Payment of second installment of 60% arrears to the Gramin Dak Sevaks (GDS - Postal Department)

No. 6-1/2009-PE.II
Government of India
Ministry of Communications & IT
Department of Posts
(Establishment Division)

Dak Bhawan, Sansad Marg
New Delhi-110001
Dated: 10 June 2010

To,
      All Chief Postmasters Gereral,
      All Postmasters General,
      All General Managers (Finance)
      Director of Accounts (Postal)

Subject:       Payment of second installment of 60% arrears on account of implementation of Shri R.S. Nataraja Murti Committee recommendations on revision of wage-structure of Gramin Dak Sevaks (GDS).

Sir/Madam

      I am directed to refer to this office memorandum no. of even number dated 9-10-2009, wherein approval was communicated for implementation of recommendations of One-man committee on revision of Time Related Continuity Allowance and other allowances. In para 11 of the said Office memorandum it was stated that, 2nd instalment of 60% of arrears will be paid only after issue of specific instructions in this regard by the Directorate.

2.      It has now been decided to pay second instalment of 60% arrears of revision of Time Related Continuity Allowance to the eligible Gramin Dak Sevaks.

3.      The Circle Postal Account Offices were required to carry out cent percent verification of TRCA consequent on revision of TRCA. The entire process of verification was to be completed by 31st March, 2010. A report on the cent percent verification of TRCA should be sent to the Directorate immediately for record.

4.      The excess payment pointed out by the circle verification squad of DAP office should be adjusted while effecting payment of the second instalment of arrears.

5.      Before releasing the 2nd instalment of 60% of arrears it may be ensured that requisite funds are available under the relevant Head of Account.

5       An undertaking in the prescribed format should be obtained from each Gramin Dak Sevak to the effect that, he will refund any excess payments that may be found to have been made or detected subsequently and kept on record before the disbursement of second instalment. The process of payment of second instalment may be completed by 15-7-2010.

6       This issues with the concurrence of Integrated Finance Wing vide their Dy. No.119/FA/10/CS dated 09 Jun 2010

Yours Faithfully,
(A.K. Sharma)

Courtesy: NFPE

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Central govt to net Rs1,400 crore as tax from pay arrears to staff

The government will mop up Rs 1,400 crore (Rs 14 billion) this fiscal by taxing the second instalment of arrears due to central government employees, who were awarded increased salaries by the Sixth Pay Commission.

The first instalment of arrears (representing 40 per cent of the increased pay) was disbursed during financial year 2008-09.

The employees will also have to pay two per cent education cess on the total amount of the arrears.

"The total arrears for this fiscal is Rs 18,000 crore (Rs 180 billion). The arrears that would fall in the tax net would be about Rs 9,000 crore (Rs 90 billion). Barring the grade-IV employees, and according to calculations, around 15 per cent of this amount-- about Rs 1,400 crore (plus education cess) would go into government's coffers during this fiscal as tax," a senior finance ministry official said.

"The Central and State government and various organisations under them are advised to compute the correct tax liability of every employee on second instalment of arrears drawn by him and immediately recover the full tax liability along with education cess thereon at the rates in force," a recent CBDT circular asked all government employers.

Distribution of the remaining 60 per cent of arrears has already begun. The I-T department has received the TDS on arrears from various government departments, while the rest would be received soon, the official said.

"The deduction of tax at source on such arrears payment should not be deferred in any circumstance. They (employers) should further ensure that the tax so recovered is paid to the account of Central government account immediately as per the Income Tax Rules, 1962," the CBDT circular said.

The total arrears, accumulated after the Sixth Pay Commission recommendations, were Rs 12,000 crore (Rs 120 billion) during 2008-09 fiscal, the official said.

The government has also said that employers "should ensure that the PAN details of the deductees (recipient of arrears) are correctly quoted in the relevant quarterly e-TDS returns filed by them so that government servants get proper credit of their tax deducted in their respective income tax returns."

