TAX EXEMPTION TO NATIONAL PENSION SYSTEM

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

DEPARTMENT OF REVENUE

RAJYA SABHA

STARRED QUESTION No. *285

TO BE ANSWERED ON TUESDAY, THE 28th MARCH, 2017

7,CHAITRA, 1939 (SAKA)

*285. SHRI N. GOKULAKRISHNAN:

Will the Minister of FINANCE be pleased to state:

(a) whether it is a fact that the maturity amount of the National Pension System has no tax benefits like Public Provident Fund (PPF) and Employees’ Provident Fund (EPF);

(b) if so, the details thereof;

(c) whether Government has received any representation requesting to provide tax exemption to NPS at par with PPF and EPF; and

(d) if so, the stand of Government in this regard?

ANSWER

THE MINISTER OF FINANCE

(SHRI ARUN JAITLEY)

(a)to (d):- A Statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (d) of Rajya Sabha Starred Question No.*285 for 28th March, 2017 by Shri N. Gokulakrishnan, MP reg. Tax Exemption to National Pension System.

(a)&(b) Prior to Finance Act, 2016, National Pension System (NPS) referred to in section 80CCD was Exempt, Exempt and Tax (EET) i.e., the monthly/periodic contributions during the pension accumulation phase were allowed as deduction from income for tax purposes; the returns generated on these contributions during the accumulation phase were also exempt from tax; however, the terminal benefits on exit or superannuation, in the form of lump sum withdrawals, were taxable in the hands of the individual subscriber or his nominee in the year of receipt of such amounts unlike PPF and EPF which have been enjoying EEE regime i.e. Exempt, Exempt, Exempt.

Vide Finance Act, 2016, section 10 of the Income-tax Act was amended to provide that any payment from National Pension System Trust to an employee on account of closure or his opting out of the NPS shall be exempt from tax, to the extent it does not exceed forty percent of the total amount payable to him at the time of closure or his opting out of the scheme. Further, Section 80CCD was also amended by Finance Act, 2016 to provide that the whole amount received by the nominee of NPS subscriber on his death shall be exempt from tax.

Further, vide Finance Bill,2017 as passed by the Lok Sabha on 22.03.2017, it has been proposed to exempt partial withdrawals by employees from their NPS accounts in accordance with the guidelines prescribed under Pension Fund Regulatory and Development Authority Act,2013.

Furthermore, it has also been proposed in the Bill to amend section 80CCD of the I.T.Act,1961 so as to increase the upper limit of deduction for contribution into NPS from ten per cent of gross total income to twenty per cent in case of individual other than employee.

(c) &(d) Yes, Madam, the Government has received such representations in the past and the stand of Government was reflected in the amendments made in Income-tax Act vide Finance Act,2016 and Finance Bill 2017 as discussed above.

Bunching effect to Postmaster Grade I - FAQ

Written By Admin,PoTools on Mar 23, 2017 | 10:13 AM

Query 1: During 31st Dec 2015, Postmaster Grade I and their PA batch mate might be in different grade pays viz., Rs.2800 and Rs.2400 respectively. Could bunching effect can be considered only if both government servants are in the same pay scale?

Reply : vide department of expenditure OM order no 1-6/2016-IC dated at New Delhi the 7th September 2016 Para 1, it was mentioned that where in revision of pay, the pay of Government servants drawing pay at two or more stages in pre-revised pay band and Grade pay or scale as the case may be, get fixed at same cell in the applicable Level in the new Pay matrix one additional increment shall be given for every two stages of bunched

How to Apply Online for GDS Vacancy in India Post?

 Following points should be remembered before going to apply online for GDS vacancy.

1. Keep your mandatory documents are in Scanned format such as 10th Certificate, Photo and Signature. Community Certificate is mandatory for other than Un reserved category.

2. Documents scanned and resized based on requirement. (read notification)

3. Keep your mobile in hand for applying 2nd Step i.e Apply Online Option. In this option OTP will be send to your mobile within a minute or more based on the server response. (Sometime it will take 5-10 minutes. Don't click resend OTP again and again)

Red Salute to all comrades who participated in the all India strike on 16th March, 2017

