INCOME TAX ON SALARIES – FINANCIAL YEAR 2011-12 (ASSESSMENT YEAR 2012-2013

INCOME TAX ON SALARIES – FINANCIAL YEAR 2011-12
(ASSESSMENT YEAR 2012-13)

Notification No. 36/2011 F. NO. 142/09/2011 (TPL), Dated 23-6-2011 issued by Income tax department exempts Tax payers in the salaried class from filing Income tax return if the tax payer's salary income and interest received from bank not exceeding Rs.10,000/- both put together did not exceed Rs.5,00,000

during the financial year 2011-12 (Assessment year 2012-13).

As per the Finance Act, 2011, income-tax is required to be deducted under Section 192 of the Income-tax Act 1961 from income chargeable under the head "Salaries" for the financial year 2011-2012 (i.e. Assessment Year 2012-2013) at the following rates:

RATES OF INCOME-TAX

                              A. Normal Rates of tax:

1. Where the total income does not                                                         Nil

exceed Rs. 1,80,000/-. 

     

2. Where the total income exceeds                                           10 per cent of the

Rs. 1,80,000 but does not exceed                                               amount by which the

Rs. 5,00,000/-.                                                                            total income exceeds

                                                                                                    Rs. 1,80,000/-

3. Where the total income exceeds                                           Rs. 32,000/- plus 20

Rs. 5,00,000/- but does not exceed                                            per cent of the amount

Rs. 8,00,000/-.                                                                            by which the total

                                                                                                    income exceeds

                                                                                                    Rs. 5,00,000/-.

4. Where the total income exceeds                                            Rs. 92,000/- plus 30

Rs. 8,00,000/-.                                                                            per cent of the amount by                  

                                                                                                    which the total income

                            exceeds Rs. 8,00,000/-.

B. Rates of tax for a woman, resident in India and below sixty years of age at any time during the financial year: 

1. Where the total income does not                                                                Nil

exceed Rs. 1,90,000/-.

2. Where the total income exceeds                                         10 per cent, of the

Rs. 1,90,000 but does not exceed                                            amount by which the

Rs. 5,00,000/-.                                                                             total income exceeds

                                                                                                     Rs. 1,90,000/-

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

3. Where the total income exceeds                                          Rs. 31,000/- plus 20

Rs. 5,00,000/- but does not                                                        per cent of the

exceed Rs. 8,00,000/-.                                                                 amount by which the

                                                                                                      total income exceeds

                                                                                                      Rs. 5,00,000/-.

4. Where the total income exceeds                                           Rs. 91,000/- plus 30

Rs. 8,00,000/-.                                                                               per cent of the

                                                                                                       amount by which the

                       total income exceeds

                                                                                                       Rs. 8,00,000/-.

As per the explanations given in the Income tax Act “Salary” includes dearness allowance, if the terms of employment so provide, but excludes all other allowances and perquisites.

“As per explanation given under Rule 3 of IT Rules which clearly stipulates that ” salary includes the pay, allowances, bonus payable monthly or otherwise but does not include the following viz., :- (i) Dearness Allowance or Dearness pay unless it enters into the computation of superannuation or retirement benefits of the assessee concerned ”

 As per our extant Pension Rules 1972 pay plus DP will only form part for the retirement benefits. Whereas in the New Pension Scheme it is otherwise (i.e) 10% of pay + DA + DP is the subscription by the employee and contribution by the employer.

New in Income tax  details  for  2011-12 (Assessment Year 2012-13)

Contribution to New Pension System (NPS) by employer (in the case of government employee it is 10% of pay in pay band and grade pay) is to be included in the income like we did in the previous years. However, in order to encourage investments in NPS, this amount has been exempted from payment of any Income tax. In other words, while the entire Contribution to NPS to the employee has to be included in the income of employee, the same to the extent of 10% of salary can be deducted from the income. Hence, in the case of a Government Employee, 100% of Government Contribution to NPS is exempted..

Savings/Deductions under Chapter VI-A:

• Section 80C (Amount paid towards life insurance premium, contributions in GPF, CPF, PPF, NPS, NSS etc, tuition fees, payment, Housing Loan principal repayment)
• Section 80CCC (Deduction in respect of contributions to certain pension funds)
• Section 80CCD (Deduction in respect of contributions to pension scheme of Central Government)

Note: Section 80CCE restricts aggregate amount of deduction under section 80C, 80CCC and 80CCD to one lakh rupees). The subscribers in New Pension Scheme (NPS) are allowed to deduct the entire government contribution in NPS without any ceiling. In the last year (financial year 2010-11) Government contribution in NPS was also subjected to Rs. one lakh restriction under Section 80 CCE.