Those who (employers) fail to comply with the provisions of Section 192 of the Income-tax Act, 1961 would be liable to pay interest under section 201 of Income Tax Act along with other penal consequences.

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New employees behind the lapse of grant of 60% arrears.....

Employees who mustered into Central Government establishments after 1.1.2004 has ten percent of their salary (Basic Pay + Dearness Allowance + Dearness Pay) deducted as result of their induction into the New Pension Scheme.

Bearing no knowledge of this New Pension Scheme and having five years rolled by, beginning of this year the government has brought into issue an application form. Requesting PRAN (Permanent Retirement Account Number) number in this application, it has questioned to what scheme (Scheme ‘A’, ‘B’, and ‘C’) and percentage should their savings be invested.

With no whereabouts of any knowledge of this question in their mind they have given filled up application on their part. Some instead of returning the application filled up, they have kept it themselves. Moreover the Government by itself has not taken any steps regarding this.

By the instance, the Government has given equal amount to the deducted amount as by the New Pension Scheme. The doubled amount along with the interest has been given as statements to them. Last year 40% arrears have also been disbursed.

Everyone has been taken aback by shock by the Government decision in the scenario of expectation of the remaining of 60% arrears.

Having not singed the New Pension Scheme registration form the Government has announced that their (Employees appointed on or after 1.1.2004) 60% arrears would not be granted.

FILLED WITH DREAMS AND FASCINATIONS THIS ORDER HAS STRUCK DOWN UPON AS THUNDER THEM..!

WHO HOLD THE RESPONSIBILITY FOR THIS…!

Have a look page No.3 of PRAN application

Source: CG Staff News

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Deduction of tax at source from payments of second installment of arrears - Reg.

F.No.275/192/2008-IT(B)

Government of India

Ministry of Finance

Department of Revenue

*****

NewDelhi,Dated 31th August,2009.

Subject:- Clarification regarding deduction of tax at source from payments of second installment of arrears to Government employees on account of implementation of Sixth Central Pay Commission’s recommendations matter regarding.

Under the provisions of Section 192 of the Income-tax Act, an employer is required to deduct tax at source from any payments in the nature of salary, which inter alia also includes any arrear payments. The Implementation Cell of the Department of Expenditure, Govt of India, vide its Office Order dated 30th Aug’08 had stated that 40% of the aggregate arrear (first installment of arrears) would be payable during FY 2008-09. In Circular No. 09/2008 dated 29th Sept.2008 issued from this office it was stated that during 2008-09 the tax has to be deducted at source on this 40% of aggregate arrear during FY 2008-09The OM,F.No-1//1/2008-IC, of the Implementation Cell of the Department of Expenditure, Govt of India, vide its order dated 25th August,2009 has stated that the remaining 60% of the aggregate arrear (second installment of arrears) would be paid to the concerned Government servants during FY 2009-10. Such arrangements could be followed by State Governments also.

In this regard, all the DDOs and PAOs as the case may be, in the Central/State Government and various organizations under them are advised to compute the correct tax liability of every employee on second installment of arrears drawn by him and immediately recover the full tax liability along with education cess thereon at the rates in force. The deduction of tax at source on such arrear payment should not be deferred in any circumstance. They should further ensure that the tax so recovered is paid to the account of Central Government account immediately as per the Income Tax Rules, 1962. The DDOs/PAOs are further advised that they should ensure that the PAN details of the deductees (recipient of arrears) are correctly quoted in the relevant quarterly e-TDS returns filed by them so that the Government Servants get propercredit of their tax deducted in their respective income tax returns.

DDOs/PAOs who fail to comply with the provisions of Section 192 of the Income-tax Act, 1961 would be liable to pay interest under section 201(1)/(1A) of Income Tax Act along with other penal consequences.

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Payment of second instalment of 60% arrears to Quasi-Government Organisations, Autonomous Organisations

No.7/23/2008-E.III(A)

Government of India

Ministry of Finance

Department of Expenditure

NewDelhi,Dated 27th August,2009.

