Friday, 28 October 2016
MESSAGE FROM CHAIRMAN
On the behalf of office bearers of Armed Forces veterans Association of India (AFVAI) I wish you and your family a very happy Diwali. I pray it may bring new hopes, lights and heights in your life.
Special wishes for the happy and healthy life of our great and brave serving soldiers who are guarding our borders day & night and working hard for the Nation. Due to your hard work and sincerity our country is shining like a star in the whole world. We pray for long and healthy life of your families who will be celebrating Diwali while you are on duty.
We also pray for happy life for the families of those brave soldiers who have sacrificed their lives for security of the Nation .Vacuums created due to the loss of their lives can never be filled up, only blessings of almighty God will work. We salute to the departed souls.
Dear veterans in the coming days we have lot of work to do. Our veterans including widows are facing lot of pension related problems which can only be solved if we are united. We must be cooperative with each other, otherwise our coming generations will not pardon us. AFVAI a registered organisation is working very hard for the welfare of our veterans and widows and it is a very good platform for ESM. I request you all please join us to make our efforts more effective. AFVAI will leave no stone unturned for the welfare of veterans and widows.
I request our respected veterans not to believe in false propaganda being made by few veterans .They have done nothing for the welfare of veterans except blaming and spreading false news without any proof. Their only objective is to disturb others to hide their weakness. Please neglect and isolate such people from our community. Here I want to quote one line of Gurbani :-
Guru Nanak Dev Ji - Mande Kamee Nanka, Jad Kad manda hoe.
Means - Those who do bad work for others, soon or later will face same and get bad names.
I request all, forget what happened in the past and plan to solve our problems for good future.
Thanks & Regards
|AFVAI New Delhi <email@example.com>|
|Diwali greetings from AFVAI|
|AFVAI New Delhi <firstname.lastname@example.org>||Fri, Oct 28, 2016 at 11:59 AM|
To: RMO <email@example.com>
Cc: <firstname.lastname@example.org>, email@example.com
Monday, 17 October 2016
How to claim Tax Relief on Arrears while filing income Tax Returns?
As per the provisions of the Income Tax Act, 1961 the salary earned in a particular financial year is to be taxed as per the tax rates applicable for that financial year. But in many a cases, individuals may receive income in a particular financial year, which may relate to the earlier financial years, i.e. arrears of salary or in advance for future financial years. How to claim tax relief on such arrears while filing income tax returns?
What is arrear payment of previous financial year?
The arrears may be in the form of pensions or pay hikes in the case of government employees. This may pertain to the previous financial year, however received in the current financial year. This could shoot up their tax liability to a large extent. The individual might move up in the tax slab also but they should not be penalized with higher taxes because they received their income later. There are a few escape routes to this problem of which most of them are not aware of
How to claim tax relief on such arrears?
Many a people do not know how to calculate tax on these arrears as the process is a bit complicated. As per the rules of Income Tax Act, if you have received any portion of your salary or pension in arrears or advance, you are allowed tax relief under Section 89 (1). The purpose of this section is to provide relief to the receiver and save him from any additional tax burden which was created due to the delay or advancement in receiving your earnings.
While claiming relief under Section 89 (1), it is mandatory for an individual to fill the form 10E to make a claim.
Taxpayers who have claimed relief under section 89 (1) in the previous years but had not filed form 10E have received notices from the income tax department stating that the relief could not be allowed as form 10E has not been furnished. The best part is that this form can be submitted online easily under e-filing.
You may like: How to claim deductions while filing tax returns?
The said relief is to be claimed in the financial year in which the arrears or advances have been received. The following are the steps to calculate the tax relief correctly:
Step-by-Step Process on computing tax relief on such arrears
Let’s assume one case. An individual receives Rs. 30,000 as arrear income (10,000 for each year) for three years along with Rs. 40,000 as his current year income.
Step 1: Calculate total tax payable for the total income, including the arrears for the year in which the income is actually received. Here, calculate tax on Rs. 70,000 for the current year.
Step 2: calculate tax payable on the total income, excluding the arrears in which it is received. Continuing above example, calculate the total tax payable on Rs. 40,000 for the current year.
Step 3: calculate the difference between the step 1 and step 2.
Step 4: Calculate tax payable on the total income, including arrears for the year of which the arrears relate. Here, calculate tax on that particular year's income for which the arrears have been received, including the arrears. (10,000 to be added to the concerned year income)
We have to repeat this step for all the years for which the arrear income has been received.
Step 5: calculate tax liability for the total income, excluding the arrears for the year of which the arrears relate. (This figure would have been determined previously while filing income tax return for that concerned year. If not, arrive at that figure excluding the income that has been received as arrears).
Step 6: Calculate the difference between the step 4 and step 5.
Also Read: Simple Steps to file income tax returns online in India
Step 7: now subtract the tax difference you arrived at step 6 from step 3. This excess amount is the tax relief that you can claim on your income tax return.
The point to be noted here is that if the tax liability at step 6 is more than step 3, no relief shall be allowed.
