Reminder ... It's Tax time

Just to remind you that .....

It's time for payment of  Income Tax . Tax , if any due for this FY, should be paid on or before  15th March.

Budget Allocation for 7CPC Pay and Pension Hike is TRUE

“Missing: $15 billion lost somewhere in India’s 1,500-page budget” .

Bloomberg, a business analysis and TV & internet media, had earlier reported that an amount equivalent to US$ 15 Billion which is to be paid to CG Employees and Pensioners as result of implementation of 7CPC in the year 2016-17, has not been taken in to account in the Budget 2016-17.

But now another agency, Livemint, has come out with a finding. They said :

"The first place to look for is under non-plan expenditure, and a table titled “Estimated strength of establishment and provision thereof”. This details how many employees are there in 56 government departments (excluding Defence) and how much the government has budgeted to pay their salaries: an increase of Rs.65,690 crore in 2016-17. Thus, we have accounted for around 65% of SPC’s impact.

The second place to look for is pensions, the details of which are again provided under non-plan expenditure. This shows the government has budgeted for an increase of Rs.37,066 crore.”

Thus, the total increase in salary and pension bill in 2016-17 is Rs.102,756 crore. However, there is one rider. The pension liabilities include increased outgo on account of implementing the OROP scheme.

What’s “missing” is $1 billion and not $15 billion.”

That's Good News !

"

Lower increase in Pay hikes

A report in GConnect says that :
The government has managed to stick to the lower fiscal deficit target partly by provisioning for a lower outgo on account of the 7CPC and the OROP scheme. As per the government, around Rs 70,000-75,000 crore has been provided for in fiscal 2017. This is only about 65% of the total amount, in our view, and suggests that the government will either accept a lower increase (relative to the recommendations) or will stagger the pay hikes over two years.

Did you get the idea ?

VSSC Highlights 2015

VSSC Highlights 2015
The annual Newsletter for former employees -  is now available. You would have already got it OR it must be on the way to you  !

For a digital copy of the VSSC -Highlights (all issues from 2005 )  , contact me at isrofef@gmail.com. Requests should be with your identity.

Alarming Notes to note

Over 6 Lakh posts in various Central Govt ministries are vacant. This info was  given to Rajya Sabha last day. ( This includes over 5000 posts in ISRO too  ! )


CBI Director, on 2 March,  said :   "   Banks and SEBI are slow to act against the wilful defaulters. .....  No one seems accountable. The message to the public is that the rich/powerful are able to avoid consequences of cheating and fraud while ordinary citizens are promptly booked. "

7CPC implementation - Funds NOT allocated ?

Did you note that the FM in his budget document presented last day ,  did not give any figures for the fund allocated for 7CPC implementation ?  He just stated that provision is made !

But "BUDGET" is a financial plan document which must clearly state the money matters in NUMBERs.  And not in mere statements !

Now , the Economic Affairs Secretary has clarified that :  " the OROP us fully provided for. Similarly interim provisions have been made for the Pay Commission report. However , we will await the Committee of Secretaries report before taking a final decision. If additional provisions need to be made, we can do it later. "

So this means that 7CPC implementation is in a fluid state , even now. 

Tax on PPF ?

Is PPF taxable ?  In the absence of clarity in budget presentations , this was a doubt raised by many. But don't get worried over that !

The Govt has now clarified that the popular PPF scheme will continue to stay out of the tax ambit and that tax will be levied only on accrued interest on 60 percent of EPF contribution.