12 Penalty Points will lead to DL Suspension – Learn how you earn them?

Hyderabad Traffic Police has started implementing the Government Order passed on 24-April-2017 which has introduced Penalty points in addition to the traffic challan you pay for a violation. These penalty points are applied on your driving license and all you need is 12 Points for your driving license to be suspended for an year.

Penalty Points Lead to DL Suspension
Penalty Points Introduced

Below is the list the offenses which earn you these points.

Relevant Section under
M.V.Act, 1988
Gist of Offence
Penalty Points
Carrying extra passengers in the front seat of Auto (piloting)
Unauthorized  carrying of passengers                                                              in goods vehicle
Driving without wearing of seat belts/helmets
Wrong side driving
Driving at a speed upto 40 kms/hr higher than permitted speed
Driving  at a speed   exceeding  40 kms/hr higher than permitted speed
Driving   Dangerously/Driving   while              using                          cell
phone/excess   load   projection   on                        either side/ jumping signal/lane crossing (zig zag).
Drunken driving of Two wheeler
Drunken   driving   of   Four                wheeler/Lorry/Goods carrier
Drunken driving of a public service vehicle like Bus/Cab/Auto
Racing & Trial of Speed while driving
Using vehicle in unsafe condition in public place by violating road safety, control of noise and air pollution,     parking     endangering     safety   of
commuters (only on Highways)
Driving without Insurance Certificate
Driving   without   Public   Liability              Certificate           in respect  of  vehicles  carrying  or  meant  to carry
hazardous substances
Cognizable offences involving
(i)279 IPC/336 IPC/337 IPC/338 IPC
(ii) 304 (A) IPC / 304 II IPC
(iii)Using   the   vehicle   while                committing    chain snatching/robbery/similar offence,etc.,

As you can see from the list above that most aspects that earn you points are for dangerous driving. Once you have earned these points they will be recorded in the RTA database against your DL for 24Months. 
What happens once you get 12 Points?

a. At any point of time, if the cumulative tally of the penalty points accrued by a driver having a license exceeds the limit of twelve (12) points during the preceding block period of 24 months, his/her driving license shall be suspended for a period of one year from the date of accrual of twelve points. On suspension of the driving license, the accrued penalty points shall cease to subsist.

b. If a person, whose license has been suspended and later revoked after completion of one year period under Rule 45-A(4)(i), again accrues twelve (12) points subsequently, driving license of such person shall be suspended for a period of 2 years from the date of accrual of the said twelve (12) points. On further repetition of accumulation of 12 points every time, the driving license shall be suspended for a period of 3 years.

Driving with a Suspended Driving License?
If you are driving with a suspended license then the vehicle will be seized and a chargesheet will be filed in the court.

Learner’s License will be Cancelled at 5 Points

If a person holding a learner’s license gets 5 points during the validity period of learner’s license, then the learner’s license shall be cancelled forthwith. The person whose learner’s license has been cancelled shall be eligible for re-issue of fresh Learner’s License on production of a certificate of learning driving as prescribed from a recognized school or establishment.

How to reduce your Penalty Points?

Government has also provided for a way for you to reduce your penalty points. If a person has accumulated several points for violations, he shall get an opportunity to reduce the tally by three Penalty Points by undergoing defensive training course/motor vehicle accident prevention course from an institution recognized by the Transport Department of the Government. However, this facility shall be restricted to two times in a continuous period of two years”.

Cyberabad and Hyderabad Police Jurisdiction

A separate division in City Police was formed at Hyderabad which is called Cyberabad by Legislative Assembly with the passage of the Bill called Cyberabad Act in the year 2004 introduced by then State Government in Power of Chandrababu Naidu, TDP. 

While the area under Hyderabad Police Commissioner is the core of Hyderabad, Cyberabad has a much larger area though much of it is still under development and is surrounding Hyderabad from all sides. 

Cyberabad Police limits, includes areas like Madhapur, Gachibowli, Hi-Tech City, Kukatpally, Miyapur, Balanagar, Sanath Nagar, Alwal, Malkajgiri, Uppal, L.B.Nagar,Rajendra Nagar, Saroornagar, Shivarampally etc. Such queries can be sent to DCP (Traffic), Cyberabad at the e-mail address dcp_trf@cyb.appolice.gov.in.

