Double Benefit : 6 Tax Saving Investment With Tax-exempt Returns

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The tax saving season is on and both, salaried and non-salaried taxpayers would start comparing tax saving investment options for the financial year 2018-19.

As an investor look for investment options that not only helps you save tax but also generate tax-free income.

While choosing the right tax saver, among several other factors such as safety, liquidity and returns, make sure you understand how the returns would be taxed. If the income earned is taxable, the scope to make money over the long run gets constrained as taxes will eat into your returns.

In tax-saving financial products like the National Savings Certificate (NSC), Senior Citizens’ Savings Scheme (SCSS), 5-year time deposits with banks and post offices, the interest amount gets added to your income and therefore is liable to be entirely taxed.

Here are few such tax savers that not only help you save tax but also help you earn tax-free income. But, not all are the same in terms of features and asset-class, so making the right choice is essential.

1.EQUITY-LINKED SAVINGS SCHEMES

* From April 1, 2018 any LTCG made on transfer of equity MFs that have an equity exposure of 65 per cent or more including Equity-linked savings schemes (ELSS) will have to pay a 10 per cent tax on long-term gains. It is important to note that gains made above Rs 1 lakh per annum will only be subject to tax and any gains made below that limit in one FY remains tax-exempt. The LTCG made till January 31, 2018, however, remains grandfathered, i.e., those gains remains tax-exempt.

Equity-linked savings schemes (ELSS) are diversified equity mutual funds with two differentiating features – one, investment amount in them qualifies for tax benefit under Section 80C of the Income Tax Act, 1961, up to a limit of Rs 1.5 lakh a year and secondly, the amount invested has a lock-in period of 3 years. Every mutual fund (MF) house offers them and generally uses the word tax-saving in its name to distinguish them from their other mutual fund schemes. The returns in ELSS are not fixed and neither assured but is dependent on the performance of equity markets.

One may opt for dividend or growth option in them. While the former suits someone looking for a regular income, although not assured, the latter suits someone looking to save for a long-term need.

However, dividend in an equity MF scheme (including ELSS) should not be construed as similar to the dividend received from an equity share. In the latter, the dividend is declared out of profits generated by a company while in a MF, it is out of the NAV. For a MF unit holder, receiving the dividend is merely equal to the redemption of units.

Further, the dividends in an equity scheme are now ( April 1, 2018 onwards) subject to dividend distribution tax of 10 percent. Hence, for someone investing in ELSS, choosing the grwoth option over the dividend option will yield tax-effective returns.

To mitigate risks, one may diversify across more than one ELSS scheme (based on market capitalisation and industry exposure) after considering their long-term consistent performance. After the lock-in ends, one may continue with the ELSS investments similar to any open-ended MF scheme. However, review its performance against its benchmark before doing so. Investing in ELSS not only helps you save for a long term goal but also helps you save tax and generate tax-exempt income.

2.PUBLIC PROVIDENT FUND

For decades, Public Provident Fund (PPF) Scheme, 1968 has been a favourite savings avenue for several investors and is still standing tall. After all, the principal and the interest earned have a sovereign guarantee and the returns are tax-free.

PPF currently (subject to change every three months) offers 7.8 percent per annum. For someone paying 30.9 percent tax (highest income slab), it translates to nearly 11.28 percent taxable return. Now, how many taxable investments including bank FD’s are providing such high pre-tax return!

One can open a PPF account in one’s own name or on behalf of a minor of whom he is the guardian. While the minimum annual amount required to keep the account active is Rs 500, the maximum amount that can be deposited in a financial year is Rs 1.5 lakh. This is the combined limit of self and minor account.

PPF is a 15-year scheme, which can be extended indefinitely in a block of 5 years. It can be opened in a designated post office or a bank branch. It can also be opened online with few banks. One is allowed to transfer a PPF account from a post office to a bank or vice versa. A person of any age can open a PPF account. Even those with an EPF account can open a PPF account.