Conclusion: This is a highly beneficial provision, especially in cases where the employee receives payments from his employer and his tax bracket moves upwards due to these arrears or advancements or when there is a variation in tax rates in different financial years.
Thanks: Economic Times.
Friday, 7 October 2016
|AFVAI New Delhi <firstname.lastname@example.org>|
|Discrepancy in DESW letter No 1(2)/2016-D(Pen/Pol) Dated 30.09.2016|
|AFVAI New Delhi <email@example.com>||Sat, Oct 8, 2016 at 10:39 AM|
To: "Shrimati K. Damayanthi" <firstname.lastname@example.org>
Tuesday, 4 October 2016
The Joint Secretary
Department of Ex servicemen Welfare
Ministry of Defence
New Delhi Date – 04/10/2016
Ministry of Defence
New Delhi Date – 04/10/2016
Appeal to delink the condition of 33 years on the pro rata pension sanctioned to Pre- 2006 defence pensioners, on or after 01.01.2006
The department of Ex servicemen welfare, Ministry of defence has finally issued the letter dated 30.09.2016, delinking the condition of 33 years on the minimum guaranteed pension wef 01.01.2006, to the pre 2006 defence pensioners. This has been done in pursuance of DOPT OM dated 06.04.2016 and on the basis of the judgement of CAT Ernakulam in the petition of M O Inasu & other vs UOI.
Kindly note that this notification does only a partial justice to us since the delinking has been done only on MGP and not on the actual pro rata pension sanctioned to us on after 01.01.2006, revised with effect from 1.7.2009 & further improved from 24.09.2012. We are therefore denied full advantage of delinking of 33 years for full pension.
It may be mentioned here that the 6 CPC in its report recommended for delinking 33 years to post 2006 pensioners only and therefore the pre 2006 knocked at the doors of courts for extending the same benefit to them as well. They have mainly relied on the well considered pronouncements of the Hon'ble Supreme Court of India in the case of D S Nakara vs UOI, that the state cannot create classes within the group by resorting to artificial specified dates. The CAT, Ernakulam while upholding this principle, gave only partial relief to the extent of delinking 33 years service on MGP. This tantamount to continuation of 33 years condition on the pro rata pension sanctioned to them on 01.01.2006 and revised wef 01.07.2009 and improved from 24.09.2012 thereby contradicting the decision of the HSC in the above case which is violative of Art 14 of the Indian Constitution.
The relevant portion of the said judgement is reproduced below for your kind reference:
".........by introducing an arbitrary eligibility criteria: 'being in service and retiring subsequent to the specified date' for being eligible for the liberalised pension scheme and thereby dividing a homogeneous class, the classification being not based on any discernible rational principle and having been found wholly unrelated to the objects sought to be achieved by grant of liberalised pension and the eligibility criteria devised being thoroughly arbitrary, we are of the view that the eligibility for liberalised pension scheme of being in service on the specified date and retiring subsequent to that date' in impugned memoranda, Exhibits P-I and P-2, violates Art. 14 and is unconstitutional and is struck down...."
It may also be appropriate to mention that the PBORs are historically sanctioned pension on the maximum of the pay scale from which they retired except for a small duration from 01.01.2006 to 30.06.2009 which was also subsequently restored effective from 01.07.2009. This was done in order to compensate their early retirement and truncated career. Hence delinking 33 years should apply in their cases on notional maximum of the pre 2006 scale.
In view of the foregoing we request you kindly examine the issue and consider delinking 33 years of service on actual pro rata pension sanctioned to us effective from 01.01.2006 and revised on the basis of notional maximum wef 1.7.2009 and further improved wef 24.09.2012 and issue appropriate orders at the earliest.
CLICK THE FOLLOWING LINK FOR PCDA CIRCULAR 547 FOR ARREARS FROM 01/01/2006
CLICK BELOW LINK FOR EX-SERVICEMEN LATEST IMPORTANT CIRCULAR
GRANT OF EX-SERVICEMEN STATUS TO RECRUITS BOARDED OUT OF SERVICE CLICK BELOW LINK
TO KNOW MORE ABOUT YOUR AIRFORCE PENSION BENEFITS
ENTIRE AMOUNT OF MILI TAR PENSION IS EXEMPTED FORM INCOME TAX IF YOU ARE DRAWING DISABILITY PENSION
ENHANCED PENSION FOR EX-SERVICEMEN REFER IMPLIMENTATION CIRCULARS CLICK THE FOLLOWING LINK
- @ dual family pension gazette notification
- @clarification of family pension
- @CLICK THIS LINK TO REFER THE CHART SHOWING ENHANCEMENT OF FAMILY PENSION OF JCOs/ORs RETIRED PRIOR TO 01-01-2006 CIRCULAR 502
- @CLICK THIS LINK TO REFER THE AUTHORITY LETTER FOR Revision of pension in r/o pre 2006 JCOs/OR Pensioners/Family Pensioners CIRCULAR 547
- @CLICK THIS LINK TO REFER THE AUTHORITY LETTER FOR DUAL FAMILY PENSION CIRCULAR 504