Monday, February 20, 2017
1. Issue of final combined seniority list of Inspector Posts cadre for the year 2001 and 2002 and remaining years.
Directorate vide memo No. 7-1/2015-SPB-II dated 17/5/2016 has circulated draft All India combined seniority list of Inspector Posts for the year 2001 and 2002 and requested to intimate discrepancies noticed therein. Thereafter Directorate vide Memo No. 7-1/2015-SPB-II dated 09th June 2016 has again circulated revised seniority list to all HOCs with a direction to circulate among all the candidates for inviting comments/grievances. In response to above letters huge number of representations are said to have been received at Directorate and most of them are examined at SPB Division in the light of DoPT OM No. 28011/6/76-Estt (D) dated 24.6.1978 and 20011/8/2012-Estt (D) dated 04-03-2014. Now, file is under preparation for seeking clarification from DoPT. After receipt of clarification from DoPT, final seniority list will be circulated and thereafter on the same line, remaining years seniority lists will be prepared.
2. Holding of supplementary DPC for promotion to the cadre of PS Gr. B for the year 2016-17.
Directorate vide Memo No. 9-14/2016-SPG dated 09-12-2016 has appointed 105 Inspector Line Officers on regular basis in PS Gr. B cadre, but few circles have yet not implemented orders. Further few circles have not submitted the report on joining as well declination by the promote officers to SPG section of Directorate. Till date only 5 declinations are said to be received from officers. Directorate is going to remind all HoCs soon to submit clear report on joining / declination of officers and thereafter supplementary DPC will be convened.
3. Issue of revised Recruitment Rules for the post of Assistant Manager in MMS and filling up of vacant post of Dy. Manager MMS.
RRs are said to finalised. Two posts of Dy. Manager MMS are vacant and it will be filed up soon.
4. Inter Circle Rule 38 transfer cases of Inspector Posts cadre.
Most of the cases settled. Due to non availability of vacancies in few circles, the requests of the candidates are pending and these will be considered when vacancy occurs. The individual candidate/s may take up issue through proper channel to Directorate. Their cases will be considered on availability of vacancies in the circle.
5. Holding of periodical meeting with Hon’ble Secretary (Posts).
Agenda already submitted by Association. Reports from DDG (P) and Sr. DDG (Vig) awaited. Asked to write reminder.
6. Clerical Assistance to Sub Divisional Head.
SPG Division has called for report from Establishment Division. The matter is under examination at Establishment Division.
7. Declaration of result of Inspector Posts examination for the vacancy year 2015-16.
LDCE for promotion to the cadre of Inspector Posts (66.66%) departmental quota for the year 2015-16 was held on 22 and 23-10-2016 for 189 vacancies (OC-155, SC-26 and ST-8). The provisional key of the question papers was already published by the Department on India Post website and representation thereon if any was called for from candidates till 6-1-2017. Huge quantity of representations are said to be received from candidates. Department have already formed committee to examine all the representations received from candidates. The report from committee is yet to receive at Directorate. FINAL KEY will be expected thereafter. To clear all these exercise, minimum one month’s time is required.
8. Declaration of result of PS Gr. ‘B’ examination for the vacancy year 2012-13 to 2015-16.
Many representations are received thereon and all these are under examination. To examine the representations received from candidates, department is going to form a committee who will examine the representations and give final report to Department. Thereafter FINAL KEY will be published on department’s website. It is told that there are many CAT cases registered at various benches and they stayed declaration of results till outcome. In one case stay is said to be granted till April 2017.
9. DPC for holding of JTS Gr. A promotion for the year 2016-17 and repatriation thereof.
UPSC has raised query and same is being replied soon by the department. Earlier it was told that there were 11 vacancies but now there is chance to increase. The officers who have completed two years of service will only get repatriation to his/her parent circle. Spouse category cases are also said to be considered this time.
Many other pending cases related to cadre are discussed with the concerned officers. The case of cadre restructuring is also discussed at length and the officers have shown positive to our proposed proposal. The proposal is being submitted soon.
Sunday, February 19, 2017
Sending kids to school has an inbuilt tax advantage for the parents as the tuition fee qualifies for tax benefit under Section 80C of the Income Tax Act, 1961. The amount of tax benefit is within the overall limit of the section of Rs 1.5 lakh a year.
For tax purposes, the fee (amount) reduces the total gross income, and thereby the tax liability. Say, you fall in the highest income slab and pay not only a 30.9 per cent tax rate, but also Rs 80,000 a year as schools fees, the tax saved would amount to Rs 24,720 in that year
Here's how to get the maximum benefit out of tuition fees.
Are all institutions eligible?
Tuition fees paid at the time of admission or anytime during the financial year to any university, college, school or educational institution based in India qualifies for tax benefit.
What kind of education?
It has to be a full-time education, including any play school activities, pre-nursery and nursery classes. The institution can be either private or a government sponsored one.
What is not covered?
At times, parents have to make payments, other than tuition fees, to the educational institutions. Payments like development fees or donation or capitation fees, etc., are not covered and do not qualify for tax benefit. Also, if you haven't paid the fees on time, the applicable late fee paid will not be eligible.
Tax benefit for how many children?
The benefit applies for the fees paid for up to two children. So if a couple has four children, both can claim tax benefit as both have a separate limit of two children each.
Which parent gets the tax benefit?
The parent who makes the payment gets the tax advantage. If both parents are working and pay taxes, both can claim individually up to the amount of fees paid.
If both are working and want to take the benefit under Section 80C for the amount paid by them respectively, they can do so. So if the fee paid is Rs 2 lakh, of which the father has paid Rs 50,000, while the mother has paid Rs 1.5 lakh, both can claim the amount individually as per the payment made by them.