Whom it suits: PPF suits those investors who do not want volatility in returns akin to equity asset class. However, for long-term goals and especially when the inflation-adjusted target amount is high, it is better to take equity exposure, preferably through equity mutual funds, including ELSS tax saving funds and not solely depend on PPF.

3.EMPLOYEES’ PROVIDENT FUND

Employees’ Provident Fund (EPF) is another avenue that helps a salaried individual not only helps save tax through involuntary savings but also accumulate tax-free corpus. An employee contributes 12 percent of one’s basic salary each month mandatorily towards his EPF account. An equal share is contributed by the employer but only a portion (3.67 percent) goes into EPF.

The employee’s contributions qualify for tax benefit under Section 80C of the Income Tax Act, 1961, up to a limit of Rs 1.5 lakh a year but not the employer’s share. Both, employee-employer share qualifies for interest as declared by the government each year which is tax-free in nature. The interest rate on EPF is currently at 8.55% for 2017-18 from the previous year’s rate of 8.65% for 2016-17.

One may, however, increase one’s own contribution up to 100 percent of basic and DA, to his VPF account and in doing so it becomes voluntary provident fund (VPF). The VPF is a part of the EPF and all the rules remain the same. The interest earned on the EPF/VPF account is tax-exempt so long as the employee continues in employment for five continuous years or more.

Although one may opt-out from VPF by intimating one’s employer, the money contributed towards VPF, which represents additional savings towards retirement, get locked-in for a longer tenure, and hence use the VPF route judiciously.

4.UNIT LINKED INSURANCE PLAN

Unit linked insurance plan (Ulip) is a hybrid product, a combo of protection and saving. It not only provides life insurance but also helps channel one’s savings into various market-linked assets for meeting long-term goals.

In most Ulips, there are 5 to 9 fund options with varying asset allocation between equity and debt. A Ulip can have a duration of 15 or 20 years or more but the lock-in period is 5 years. The fund value on exiting the policy (allowed after 5 years) or on maturity is tax-free. Any switching between the fund’s options irrespective of the holding period is exempt from tax.

Whom does Ulips suit: Ulips may not be suitable for all investors. Those investors who are comfortable in identifying and managing the ELSS schemes and simultaneously hold a pure term insurance plan, need not buy Ulips. Also, investors looking at investing in Ulips should make sure that the goal for which the Ulip savings is to be used is at least ten years away. For someone to exit Ulip after 5-7 years could be financially damaging.

5.Traditional insurance plans
Traditional insurance plans could be an endowment, money-back or a whole life plan. Unlike pure term insurance plans they have a savings element in them and come with a fixed term and a fixed sum assured. The premiums are based on the age at the time of entry, the life coverage and the period for which coverage is required. Premiums are to be paid each year till maturity. Few such plans have a limited premium payment option in which premiums are to be paid only for a specified term but the policy continues for long. For example, a policy of 25 years may require premiums to be paid only for the first 5 or ten years.

While the premium paid qualifies for tax benefit under section 80C, the maturity value and the death benefit is tax-free.

Where traditional plans fail: Traditional plans are inflexible in nature. The term once chosen can’t be changed. For someone who has started saving for say 20 years might need funds in the 16th or 19th year. Most such plans also do not allow partial withdrawals. Even sum assured can’t be changed. The traditional insurance plans including endowment, money back or of any design have a potential for lower returns and is largely in the range of 4-7 percent per annum.

6. SUKANYA SAMRIDDHI YOJANA

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child launched as a part of the ‘Beti Bachao Beti Padhao’ campaign. It is currently fetching an interest rate of 8.1 percent and provides income-tax benefit.

A Sukanya Samriddhi Account can be opened any time after the birth of a girl till she turns 10, with a minimum deposit of Rs 1,000. A maximum of Rs 1.5 lakh can be deposited during the ongoing financial year. The account will remain operative for 21 years from the date of its opening or until the marriage of the girl after she turns 18.