GDS COMMITTEE REPORT – IMPLEMENTATION PROCESS STARTED Six member officers committee under the Chairmanship of Member (T) constituted to examine the Report and submit its recommendation for implementation. Federation/unions are called by the Committee for presenting their views and suggestion before the Committee. Com. R. N. Parashar, Secretary General (NFPE) and Com. M. Krishnan, Secretary General, Confederation & Ex-Secretary General (NFPE) presented views and suggestions of NFPE & AIPEU-GDS before the committee. Detailed letter was also submitted to the Committee. Both leaders also met Secretary, Department of Posts, Shri. B. V. Sudhakar and requested early implementation of the favourable recommendations of the committee and Letter submitted to him. Dear Comrades, The Postal Board has initiated the process for implementation of Kamlesh Chandra Committee Report on GDS. A Six member officers committee is constituted to examine the Report and submit its recommendations for implementation of the Report. The following are the Chairman and Members of the Committee. 1. Shri Tilak De, Member (T) - Chairman 2. Shri B. Chandrasekhar, Chief PMG Telangana - Member 3. Shri S. R. Meena, Chief PMG, Gujarat Circle - Member 4. Shri A. K. Roy, DDG (RB) - Member 5. Ms. Smriti Saran, DDG (Estt) - Member 6. Shri. Hari Govind Dhakad, Director (T&C) - Member The Committee invited Federations/Unions for discussion for presenting their views and suggestions, regarding the recommendations of Kamlesh Chandra Committee. Today (17.03.2017) Com. R. N. Parashar, Secretary General, NFPE and Com. M. Krishnan, Secretary General, Confederation & Ex-Secretary General NFPE held discussion with the Committee for one hour and presented the views and suggestions of NFPE & AIPEU-GDS before the Committee. Com. P. Pandurangarao, General Secretary, AIPEU-GDS could not reach Delhi as the meeting was called with short notice. A detailed letter containing the views and suggestions was also presented to the committee. Both leaders also met Shri B. V. Sudhakar, Secretary, Department of Posts and submitted detailed letter with our views and suggestions to him and requested early implementation of the positive recommendations of the Committee at least before 30.04.2017. Secretary (Posts) and Member (T) assured that speedy action will be taken in this regard. Letter Submitted to Secretary, Department of Posts and to the Committee headed by Member (T) is published below. R. N. Parashar Secretary General NFPE

Latest news of GDS committee report

Today on dt 17thMarch2017 myself and Comrade M.KrishnanS.G.Confederation met with GDSCommittee ReportImplementation Committee  headed by Sri TilakDeyMember (Tech.)along with Sri.V.CHANDRASHEKHAR CPMG .Telangana,Sri.S. R.Meena.CPMG
Gujrat;Ms.SmritiSharan.DDG (Estt)and others and presented view point of NFPE and submitted a brief note suggesting some modifications in the report. After that we met Secretary  (Post)Sri.B.V.Sudhakar and requested him to implement  the GDS Committee Report as early as possible at least before his retirement I. e.on. 30thApril2017.He assured in a positive way. Further we discussed  issue of cadre restructuring implementation  in Postal Gr. C.and requested  to keep in abeyance the orders of implementation  till the issues croppedup are settled.We gave a detailed  letter in this regard.Secretary has assured us.Details are published  in NFPE Website.

R N Parasar

SUCCESSFULL ALL INDIA STRIKE ON 16TH MARCH, 2017

Hon. M.P Tapan Kumar Sen Speak about Strike on 16.03.2017 regarding filling up vacancies, implement old pension scheme and revised fitment formula & allowances in 7th Pay Commission. 

Allowance committee report has yet to be submitted to the Central Government.

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

Department of Expenditure

LOK SABHA

UNSTARRED QUESTION NO: 1778

ANSWERED ON: 10.03.2017

Committee on Allowances of Seventh Central Pay Commission

SULTAN AHMED

DUSHYANT CHAUTALA

Will the Minister of

FINANCE be pleased to state:-

(a) whether the Government has set up a Committee to examine the various allowances in the light of recommendation made by the Seventh Central Pay Commission;

(b) if so, the details and terms of reference thereof;

(c) whether the said Committee on allowances has submitted its report to the Government, if so, the recommendations made by the Committee along with the follow-up action taken by the Government thereon;

(d) if not, the reasons therefor and the time by which the said report is likely to be submitted; a

(e) whether the Government proposes to give arrear of House Rent Allowance and other allowances with effect from the month of notification of implementation of Seventh Central Pay Commission, if so, the details thereof and if not, the reasons therefor?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI ARJUN RAM MEGHWAL)

(a) & (b): Yes. The Committee on Allowances has been constituted vide order dated 22.07.2016. The Committee is to examine the recommendations of the 7th CPC in regard to various allowances having regard to the representations made by the Staff Associations and the suggestions of the concerned Ministries/Departments and make recommendations as to whether any changes in the recommendations of the 7th CPC are warranted and if so, in what form.

(c) to (e): The Committee has not submitted its report to the Government. The deliberations of the Committee are in the final stages. Decisions on implementing the Report will be taken after the Report is submitted by the Committee.

7th CPC Loksabha Q&A

Appropriate action taken by postal directorate against S.post, Barasat Dn for pursuing NFPE CHQ

Black day observing at Barasat HO under Barasat Division , WB on 6th March

Demonstration held at Barasat Divisional office today by NFPE against administrative attacks and to success coming strike on 16th March.