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21/01/2010

Central Govt taken back net Rs1,400 crore + Education cess as tax (TDS) from pay arrears to staff

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 installment of arrears due to central government employees, who were awarded increased salaries by the Sixth Pay Commission.
The first installment 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 installment 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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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.