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Do you Know How Cancer Spreads In The Body ? Here’s How Cancer Stages Explained

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  • Cancer grows through stages, from 0-4
  • Recently, actress Sonali Bendre was diagnosed with metastatic cancer
  • Cancer staging is used to define the location of the tumour

Cancer is one of the deadliest diseases of all time. With millions succumbing to this disease, it is extremely important to spread knowledge about cancer. Cancer is a disease characterised by the abnormal growth of cells in any part of the human body. These cells, in the initial few stages form a primary tumour which can be treated easily, if diagnosed in time. However, if it primary tumour remains undiagnosed and untreated, these cancer cells can grow and spread to other parts of the body. But after the tumour has spread to other parts of the body, it is known as metastatic tumour. Recently, actress Sonali Bendre was diagnosed with metastatic cancer. Cancer grows through stages, from 0-4.

Cancer staging is used to define the location of the tumour, if it has spread to other parts of the body or not, and if it has affected other organs of the body or not. A diagnostic test is conducted to check the stage cancer has progressed to.

Cancer staging is of two types, clinical or pathological. Clinical staging is conducted on the basis of the results before surgery. Pathological staging, on the other hand, depends on the results of the surgery. It can also be done if the patient has gone through certain treatments before surgery like radiotherapy and chemotherapy.

What are the different stages of cancer?

Cancer spreads through 0-4 stages. With the help of test results and other determinant factors, doctors define the stage of cancer. The four stages of cancer can be broken down as follows:

1. Stage 0

When cancer is in stage 0, it is said to be in Situ. This means that the cancer is still present where it originated and has not spread to other parts of the body. It means that the tumour has yet not spread to other tissues in the body. The good news about this stage is that this is when cancer is highly preventable. It can either be removed through surgery or can be reversed with the help of lifestyle alterations. Opting for a healthy lifestyle, balanced diet, proper workout routine can help with the treatment of cancer in stage 0.

2. Stage 1

When cancer is said to be in stage 1, it means that cancer has spread to a nearby tissue but has not gone beyond. It could be in the blood stream or the lymphatic system. This is known as the early stage of cancer. In this stage, doctors recommend immediate medical treatment. At this stage, medical treatment combined with a healthy diet and good lifestyle choices can be helpful for treating cancer. It can also help you prevent the return of cancer.

3. Stage 2 and 3

These stages are known as the stages of regional spread. This means that the cancer has expanded, spread in the nearby tissues and have latched itself to the surrounding tissues in the body. In these stages, cancer enters the blood stream and can be detected in the lymph system as they can get latched on the nodes. In this stage, it is extremely crucial for you to boost your immune system. A weak immune system may result in an autoimmune response from the body which mistakenly harms the human body itself. This stage is pretty serious; however, there still is a ray of hope as the cancer has not latched to an organ in the body.

4. Stage 4

Cancer in stage 4 is known as metastatic cancer. In this case, cancer spreads from its point of origin and gets latched to an organ in the body. This form of cancer is most difficult to treat but is not impossible to get rid of. To create better chances of survival, patients need to go through proper medical treatment and take care of their health accordingly.

Experts reveal that 50% of the battle with cancer is its prevention. People need to follow a healthy lifestyle, make healthier choices like a balanced diet, less of processed foods and avoid smoking at all costs. This will prevent you from developing cancer. After all, prevention is better than cure!

Note:  This content including advice provides generic information only. It is in no way a substitute for qualified medical opinion. Always consult a specialist or your own doctor for more information.

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Confused About Income Tax Returns ? Here are 5 Easy Steps to file your ITR

It’s that time of the year when you have to think about filing your income-tax returns and clear all your annual tax liabilities. We are just two weeks away from the deadline of July 31. Start filing now to avoid last-minute rush! Remember, this deadline does not apply to those who have to get their accounts audited. The due date for those businesses that have to get their accounts audited is September 30. To make filing easier and for faster processing of returns for taxpayers, the income-tax (I-T) department has made e-filing mandatory.

