Archives-News
DOT has issued a fresh clarification on the eligibility of BSNL/MTNL Pensioners for CGHS
Please click here to see the ordercghs-om-08-09-2021.pdf
The CCAs have started forwarding revised Pension Authority, revising the pension of beneficiaries of our Pension Anomaly Case, in accordance with the DoT order dated 7-10-2021. The arrears have to be calculated by Banks and Head Post Offices. The letter from CCA Kerala shows 1. BASIC PENSION GRANTED FROM DATE OF RETIREMENT UP TO 31-12-2006 AND ITS NEW REVISED FIGURE 2. BASIC PENSION FROM 1-1-2007 UP TO0 9-6-2013 AND ITS NEW REVISED FIGURE. 3. THE REVISED BASIC PENSION GRANTED FROM 10-6-2013 ONWARDS AND ITS NEW REVISED FIGURE. Below please find a link for a READY RECKNOR containing 9 Tables. Select the Table based on date of retirement. Type existing basic pension granted up to 31-12-2006 (replacing 5000 in Red colour). Then type type new basic pension now revised replacing the figure 6000 shown in Blue colour. Click on the LINK To get Total arrears. ready-recknor-for-anomaly-arrears.xls
LACK OF UNDERSTANDING
Com K Jayaraj, GS, AIBDPA has issued a lengthy circular to celebrate 13th foundation day. He has every right to give such a call. He has claimed that every achievement is because of AIBDPA. But pensioners know the truth.
He has given some incorrect and false information. I want to put the record straight.
TUI (P&R)
Formation conference of TUI (P&R) was held in February 2014 and not 2013.
Com VAN attended that conference on behalf of CITU and not AIBDPA.
AIBDPA was not affiliated to TUI (P&R) then in 2014.
OUR ANOMALY CASE
Regarding Pension anomaly case, without knowing the facts he has given wrong information. The rule that In no case pension should be less than 50% of minimum of corresponding revised pay was available even in 1998 as per DoP&PW order. Even before 2011 order, that benefit was given in 2003 itself. For example Com. R Ranganathan of CTO, Chennai and Com. G R Dharmarajan of Madurai got their pension at Rs.4285/- ( 50% of IDA pay of 8570) before the so-called 2011 order.
Recent DoT order is not based on Supreme Court order as mentioned by Com Jayaraj but based on CAT order. He is trying to portray a picture that because we have filed a case they could not settle.
It is a big joke.
We filed the case only in May 2014. The issue of anomaly was there since 2002. BSNLEU was the only recognised union for many years and AIBDPA was working with them in tandem.
Why they could not settle between 2002 and 2014?
I stop with this and I don’t want to expose their lack of understanding on the issue.
D Gopalakrishnan, Vice President, AIBSNLPWA
.....................................
LONG PENDING PENSION ANOMALY SETTLED
ORDER ISSUED TODAY
ANOTHER FEATHER ON THE CAP OF AIBSNLPWA
:
TAXATION ON CGHS REIMBURSEMENT AND DCRG
Corporate office issued a clarification regarding taxation on payment to retired employees on 22/9/2021. Immediately our association wrote a letter on 23/9/2021 itself mentioning the relevant rules and asked for issuing necessary corrigendum.
Yesterday, 4/10/2021, our AGS Com Anupam Kaul met the AGM (taxation) in corporate office and discussed. As per our AGS request, our Vice President Com DG also spoke to that AGM over phone. First reaction from him was that no other organization has raised any objection to the letter.
The AGM informed them that:
“Tax concession can be availed under 80d of IT Rule for CGHS contribution…….Gratuity payment after retirement is not taxable and the clarification is for the payment to legal heirs only”.
Our comrades requested him to issue necessary corrigendum, AGM agreed to consider.
Please click here to read the letter ... letter-to-fm.pdf
Please click here to read the E Journal No 14 for September-October 2021e-journal-sept-oct-2021.pdf
A STRANGE CLARIFICATION BY BSNL ON
TAXATION ON CGHS and GRATUITY.
BSNL CO Letter No. BSNLCO-TAXN/13(18)/3/2020-TAXATION/4362
Dated:-22-09-2021
To
1) The Chief General Managers and IFAs, All BSNL Circles/Units.
2) Sr.GM (CA/ERP-FICO/HCM), Corporate Office
3) GM (EF/ R&P), Corporate Office
Sub.:- Clarification on taxability of payments made to retired employees and
nominees of deceased employees-reg.
The undersigned is directed to intimate that, this office is receiving queries from the various circle on the subject mentioned above. In this connection the para wise replies to the queries raised by circles are as follows:-
Query: Whether reimbursement of CGHS subscription to BSNL absorbed retired employees is to be treated as income of the retired employee? And, if the answer is in affirmative, the head under which it is chargeable.
Reply: As per the proviso to section 17(2) of the Income Tax Act,1961 any reimbursement by the employer in respect of any insurance premium paid by the employee to effect an insurance on his health or the health of his family under any approved scheme by Central Govt. or IRDA is a tax free perquisite. However, in the absence of clarity on whether reimbursement to BSNL absorbed retired employees on account of CGHS subscription is an insurance premium or not, on a conservative basis, tax may be deducted at source under the head of salary.
Query: Gratuity/Leave encashment payable to Nominee/Legal Heirs of BSNL employee on death while in employment is to be shown as Income of the employee or legal heirs? And the head under which it is chargeable.
Reply:
(i) Gratuity is a payment made by Employer to an Employee in appreciation of the past services rendered by the employee. Gratuity can either be received by:-
a) The employee himself at the time of retirement.
b) The legal heir on the event of the death of the employee.
Gratuity received by an employee on his retirement is taxable under the head “Salary”Whereas gratuity received by the legal heir of the deceased employee shall be taxable under the head “Income From Other sources”.
As per circular No. 573 dated 21.08.1990, Gratuity payment to a widow or other legal heirs of any employee who dies in active service shall be exempt from income tax.
(ii) Leave salary paid to the legal heir of deceased employee is not taxable as salary.
[Letter No. F.35/1/65-IT(B), dated 5/11/1965 ].
Further, leave salary by a legal heir of the Government employee who died in harness is not taxable in the hands of the recipient[Circulars No.309, dated 3/7/1981].
Query: Medical Reimbursement to the spouse/dependents of the deceased employee is taxable under which head of Income tax.
Reply: As per section 56(1) of the Income tax act, Income of every kind which is not to be excluded from the total income under this Act shall be chargeable to income-tax under the head “Income from other sources”, if it is not chargeable to income-tax under any of the heads specified in section 14, in other words, the following conditions must be satisfied before an income can be taxed under the head of “Income from other source” :-
(i) there must be an income.
(ii) such income is not exempt under the provision of the income tax act.
(iii) such income is not chargeable to tax under any first four heads viz., “Income from
Salary”, “Income from House Property”, “Profit and Gains of Business and Profession”,and “Income from Capital Gains”.
Income from other source is, therefore, a residuary head of income.
In view of the above medical reimbursement to the spouse/dependents of the deceased employee is taxable under the head of “Income from other source” of Income tax.
It is requested to kindly go through the above instructions and contents of the same may be brought to the notice of all concerned for their information and further necessary action.
This issues with the approval of Sr. GM (Taxation).
Please click here to see the Om from DoP&PW on the subject: lc-2021.pdf
Please4 cilck here to read a write up by P S Ramankutty; salute-the-martyrs.pdf
