Welcome to the official website of All India Postal Employees Union Group 'C'- अखिल भारतीय डाक कर्मचारी संघ वर्ग 'सी' की आधिकारिक वेबसाइट में आपका स्वागत है

Thursday, January 28, 2010



Government of India
Ministry of Personnel, Public Grievances and Pensions
(Department of Personnel and Training)


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, –

"(2) (a) Where a Government servant retires on attaining the normal age prescribed for retirement under the terms and conditions governing his service, the authority competent to grant leave shall, suo motu, issue an order granting cash equivalent of leave salary for both earned leave and half pay leave, if any, at the credit of the Government servant on the date of his retirement subject to a maximum of 300 days;


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


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.

(e) relative", in relation to an individual, means the spouse and children of that individual or the student for whom the individual is the legal guardian



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




Total Income (Including arrears)



Deductions under savings



Total Income (Including arrears)



60% of  6th Pay Commission arrears



Net Taxable income



Tax on Total Income (As per Item 3)



Tax on Net Income (As per Item 5)



Tax on Arrear Amount (Difference of Item 7 and 6)



Split the arrear amount accordingly, have to pay Tax



Relief under section 89(1)



 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)





























What amount we have to pay in this financial year as Income Tax minus Relief under section 89(1)


We have to pay Income Tax current FY

(Including arrear amount)                        = Rs.9,000

Relief under section 89(1)                       = Rs.4,388


No comments: