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Friday, May 22, 2015

Trade unions question TDS on PF withdrawals, want order on hold

Opposing the government's decision to deduct tax at source on pre-mature PF withdrawals, trade unions today said they will ask the Labour Ministry to put the EPFO order in this regard on hold. 

In a notification issued yesterday, Employees' Provident Fund Organisation (EPFO) said it will deduct TDS from June 1 on PF withdrawals where accumulations are over Rs 30,000 and the employee has worked for less than five years. 

"We will oppose the government's move of deducting TDS (Tax Deducted at Source) at PF withdrawals. We have decided to write to the Labour Minister for keeping this notification in abeyance," All India Trade Union Congress Secretary D L Sachdev told PTI. 

Another EPFO trustee and Hind Mazdoor Sabha Secretary A D Nagpal said, "We had opposed this move earlier also. Even the EPFO had proposed to exempt cases where accumulations were less than Rs 2,00,000. PF withdrawals should not be taxed." 

In the current scenario, the PF withdrawals are treated as taxable income if the cumulative service period of a subscriber with present as well as former employers is less than 5 years. 

"Earlier, many regional heads were not deducting the tax on such PF withdrawals where service period was less than five year. Thus, EPFO got notice of tax demand to many field offices in these cases. The limit of Rs 30,000 is provided under the notification to provide some relief to marginalised people," a senior official said. 

"Earlier, there was no exempted slab for PF withdrawals for subscribers with less than five years of service. But now, it's provided in the notification," the official added. 

Centre of Indian Trade Unions President A K Padmanabhan, an EPFO trustee too, said, "While the government is giving so many concessions to investors and industrialists, it is injustice to workers. It's wrong to tax PF withdrawals." 

According to the EPFO circular, TDS will be deducted at 10 per cent provided PAN is submitted. 

However, Forms 15G or 15H if submitted won't entail TDS. These are declaration that the income won't be taxable after receiving payment of PF accumulations from the EPFO.

Source:-The Economic Times

No cumbersome disclosures! Simplified tax return forms to be notified by next week

The Finance Ministry will come out with simplified Income Tax Return (ITR) forms by the next week, replacing the controversial ones that have been put on hold. 

"We will notify the new simplified ITR forms in a week," a top government official said. 

The ITR forms were put on hold by the Ministry last month after the industry, assessees and Members of Parliament voiced their reservations because of the cumbersome disclosure requirements. 

Talking to reporters, Finance Minister Arun Jaitley said 3-4 additions were made in the ITRs.

"On matters of taxation, the government and my position is very clear, and that is simplification. Earlier, there were 12 and a half pages. According to me, 12 and a half pages are excessive. I called up and put on hold the ITR forms," Jaitley said. 

The Minister was in Washington last month when the ITR forms were notified. 

Jaitley termed the simplification as "a good step". The salaried individuals and those persons who do not have business/professional income are required to file returns in either ITR-1 or ITR-2 by July 31. 

The ITR forms notified for the current assessment year sought details of bank accounts and foreign visits. These had specific columns for bank accounts, IFSC code, names of joint account holders and foreign visits, including the ones paid by companies.

Source:-The Times of India

Special Recruitment Drive to fill up the vacancies for Persons with Disabilities.

To view Department of Personnel & Training OM No. 36012/39/2014-Estt (Res) dated 22-05-2015 please Click Here

Digital Life Certificate by using Aadhaar enabled Bio-metric Authentication for the Pensioners & setting up of Jeevan Pramaan centres at HPOs.

Circles have been requested vide Department of Posts (PO Division) Letter No. 27-19/2015-PO dated 21-05-2015 to set up Jeevan Pramaan Counters at all Head Post Offices by procuring Finger Print scanners latest by 30.06.2015.  

Taxing premature PF withdrawals of over Rs 30k may be kept in abeyance

The finance ministry is reconsidering its Budget provision to tax premature provident fund (PF) withdrawals of Rs 30,000 or more, even as the Finance Act of 2015 has been notified and deduction of tax at source from PF accounts settled before five years of service, comes into force on June 1.

"The government is mulling two options to hold back the implementation of this tax, after the PF office pointed out that it would be unfair to tax retirement savings of people whose income is less than the personal income tax threshold of Rs 2.5 lakh," said a senior government official. The finance ministry, the official said, may issue a directive to put the implementation of this clause in the Finance Act in abeyance or raise the Rs 30,000 trigger for tax deductions from PF accounts.

While a decision is expected by the end of this month, the PF department has asked all offices to gear up for deducting tax from all premature PF claims settled from June 1.