If your total income for the financial year 2017-18 is more than Rs 250,000, you must file your I-T return by 31 July 2018. Those with an income of more than Rs 500,000 must compulsorily e-file.

Here are some steps you can follow to file your I-T return on time:

1. Keep all basic details for filing ready:

Before you start with the e-filing process, ensure you have certain basic details ready, such as your PAN, valid email account, valid mobile number, Aadhaar number or Aadhaar enrolment ID, etc, without which return cannot be filed.

2. Form 16/16A:

Insist that your employer or deductor gives you your Form 16 or 16A, as the case may be, as proof of deduction of taxes at source on the payment made to you. These forms help you to understand the basis of your tax deduction on the income earned and makes it simpler for you to fill the details in the respective ITR.

3. Form 26 AS:

You should download Form 26AS from the income-tax e-filing portal before getting started with filing returns. This form is your consolidated tax statement summarising all taxes paid against your PAN. This form in fact helps you cross-check the details of income and tax deducted appearing in your Form 16 or Form 16A. Any discrepancies between Form 26AS and Form 16/16A need to be addressed before going ahead with the return filing process. However, you have to include the incomes received corresponding to TDS which is appearing on the Form 26AS, even though the deductor may not have provided Form 16A. The tax department only allows TDS credit if its related income has been included in your tax return.

4. Bank details:

Even if you know that you don’t have a refund this year, you should provide all your bank account details along with the IFSC code in your income-tax return. Therefore, keep details of your bank account ready, too. However, you need not mention details of the accounts that have become dormant – that is, those that have not been operational for more than three years.

5. Investment documents:

Proof of tax-saving investments made, medical cover taken, donations made, etc, are all required for helping you claim deductions under Section 80C, 80D and 80G respectively. Further, the need to keep these documents handy assumes more significance in a case where you have missed submitting tax proofs to your employer during the year on account of which there has been higher tax deduction at source. Law still gives you a chance to claim Section 80 deductions directly in your return. So, make the most of it by being adequately prepared.

To sum up, taking care of the above aspects is sure to help you in filing your return in time and sail through the return-filing process smoothly. Do note that filing return in time is crucial, as not doing so can result in a late filing fee under Section 234F – up to Rs 5,000 between August 1 and December 31, and up to Rs 10,000 after that. Further, it may also disentitle you from claiming a carry-forward of your losses, if any, during the year.

Income Tax Returns Refund : Rs 70,000 crore worth refunds Issued

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Central Board of Direct Taxes on Wednesday said that more than Rs 70,000 crore of refunds  have  been issued to the taxpayers as a result of the special drive and expeditious processing of returns involving the claim of returns.

did you get your Income tax returns refunds?  Well, ITR refunds worth Rs 70,000 crore have been issued to taxpayers regarding the claims that have been pending. It has been declared officially that as of June end almost all have been processed and taxpayers would be lauding the system.

Central Board of Direct Taxes on Wednesday said that more than Rs 70,000 crore of refunds have been issued to the taxpayers as a result of the special drive and expeditious processing of returns involving the claim of returns.

The Income Tax Department observed a dedicated fortnight from 1st to 15th June 2018 to expeditiously clear pending matters of appeal effect and rectification, said Central Board of Direct Taxes in a press release.

More than 20,000 such matters were disposed and refunds were issued to taxpayers. Later this drive was extended in few regions up to 30th June 2018 after seeing the success of this initiative.

Also, large amounts of refunds have been issued consequent to the processing of income-tax returns.

“More than 99% of all refund claims pending for processing as on 30.06.2018 have already been processed and the refunds due have been issued to the taxpayers,” said CBDT in a statement.

In all, during April-June 2017, 54.07 lakh cases were issued while refunds in 45.07 lakh cases have been issued during April-June 2018. More than 3 lakh refunds of Assessment Year 2018-19, for which returns have been filed only in last few weeks, have also been issued.

