AKULA PRAVEEN KUMAR

Wednesday, March 30, 2011

Congratulation to TEAM INDIA

Tuesday, March 29, 2011

HIKE IN SOME ALLOWANCES AFTER DA CROSSED 51%

The following allowances are to be increased with effect from 01.01.2011.

1. Children Education Assistance & Reimbursement of Tuition FeeRs.12,000 (Per Year - Per Child) - Rs.15,000 (Per Year - Per Child) DOPT 12011/03/2008-Estt.(Allowance) 2.9.2008

2. Advances for purchase of Bicycle Advacne, Warm clothing Advance, Festival Advance, Natural Calamity Advance Rs.3,000 - Rs.3,750 Fin.Min. No.12(1)E.II(A)/2008 7.10.2008

3. Special Compensatory Hill Area Allowance Rs.600 / Rs.480 - Rs.750 / Rs.600 Fin.Min.

4(2)/2008-E.II (B) 29.8.2008 4. Special CompensatoryScheduled / Tribal Area Allowance Rs.400 / Rs.240- Rs.500 / Rs.300 Fin.Min. 17(1)/2008-E.II (B) 29.8.2008

5. Project Allowance Rs.1,500 / Rs.1,000 - Rs.1,875 / Rs.1,250 Fin.Min. 29.8.2008

6. Special Compensatory (Remote Locality) Allowance Rs.2,600 / Rs.2,100/ Rs.1,500 / Rs.400 -- Rs.3,250 / Rs.2,625/ Rs.1,875 / Rs.500 Fin.Min. 3(1)/2008-E.II(B) 29.8.2008

7. Cycle Maintenance Allowance Rs.60 (Per month) - Rs.75 (Per month) Fin.Min. 19039/3/2008-E.IV 29.8.2008

8. Mileage for road journey all components of daily allowance on tour, rate of transportation of personal effects. Rs.500 / Rs.300 / Rs.200 / Rs.150 / Rs.100 - Rs.625 / Rs.375 / Rs.250 / Rs.190 / Rs.125 Fin.Min.19030/3/2008-E.V 23.9.2008

9. Rates of Conveyance Allowance under SR-25 Rs.370 / Rs.480 / Rs.640 / Rs.750 / Rs.850 - Rs.470 / Rs.600 / Rs.800 / Rs.940 / Rs.1,070 Fin.Min.19039/2/2008-E.IV 23.9.2008

10. Washing Allowance Rs.60 - Rs.75 Fin.Min.14/3/2008-JCA 11.9.2008

11. Split Duty Allowance Rs.200 - Rs.250 Fin.Min.9(11)/2008-E.II (B) 29.8.2008

12. Spl. Allowance for Child Care for Women with Disabilities and Education Allowance for disabled children Rs.1,000 per month- Rs.1,250 per month DOPT12011/04/2008-Estt.(Allowance) 11.9.2008

13. Cash Handling Allowance Rs.600 / Rs.500 / Rs.400 / Rs.300 / Rs.150 - Rs.750 / Rs.625 / Rs.500 / Rs.375 / Rs.190 DOPT4/6/2008-Estt.(Pay.II) 1.10.2008