• Deductions under Sec. 80D for Health Insurance of parents. (Max. Rs. 20,000/- if parents are Senior Citizen, otherwise Rs. 15,000/-).
• Section 80DD (Deduction in respect of maintenance including medical treatment of dependent who is a person with disability- Maximum amount- Rs. 1 lakh)
• Section 80DDB (Deduction in respect of medical treatment. Maximum amount – Rs.40,000)
• Section 80E (Deduction in respect of interest on loan taken for higher education)
• Section 80G (Deduction in respect of donations to certain funds, charitable institutions, etc.)
• Section 80GG (Deduction in respect of rents paid subject to ceiling if HRA not received)
• Section 80GGA (Deduction in respect of certain donations for scientific research or rural development)
• Section 80GGC (Deduction in respect of contributions given by any person to political parties)
• Section 80U (Deduction in case of a person with disability-An amount of Rs.50,000 and Rs. 1 lakh in the case of self is physically disabled and severely physically disabled respectively)

Other aspects of HRA :

In the case of employee residing in his own house, is the HRA exempt from Tax ?
No. As he is not paying any rent, so exemption from tax with regard to H.R.A. is restricted to ‘Nil’.

Should Rent receipt compulsorily be given to DDO ?

No. salaried employees drawing house rent allowance upto Rs.3,000 pm will be exempted from giving rent receipt to DDO. But in the regular assessment of the employee, the Assessing Officer is free to make enquiry or request proof of payment of rent by assessee.

The exemption from tax with regard to HRA is restricted to the least of the following amounts:-

(i) Actual amount of  H.R.A.
(ii) The amount by which actual rent paid by the employee exceeds 10% of his salary; 
(iii) 50% of salary if the rented house is situated at Delhi, Bombay, Kolkata or Chennai, or 
40% of the salary in the case of other cities.

A new section 80CCF has been inserted by the Finance Act, 2010, wef 01.04.2011. The section 80CCF provides for deduction available to an individual or a HUF, the whole of the amount, to the extent such amount does not exceed Rs 20,000,paid or deposited during financial year 2010-11, as subscription to long-term infrastructure bonds as notified by the Central Govt for the purpose of this section.

(Board Notification no 48/2010 dated 09.09.2010)

Deduction under this section can not exceed Rs 20,000 and are available only for current financial year 2011-12. The deduction under this section will be in addition to overall limit of deduction of upto Rs one lakh under section 80C, 80CCC and sub section (1) of Section 80 CCD.Courtesy : http://aipeup3tn.blogspot.in

Solved question Paper of IPO Examination held on 29th January 2012 (Question No 91 to 150)

91.     A proclamation under section 82 of CrPC can be issued against a person against whom a warrant has been issued Thus a proclamation can be issued against

Answer :   Accused offender

92  Attachment of the property of the person absconding

Answer :   Can be issued simultaneously with the publication of the proclamation of the proclamation u/s 82 of CrPC

93.     A proclamation requiring a person to appear must be published giving

Answer :   Not less than 30 day time to the person concerned

94.     Period of limitation for filing claims and objections to the attachment of any property attached u/s 83 of CrPC by any person other than the proclaimed person, as provided u/s 84 of CrPC is

Answer :   Within six month of attachment

95.     Period of limitation for filing a suit to establish the right over the property attached by a person other than the proclaimed person, who has filed claims and objections to the attachment, is

Answer :    One year from the date of disallowing the claim

96.     If the person proclaimed appears within the period specified in the proclamation, the property attached:

Answer :    Shall be released from attachment

97.     The right of claiming the attached property or sale proceeds thereof by the proclaimed person flows from:

Answer :    Section 85 of Cr.PC

98.     If the proclaimed person does not appear within the period specified in the proclamation, the property under attached:

Answer :   Both A and B

99.     A proclaimed person whose property has been attached can claim the property or the sale proceeds, on appearance.

Answer :    Within two year of attachment

100.     The right of claiming the attached property or sale proceeds thereof by the proclaimed person is subject to his satisfying the court that:

Answer :   Both A and B

101.     The power of issuing proclamation u/s 82 CrPC

Answer :   All the above

102.     A proclamation issued u/s 82 CrPC is issued

Answer :   To secure the attendance of the person concerned before the court

103.     Attachment order u/s 83 of CrPC is to be passed

Answer :  by a court issuing proclamation u/sec 82 Crpc

104.     Attachment u/s 83 CrPC of a land paying revenue to the state government, be made

Answer :    Through the District collector within whose jurisdiction land is situated.