Cyberabad Police Jurisdiction covers an area of 3600 Sq. Kms. It has a Population of 60 Lakhs (approx). We serve the Communities with the help of 41 Police Stations (Law & Order) & 11 Traffic Police Stations supported by a series of auxiliary Police Units. The Geographic, Demographic and Administrative features of Cyberabad Metropolitan Area are as follows:

Cyberabad Area & Population
Area in Sq. Km 3600.09
Population 70 Lakhs
District Ranga Reddy
State Telangana

Country India
Public Bodies
Mandal Parishad Territorial Constituencies
Zilla Parishad Territorial Constituencies
Gram Panchayats –
Police Offices
Law & Order Zones 5
Law & Order Divisions 11
Law & Order Police Stations 41
Women Police Stations 1
Traffic Police Divisions 3
Traffic Police Stations 11
Central Crime Station 6
Cyber Crimes Police Station 1

Hyderabad Traffic Police will respond only to queries which fall within Hyderabad Traffic Police limits. Queries pertaining to Cyberabad Police limits, which include areas like Madhapur, Gachibowli, Hi-Tech City, Kukatpally, Miyapur, Balanagar, Sanath Nagar, Alwal, Malkajgiri, Uppal, L.B.Nagar,Rajendra Nagar, Saroornagar, Shivarampally etc. Such queries should be sent to DCP (Traffic), Cyberabad at the e-mail address dcp_trf@cyb.appolice.gov.in.

Budget 2017 – Gain and Loss for every Income Tax Slab

Budget 2017 presented recently had some benefits by way reduction in taxes in the first slab from 10% to 5%. In this post we bring to you the exact quantum of tax benefit you will get based on where you fall in the tax slab from  3lacs to 150Lacs. Please find below the table which lists out the benefit to you. The assumption in this calculation is that you are below 60 Years of age and you have fully used the tax deduction under section 80c. Below figures also take into account the additional surcharge amount of 10%. In case you are also claiming additional deduction under NPS, please reduce your taxable amount appropriately to arrive at the right figure.

Gross Total Income in Lakhs

Tax you have to pay in FY 2016-2017

Tax you have to pay in FY 2017-2018



























































































































Top 3 benefits related to Housing and Traders declared in the Budget -2017 are as follows:

  1. Changes in Capital Gain taxation for immovable properties:

(a) Holding period reduced for computation of long term capital gain from 3 years to 2 years

(b) Base year for counting the cost of property shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property.

  1. Promoting Digital Economy:

(a). In the presumptive income tax for small traders, income to be taken as 6% of turnover which is received by digital or banking means. This will save tax up to 46% for traders of income up to 2Cr.

(b). Cash expenditure allowable to be reduced to Rs.10,000 from the existing Rs.20,000.

(c). Cash transaction of above Rs.3 lakh not to be permitted. The penalty of equal amount to be levied in case of breach.

  1. Three concessions in the scheme of Income Tax exemption for affordable housing:

(a) Area of 30 and 60 Sq.mtr. to be counted as carpet area and not built-up area;

(b) 30 Sq.mtr. only in 4 metropolitan city limits and 60 Sq.mtr. for the rest of the country;

(c)  Completion period extended from 3 years to 5 years.