14. Risk Allowance DOPT21012/1/2008-Estt.(Allowance) 12.3.2009

15. Postgraduate Allowance Rs.1,000 / Rs.600- Rs.1,250 / Rs.750 Min.of HohfwA.45012/4/2008-CHS.V 16.4.2009

16. Desk Allowance Rs.600 - Rs.750 DOPT 1/10/2009-PIC 17.4.2009

17. Bad Climate Allowance Rs.400 / Rs.240 - Rs.500 / Rs.300 Fin.Min.1/10/2008-E.II(B) 29.8.2008

House Building Advance to Central Government Employees

1.The Scheme of House Building Advance to Central Government Employees is aimed at providing assistance to the Government employees to construct/acquire house/flats of their own. The scheme was introduced in 1956, as a welfare measure. Ministry of Urban Development & Poverty Alleviation act as the nodal Ministry for the same. 2. House Building Advance is admissible to all those temporary employees also who have rendered 10 years of continuous service. The Ministries/Departments are delegated powers to sanction House Building Advance to their employees in accordance with the House Building Advance Rules.3.With effect from 27-11-2008, the following provisions of grant of House Building Advance shall be in operation, until further orders:- (i).The maximum limit for grant of HBA shall be 34 months' of pay in the pay band subject to a maximum of Rs. 7.50 lakh or cost of the house or the repaying capacity whichever is the least, for new construction/purchase of new house/flat. (ii).The maximum limit for grant of HBA for enlargement of existing house shall be 34 months' pay in the pay band subject to a maximum of Rs. 1.80 lakh or cost of the enlargement or repaying capacity, whichever is the least. (iii).The cost ceiling limit shall be 134 times the pay in the pay band subject to a minimum of Rs.7.50 lakh and a maximum of Rs.30 lakh relaxable up to a maximum of 25% of the revised maximum cost ceiling of Rs.30 lakh. 4. The rate of interest on House Building Advance is between 5% to 9.5% ,depending on the loan amount. 5. The repaying capacity of Govt. servants who have more than 20 years of remaining service has been revised from 35% to 40% of pay. (Pay means pay in the pay band).6. The salient features of House Building Advance Rules are as follows- 1. ELIGIBILITY Permanent Government employees. Temporary Government employees who have rendered at least 10 years continuous service. To be granted once during the entire service. If both the husband and wife are Government of India employees and eligible for HBA, it shall be admissible to only one of them.2. PURPOSEHBA is granted for: Constructing a new house on the plot owned by the official or the Official and the Official's wife/husband jointly. Purchasing a plot and constructing a house thereon. Purchasing a plot under Co-operative Schemes and Constructing a house thereon or acquiring house through membership of Co-operative Group Housing Scheme. Purchasing /construction of house under the Self-Financing scheme of Delhi, Bangalore, U.P., Lucknow etc. Outright purchase of new ready-built house/flat Housing boards, Development Authorities and other statutory or semi-Government bodies and also from private parties.* Enlarging living accommodation in an existing house owned by the official or jointly with his/her wife/husband. The total cost of the existing structure (excluding cost of land) and the proposed additions should not exceed the prescribed cost ceiling. Repayment of loan or advance taken from a Government or HUDCO or Private source even if the construction has already Commenced, subject to certain conditions. Constructing the residential portion only of the building on a Plot which is earmarked as a shop-cum-residential plot in a Residential colony. * Private party means registered builders but not private individuals.3. CONDITIONS:a) The applicant or spouse or minor child should not already own a house in the town/Urban agglomeration where the house is proposed to be constructed or acquired.b) The title to the land should be clear. The land may be owned either:- by the Government employee; or - jointly by the Government employee and spouse. c) COST CEILING 134 times of pay in the pay band subject to a minimum of Rs. 7.50 lakh and a maximum of Rs.30 lakh Administrative Ministry may relax the cost ceiling to 25% of cost ceiling mentioned above in the individual cases on merits. (Effective from 27th November, 2008)d) AMOUNT OF ADVANCE: will be the LEAST of the following:- (i) 34 times the pay in the pay band. (ii) The cost of construction.** (iii) Rs. 7,50,000/- *** (iv) Repaying Capacity. ** 80% of cost in rural areas. *** Rs. 1,80,000/- in case of enlargement of existing house.e) REPAYING CAPACITY:- Repaying Capacity is computed on the following basis:- S. No. Length of remaining service of the applicant. Repaying Capacity 1. Retiring after 20 years. 40% of pay @ 2. Retiring after 10 years but not later than 20 years. 40% of pay @ plus 65% of * Retirement Gratuity 3. Retiring within 10 years 50% of pay @ plus 75% of * Retirement Gratuity. @ Pay means pay in the pay band4. DISBURSEMENT OF ADVANCE: S. No. Purpose of HBA Disbursement (1) (2) (3) (i) For construction/enlargement (single or double storeyed). 50% -50% on execution of mortgage deed on construction reaching plinth level (Ground Floor). (ii) For purchase of land and construction (Single storeyed) 40% or - actual cost30% - 30% - for purchase of plot on execution of agreement and production of Surety Bond.On execution of Mortgage deed. On construction reaching plinth level. (iii) For purchase of land and construction (Double storeyed) 35% or actual cost 32.5% - 32.5% - for purchase of plot on execution of agreement and production of Surety bond.On execution of the mortgage deed.On construction reaching the plinth level. (iv) For purchase of ready built house/flat 100% - in one lumpsum. (v) For acquiring flat/house from Co-operative Group Housing Society. 20% - 80% - Towards purchase of land by the Society.in suitable installments on receipt of demand (pro-rate basis) (vi) For purchase of flat under SFS of Development Authorities etc. No payment for initial registration Deposit. May be released in not more than 5 instalments. But the fifth and final instalment should not be less than 10% and is to be released for making final payment.5. TIME SCHEDULE FOR UTILISATION OF HBA: S. No. Purpose Time limit (a) Purchase of registered plot on which construction can commence immediately. Sale deed to be produced within 2 months. (b) Purchase of ready built house. Acquisition and mortgage to Government to be completed within 3 months. (c) Purchase/construction of new flat Should be utilised within one month of sanction. 6. REPAYMENT OF ADVANCE: The recovery of advance shall be made in not more than 180 monthly installment and interest shall be recovered thereafter in not more than 60 monthly installments. In case Government servant is retiring before 20 years, repayment may be made in convenient installments and balance may be paid out of Retirement Gratuity.7. INTERESTThe rate of interest on Housing Building Advance with effect from 1st April, 2003 are as follows:- S. No. Amount of Advance sanctioned to a Government Servant Rate of Interest on HBA (Per Annum). 1. Upto Rs. 50,000/- 5% 2. Upto Rs. 1,50,000 6.5% 3. Upto Rs. 5,00,000/- 8.5% 4. Upto Rs. 7,50,000/- 9.5% 8.COMMENCEMENT OF RECOVERY: Construction of a house or enlargement of living accommodation * From pay for the month following the completion. OrThe pay for the 18th month after date of payment of the 1st installment, whichever is earlier. Purchase of land and construction. * From pay for the month following the completion of the house. OrThe pay for the 24th month after date of drawl of installment for purchase of land, whichever is earlier. COMMENCEMENT OF RECOVERY (CONT'D): Ready built flat. * Pay for the month following the month in which advance was drawn. Purchase of Flat under SFS from Development Authority/Housing Society. * From the pay for the 18th month after date of payment of 1st installment. * The sanctions of HBA should invariable stipulate a higher rate of interest at 2.5% above prescribed rates with the stipulation that if conditions attached to the sanction are fulfilled, rebate of interest to the extent of 2.5% will be allowed.9. CREATION OF SECOND MORTGAGE: The Government servants who have obtained HBA from the Government may be permitted to create a second charge on the property provided they obtain prior permission of the Head of the Department and the draft deed of second mortgage is submitted to the Head of the Department for scrutiny. Such a second charge may be created only in respect of loans to be granted for meeting the balance cost of houses/flats by recognised financial institutions. 10.PROVISIONS FOR SAFE RECOVERY OF HOUSE BUILDING ADVANCE: (i). As a safeguard of the House Building advance, the loanee Government employee has to insure the house immediately on completion or purchase of the house, as the case may be, at his own cost with Life Insurance Corporation of India and its associated units. The house/flat constructed/purchased with the help of House Building advance can also be insured with the private insurance companies which are approved by Insurance Regulatory Development Authority(IRDA). However, the insurance should be taken for a sum not less than the amount of advance against damage by fire, flood and lightning, and has to be continued till the advance together with interest is fully repaid to Government. (ii).The house constructed/purchased with the help of House Building Advance has also be mortgaged in favour of the President of India within a stipulated time unless an extension of time is granted by the concerned Head of the Department. After completion of the recovery of the advance together with interest thereon, the mortgage deed is re-conveyed in a proper manner.

