept,2017 regarding revision of pension of pre-2016 as per Formulation-1 (Option-1) and Para-3 of PCDA(Pension) Circular No. 585 also for Formulation-1. But as per Para- 4.1 of PCDA(Pension) Circular No. 570 pensions of all pre 2016 was revised by multiplying the Basic Pension (before Commutation) / Basic Family Pension (exclusive of Dearness Relief) as had been drawn as on 31-12-2015 by 2.57 to arrive as revised pension as per Formulation-2 (Option-2). So benefit of OROP was given in Option-2, but as per the Annexture-1 of PCDA (Pension) Circular No. 585 for Commissioned Officer/JCO’s/OR’s it seems that OROP benefit will not be given to pre- 30-06-2014 retirees. In view of above it is suggested that instead of notionally computing the pension as per 6^th CPC scales it should be revised taking the OROP scales / 6^th CPC scales as drawn on 31-12-2015 like it was done as per PCDA (Pension) Circular No. 570 for Formulation-2 (Option-2).

     In view of above it is requested that above anomalies may please be rectified/solved for the welfare of Ex-Servicemen Pensioners/Family Pensioners at the earliest.

    Thanking you in anticipation.

                                                                                                Yours sincerely,

                                                                                               Nar Singh Dass,

                                                                                               Ex- MCPO-1 (Hony S/Lt),

                                                                                          No. 091237-H  

                                                    -6-                                                                                                                                                                

Encl:- 1) Table 4 : Rationalization Applied in the 6^th CPC Pay Structure.

          2) Details of incorrect calculation of Entry Level Pay for JCO’s

Copy to:-

    The Secretary,

    Department of Ex-Servicemen Welfare,

    5-A, South Blok, Ministry of Defence,

    New Delhi-110011.

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Eligibility of widowed/divorced daughter for grant of Family Pension clarification

No.1(9)/2013-D(Pen/Policy)
Government of India
Ministry of Defence
Department of Ex-Servicemen Welfare
New Delhi -110011

Dated 17th November, 2017

To
The Chief of the Army Staff
The Chief of the Naval Staff
The Chief or the Air Staff

Subject: Eligibility of widowed/divorced daughter for grant of Family Pension clarification.

The undersigned is directed to state that the provision for grant of family pension to a widowed/divorced daughter beyond the age of 25 years has been made vide GoI, Ministry of personnel, P.C. & Pensions, Department of Pension & Pensioners Welfare 0M No.1/19/03-(E) dated 2S.08.2004 Circulated vide GoI MOD letter No.878/A/D(Pen/Sers)/04 dated 21.09.2004 applying the same provision to the Armed Force Personnel.

2. It was clarified vide Government of India, Ministry of Personnel, P.G- & Pensions, Department of Pension & Pensioners Welfare OM No.1/13/09-P&PW (E) dated 11.09.2013 circulated vide MOD ID No.1(9)/2013/D(Pen/Pol) dated 16.09.2015, the family pension is payable to the children as they are considered to be dependent on the Government servant/pensioner or his/her spouse. A child who is not earning equal to or more than the sum of minimum family pension and dearness relief thereon is considered to be dependent on his/her parents. Therefore, only those children who are dependent and meet other conditions of eligibility for family pension at the time of death of the Government servant or his/her spouse, whichever is later, are eligible for family pension. If two or more children are eligible for family pension at that time, family pension will be payable to each child on his/her turn provided he/she is still eligible for family pension when the turn come. Accordingly, divorced daughters who fulfil other conditions are eligible for family pension if a decree of divorce had been issued by the competent court during the life time of at least one of the parents.

3. Grievances were being received from various quarters that the divorce proceedings are a long drawn procedure which take many years before attaining finality. There are many cases in which the divorce proceedings of a daughter of Government employee/pensioner had been instituted in the competent court during the life of one or both Government employee/pensioner & spouse, but none of them was alive by the time the decree of divorce was granted by the competent authority.

4. The matter has been examined in this department and it has been decided that the clarification “grant family pension to a divorced daughter in such cases where the divorce proceedings had been filed tn a competent court during the life time of the employee/pensioner or his/her spouse but divorce took place after their death-provided the claimant fulfils all other conditions for grant of family pension. In such cases, the family pension will commence from the date of divorce” given by Government of India. Ministry of Personnel, P.G. & Pensions’, Department of Pension & Pensioners Welfare vide 0M No.1/13/09- P&PW (E) dated 19.07.2017 would also apply mutatis mutandis to divorced daughters of Armed Force personnel.

5. This issues with the concurrence ofthe Finance Division of this Ministry vide their ID No.10(09)/2015/Fin/Pen dated 17.10.2017.

6. Hindi version will follow.

sd/-
(Manoj Sinha)
Under Secretary to the Govt. of India