OFFICE MEMORANDUM

Subject:- Payment of second instalment of arrears on account of pay revision of employee of Quasi-Government Organisations, Autonomous Organisations, and Statutory Bodies, etc. set up by and funded/controlled by the Central Government.

The undersigned is directed to refer to this Department's orders issued under Office Memorandum of even number dated 30th September 2008 and 7th October 2008 extending the revised pay structure for the Central Government employees on the basis of the recommendation of the 6th Central Pay Commission to the employees of Autonomous Organization, etc whose pattern of emolument structure i.e.pay sacles and allowances(in particular the Dearness Allowance, the House Rent Allowance and City Compensatory Allowance) were identical to those of the Central Government employees.

2. AS per this Department's resolution No.1/1/2008-IC dated 29th August 2008, the Government had decided that the arrears on account of implementation of 6th CPC recommendation will be paid in cash in two instalments - first instalment of 40% during the year 2008-09 and the remaining 60% in the financial year 2009-10. Orders have since been issued by the Government for payment of remaining 60% of arrears to the concerned Central Government servants. Accordingly, the dicision of the Government for payment of remaining 60% of arrears is hereby extended to the employees of the Autonomous Organisations etc. Howerer, the payment of remaining 60% of arrears will be subject to the conditions stipulated budgetary support for additional expenditure vide para 4 and 4.1 of this Department's Office Memorandum of even number dated 30th September, 2008 at the time of extending the revised pay structure for the Central Government Employees to the employees of Autonomous Oraganisations etc.

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Announcement of 60% Arrears from Finance Ministry has been released just now...!

F.No. l/l/2008-IC

Government of India

Ministry of Finance

Department of Expenditure

Implementation Cell

NewDelhi,Dated 25th August,2009.

OFFICE MEMORANDUM

Subject: Payment of second instalment of arrears on account of implementation of Sixth Central Pay Commission's recommendations.

As communicated vide this Department's Resolution No.l/l/2008-IC dated 29th August, 2008, the Government had decided that the arrears on account of implementation of Sixth Central Pay Commission's recommendations will be paid in cash in two instalments - first instalment of 40% during the year 2008-09 and the remaining 60% in the financial year 2009-10. The first instalment has already been paid in 2008-09. It has now been decided that the remaining 60% of arrears may now be paid to the concerned Government servants.

2. Further, as already stipulated vide this Department's O.M. No 1 (2)/ EV/2008 dated 17th August, 2009, in the case of post - 0l.01.2004 entrants into the Central Government, the second instalment of arrears may be released only after individual application forms for registration to the New Pension Scheme have been obtained by the DDO/PAO from the concerned Government servant.

3. As in the case of the first instalment of arrears, Government servants will be permitted to deposit their arrears in their GPF Accounts. Though not mandated, Government servants are encouraged to deposit their arrears in their GPF accounts.

Click to view the O.M.

Click to view the O.M. for Railways

Click to view the O.M. for Pensioners

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Prime Minister didn’t announce 60% Arrears in his Independence Day Speech ..?

All knew that arrears could be given as two installments when 6th CPC was announced. Having announced that 40% Arrears would be given in the financial year 2008-09 and 60% arrears would be given in the Financial Year 2009-10, the government gave the 40% arrears to all CG employees on Oct-2008.

Though 60% arrears should have been given before March 31st, it was speculated by all that the Prime Minister would indirectly deliver the expected message on Independence Day like he did the previous year.

But Prime Minster did not give any indicator of it in his message on Independence Day Speech. It was perhaps, because of the Finance Ministry’s (Department of Expenditure) O.M. released on 17 August 2009.

For having not registered to the New Pension Scheme being appointed on or after 2004 the Finance Ministry has given Permanent Retirement Account Number (PRAN) application form along with the order.