Public Provident Fund (PPF) scheme : Investment Limit, Income tax benefit, Features

Public Provident Fund (PPF) scheme : Investment Limit, Income tax benefit, Features The Public Provident Fund is the darling of all tax saving investments.No wonder! You invest in it and you get a deduction on your income. Besides, the interest you earn on it is tax-free. Since it is a scheme run by the Government of India, it is also totally safe. You can be sure no one is going to run away with your money. Here, we summarise the scheme, tell you how to open a PPF account and what to expect.

1 . To open a PPF account, drop by a State Bank of India branch. SBI’s subsidiary banks can also open accounts. Alist of these subsidiary banks is available on the bank’s Web site.You can even visit the nationalised bank in your neighbourhood. Selected branches of nationalised banks can also open accounts.The head post office or selection grade sub-post offices also open PPF accounts.

2. You will have to fill up a form. You can take a look or download the form from SBI’s web site. Along with the form, attach a photograph and submit your Permanent Account Number. If you do not have a PAN, then furnish an attested copy of either your ration card, voter’s identity card or passport. When you open an account, you will be given a passbook (just like a bank pass book) in which all subscriptions, interest accrued, withdrawals and loans are recorded.

3. You can have only one PPF account in your name. If, at any point, it is detected that you have two accounts, the second account you have opened will be closed, and you will be refunded only the principal amount, not the interest.

4. You cannot open a joint account with another individual. The account can only be opened in one person’s name. You are free to nominate one or more individuals. On the death of the account holder, nominees cannot keep the account going by making contributions. If there are no nominees, the legal heirs get the money. You can open one account for yourself and others for your child/ children. But, on your death, your children cannot make any additional contributions.

5. The minimum amount to be deposited in this account is Rs 500 per year. The maximum amount you can deposit every year is Rs 70,000. The interest you will earn is 8% per annum. Let’s say you open an account for your minor child. You can deposit Rs 70,000 in your account and Rs 70,000 in your child’s account. In this case you can in my opinion take the maximum benefit of Rs. 1,00,000/- U/s. 80C. As Limit of Maximum Investment in a year of 70000/- is fixed by Public provident Fund Act not by Income Tax law. You can make up to 12 deposits in one year. You don’t have to put in this money at one go.