Good and Services Tax(GST) 14 Things you need to Know

Goods and Services Tax was passed anonymously in the Rajya Sabha today. This tax aims to bring a uniform taxation across India while removing challenges in differential taxation faced by companies in transport of goods from one state to another. It will also subsume Excise Duty, VAT, Interstate Tax, Service Tax into one tax called GST. Thus you will not pay tax on tax in restaurants and purchase of automobiles, consumer durables and FMCG products. While it will bring uniform rate of tax likely to be 18% in the first year. This rate will increase cost of services which are currently being taxed at 15%. So telecom services, financial services and all other services will cost you more once the tax is implemented. GST is likely to be implemented from Financial Year 2018, that is from April 2017 onwards.
In this post we bring to you 14 Frequently Asked questions about the tax which have been compiled and prepared by the Union Finance Minister Mr. Arun Jaitley in the Parliament of India during the Rajya Sabha Debate.
Following are the answers to the various frequently asked questions relating to GST:
Question 1.What is GST? How does it work?
Answer: GST is one indirect tax for the whole nation, which will make India one unified common market.
GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.
Question 2. What are the benefits of GST?
Answer:The benefits of GST can be summarized as under:
·         For business and industry
o   Easy compliance: A robust and comprehensive IT system would be the foundation of the GST regime in India. Therefore, all tax payer services such as registrations, returns, payments, etc. would be available to the taxpayers online, which would make compliance easy and transparent. 
o   Uniformity of tax rates and structures: GST will ensure that indirect tax rates and structures are common across the country, thereby increasing certainty and ease of doing business. In other words, GST would make doing business in the country tax neutral, irrespective of the choice of place of doing business.
o   Removal of cascading: A system of seamless tax-credits throughout the value-chain, and across boundaries of States, would ensure that there is minimal cascading of taxes. This would reduce hidden costs of doing business.
o   Improved competitiveness: Reduction in transaction costs of doing business would eventually lead to an improved competitiveness for the trade and industry.
o   Gain to manufacturers and exporters: The subsuming of major Central and State taxes in GST, complete and comprehensive set-off of input goods and services and phasing out of Central Sales Tax (CST) would reduce the cost of locally manufactured goods and services. This will increase the competitiveness of Indian goods and services in the international market and give boost to Indian exports. The uniformity in tax rates and procedures across the country will also go a long way in reducing the compliance cost.
·         For Central and State Governments
o        Simple and easy to administer: Multiple indirect taxes at the Central and State levels are being replaced by GST. Backed with a robust end-to-end IT system, GST would be simpler and easier to administer than all other indirect taxes of the Centre and State levied so far.
o        Better controls on leakage: GST will result in better tax compliance due to a robust IT infrastructure. Due to the seamless transfer of input tax credit from one stage to another in the chain of value addition, there is an in-built mechanism in the design of GST that would incentivize tax compliance by traders.
o        Higher revenue efficiency: GST is expected to decrease the cost of collection of tax revenues of the Government, and will therefore, lead to higher revenue efficiency.
·         For the consumer in India
o        Single and transparent tax proportionate to the value of goods and services: Due to multiple indirect taxes being levied by the Centre and State, with incomplete or no input tax credits available at progressive stages of value addition, the cost of most goods and services in the country today are laden with many hidden taxes. Under GST, there would be only one tax from the manufacturer to the consumer, leading to transparency of taxes paid to the final consumer.
o        Relief in overall tax burden: Because of efficiency gains and prevention of leakages, the overall tax burden on most commodities will come down, which will benefit consumers.
Question 3.  Which taxes at the Centre and State level are being subsumed into GST?
At the Central level, the following taxes are being subsumed:
a.       Central Excise Duty,
b.      Additional Excise Duty,
c.       Service Tax,
d.      Additional Customs Duty commonly known as Countervailing Duty, and
e.       Special Additional Duty of Customs.
At the State level, the following taxes are being subsumed:
a.       Subsuming of State Value Added Tax/Sales Tax,
b.      Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States),
c.       Octroi and Entry tax,
d.      Purchase Tax,
e.       Luxury tax, and
f.       Taxes on lottery, betting and gambling.
Question 4.  What are the major chronological events that have led to the introduction of GST?
Answer: GST is being introduced in the country after a 13 year long journey since it was first discussed in the report of the Kelkar Task Force on indirect taxes. A brief chronology outlining the major milestones on the proposal for introduction of GST in India is as follows:
a.         In 2003, the Kelkar Task Force on indirect tax had suggested a comprehensive Goods and Services Tax (GST) based on VAT principle.
b.         A proposal to introduce a National level Goods and Services Tax (GST) by April 1, 2010 was first mooted in the Budget Speech for the financial year 2006-07.
c.         Since the proposal involved reform/ restructuring of not only indirect taxes levied by the Centre but also the States, the responsibility of preparing a Design and Road Map for the implementation of GST was assigned to the Empowered Committee of State Finance Ministers (EC).
