7th Pay Commission Enhanced Salaries, Arrears To Be Paid In July

7th Pay Commission Enhanced Salaries, Arrears To Be Paid In July

The central government is going to start payment of salaries and pensions to its 48 lakh employees and 52 lakh pensioners according to the 7th Pay Commission recommendations from July along with six months’ arrears.

The payments will be made following the pay-fixation method in the new pay matrix which has been suggested in place of pay band and grade pay by the Seventh Pay Commission.

The government’s overall arrears payout will be lower because of only six months arrears this time, compared to the previous pay commission, which came in late.

The government has been provisioned Rs 70,000 crore in the Union Budget 2016-17 to meet the demand for the new pay commission award that will be made effective from January 2016.

Basic salary of central government employee will almost be 30 percent hiked under the new pay commission award with employees in the lower rung are likely to get the highest percentage of raise.

“We’re at the final stage for issuing the notification and 3-4 more months will be required to implement, so we hopefully say that they will get new pay and arrears in the July,” a source close to the developments told The Sen Times.

The report of the Seventh Pay Commission was presented to Finance Minister Arun Jaitley in November with a recommendation for raising minimum pay to Rs 18,000 per month from current Rs 7,000 while the maximum pay, drawn by the Cabinet Secretary, has been fixed at Rs 2.5 lakh per month from current Rs 90,000.

The panel recommended a 14.27 per cent increase in basic pay. The overall increase in salary, allowances and pensions is 23.55%. The increase in allowances will be higher by 63% while pensions will rise 24%.

The government set up a 13-member Empowered Committee of Secretaries (CoS) headed by Cabinet Secretary P K Sinha for processing the report of the Seventh Pay Commission before cabinet nod.

An Implementation Cell has been created in the Finance Ministry which works as the Secretariat of the Empowered Committee. All central government employees unions’ submitted their written demands in respect of seventh pay commission’s anomalies in the cell to review, which are under process.

Source-https://www.tkbsen.in/2016/03/7th-pay-commission-enhanced-salaries-arrears-to-be-paid-in-july/

Interest Income

Inclusion of Interest Income in the Return of Income filed by Persons liable to Pay Tax

Information regarding interest earned by individuals and business entities on term deposit is filed with the Income Tax Department by banks including co-operative banks and other financial institutions and State treasuries etc. Form 26AS reflects only those payments on which tax has been deducted and it can be viewed by the individual tax payer by logging in to www.incometaxindiaefiling.gov.in. The information about interest payments without deduction of tax is also filed by the payer with the Department.

Central Board of Direct Taxes(CBDT) hereby informs the persons earning interest income that interest credited/received on deposits is taxable unless exempt under Section 10 of the Income-tax Act. Such interest income should be shown in the return of income even in cases where Form 15G/15H has been filed if the earning is not exempt under Section 10 of the Income-tax Act and the total income of the person exceeds the maximum amount not chargeable to tax.

Tax payers are advised to collect correct details of interest received or credited and
· file their return of income for assessment year 2014-15 (if not filed already) on or before 31.03.2016 in case their total income exceeds the maximum amount not chargeable to tax.
· revise their return of income for assessment year 2014-15/2015-16 if the return already filed does not include taxable interest income.
· file return of income for assessment year 2015-16, if not filed so far by including taxable interest income if any, on or before 31.03.2016 and avoid penalty u/s 271F.

For more details, you may contact your Assessing Officer or Toll free number 1800-180-1961.

Source: PIB News