As the upper limit for Section 80C tax benefit is Rs 1.5 lakh a year, see how much of that gets exhausted through tuition fees and then decide on further tax savers. While the tax benefit on tuition fees is incidental and helps you to save tax during the early days of your child's education, do not forget to create a long-term investment plan for his higher education.
Estimate the amount needed for higher studies and create a savings plan towards that goal, preferably through SIPs in 3-5 equity diversified mutual funds scheme. To ensure that the goal is met, do buy adequate life cover, preferably through a pure term insurance plan.
Source : The Economic Times
What is the difference between Tier 1 and Tier 2 Account in NPS? Many Government employees or others subscribed to NPS. However, the majority of them do not know what is the meaning and difference of Tier 1 and Tier 2 Accounts of NPS.
Let us first brief about NPS.
NPS or New Pension Scheme is a retirement product launched by Government of India. It is managed by PFRDA (Pension Fund Regulatory and Development Authority). This product helps you to create retirement corpus.
Any citizen of India (whether resident or NRI) can invest in this scheme. The age of the subscriber must be within 18-60 years of age. However, an individual of unsound mind or existing members of NPS are not allowed to open new account.
Therefore, an individual can open only ONE NPS account.
How to open NPS Account?
You have to fill the application form and provide the relevant KYC documents at your nearest POP-PS (You will find the list in PFRDA portal).
However, if you want to open new Tier 2 account, then the process is different. You have to approach POP-PS with copy of PRAN (Permanent Retirement Account Number) and Tier 2 activation form.
The subscriber has to make the first contribution while opening the account. Minimum contribution for Tier 1 is Rs.500 and Rs.1, 000 for Tier 2.
Note-Now you can open NPS account online and also contribution can be made it online through eNPS portal. Refer my latest post on the same “eNPS – How open and invest in NPS account online?“.
What are the investment choices?
Asset Class E-Invests predominantly in the equity market. You may say high return and high risk.
Asset Class C-Invests in fixed income instruments other than Government Securities. Risk is medium in this category.
Asset Class G-Invests in Government Securities. So lower risk and lower return.
Along with that, you have two different options to choose regarding allocation.
Active Choice-You have the option to choose your investment among E, C or G asset classes. However, if you opted for E asset class, then the maximum equity exposure is 50% only.
Auto Choice-If you don’t want to take active part in switching asset class, then PFRDA will do it according to your age. It is predefined.
You can change both scheme preference and investment choices at any point of time. But it is allowed only once in a year.
Please remember that there is no ASSURED RETURN from NPS.
Your retirement fund will be managed by fund managers appointed by PFRDA. Currently there are six fund managers. They are as below.
ICICI Prudential Pension Funds Management Company Limited, Kotak Mahindra Pension Fund Limited, Reliance Capital Pension Fund Limited, SBI Pension Funds Limited, UTI Retirement Solutions Limited, and Annuity Service Provider (ASP).
You can change your fund manager at any point of time. This change is allowed only one time in a year.
Along with that, PFRDA tied with IRDA approved Life Insurance companies to pay the pension once the subscriber reaches 60 years of age. They are as below.
Life Insurance Corporation of India, SBI Life Insurance Co. Ltd., ICICI Prudential Life Insurance Co. Ltd., Bajaj Allianz Life Insurance Co. Ltd., Star Union Dai-ichi Life Insurance Co. Ltd., Reliance Life Insurance Co. Ltd. and HDFC Standard Life Insurance Co. Ltd.
Following conditions apply:
Subscriber is not covered under employer assisted retirement benefit scheme and also not covered byÂ social security schemes under any of the following laws:
Employee Provident Fund and Miscellaneous Provision Act, 1952
The Coal Mines Provident Fund and Miscellaneous Provision Act, 1948
The Seamenâ€™s Provident Fund Act, 1966
The Assam Tea Plantation Provident Fund and Pension Fund Scheme Act, 1955
The Jammu & Kashmir Employee Provident Fund Act, 1961
Subscriber contribution in NPS is minimum Rs. 1000 and maximum Rs.12000 per annum, for both Tier1Â and Tier II taken together, provided subscriber makes minimum contribution of Rs.1000 per annum toÂ his Tier 1 account
Based on the limitations mentioned above, I think most people reading this blog will be ineligible.
How to exit from NPS?
Once you attain the age of 60 years, you can withdraw up to 60% of accumulation as lump sum and rest 40% will be converted into pension.
If you want to exit from NPS before 60 years of age, then you are allowed to withdraw only 20% accumulated amount. You have to buy a pension product with that 80% fund.
However, in case the death of the subscriber, a nominee is allowed to withdraw 100% of NPS.
I wrote a post on recent changes about new withdrawal of exit rules of NPS. Refer below post.
National Pension System (NPS)-New Partial Withdrawal and Exit Rules
This is the brief about NPS.
Let us come back to the main purpose of this post. I tried to put it the difference in below image.
-As per recent PFRDA circular dated 8th August, 2016, the minimum contribution in Tier 1 Account is now reduced to Rs.1,000 a year. There will be no minimum investment limit for Tier 2 account (Earlier, it was Rs.250). Also you no need to maintain the minimum balance in Tier 2 account (Earlier, it was Rs.2,ooo).
-From Budget 2016, the 40% withdrawal at the time of your retirement from NPS will be tax-free. Rest 60% of the corpus will be treated taxable income as per old rules. Hope this above table cleared your doubts.
Conclusion-You notice that when it comes to taxation, NPS is one of the worst products. Everybody concentrating on the tax benefits of NPS while investing. However, they forget the tax issues at retirement or at withdrawal. Along with that, liquidity is an issue with NPS. For Government employees and corporate employees, no option but to invest.