16/12/2015
Promotion of PA cadre to LSG cadre in POs Tamilnadu Circle. Click here to see the order.
Seventh Pay Commission: Govt to examine minimum pay
New Delhi: The central government is set to examine the minimum pay, which was recommended by the Seventh pay commission.
The government data shows that the pay panel recommended the lowest increase in basic pay i.e. 14.27 per cent since independence.
Sources in the Finance ministry said there appears to be a pattern of minimum pay not only a particular sector, but other segments are required to study as employees’s body and Trade Unions expressed resentment over the recommendations of the Seventh Pay Commission and demanded at least 40% hike in the pay of various categories of government employees.
“We found through government documentation, that are widely available, the preponderance of the evidence strongly supports the seventh pay commission report complexity.” said sources.
“But, that Implementation cell is concentrated as well on a range of different sectors like allowances, advances and risk-hardship matrix. So we need to look at those particular sections very closely.” he added.
The lowest paid central government employees will actually take home the lower salary than what they are currently drawing after acceptance of the Seventh Pay Commission report without modification.
A lowest paid central government employee, who was appointed in the Grade Pay of Rs 1800 in the end of 2015 in Group A city and he is residing in government- quarter. His will get net pay January 2016 Rs.16,370 in existing pay rules.
Illustration- Basic Pay = Pay Band Rs 5200 + Grade Pay Rs 1800= Rs 7000 + Expected DA of 125%, Rs 8750 + Transport Allowance with DA Rs.1350 = Gross Pay Rs. 17100
Deductions: NPS 10% of basic Pay = Rs 700 + CGEGIS Rs 30 = Total 730, Net Pay =17,100 – 730 = 16370
The same employee will get net pay in January 2016 under the Seventh Pay Commission recommendation without modification, Basic Pay Rs 18,000 – NPS 10% of basic Pay Rs 1800 – CGEGIS Rs 1500 = Rs 14,700. Accordingly, he will be a loser of Rs 1,670.
A minimum pay of Rs 18,000 per month and a maximum of Rs 2.5 lakh per month has been recommended by the Seventh pay commission, headed by Justice A K Mathur, that presented its 900-page report to Finance Minister Arun Jaitley on November 19.
The The Seventh Pay Commission recommended raise in basic pay, a key segment that determines several allowances, is only 14.27 per cent – the lowest in 70 years. The previous commission had recommended a 20 per cent hike, which the government doubled while implementing it in 2008.
The Commission recommended a 23.55 per cent increase in the cumulative earnings of central government employees.
The figure of 23.55 per cent covers the increases in pay and allowances.
The overall increase in pay and allowances and pensions over the business-as-usual scenario will be 23.55 per cent, the report said.
Rules regarding quoting of PAN for specified transactions amended
The Government is committed to curbing the
circulation of black money and widening of tax base. To collect information of
certain types of transactions from third parties in a non-intrusive manner, the
Income-tax Rules require quoting of Permanent Account Number (PAN) where the transactions
exceed a specified limit. Persons who do not hold PAN are required to fill a
form and furnish any one of the specified documents to establish their
identity.
One of the recommendations of the Special
Investigation Team (SIT) on Black Money was that quoting of PAN should be made
mandatory for all sales and purchases of goods and services where the payment
exceeds Rs.1 lakh. Accepting this recommendation, the Finance Minister made an
announcement to this effect in his Budget Speech. The Government has since received
numerous representations from various quarters regarding the burden of compliance
this proposal would entail. Considering the representations, it has been
decided that quoting of PAN will be required for transactions of an amount exceeding
Rs.2 lakh regardless of the mode of payment.
To bring a balance between burden of
compliance on legitimate transactions and the need to capture information
relating to transactions of higher value, the Government has also enhanced the monetary
limits of certain transactions which require quoting of PAN. The monetary limits
have now been raised to Rs. 10 lakh from Rs. 5 lakh for sale or purchase of
immovable property, to Rs.50,000 from Rs. 25,000 in the case of hotel or
restaurant bills paid at any one time, and to Rs. 1 lakh from Rs. 50,000 for
purchase or sale of shares of an unlisted company. In keeping with the
Government’s thrust on financial inclusion, opening of a no-frills bank account
such as a Jan Dhan Account will not require PAN. Other than that, the
requirement of PAN applies to opening of all bank accounts including in
co-operative banks.