d.        Based on inputs from Govt of India and States, the EC released its First Discussion Paper on Goods and Services Tax in India in November, 2009.
e.         In order to take the GST related work further, a Joint Working Group consisting of officers from Central as well as State Government was constituted in September, 2009.
f.          In order to amend the Constitution to enable introduction of GST, the Constitution (115th Amendment) Bill was introduced in the Lok Sabha in March 2011. As per the prescribed procedure, the Bill was referred to the Standing Committee on Finance of the Parliament for examination and report.
g.         Meanwhile, in pursuance of the decision taken in a meeting between the Union Finance Minister and the Empowered Committee of State Finance Ministers on 8th November, 2012, a ‘Committee on GST Design’, consisting of the officials of the Government of India, State Governments and the Empowered Committee was constituted.
h.         This Committee did a detailed discussion on GST design including the Constitution (115th) Amendment Bill and submitted its report in January, 2013. Based on this Report, the EC recommended certain changes in the Constitution Amendment Bill in their meeting at Bhubaneswar in January 2013.
i.           The Empowered Committee in the Bhubaneswar meeting also decided to constitute three committees of officers to discuss and report on various aspects of GST as follows:-
(a)      Committee on Place of Supply Rules and Revenue Neutral Rates;
(b)      Committee on dual control, threshold and exemptions;
(c)      Committee on IGST and GST on imports.
j.           The Parliamentary Standing Committee submitted its Report in August, 2013 to the Lok Sabha. The recommendations of the Empowered Committee and the recommendations of the Parliamentary Standing Committee were examined in the Ministry in consultation with the Legislative Department. Most of the recommendations made by the Empowered Committee and the Parliamentary Standing Committee were accepted and the draft Amendment Bill was suitably revised.
k.         The final draft Constitutional Amendment Bill incorporating the above stated changes were sent to the Empowered Committee for consideration in September 2013.
l.           The EC once again made certain recommendations on the Bill after its meeting in Shillong in November 2013. Certain recommendations of the Empowered Committee were incorporated in the draft Constitution (115th Amendment) Bill. The revised draft was sent for consideration of the Empowered Committee in March, 2014.
m.       The 115th Constitutional (Amendment) Bill, 2011, for the introduction of GST introduced in the Lok Sabha in March 2011 lapsed with the dissolution of the 15th Lok Sabha. 
n.         In June 2014, the draft Constitution Amendment Bill was sent to the Empowered Committee after approval of the new Government.
o.         Based on a broad consensus reached with the Empowered Committee on the contours of the Bill, the Cabinet on 17.12.2014 approved the proposal for introduction of a Bill in the Parliament for amending the Constitution of India to facilitate the introduction of Goods and Services Tax (GST) in the country.  The Bill was introduced in the Lok Sabha on 19.12.2014, and was passed by the Lok Sabha on 06.05.2015. It was then referred to the Select Committee of Rajya Sabha, which submitted its report on 22.07.2015.
Question 5.How would GST be administered in India?
Answer:Keeping in mind the federal structure of India, there will be two components of GST – Central GST (CGST) and State GST (SGST). Both Centre and States will simultaneously levy GST across the value chain. Tax will be levied on every supply of goods and services. Centre would levy and collect Central Goods and Services Tax (CGST), and States would levy and collect the State Goods and Services Tax (SGST) on all transactions within a State. The input tax credit of CGST would be available for discharging the CGST liability on the output at each stage. Similarly, the credit of SGST paid on inputs would be allowed for paying the SGST on output. No cross utilization of credit would be permitted.
Question 6.How would a particular transaction of goods and services be taxed simultaneously under Central GST (CGST) and State GST (SGST)?
Answer :The Central GST and the State GST would be levied simultaneously on every transaction of supply of goods and services except on exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits. Further, both would be levied on the same price or value unlike State VAT which is levied on the value of the goods inclusive of Central Excise.
          A diagrammatic representation of the working of the Dual GST model within a State is shown in Figure 1 below.
Figure 1: GST within State
Dual GST in State Working Example
Dual GST in State Working Example
Question 7.Will cross utilization of credits between goods and services be allowed under GST regime?
Answer :Cross utilization of credit of CGST between goods and services would be allowed. Similarly, the facility of cross utilization of credit will be available in case of SGST. However, the cross utilization of CGST and SGST would not be allowed except in the case of inter-State supply of goods and services under the IGST model which is explained in answer to the next question.
Question 8.How will be Inter-State Transactions of Goods and Services be taxed under GST in terms of IGST method?
Answer:In case of inter-State transactions, the Centre would levy and collect the Integrated Goods and Services Tax (IGST) on all inter-State supplies of goods and services under Article 269A (1) of the Constitution. The IGST would roughly be equal to CGST plus SGST. The IGST mechanism has been designed to ensure seamless flow of input tax credit from one State to another. The inter-State seller would pay IGST on the sale of his goods to the Central Government after adjusting credit of IGST, CGST and SGST on his purchases (in that order). The exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The importing dealer will claim credit of IGST while discharging his output tax liability (both CGST and SGST) in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST.Since GST is a destination-based tax, all SGST on the final product will ordinarily accrue to the consuming State.