After the above said criteria gets over i.e., the return of application forms duly filled to the National Securities Depositories Limited (NSDL) by the respective Departments/Ministries before 31.08.2009. It is known that the order for released their 60% arrears would be passed. The saying was because of this crucial matter Prime Minister didn’t announce anything regarding this.

Even then the reliable information was that the remaining employees would receive their arrears by the first week of September 2009.

Whether there would be Income Tax deduction for the 60% arrears is not clearly known.

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Pre-condition for release of 2nd installment of arrears of 6th CPC

No.1(2)EV/2008

Government of India

Ministry of Finance

Department of Expenditure

**********

NewDelhi,the dated 17th August,2009.

OFFICE MEMORANDUM

Subject: Implementation of New Pension Scheme – Pre-condition for release of 2nd installment of arrears of 6th CPC recommendations.

Reference is invited to this Department’s earlier Office Memorandums regarding implementation of NPS has been reviewed and the following action needs to be taken up immediately.

i. It has been intimated by NSDL that in a large number of cases pertaining to post 01-01-2004 entrants into Government service, the individual application forms for registration to the NPS have not been filled up and sent to them. It is therefore, advised that all employees under the administrative control of your Ministry/Department who are covered under NPS may be asked to fill up the enclosed form which may then be forwarded by DDO/PAO to NSDL immediately (latest by 31st August, 2009) if this has not already been done. Action in this regard will need to be completed before release of second installment of arrears for which separate orders will be issued. It may be noted that release of the 2nd installment, for post 1/1/2004 entrants, will be subject to the above action being completed.

ii. Further, the review has brought out that there are cases where the CDDOs/PAOs have not uploaded contribution files or (b) regular monthly credits have not been posted in the IRA or (c) there is mismatch of contribution. NSDL has been asked to forward PAO/DDO wise subscriber details which will become available to CDDOs/PAOs by the end of August, 2009. Suitable instructions may be issued to all the PAOs/CDDOs to verify the details/confirm contribution/Fund Transfer circulated by NSDL. Action as prescribed by NSDL/PFRDA while circulating these details (underlying action for missing credits) may be completed positively by 30th September, 2009.

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Announcement of 60% arrears of 6th Pay Commission expected shortly

Second Instalment of Sixth Pay Commission Arrears...

Announcement of 60% arrears of 6th Pay Commission expected shortly...

The announcement regarding the second instalment (60% arrears) of sixth Pay Commission for Central Government employees is expected on the Independence Day (15th August 2009) Speech by our Honorable Prime Minister Mr. Manmohan Singh.

As per our source of information. (The news is yet to be confirmed)

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Date of next increment in the revised pay structure

Date of next increment in the revised pay structure

There will be a uniform date of annual increment, viz. 1st July of every year. Employees completing 6 months and above in the revised pay structure as on 1st of July will be eligible to be granted the increment. The first increment after fixation of pay on 1.1.2006 in the revised pay structure will be granted on 1.7.2006 for those employees for whom the date of next increment was between 1st July, 2006 to 1stst January, 2007.

Provided that in the case of persons who had been drawing maximum of the existing scale for more than a year as on the 1st day of January, 2006, the next increment in the revised pay structure shall be allowed on the 1st day of January, 2006. Thereafter, the provision of Rule 10 would apply.

Provided that in cases where an employee reaches the maximum of his pay band, shall be placed in the next higher pay band after one year of reaching such a maximum. At the time of placement in the higher pay band, benefit of one increment will be provided. Thereafter, he will continue to move in the higher pay band till his pay in the pay band reaches the maximum of PB-4, after which no further increments will be granted.

Note 1 - In cases where two existing scales, one being a promotional scale for the other, are merged, and the junior Government servant, now drawing his pay at equal or lower stage in the lower scale of pay, happens to draw more pay in the pay band in the revised pay structure than the pay of the senior Government servant in the existing higher scale, the pay in the pay band of the senior government servant shall be stepped up to that of his junior from the same date

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