The changes to the Rules will take
effect from 1st January, 2016.
The above changes in the rules are expected to be
useful in widening the tax net by non-intrusive methods. They are also expected
to help in curbing black money and move towards a cashless economy.
A chart highlighting the key changes to Rule 114B of
the Income-tax Act is attached.
Sl.
|
NATURE OF TRANSACTION
|
MANDATORY QUOTING OF PAN (RULE
114B)
|
|
Existing requirement
|
New requirement
|
||
1.
|
Immovable property
|
Sale/ purchase valued at Rs.5 lakh or
more
|
i.
Sale/
purchase exceeding Rs.10 lakh;
ii.
Properties
valued by Stamp Valuation authority at amount exceeding Rs.10 lakh will also
need PAN.
|
2
|
Motor vehicle (other than two wheeler)
|
All sales/purchases
|
No change
|
3.
|
Time deposit
|
Time deposit exceeding Rs.50,000/-
with a banking company
|
i.
Deposits
with Co-op banks, Post Office, Nidhi, NBFC companies will also need PAN;
ii.
Deposits
aggregating to more than Rs.5 lakh during the year will also need PAN
|
4.
|
Deposit with Post Office Savings Bank
|
Exceeding Rs.50,000/-
|
Discontinued
|
5.
|
Sale or purchase of securities
|
Contract for sale/purchase of a value
exceeding Rs.1 lakh
|
No change
|
6.
|
Opening an account (other than time
deposit) with a banking company.
|
All new accounts.
|
i. Basic Savings Bank Deposit Account
excluded (no PAN requirement for opening these accounts);
ii. Co-operative banks also to comply
|
7.
|
Installation of telephone/ cellphone
connections
|
All instances
|
Discontinued
|
8.
|
Hotel/restaurant bill(s)
|
Exceeding Rs.25,000/- at any one time
(by any mode of payment)
|
Cash payment exceeding Rs.50,000/-.
|
9.
|
Cash purchase of bank drafts/ pay
orders/ banker's cheques
|
Amount aggregating to Rs.50,000/- or
more during any one day
|
Exceeding Rs.50,000/- on any one day.
|
10.
|
Cash deposit with banking company
|
Cash aggregating to Rs.50,000/- or
more during any one day
|
Cash deposit exceeding Rs.50,000/- in
a day.
|
11.
|
Foreign travel
|
Cash payment in connection with
foreign travel of an amount exceeding Rs.25,000/- at any one time (including
fare, payment to travel agent, purchase of forex)
|
Cash payment in connection with
foreign travel or purchase of foreign currency of an amount exceeding
Rs.50,000/- at any one time (including fare, payment to travel agent)
|
12.
|
Credit card
|
Application to banking company/ any
other company/institution for credit card
|
No change.
Co-operative banks also to comply.
|
13.
|
Mutual fund units
|
Payment of Rs.50,000/- or more for
purchase
|
Payment exceeding Rs.50,000/- for
purchase.
|
14.
|
Shares of company
|
Payment of Rs.50,000/- or more to a
company for acquiring its shares
|
i.
Opening
a demat account;
ii.
Purchase
or sale of shares of an unlisted company for an amount exceeding Rs.1 lakh
per transaction.
|
15.
|
Debentures/ bonds
|
Payment of Rs.50,000/- or more to a
company/ institution for acquiring its debentures/ bonds
|
Payment exceeding Rs.50,000/-.
|
16.
|
RBI bonds
|
Payment of Rs.50,000/-or more to RBI
for acquiring its bonds
|
Payment exceeding Rs.50,000/-.
|
17.
|
Life insurance premium
|
Payment of Rs.50,000/- or more in a
year as premium to an insurer
|
Payment exceeding Rs.50,000/- in a
year.
|
18.
|
Purchase of jewellery/bullion
|
Payment of Rs.5 lakh or more at any
one time or against a bill
|
Deleted and merged with next item in
this table
|
19.
|
Purchases or sales of goods or
services
|
No requirement
|
Purchase/ sale of any goods or
services exceeding Rs.2 lakh per transaction.
|
20.
|
Cash cards/ prepaid instruments issued
under Payment & Settlement Act
|
No requirement
|
Cash payment aggregating to more than
Rs.50,000 in a year.
|
*********