                                 A diagrammatic representation of the working of the IGST model for inter-State transactions is shown in Figure 2 below.
Figure 2
IGST Model Working Example
IGST Model Working Example
Question  9.How will IT be used for the implementation of GST?
Answer:For the implementation of GST in the country, the Central and State Governments have jointly registered Goods and Services Tax Network (GSTN) as a not-for-profit, non-Government Company to provide shared IT infrastructure and services to Central and State Governments, tax payers and other stakeholders. The key objectives of GSTN are to provide a standard and uniform interface to the taxpayers, and shared infrastructure and services to Central and State/UT governments.
                                 GSTN is working on developing a state-of-the-art comprehensive IT infrastructure including the common GST portal providing frontend services of registration, returns and payments to all taxpayers, as well as the backend IT modules for certain States that include processing of returns, registrations, audits, assessments, appeals, etc. All States, accounting authorities, RBI and banks, are also preparing their IT infrastructure for the administration of GST.
                                 There would no manual filing of returns. All taxes can also be paid online. All mis-matched returns would be auto-generated, and there would be no need for manual interventions. Most returns would be self-assessed.
Question 10.How will imports be taxed under GST?
Answer :The Additional Duty of Excise or CVD and the Special Additional Duty or SAD presently being levied on imports will be subsumed under GST. As per explanation to clause (1) of article 269A of the Constitution, IGST will be levied on all imports into the territory of India. Unlike in the present regime, the States where imported goods are consumed will now gain their share from this IGST paid on imported goods.
Question 11.What are the major features of the Constitution (122nd Amendment) Bill, 2014?
Answer :The salient features of the Bill are as follows:
g.      Conferring simultaneous power upon Parliament and the State Legislatures to make laws governing goods and services tax;
h.      Subsuming of various Central indirect taxes and levies such as Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty commonly known as Countervailing Duty, and Special Additional Duty of Customs;
i.        Subsuming of State Value Added Tax/Sales Tax, Entertainment Tax (other than the tax levied by the local bodies), Central Sales Tax (levied by the Centre and collected by the States), Octroi and Entry tax, Purchase Tax, Luxury tax, and Taxes on lottery, betting and gambling;
j.        Dispensing with the concept of ‘declared goods of special importance’ under the Constitution;
k.      Levy of Integrated Goods and Services Tax on inter-State transactions of goods and services;
l.        GST to be levied on all goods and services, except alcoholic liquor for human consumption. Petroleum and petroleum products shall be subject to the levy of GST on a later date notified on the recommendation of the Goods and Services Tax Council;
m.    Compensation to the States for loss of revenue arising on account of implementation of the Goods and Services Tax for a period of five years;
n.      Creation of Goods and Services Tax Council to examine issues relating to goods and services tax and make recommendations to the Union and the States on parameters like rates, taxes, cesses and surcharges to be subsumed, exemption list and threshold limits, Model GST laws, etc. The Council shall function under the Chairmanship of the Union Finance Minister and will have all the State Governments as Members.
Question 12.What are the major features of the proposed registration procedures under GST?
Answer:The major features of the proposed registration procedures under GST are as follows:
                    i.            Existing dealers: Existing VAT/Central excise/Service Tax payers will not have to apply afresh for registration under GST.
                  ii.            New dealers: Single application to be filed online for registration under GST.
                iii.            The registration number will be PAN based and will serve the purpose for Centre and State.
                iv.            Unified application to both tax authorities.
                  v.            Each dealer to be given unique ID GSTIN.
                vi.            Deemed approval within three days.
              vii.            Post registration verification in risk based cases only.
Question 13.What are the major features of the proposed returns filing procedures under GST?
Answer:The major features of the proposed returns filing procedures under GST are as follows:
a.       Common return would serve the purpose of both Centre and State Government.
b.      There are eight forms provided for in the GST business processes for filing for returns. Most of the average tax payers would be using only four forms for filing their returns. These are return for supplies, return for purchases, monthly returns and annual return.
c.       Small taxpayers: Small taxpayers who have opted composition scheme shall have to file return on quarterly basis.
d.      Filing of returns shall be completely online. All taxes can also be paid online.
Question 14.What are the major features of the proposed payment procedures under GST?
  • Answer:The major features of the proposed payments procedures under GST are as follows:
  •           Electronic payment process- no generation of paper at any stage
  •           Single point interface for challan generation- GSTN
  •      Ease of payment – payment can be made through online banking, Credit Card/Debit Card, NEFT/RTGS and through cheque/cash at the bank
  •           Common challan form with auto-population features
  •           Use of single challan and single payment instrument
  •           Common set of authorized banks
  •           Common Accounting Codes