6. The PPF account is valid for 15 years. The entire balance can be withdrawn on maturity, that is, after 15 years of the close of the financial year in which you opened the account. So, if you opened it in FY 2006-07 (this financial year), you will be able to withdraw it 15 years later, starting March 31, 2007 (end of this financial year). That means your PPF matures on April 1, 2022. It can be extended for a period of five years after that. During these five years, you earn the rate of interest and can also make fresh deposits. Once your account expires, you can open a new one. The only limitation is that you cannot withdraw it until seven years are completed, after which 50% of your deposits can be withdrawn, if needed.

7. Deposit date in Cheque payments :-Till recently, in case of a PPF when a subscriber used to make deposits by local cheque or demand draft, the date of tender of cheque or draft at the accounting office was treated as the date of deposit of PPF, provided the said cheque was duly honoured on presentation for encashment. In contrast, in case of other small savings schemes like Post Office Savings Scheme (POSS), Senior Citizen Savings Scheme 2004 (SCSS) any money deposited in these accounts by means of a cheque, the date of encashment of the cheque is treated as the date of deposit.Thus, in order to remove inconsistency between PPF and other small savings schemes and to bring in uniformity in the reckoning of the date of deposit of all the schemes, the government has issued necessary instructions through the circular to banks / other intermediaries which hold PPF accounts for the individuals to treat the date of realisation of the cheque or demand draft by the subscriber as the date of deposit.This issue becomes particularly relevant in respect of deposits made towards the end of the financial year by cheque / demand draft because if the same is not realised by March 31, then the same will be treated as deposits for the following financial year. This would also have ramifications in respect of the tax deduction being claimed by the individuals in a particular tax year.8. Opening an account for a minor :-There have been certain practical hurdles in respect of opening of accounts for minor vis-à-vis some intermediary agencies. This clarification reiterates that as per the rules under PPF scheme, an individual may on his own behalf or on behalf of a minor of whom he is a guardian, open a PPF account. Further, either father or mother can open PPF account on behalf of his / her minor child, but both cannot open the account for same child.9. What are the differences and similarities between the National Savings Certificate (NSC) and PPF? National Savings Certificate (NSC) Public Provident Fund (PPF) Interest Paid: 8%, compounded half-yearly Interest Paid: 8%, compounded annually No monthly/yearly payments No monthly/yearly payments Minimum investment: Rs 100 Maximum investment: No Limit Minimum investment: Rs 500 (required annually) Maximum investment: Rs 70,000 Duration of investment: 6 years Duration of investment: 15 years Can be used as a security for mortgage and other purposes Cannot be used for such purposes Tax benefit under Section 80 ‘C’ available. Maximum limit: Rs 100,000 Tax benefit under Section 80 ‘C’ available. Maximum limit: Rs 70,000 (limit of the investment in PPF) Good medium-term investment option Good long-term investment option Interest if fully Taxable Interest is fully ExemptDo consider opening a PPF account if you do not have one. You can put in as little as Rs 500 a year to keep it going.

Sunday, March 27, 2011

Saturday, March 26, 2011

అవును సార్‌, అంతకన్నా దురదృష్టం
ఏంటంటే రాష్ట్రంలో ప్రతిపక్షం కూడా లేదు

Thursday, March 24, 2011

DA ORDERS

No.1(2)/2011 – E-II(B)

Government of IndiaMinistry of Finance

Department of Expenditure——
New Delhi,

the 24th March, 2011.

OFFICE MEMORANDUM

Subject: Payment of Dearness Allowance to Central Government Employees – Revised Rates effectives from 1.1.2011.

—————-

The undersigned is directed to refer to this Ministry’s office Memorandum No. 1(6)/2010-E-II(B) Dated 22nd September, 2010 on the subject mentioned above and to say that the president is pleased to decide that the Dearness Allowance payable to Central Government Employees shall be enhanced from the existing rate of 45 % to 51% with effect from 1st January, 2011.

2. The provisions contained in paras 3, 4 and 5 of this Ministry’s O.M No. 1 (3)/2008-E-II(B) dated 29th August, 2008 shall continue to be applicable while regulating Dearness Allowance under these orders.

3. The additional installment of Dearness payable under these orders shall be paid in cash to all Central Government Employees. 4. The payment of arrears of Dearness Allowance for the months of January and February, 2011 shall not be made before the date of disbursement of salary of March, 2011.

5. These orders shall also apply to the civilian employees paid from the defense services Estimates and the expenditure will be chargeable to the relevant head of the Defense Service Estimates. In regard to Armed Forces personnel and Railway employees separate orders will be issued by the Ministry of Defense and Ministry of Railways, respectively.
6. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue after consultation with the controller and Auditor General of India.

(Y.P. Sehgal)Deputy Secretary to the Government of India
Finance Ministry Order