"Tax will be deducted at 10% if members submit their PAN card details and at the maximum marginal tax rate of 34.608% if a member fails to submit PAN. Only in cases where a member submits Form 15G or 15H, no tax will be deducted," the official said.

Form 15G is a self-declaration document for individuals having non-taxable income, while Form 15H is a similar declaration by senior citizens (over the age of 60 years). However, these forms won't be accepted as a valid defense for avoiding tax deductions in case of PF accounts with balances of Rs 2.5 lakh (for those with no taxable income) and Rs 3 lakh for retirees.

The Employees' Provident Fund Organisation ( EPFO) has also said that no tax will be deducted if the PF savings are transferred to another PF account. Similarly, if an employee had to leave service due to ill health or other factors beyond their control such as a slowdown or shutting down of the employer's business, no tax will be deducted on their PF withdrawals.

Personal income tax is payable for those earning Rs 2.5 lakh or more annually. An EPF account is mandatory for all employees earning up to Rs 15,000 per month in firms employing over 20 workers. As per the law, 24% of an employee's salary is diverted to her or his PF account.

Source:-The Economic Times

CS writes to the Chief PMG protesting the unwarranted modification in posting orders to the disadvantage of IPs

No. AIAIPASP/Corr-1/09/2015
The Chief Postmaster General
          Odisha Circle, Bhubaneswar-751001

Sub:- Unwarranted modification in posting orders to the disadvantage of IPs-protest thereof.   

Respected Sir,

A kind reference is invited to C.O. Memo No. ST/24-9/2012 dated 19-5-2015 wherein posting orders of Shri Debadatta Jena and Shri Manasa Ranjan Parida issued vide C.O. Memo No. ST/20-13/2014 dated 02/03/2015 has been modified to their disadvantage.  

Inter Region transfer of Shri Debadatta Jena and Shri Manasa Ranjan Parida to Bhubaneswar HQ Region after completion of 4 years in Berhampur Region and Sambalpur Region respectively was issued vide C.O. Memo No. ST/20-13/2014 dated 02/03/2015. On allotment to Bhubaneswar HQ Region said Shri Jena and Shri Parida were posted as IP, Athagarh Sub-Division, Athagarh and Office Supervisor, Bhadrak Division respectively. They were anxiously waiting for their relief from the concerned Regions to join at their place of posting in Bhubaneswar HQ Region as it would bring some solutions to their problems.

It was expected that Circle Administration will take appropriate action for timely relief of the IPs under orders of transfer to enable them to join at their places of posting for implementation of Circle Office order. In this connection this Association Letter No. AIAIPASP/Corr-01/07/2015 dated 12-05-2015 may kindly be referred.

But now Shri Debadatta Jena and Shri Manasa Ranjan Parida have been posted to the farthest possible places in Bhubaneswar HQ Region as IP, Raiarangpur Sub-Division and IP, Bangiriposi Sub-Division under Mayurbhanj Division respectively on modification of their earlier postings.

We do understand that filling up of the posts of Inspector Posts in Mayurbhanj Division was a necessity, but it   could have been filled up by the simplest possible way which has not been explored or purposely not resorted to. It is also to mention that Shri Debadatta Jena is the Treasurer of this Association and the aspect of immunity has been ignored by modifying his posting to the farthest possible place in Bhubaneswar HQ Region.  

It appears to this Association that in the above unwarranted modification of transfer and posting of Shri Jena and Shri Parida, the reason of modification is not transparent and logical and the administrative authority has been used in an ill-advisedly way to cause avoidable harassment to the members of this Association.  

This Association is aware that transfer is an incidence of service. But the modification of transfer order to a Government Servant should not be issued to his disadvantage.

Therefore, this Association conveys its disappointment for the above modification and requests your good self to re-consider the modification issued vide memo dated 19-05-2015 and to consider the representation of Shri Debadatta Jena and Shri Manasa Ranjan Parida favourably. 

With profound regards,
Yours sincerely,

(Pitabasa Jena)
Circle Secretary

Thursday, May 21, 2015

Increase in service tax rate from 12% to 14% with effect from 1st June, 2015


New Delhi, May 20, 2015 
Vaisakha 30, 1937

In the Union Budget, 2015, an increase in the rate of Service Tax from 12% to 14% had been proposed from a date to be notified. The Finance Bill, 2015 has since been enacted and the Central Government has notified 1st June, 2015 as the date from which the rate of 14% would become applicable. The provisions levying Education Cess and Secondary and Higher Education Cess would also cease to have effect from same date i.e. 1st June, 2015, as the same would be subsumed in the service tax rate of 14%. Certain other changes have also been notified with effect from 1st June, 2015. However, the date of giving effect to the provisions relating to imposition of a Swachh Bharat cess on all or any taxable service will be done in due course.