Also, Central Board of Direct Taxes (CBDT) in a press release said that it is committed to constantly reduce the service delivery timelines, expeditiously resolving the grievances of the taxpayers and improving the overall level of taxpayer service.

Income Tax Department Turns Heat on Salaried Taxpayers; Warns Against False Claims

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As financial year 2017-18 has come to an end, it is now time for individual taxpayers to start working on filing their income tax return by July 31, 2018 (except certain individual taxpayers who derive income from business/ profession and are subject to tax audit).

Fraudulent tax refunds

In January this year, the investigation wing of income tax department unearthed a racket of incorrect/ fraudulent tax refunds by employees of information technology companies based in Bengaluru, in alleged connivance with a tax advisor. Similar other incidents were also reportedly found in other locations across India.

Complete coverage on Taxes and Investments 

In view of the above incidents, CBDT, the apex income tax administration body, recently issued an advisory to all individual taxpayers to refrain from any such fraudulent claims/ malpractices for avoidance of taxes. The salaried taxpayers will have to take care of following aspects while filing their income tax returns.

Penalty for late filing of ITR

This year brings a new provision of late fee payable by income taxpayers if the tax return is filed beyond prescribed due date. Salaried taxpayers, who are required to file their income tax returns by July 31, 2018 would be liable to pay late fee of (a) Rs 5,000, if they file their income tax returns after July 31 but on/ before December 31, 2018; and (b) Rs 10,000, if they file their income tax returns after December 31 but on/ before March 31, 2019. This late fee would be in addition to any interest on income tax payable otherwise.

Income tax return for FY2017-18 can not be filed after March 31, 2019. Earlier, late filing of income tax return within one year from relevant financial year did not attract any late fee/ penalty.

Further, non-filing of income tax return by an individual taxpayer (if total income exceeds `2.5 lakh) may be considered as “under-reporting” of income liable for penalty equal to 50% of total tax liability, even if tax is already paid on such income by way of TDS. Under earlier provisions of Section 271, if tax on entire income was already paid by way of TDS, non-filing of income tax return attracted a meagre penalty of Rs 5,000. Accordingly, salaried taxpayers, who have discharged their income tax liability by way of TDS and have been issued TDS certificate in Form 16, should file income tax return, if their total income exceeds Rs 2.5 lakh.

The tax department has advised salaried taxpayers to strictly comply with income tax provisions and avoid resorting to any such means of fraudulent/ false claims to reduce their income tax liability or claim incorrect tax refunds. The income tax department has extensive risk analysis system and any such incorrect claim made/ fraudulent measures adopted by taxpayers will not only result in delay in processing of refund claims but may also result in scrutiny of such returns post processing of returns by the CPC.

The CBDT has also mentioned that in addition to penalty/ prosecution as prescribed under income tax laws, in case of government/ PSU employees, it may also result in reference being made to concerned vigilance division for action under conduct of service rules. Clearly, the CBDT has been taking a very serious note of incorrect/ fraudulent claims made by taxpayers and it is advisable for taxpayers to comply with the income tax provisions and seek correct advice from professionals, if required.

Tax Department offers instant e-PAN Based on Aadhaar

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HIGHLIGHTS

  • The facility is free of cost and you can you can log onto the income tax portal to generate the e-PAN
  • It is available for resident individual tax payers and not for Hindu undivided family (HUF), firms, trusts and companies
  • The e-PAN will be generated using the details available in Aadhaar

NEW DELHI: The tax department on Friday launched the facility of e-PAN on a real-time basis, a move which is expected to reduce the interaction with the department and help taxpayers generate the permanent account number (PAN) without any hassle.

The facility is free of cost and you can you can log onto the income tax portal to generate the e-PAN. It is available for resident individual tax payers and not for Hindu undivided family (HUF), firms, trusts and companies, and is open for a limited period on a first-come, first-served basis for valid Aadhaar holders.

