CENTRAL CIVIL SERVICES (LEAVE) (AMENDMENT) RULES, 2009 – NOTIFICATION
Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training)
NOTIFICATION
New Delhi, the, 1st December, 2009.
GSR… In exercise of the powers conferred by the proviso to article 309 read with clause (5) of article 148 of the Constitution and after consultation with the Comptroller and Auditor General of India in relation to the persons serving in the Indian Audit and Accounts Department, the President hereby makes the following rules further to amend the Central Civil Services (Leave)Rules, 1972, namely: –
1.(1) These rules may be called the Central Civil Services (Leave) (Amendment) Rules, 2009.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Central Civil Services (Leave) Rules, 1972, (hereinafter referred to as the said rules), for rule 6 the following rule shall be substituted, namely, – "6. Transfer to industrial establishment.– If a Government servant governed by these rules is appointed in an industrial establishment wherein his leave terms are governed by the Factories Act, 1948 (63 of 1948), the authority competent to grant leave shall, suo motu, issue an order granting cash equivalent of leave salary in respect of earned leave and half pay leave at his credit subject to a maximum of 300 days and the cash so granted shall be a sum equal to the leave salary as admissible for earned leave and leave salary as admissible for half pay leave plus dearness allowance admissible on that leave salary at the rate in force on the date the Government servant ceases to be governed by the provisions of the said rules:
Provided that in the event of his return to a post or service to which the Central Civil Services (Leave) Rules, 1972 apply, the benefit of cash equivalent of leave salary payable under rule 39 shall be modified as under –
(a) On superannuation .- encashment of leave shall be subject to the condition that the number of days of both earned leave and half pay leave for which encashment has already been allowed under this rule and the number of days of earned leave and half pay leave to be encashed on superannuation does not exceed 300 days;
(b) On premature retirement.- cash equivalent of unutilised earned leave and half pay leave should be subject to the condition that the number of days of earned leave and half pay leave for which encashment had already been allowed under this rule and the number of days of earned leave and half pay leave to be encashed on premature retirement shall not exceed 300 days.".
3. In the said rules, for rule 28, the following rules shall be substituted, namely, –
'28. Earned leave for persons serving in Vacation Departments. – (1) (a) A Government servant (other than a military officer) serving in a Vacation Department shall not be entitled to any earned leave in respect of duty performed in any year in which he avails the full vacation;
(b) In respect of any year in which a Government servant avails a portion of the vacation, he shall be entitled to earned leave in such proportion of 30 days, as the number of days of vacation not taken bears to the full vacation:
Provided that no such leave shall be admissible to a Government servant not in permanent employ or quasi-permanent employ in respect of the first year of his service ;
(c) If, in any year, the Government servant does not avail any vacation, earned leave shall be admissible to him in respect of that year under rule 26.
EXPLANATION: For the purpose of this rule, the term "year" shall be construed not as meaning a calendar year in which duty is performed but as meaning twelve months of actual duty in a Vacation Department.
NOTE 1. – A Government servant entitled to vacation shall be considered to have availed a vacation or a portion of a vacation unless he has been required by general or special order of a higher authority to forgo such vacation or portion of a vacation
Provided that if he has been prevented by such order from enjoying more than fifteen days of the vacation, he shall be considered to have availed himself of no portion of the vacation.
NOTE 2. – When a Government servant serving in a Vacation Department proceeds on leave before completing a full year of duty, the earned leave admissible to him shall be calculated not with reference to the vacations which fall during the period of actual duty rendered before proceeding on leave but with reference to the vacation that falls during the year commencing from the date on which he completed the previous year of duty.
(2) Vacation may be taken in combination with or in continuation of any kind of leave under these rules:
Provided that the total duration of vacation and earned leave taken in conjunction, whether the earned leave is taken in combination with or in continuation of other leave or not, shall not exceed the amount of earned leave due and admissible to the Government at a time under rule 26.
(3) The earned leave under this rule at the credit of a Government servant at the close of the previous half year shall be carried forward to the next half year, subject to the condition that the leave so carried forward plus the credit for the half year shall not exceed the maximum limit of 300 days.
NOTE. – The facility of crediting of unavailed portion of joining time shall be admissible to persons serving in Vacation Departments, in accordance with the provisions of sub-clause (ii) of clause (a) of sub-rule (1) of rule 26.".
4. In the said rules, in rule 29, for sub-rule (1), the following sub-rule shall be substituted, namely:-
"(1) The half pay leave account of every Government servant (other than a military officer) shall be credited with half pay leave in advance, in two installments of ten days each on the first day of January and July of every calendar year.".
5. In the said rules, in rule 38-A, – (a) sub rule (1) shall be omitted;
(b) for sub-rule (5), the following sub-rule shall be substituted, namely:-
"(5) The period of leave encashed shall not be deducted from the quantum of leave that can normally be encashed by him under rules 6, 39, 39-A, 39-B, 39-C and 39-D.".
6. In the said rules, in rules 39, –
(a) for sub-rule (2), the following sub-rule shall be substituted, namely, –
INCOME TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2009-10
CIRCULAR NO.: 1/2010
F.No. 275/192/2009-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, dated the 11th January,2010
SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2009-2010 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.
Reference is invited to Circular No.08/2007 dated 5.12.2007 whereby the rates of deduction of income-tax from the payment of income under the head "Salaries" under Section 192 of the Income-tax Act, 1961, during the financial year 2008-2009, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2009-2010 and explains certain related provisions of the Income-tax Act. The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department-
Highlights from the OM…
Relief When Salary Paid in Arrear or Advance:
3.5 Under sub-section (2A)of section 192 where the assessee, being a Government servant or an employee in a company, co-operative society, local authority, university, institution, association or body is entitled to the relief under Sub-section (1) of Section 89, he may furnish to the person responsible for making the payment referred to in Para (3.1), such particulars in Form No. 10E duly verified by him, and thereupon the person responsible as aforesaid shall compute the relief on the basis of such particulars and take the same into account in making the deduction under Para(3.1) above.