105.     A  fact forming  of the same transaction is relevant u/s 6 of Evidence Act:

Answer :   Through not in issue and may have occurred at the same time & place or at different time & place

106.     Several classes of facts, which are connected with the transaction(s) in a particular mode are relevant

Answer :   Under Section 6 of Evidence Act

107.     Motive behind an Act is relevant

Answer :   Under Section 8 of Evidence Act

108.     Preparation for an Act is relevant:

Answer :   Under Section 8 of Evidence Act

109     Under section 8 of Evidence Act conduct is relevant:

Answer :   Both A&B

110.     Under section 8 of Evidence Act:

Answer :  All the above are relevant

111.     When the conduct of any person is relevant, any statement made to him or in his presence and hearing, which affects such conduct is relevant:

Answer :   Under Section 8 of Evidence Act

112.     Facts which are cause of facts in issue are relevant

Answer :   Under Section 7 of Evidence Act

113.     A person is not entitled to give evidence of fact which he is disentitled to prove by any provision of law

Answer :   Under Section 5 of Evidence Act

114.     The question is, whether certain goods ordered from B were delivered to A, The goods were delivered to several intermediate persons successively.  Each delivery is a relevant fact:

Answer :   Under Section 7 of Evidence Act

115.     The question is, whether  A murdered B Marks on the ground, produced by a struggle at or near the place where the murder was committed are relevant Facts:

Answer :   Under Section 7 of Evidence Act

116.     A is accused of murder of B by beating him.  Whatever was said or done by A or B or the by-standers at the beating, is a relevant fact:

Answer :   Under Section 6 of Evidence Act

117.     A is tired for murder of B by poison.  The fact that before the death of B,  A procured poison similar to that which was administered to B, is a relevant fact:

Answer :   Under Section 8 of Evidence Act

118.     The question is is whether A committed a crime.  The fact that A absconded after receiving a letter warning that enquiry was being made for the criminal and contents of the letter, are relevant:

Answer :   Under Section 8 of Evidence Act

119.     The question is, whether A was robbed.  The fact that soon after the alleged robbery, he made a complaint relating to the offence detailing the circumstances, are relevant:

Answer :   Under Section 8 of Evidence Act

120.     A sues B upon a bond for the payment of money.  B denies the making of bond.  The fact that at the time when the bond was alleged to be made,  B required money for particular purpose, is relevant.

Answer :   Under Section 8 of Evidence Act

121.     Wrongful gain means

 Answer :    Gain by unlawful means of property which the person gaining is not entitled

122.     Wrongful loss means

Answer :    Loss b unlawful means of property which he person losing it, is legally entitled

123.     Dishonestly has been defined as doing anything with intention to cause wrongful gain to one person and wrongful loss to another:

Answer :    Under section 24 IPC

124.     Fraudulently has been defined as doing anything with intent to defraud:

Answer :    Under section 25 of IPC

125.     Section 34 of IPC

Answer creats a substantive offense

126.     Under section 46 of IPC, death denotes:

Answer :   Death of a human being

127.     Illegal signifies

Answer :    All the above

128.     Nothing is said to be done or believed t be done in good faith which is done or believed without due care & intention- as defined:

Answer :    Under section 52 IPC

129.     Personating a public servant is an offence

Answer :   Under section  170 IPC

130.     The term injury as defined in Section 44 of IPC, means

Answer :   Any harm illegally to a person in body, mind, property and reputation

132.     For the application of section 34 IPC there must be at least

Answer :    Two persons

133.     Non attendance in obedience to an order from public servant is punishable:

Answer :    Under section 174 of IPC

134.     Furnishing false information to a public servant being legally bound is publishable

Answer :   Under section 177 of IPC

135.     Obstructing public servant in discharge of public functions is punishable

Answer :   Under section 186 of IPC

136.     Disobedience to order duly promulgated by public servant is punishable:

Answer :    Under section 188 of IPC

137.     Threat of injury to public servant is punishable

Answer :   Under section 189 of IPC

138.     Breach of contract to attend helpless person is punishable

Answer :   Under section 491 of IPC

139.     Commutation of sentence for imprisonment of life is provided:

Answer :    In section 55 of IPC

140.     Under section 73 IPC a convict can be put to solitary confinement but the total period of the same can not exceed

Answer :   Three months.