You will not need to submit any documents. The e-PAN will be generated using the details available in Aadhaar. So, you need to make sure that these are details updated because the e-KYC will be done using the Aadhaar database.

Once, the e-KYC is successful based on the Aadhaar OTP, the process of e-PAN application will be initiated. You will need to upload a scanned copy of your signature on a white paper with the specifications given on the income tax website. After filing the application, a 15-digit acknowledgement number will be generated and sent to your mobile number/ email mentioned in the application form.

“Thanks to the elevated use of technology and digitisation adopted by the government in the tax department, it is now resulting in truly convenient and paperless interface with tax payers. One may expect more of such initiatives in the coming days, which will make the life of tax payers more easy for managing their tax affairs,” said Kuldip Kumar, partner & leader, personal tax at consulting firm PwC India.

 

Bentley Recruitment 2018 | Freshers | Graduate Trainee | Pune | July 2018

Company: Bentley Systems

Bentley is the global leader dedicated to providing architects, engineers, constructors, and owner-operators with comprehensive software solutions for sustaining infrastructure. Each solution is designed to ensure that information flows between processes and project team members to fully leverage interoperability and collaboration. These solutions provide users with the capabilities they need to increase cost efficiencies and maximise the return on their investments in innovation, empowering them to design, build, and operate better-performing infrastructure, which has been Bentley’s mission for the past 29 years.

Bentley sustains the infrastructure professions by helping to leverage information technology, learning, best practices, and global collaboration – and by promoting careers devoted to this crucial work.

Company Website:  www.bentley.com

Positions: Graduate Trainee

Experience: Freshers

Job Location: Pune

Salary: Best In Industry

Eligibility Criteria: At least BS in Computer Science or Engineering related field required.

Job Description:   **Cognizant, Accenture, MindTree & other Top IT Companies Urgently require AMCAT qualified BE/BTech Engineers. Apply here Now**

  • Will design, implement, execute, and maintain automated test Plans.
  • Assist team to stabilize Automated Test Plans.
  • Will prepare reports for ATP execution.
  • Create Configuration files using CAF functionality.
  • Create and Maintain VMs on Hyper-V

Skills:

    • Knowledge of a programming language such as VB/.NET or C++/C# or Java within a source code repository environment using a tool such as Visual Studio.
    • Must have knowledge of quality assurance methodologies for a software testing environment.
    • Knowledge of a test automation tool, data and\or keyword driven testing is plus.

 

IMF suggests 3 Steps to India to sustain high growth rate

The IMF( International Monetary fund)  Board is tentatively scheduled to meet on July 18 for its annual meeting on India.

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Washington: To sustain its high growth rate, India should carry out banking sector reforms, continue with fiscal consolidation and simplify GST as well as renew impetus to reforms of key markets, the IMF suggested on Friday.

India’s growth accelerated to 7.7 percent in the fourth quarter of Financial Year (FY) 2017-18. That was up from 7 percent in the previous quarter, IMF Communications Director Gerry Rice told reporters at his fortnightly news conference.

“We expect the recovery to continue in FY 2018-19. Growth is projected at 7.4 percent in FY 2018-19 and actually 7.8 percent in FY 19-20, respectively,” Rice said.

In order to sustain the high growth rate, Rice suggested three steps for India to follow. 

 To revive bank credit and enhance the efficiency of credit provision by accelerating the cleanup of bank and corporate balance sheets and enhancing the governance of public sector banks, he said.

India should continue fiscal consolidation and lower elevated public debt levels supported by simplifying and streamlining the goods and services tax (GST) structure, he said.

“And thirdly, over the medium-term, renew impetus to reforms of key markets, for example, labour and land, as well as improving the overall business climate would be crucial to improving competitiveness and again, maintaining that very high level of growth in India,” Rice said.

The IMF Board is tentatively scheduled to meet on July 18 for its annual meeting on India.