Explanation :- For this purpose "University means a University established or incorporated by or under a Central, State or Provincial Act, and includes an institution declared under section 3 of the University Grants Commission Act, 1956(3 of 1956), to be University for the purposes of the Act.
However with effect from 1/04/2010 (AY 2010-11) that no such relief shall be granted in respect of any amount received or receivable by an assessee on his voluntary retirement or termination of his service, in accordance with any scheme or schemes of voluntary retirement or in the case of a public sector company referred to in sub-clause (i) of clause (10C) of section 10 (read with Rule 2BA), a scheme of voluntary separation, if an exemption in respect of any amount received or receivable on such voluntary retirement or termination of his service or voluntary separation has been claimed by the assessee under clause (10C) of section 10 in respect of such, or any other, assessment year
New Pension Scheme :-
The New Pension Scheme(NPS) has become operational since 1st Jan, and is mandatory for all new recruits to the Central Government Services from 1st January, 2004. Since then it has been opened to employees of State Governments, Private Sector and Self Employed (both organized and unorganized)
The income received by the NPS trust is exempt. The NPS trust is exempted from the Dividend Distribution Tax and is also exempt from the Securities Transaction Tax on all purchases and sales of equities and derivatives. The NPS trust will also receive income without tax deduction at source. The above amendments are retrospectively effective from 1/4/09 (AY 2009-10) onwards
Medical Reimbursement by the employer exceeding RS. 15,000/- p.a. u/s. 17(2)(v) is to be taken as perquisites.
It is further clarified that the rule position regarding valuation of perquisites are given at Section 17(2) of Income Tax Act'61 and at Rule 3 of Income Tax Rules'62. The deductors may look into the above provisions carefully before they determine the perquisite value for deduction purposes.
It is pertinent to mention that benefits specifically exempt u/s 10(13A), 10(5), 10(14), 17 etc. would continue to be exempt. These include benefits like travel on tour and transfer, leave travel, daily allowance to meet tour expenses as prescribed, medical facilities subject to conditions.
Under Section 80E of the Act a deduction will be allowed in respect of repayment of interest on loan taken for higher education, subject to the following conditions:
(i)In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, any amount paid by him in the previous year, out of his income chargeable to tax, by way of interest on loan, taken by him from any financial institution or any approved charitable institution for the purpose of pursuing his higher education or for the purpose of higher education of his spouse or children.
(ii) The deduction specified above shall be allowed in computing the total income in respect of the initial assessment year and seven assessment years immediately succeeding the initial assessment year or until the interest referred to above is paid in full by the
assessee , whichever is earlier.
For this purpose –
a) "approved charitable institution" means an institution established for charitable purposes and approved by the prescribed authority under clause (2C) of section 10, or, an institution referred to in clause (a) of sub-section (2) of Section 80G.
(b) "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies (including any bank or banking institution referred to in section 51 of that Act); or any other financial institution which the Central Government may, by notification in the Official Gazette, specify in this behalf;
(c) "higher education" means any course of study pursued after passing the Senior Secondary Examination or its equivalent from any school, board or university recognised by the Central Government or State Government or local authority or by any other authority authorised by the Central Government or State Government or local authority to do so;
(d) "initial assessment year" means the assessment year relevant to the previous year, in which the assessee starts paying the interest on the loan.
RULE 21A OF INCOME TAX RULES 1962 – FORM 10E
ILLUSTRATION TO RE-ASSESS THE INCOME TAX OF THIS YEAR (FIN YEAR 2009-10) BY SUBMITTING FORM 10-E
As per Rule 21A of Income Tax Rules 1962, we can submit Form 10E as we have received pay commission arrears pertaining to the years 2005-06, 2006-07, 2007-08 and 2008-2009. (January 2006 to August 2008). An example is given below which explains the eligibility for getting relief.
| Sl No | Details | Amount |
| 1. | Total Income (Including arrears) | 3,36,014 |
| 2. | Deductions under savings | 1,00,000 |
| 3. | Total Income (Including arrears) | 2,36,014 |
| 4. | 60% of 6th Pay Commission arrears | 46,014 |
| 5. | Net Taxable income | 1,90,000 |
| 6. | Tax on Total Income (As per Item 3) | 7,829 |
| 7. | Tax on Net Income (As per Item 5) | 3,090 |
| 8. | Tax on Arrear Amount (Difference of Item 7 and 6) | 4,739 |
| 9. | Split the arrear amount accordingly, have to pay Tax | 351 |
| 10. | Relief under section 89(1) | 4,388 |
TABLE "A" of Annexure 1
| Previous Year(s) | Net Taxable income of the relevant previous years | Distribution of 60% arrears to the relevant years | Total income with arrears during the relevant years (2+3) | Tax on total income without latest arrears distributed (tax on 2) | Tax on total income with latest arrears distributed (tax on 4) | Difference in tax during relevant years on account of arrears (6-5) |
| 2005-06 | 83,420 | 4,107 | 87,527 | 0 | 0 | 0 |
| 2006-07 | 69,360 | 16,821 | 86,181 | 0 | 0 | 0 |
| 2007-08 | 71,380 | 17,270 | 88,650 | 0 | 0 | 0 |
| 2008-09 | 145,590 | 7,816 | 153,406 | 0 | 351 | 351 |
What amount we have to pay in this financial year as Income Tax minus Relief under section 89(1)
Example:
We have to pay Income Tax current FY
(Including arrear amount) = Rs.9,000
Relief under section 89(1) = Rs.4,388
Rs.4,612
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