141.     In case of an offence punishable with fine only, imprisonment for non payment of fine

Answer :   has to be simple

142.     In IPC the pronoun he and its derivative are used to denote.

Answer :   Either

143     In IPC the word India means the territory of India excluding

Answer :    State of Jammu and Kashmir

144.     The word public servant has been defined in IPC

Answer :    In section 21

145.     The word special law has been defined in section 41 of IPC to mean

Answer :    A law applicable to a particular subject

146.     The unlawful engagement of public servant in trade is prohibited

Answer :    In section 168 of IPC

147.  The unlawful buying or bidding in property by public servants is prohibited:

Answer :   In section 169 of IPC

148.     Under section 53 of IPC, offenders are liable to following types of punishments:

Answer :   Five

149.     A writes his name on the back of a bill of exchange.  As the effect of this endorsement is transfer the right to the bill to any person, who may become lawful holder of it:

Answer :    The endorsement is a valuable security

150.     The concept of common intention to fasten criminal liability has been provided.

Answer :    In section 34 of IPC

Solved by s jayachandran , SA , Mavelikara Division.9961464279

Courtesy: SAPOST.

DECLINING PROMOTION TO POSTMASTER GRADE- I

         I am directed to refer to Circle Office's letter No. STA/5-21/Gr.I Postmaster/Ruling/2010, dated 25.7.2011 on the above subject and to say that declination of appointment by the candidate to the post of Postmaster Grade-I after passing the Departmental Examination, but before his appointment, may be accepted.




D.G. Posts No.4-2/2011-SPB.II dated 09 August, 2011


(Addressed to the CPMG Tamil Nadu Circle and copy to all Head of Postal Circles/Postmaster General)

History of POSTMASTER CADRE....

ONCE UPON A TIME

There was a cadre of Post Master, which was governed by the Postmaster Services Class II (Recruitment) Rules, 1975. The post of Postmaster, according to these rules, had been classified as Class II Gazetted, Non-Selection Post. This post was to be filled up 100% by promotion in the following manner :

A. 10% posts from amongst General line officials holding posts in Higher Selection Grade (Grade II) (scale Rs.550-760) and Higher Selection Grade (Grade I)(scale Rs.700-900) with 5 years’ service in either or both of the grades after appointment thereto on a regular basis, failing which from amongst officials of the above categories with less than 5 years’ service but with a combined total service of 8 years in these grades and in the next lower grade of Lower Selection Grade (scale Rs.425-640) after appointment thereto on a regular basis.

B. 90% posts from amongst Inspectors of Post Offices (scale Rs.425-700) with 5 years’ service in the grade, including service in the grades of Higher election Grade (Grade II) (Rs.550-750) Assistant Superintendent of Post Offices (Rs.550-900) and Higher Selection Grade (Grade I) (Rs.700-900) rendered after appointment thereto on a regular basis.

2. There was a cadre of Postal Superintendents which was governed by the statutory set of rules equivalent to the Post Master Services Class II Rules, 1975.

3. In the year 1987 both these cadres were merged and were governed by the recruitment rules known as Department of Posts, Postal Superintendents/ Postmasters Group ‘B’ Recruitment Rules, 1987. These rules had also classified these posts as Group ‘B’ Gazetted Non Ministerial and it was a selection post and to be filled up by promotion in the following manner :

(1) 94% from amongst officers holding the post of Inspector, Post Offices or Inspector, Railway Mails :-

(i) With 5 years regular services in the scale of Rs.1640-2900, including services in the scale of Rs.2000-3200, if any or equivalent, failing which

(ii) With 8 years regular services in the scale of Rs.1400-2300 or above or equivalent.

(2) 6% from amongst General Line of Officials by means of a Departmental Competitive Examination amongst officers belonging to Higher Selection Grade-I (scale of pay Rs.2000-3200), Higher Selection Grade II (Scale of Pay Rs.1640-2900) and Lower Selection Grade (Scale of pay Rs.1400-2300) with 5 years regular service in either or all the 3 cadre together”.