“We will be releasing the staff report in relation to that Board meeting and it will have details (about GST),” he said when asked about simplifying and streamlining of the goods and services tax structure.

It (GST) is a complicated tax to administer and to implement, so some suggestions for streamlining can be important, he said.

The IMF is scheduled to release on July 16 the update on World Economic Outlook.

 

7th Pay Commission : No more overtime payment for employees, decides Modi Government

 

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According to a statement released by the ministry, Modi government has gone for the move as the expenditure for paying salary over the years has risen substantially.

The central government has decided that no government staff, apart from operational staff members, will be paid overtime. The Union Ministry for Personnel, Public Grievances and Pensions has made the decision on the basis of the recommendations of the seventh pay commission. It will be applicable for staff members of all ministries under the government of India.

Operational staff are the non-ministerial non-gazetted members who take care of infrastructure and logistics in an office. They are governed by statutory provisions. The government has asked all ministries to prepare a list of all operational staff members.

The government has further decided that there will be no change in overtime allowance for the operational staff members. They will also need the approval of their senior officials to claim the amount in lieu of overtime.

According to a statement released by the ministry, Modi government has gone for the move as the expenditure for paying salary over the years has risen substantially.

The statement further said that the Union government has asked all ministries to prepare a list of operational staff with full justification for inclusion of a particular category. The government may also link the overtime allowance with biometric attendance system. Overtime allowance or OTA for the operational staff will not be revised. They would get the amount as per its order issued in 1991.

 

7th Pay Commission : This Factor comes as a good news to 50 Lakh employees waiting for pay scale,fitment factor hike

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Each day there is something new happening in 7th Pay Commission. 7CPC have stolen the limelight for more than two years, especially in regards to 50 lakh central government employees who have been waiting for some good news in their minimum pay scale and fitment factor. These employees have seen some ups and downs, as there were first reports that mentioned the NDA government is seriously looking in the pay scale and fitment factor issue beyond 7CPC, even there were news which stated the promises made by Finance Minister Arun Jaitley. But as days passed, everything turned bleak when it was revealed that government has included many issues in 7CPC but not the minimum pay scale and fitment factor.

However, looks like once again a ray of hope as hit headline for these central government employees.

The Minister of State for Finance P. Radhakrishnan in Lok Sabha had said that the Prime Minister’s Narendra Modi government is not planning to give any hike in minimum basic salary beyond the recommendations of the seventh pay commission, reported by DNA.

But looking at  strong quarterly growth numbers of Indian economy and the fact that NDA government is at edge of 2019 elections, employees are once again hoeful that their much-awaited demand would be fulfilled.

India’s Gross Domestic Product (GDP) numbers surpassed analysts estimates during fourth quarter ended of FY18 (Q4FY18) with a growth rate of 7.7% which is at 18-month high. With this robust performance, India has become one of the fastest growing economy globally, and not to forget such outcome comes as a feather in Narendra Modi government’s crown who were blamed to hamper economy due to their demonetisation drive and launch of Goods and Services Tax (GST).

Reportedly, besides the quarterly figures the employees are also optimistic of Finance Minister Arun Jaitley’s promise. FM Jaitley on June 30 in 2016 promised to hike their pay beyond the recommendations of 7th Commission.

Experts also belive that 2019’s general elections would also force the Central government to fulfil the demands of 50 lakh employees, added the DNA report.

Meanwhile, central government employees want fitment factor of 3.68 times with minimum pay scale of Rs 26,000. This is after the Union Cabinet revised their minimum pay to Rs 18,000 from previous Rs 7,000 per month, along with fitment factor of 2.57 in June 2016 leading to a major hike in all central government employees salaries.

It was known that, the government may hike minimum pay to Rs 21,000 and fitment factor to 3.00 times. However, the NDA government at centre claimed that they are not really looking to hike minimum pay beyond the recommendations provided in the 7th CPC report.