Project Insight to help find Income Tax Evaders

Income Tax India Project Insight
Income Tax India Project Insight
Income Tax Department in India began the exercise to computerize all the data it receives over the last decade. As part of this initiative tax filings were made online and the process was streamlined by taking inputs from all stakeholders. As on date individuals and organizations make use of the online system to file/pay IT Returns, TDS/TCS Challans and Annual Information Returns. This has enabled the Income Tax department to collect huge amount of Data about taxpayers. In addition to the normal filings done by taxpayer, IT department also collects data about Travel, Forex Spend, Credit/Debit Card spends and online transactions by citizens and companies alike. This adds to existing database and helps the dept to identify tax evaders.
Such volume of data required automated systems to be put in place by the department. As part of improving efficiency and tax compliance with support of data Project insight has been initiated. Insight aims to provide information in a non-intrusive manner to the department by analyzing the huge amount of data. The information thus can be effectively used by tax administration without bothering honest tax payers.
Income Tax Department has recently signed a contract last week with L & T Infotech Ltd for implementation of Project Insight. The Project will be go live in three phases. First phase is expected to go live in May 2017. A tender of Rs. 150 Cr was floated by the department earlier to this effect.
Insight will an integrated platform which would play a key role in widening of tax-base and data mining to track tax evaders. Data obtained under Foreign Account Tax Compliance Act Inter Governmental Agreement (FATCA IGA) and Common Reporting Standard (CRS) acts will also leveraged by this project. It will also speed up the Implementation of reporting compliance management system which will ensure that the third party reporting by reporting entities is timely and accurate. A data exchange mechanism will also be set up with other Government Departments and exchange partners by the IT department to ensure availability of data within Govt Departments.
Tax administration will setup Compliance Management Centralized Processing Centre (CMCPC) which will handle campaign management, preliminary verification,  generation of bulk letters/notices and follow-up. All this will not only enable the department to streamline the process but also promote voluntary compliance by taxpayer and also help them to resolve simple compliance issues online without physically visiting IT offices. 
This project is a step by the Department towards achieving it’s goal of business transformation through technology. Aim of Flagship Insight project is to wide tax base by catching tax evaders using technology. The project allows the department to acquire analytical software and infrastructure which processes huge amount of data. The software will also expected to rank tax evaders based on the amount of tax that could be recovered, so that the authorities could go after the highest value targets first.
Insight project will also track the information with Permanent Account Number (PAN) quoted on various financial transactions by citizens and then track it back with individual’s tax filings.
Insight will be implemented in a phased manner from 2016-18.
Do you think this project will help increase the Tax to GDP in India which is among the lowest in the World? Do let us know in comments.

Tax Treatment on withdrawal for EPF and NPS in Budget 2016

Budget 2016-17 came out yesterday and there was some confusion when the Finance Minister mentioned that there will tax implication on EPF and NPS. In order to clarify these Finance Ministry came out with clarifications. You can find them below

(i) Objective of the change in tax regime was to encourage more number of private sector employees to go for pension security after retirement instead of withdrawing the entire money from the Provident Fund Account post retirement.

(ii) To achieve this Govt. announced that only Forty Percent(40%) of the total corpus withdrawn at the time of retirement will be tax exempt both for recognized Provident Fund and NPS.

(iii) Though If a employee invests the remaining 60% Corpus in Annuity, no tax is chargeable. So what it means is that the entire corpus will be tax free, if invested in annuity.

(iv) Another change is to exempt transfer of Original Corpus from tax when it goes in the hand of heirs in case the person investing in Annuity dies.

(v) However, in EPFO, there are about 60 lakh contributing members who have accepted EPF voluntarily and they are highly – paid employees of private sector companies. For this category of people, amount at present can be withdrawn without any tax liability. This is being changed. What the govt says is that such employee can withdraw without any tax liability provided he contributes 60% in annuity product so that pension security can be created for him according to his earning level. However, if he chooses not to put any amount in Annuity product the tax would not be charged on 40%.

(vi) Public Provident Fund (PPF) will be treated as earlier and there is no change in tax implication.

(vii) Currently there is no monetary ceilings on the employer contribution under EPF with only ceiling being that it would be 12% of the salary of the employee member. Similarly, there is no monetary ceiling on the employer contribution under NPS, except that it would be 10% of salary. Finance Bill 2016 has provision that there would be monetary ceiling of Rs1.5 lakh on employer contribution considered with the ceiling of the 12% rate of employer contribution, whichever is less.

Delhi Government recommends e-challan and increase in PUC Fines to Rs.5000

PUC Traffic Fine Delhi

Transport Department at Delhi has an online system to validate the Pollution under control certificates of vehicles plying in Delhi. It is currently not equipped to send e-challans for vehicles who do not renew there PUC certificates within the validity period. In general traffic challan is only issued to a vehicle when the transport department conducts a drive to check the PUC’s of vehicles. 