4. In 1993 the above said rules were amended and the quota of 94% was bifurcated into 75% and 19% and it was laid down that 75% of the total posts shall be filled up by promotion from amongst Inspector of Post Offices & Inspector of Railway Mail Service (Pay Scale of Rs.1400-2300) with 5 years of regular service in the grade.

5. Under the 1987 rules, ASPOs were not eligible to appear in the examination for promotion to the post of Postal Services Group B as such a clarification was issued on 23-8-1994 making ASPOs and HSG-I officials eligible for appearing in the examination.

6. On the basis of the above rules in the cadre of postal Services Group B, total posts in the different quotas are as under :

(a) 75% quota 649

(b) 19% quota 165

(c) 6% quota 52

TOTAL 866

Postmaster Grade I, II and III Filling up of short term vacancies

1.          I am directed to say that references are being received from Circles seeking clarifications with regard to filling up of the short terms vacancies in Postmaster Grade-I,II & III. It has been reported that representations have been received from Postmaster Grade-I /II officials asking for officiating promotion to Postmaster Grade-II/III although such officials do not fulfill the prescribed eligibility criteria stipulated under the relevant Recruitment Rules.


2.         It has been clarified vide Dte's letter of even number dated 7/8-2.2011 that the posts of Postmaster Grade-III should not be filled up under initial constitution clause by appointing HSG-I officials for the reason that sufficient number of regular officials in HSG-I would not have become available. It was further clarified that these posts can be filled up only after reviewing the position in the light of options received from eligible officials and appropriate decision taken by the Directorate in the matter. As per clarification No. 4 of Directorate's letter of even number dated 10.2.2011, the posts identified for Postmaster Cadres will be deemed to have been designated as Postmaster Grade-I, II & III with effect only from the dates those are filled  up regularly.  Therefore, the Post of Postmaster Grade III will be deemed to be so designated only when these are filled up through initial constitution clause. Infact, in terms of the clarification No.4 dated 10.2.2011, these posts cannot be treated as vacant by the Circle. In the given circumstances when at present there are no posts of Postmaster Grade-III in existence, the question of filling up through officiating arrangement does not arise. Thus, till the posts so identified as Postmaster Grade-III will continue to be manned by officials in General line.


3.         Regarding officiating arrangement in the vacancies of more than 45 days in Postmaster Grade-I & II, which have become vacant  after they are designated as Postmaster Grade-I & II by filling up through initial constitution as clause as per the provisions of Recruitment Rules, the clarification No. 3 given vide Dte. Letter of even number dated 10.2.2011 was issued stating inter-alia that for filling up of leave vacancies / adhoc vacancies for more that 45 days in Postmaster Grade, the procedure prescribed in Dte's letter No. 137-99/2009-SPB.II dated 23.12.2009 should be followed.  It is envisaged in the said letter that only those employees in feeder grade fulfilling the eligibility condition prescribed in the Recruitment Rules should be considered for adhoc promotion.


4.         Subsequently, Directorate has issued instructions vide letter No. 137-64/2010-BPG.II dated 28.7.2011 permitting grant of officiating pay and Allowances to Selection Grade Officials who officiated in LSG/HSG-II/HSG-I posts in term of Rule 27 of Postal Manual Vol. IV  against the vacancies not exceeding three months. As per this Rule, the list of approved officers is prepared by the DPC and approved by the appointing authority and only when administrative exigencies required it, a person not in the list or not the first in order in the list may be appointed.


5.         Similar benefit has also been allowed to Selection Grade officials in terms of Rule 50 of Postal Manual Vol. IV which provides for officiating arrangement against the vacancies of short duration i.e. not more than one month and more than four months in the cadres in which promotion is made from officials working in different stations, sub-divisions or divisions in a Circle and in the cadres in which promotion is made from officials working in the same office or station.


6.         In view of the above, to make officiating arrangements in vacancies not exceeding three months and vacancies of short duration i.e. not more than one and four months in Postmaster Grade I & II, which become vacant after they are designated as Postmaster Grade-I & II, the Circles may follow the instructions contained in Dte. Letter No. 137-64/2010-SPB-II dated 28.7.2011.

Sd/-
(Alka Tewari)
Assistant Director General (SPN)