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15/08/2009

Following deduction will be available from salary for ITax Rebate 1) Mileage 2)Compensation under voluntary retirement scheme; 3)Amount of gratuity received on retirement or death; 4)Amount received on commutation of pension

SALARY,ALLOWANCES,PERKS DIRECT TAX CODE

Dear Friends,

When I first read the Direct Tax code , Like other people I first read the New Tax Rate and published the same for you and all other website in www discuss benefits from direct tax code but now we will discuss here what have taken back from us. Remember as per Govt Statement tax revenue will Increase after implementation of new Direct Tax Code. In This post we will cover the salaried Class.

Under the Code, the salary will now include, inter-alia, the following:-

  1. the value of rent free, or concessional, accommodation provided by the employer irrespective of whether the employer is a Government or any other person; (earlier nominal value for Govt Employees)(read earlier rules here:valuation of rent free accommodation)
  2. the value of any leave travel concession;(earlier exempted up to 2 journey in four year block)(read earlier rules here: LTC Exemption
  3. the amount received on encashment of unavailed earned leave on retirement or otherwise;(earlier exempted for 30 days for each year of service or maxi 3.00 Lakhs) (read earlier rules here:leave encashment )
  4. medical reimbursement; and 
  5. the value of free or concessional medical treatment paid for, or provided by,the employer.(read earlier rules here:valuation of medical facility)
  6. The value of rent-free accommodation will be determined for all employees in the same manner as is presently determined in the case of employees in the private sector. The new regime of comprehensive taxation of perquisites across employees in all sectors of the economy will improve both the horizontal and vertical equity of the tax system.

Download Direct Tax code 2009 Download Direct tax code discussion paper Read Direct tax code Online

DOWNLAOD NEW TAX RATES OF INDIVIDUAL

Further the following deduction will be available from salary income

  1. amount of professional tax paid;
  2. transport allowance to the extent prescribed;
  3. prescribed special allowance or benefit to meet expenses wholly and exclusively incurred in the performance of duties, to the extent actually incurred;
  4. compensation under voluntary retirement scheme;
  5. amount of gratuity received on retirement or death;
  6. amount received on commutation of pension; and
  7. pension received by gallantry awardees.

Further Item at Sr No 4,5,6 would  be available to the extent the amounts are paid to, or deposited in a Retirement Benefits Account. The amounts received from an approved superannuation fund, hitherto exempt from income tax, will henceforth also be treated in the same manner.

So there will be no exemption for House rent Allowance (HRA) (read HRA present rule) Further exemption for following allowances has also not been provided in new Direct tax code as compare to present tax provisions.

  1. entertainment allowance
  2. children education allowance
  3. children Hostel allowance
  4. HRA (house rent allowance)

The list is not exhaustive but we can say that other than deduction prescribed above no deduction from salary income is allowed. Further EET regime has been now fully introduced for all type of savings scheme which we discuss in separate post.

E: exempt at the time of Investment

E:Interest ,bonuses ,increments during the period of investment will not be taxed at all

T:full amount received at the time of Maturity is taxable in the hands of assesses.

1 comment:

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    ReplyDelete

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PME Due Date

Master Circular No. 25



Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974



Subject: Implementation of the Recommendations of the Visual Sub-Committee.



6. Periodical re-examination of serving Railway Employees:



6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:



6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.



Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.



(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.



(b) Absence from duty for a period in excess of 90 days.



(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.



If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.




Ammendment: It was ammended in 1993 as below



Age Group PME Due



Age 00-45 every 4yrs



Age 45-55 every 2yrs



Age 55-60 every year
Details:-
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993

a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of

NRMU 4 you
SMLokhande





6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.