Delhi government’s has suggested that the fine for the PUC violation be increased from Rs. 1000 to Rs. 5000 for the first offense and Rs. 2000 for the subsequent offense. It has also suggested that the department makes use of its online database to send out e-challans to all violators whose renewal status remains pending beyond the grace period. Transport department is apprehensive about sending e-challans as it says that Delhi has over 92lacs registered vehicles and it is an humongous task to send postal challan to everyone violating PUC norms. The bigger challenge lies in enforcing the rule by asking the vehicles which have violated this traffic rule to pay the e-challan. With limited resources at its disposal the department finds it challenging to implement this facility. The department was also suggested to send digital challans to the vehicle owner but has said that it does not have the required infrastructure to support it.

Most of these vehicles have to be checked for emissions every 3 months while the vehicles bought after 2010 and are BS IV compliant need to get there vehicles checked once every year. In general compliance rate is very low. With 150 staff personnel Transport department had issued 50,000 PUC challans last year.

9 Key Highlights of Real Estate Regulation and Development Bill 2015

Cabinet passed the Real Estate Regulation and Development Bill 2015 recently which will now be presented in the Lok Sabha. We list some of the key highlights of the bill which will affect both Home buyers and the developers of the Real Estate. These guidelines are aimed at creating a Real Estate Regulatory Authority on the lines of SEBI (for stock markets), TRAI (for Telecom Services) which will place controls and checks to ensure timely delivery of projects by developers. The regulator will protect interests of the consumers and promote fair play in real estate transactions by addressing the complaints of the public with respect any developer in the country.

The Bill includes provisions to ensure uniformity in  regulations and thus ensuring an environment for speedy adjudication of disputes and orderly growth of the real estate sector. The clarity which the bill brings in will also boost domestic and foreign investments in the Real Estate sector. Government aims to achieve its objective to provide ‘Housing for All’ by removing hurdles in the sector through this bill. 

The Bill also mandates compulsory disclosure by the promoters of a real estate project to the customers by registration of real estate projects and its agents with the Real Estate Regulatory Authority. Real estate sector has been in poor light due to various reasons, this bill aims to bring back confidence in the sector by institutionalizing transparency and accountability in real estate and housing transactions. This in turn will further enable the sector to access capital and financial markets. The Authority formed post this aims to promote orderly growth in the segment by ensuring efficient project execution, professionalism and standardization. 

The key highlights of the Real Estate Regulation and Development Bill are as under: 

1. This bill is applicable for both commercial and residential real estate projects. 

2. ‘Real Estate Regulatory Authority’ will be established in States/UTs to regulate real estate transactions. 

3. It mandates Registration of real estate projects and real estate agents with the Authority. 

4. It will be compulsory for all registered projects to disclose details of the promoter, project, layout plan, land status, approvals, agreements along with details of real estate agents, contractors, architect, structural engineer etc. to the authority.

5. A separate bank account to be created and the construction cost of the project to be deposited in this account to ensure timely completion of the project. 

6. Fast track dispute resolution mechanisms to be established for settlement of disputes through adjudicating officers and Appellate Tribunal. 

7. Civil courts will be prohibited from taking up matters defined in Bill, however, consumer court allowed to hear real estate matters. 

8. Promoters of the project will be barred from changing layout plans and project designs without consent of consumers. 

9. There is provision for the Appropriate Government to make rules for the matters which are specified in the Bill, and the Regulatory Authority to make necessary regulations to ensure orderly growth of the sector. 

What do you think about this bill, do share your comments below.

Pay SBPDCL Electricity Bill Online

South Bihar Power Distribution Company Ltd. or SBPDCL for short was carved out of erstwhile BSEB. SBPDCL provides electricity to more than 18Lacs consumers in 17 districts of South Bihar. Nowadays every power distribution company provides multiple option to make payment of electricity bills to ensure convenience to consumers. SBPDCL consumers can make payment of bills through the following means:

1. Any Time Payment machines, Canara Bank ATM’s, Mobile Van in PESU Area.
2. At branches of Madhya Gramin Bank, Sahaj Vashudha Kendra
3. Online Payment through Credit/Debit Card, Internet Banking

In this article we will cover step by step procedure to enable you to make online payment of SBPDCL electricity bill. 

Step 1: Know your CA Number

You need to be ready with your CA no. which can be found on your electricity bill as shown below.

Finding CA Number

In case you do not have the Electricity Bill then it is possible to find your CA Number using your old Account Number or Consumer ID. The procedure is as follows:

Visit https://www.sbpdcl.co.in/ 

Search CA number
Search CA number

Click on Search CA Number as shown above. You will then be asked to select your division and sub division along with old Consumer ID as shown below.

Search CA No from Consumer ID
Search CA No from Consumer ID
Your CA number will then be shown below along with the latest bill information.

Search CA Number

Step 2: Pay Bill Now

You can now make payment of the bill by visiting the home page https://www.sbpdcl.co.in/. Enter your CA number and click on the arrow to start the process to make the bill payment online as shown below.

Search CA Number

You can make payment of the bill by entering the Total Amount, Mobile No and E-mail ID as shown below. Click on Confirm Payment to proceed to the payment page.

SBPDCL Bill Payment
SBPDCL Bill Payment
Once you click Confirm you will be see details of the payment as follows on the same page.

Confirm Payment

Click on Pay Now to proceed to the payment gateway. Ensure that you allow pop-ups as a new screen will open to allow for payment.

Step 3: Payment Gateway

In this step you can see the different payment options of making the payment. The bill can be paid through Credit/Debit or Internet Banking as shown below.

SBPDCL Payment Gateway
SBPDCL Payment Gateway

 The charges for the Payment Gateway are as follows:

SBPDCL Payment Gateway Charges
Step 4: Payment Receipt

You will sent the payment receipt through e-mail. You can also download payment receipt for your earlier payments by entering your CA number on the site. Enter your CA number in the box as shown below.

SBPDCL Payment Receipt
SBPDCL Payment Receipt Step 1

You will then be taken to the following screens from where you can save your payment receipt.

SBPDCL Payment Receipt Step 2

SBPDCL Payment Receipt Step 3

In case of any concern with regards to payment, complaints can be reported at Toll Free Number of SBPDCL at 1800-345-198.

Do let us know if you face trouble in making the payment in the comment box below.

21 Important Highlights of Seventh Central Pay Commission and Pay Calculator Matrix

Background about the 7th Pay Commission:

The 7th Pay Commission was formed by the UPA Government in February 2014 and it was headed by Justice A K Mathur. It’s members included Vivek Rae (Retired IAS Officer), Rathin Roy (Economist) and Meena Agarwal who was secretary of the commission. The recommendations are likely to benefit 55Lac Pensioners and 48Lac Central Govt Employees.

These recommendation have been suggested to Implemented from 01.01.2016 for all Central Govt and Military Employees respectively based on there existing Pay Scale.
Minimum Pay: This has been defined by the 7th Pay Commission based on the Aykroyd formula. Minimum pay has been recommended to be set at ₹18,000 per month.
Maximum Pay: The upper limit scale for a Central Govt Employees has also been defined and set at ₹2,25,000 per month for the Apex Scale and ₹2,50,000 per month for officers of the rank of Cabinet Secretary and others presently at the same pay level.
Fitment: A fitment factor of 2.57 is being proposed to be applied uniformly for all employees.
Annual Increment: The rate of annual increment is being retained at 3 percent.
Modified Assured Career Progression (MACP)
Performance benchmarks for MACP have been made more stringent from “Good” to “Very Good”.
The Commission has also proposed that annual increments not be granted in the case of those employees who are not able to meet the benchmark either for MACP or for a regular promotion in the first 20 years of their service.
No other changes in MACP recommended.
Military Service Pay (MSP): The Military Service Pay, which is a compensation for the various aspects of military service, will be admissible to the Defence forces personnel only. As before, Military Service Pay will be payable to all ranks up to and inclusive of Brigadiers and their equivalents. The current MSP per month and the revised rates recommended are as follows:

Service Officers      
Nursing Officers      
₹  5,200
Non Combatants (Enrolled) in the Air Force
₹  3,600
Short Service Commissioned Officers: Short Service Commissioned Officers will be allowed to exit the Armed Forces at any point in time between 7 and 10 years of service, with a terminal gratuity equivalent of 10.5 months of reckonable emoluments. They will further be entitled to a fully funded one year Executive Programme or a M.Tech. programme at a premier Institute.
Lateral Entry/Settlement: The Commission is recommending a revised formulation for lateral entry/resettlement of defence forces personnel which keeps in view the specific requirements of organization to which such personnel will be absorbed. For lateral entry into CAPFs an attractive severance package has been recommended.
Headquarters/Field Parity: Parity between field and headquarters staff recommended for similar functionaries e.g Assistants and Stenos.
Cadre Review: Systemic change in the process of Cadre Review for Group A officers recommended.
AllowancesThe Commission has recommended abolishing 52 allowances altogether. Another 36 allowances have been abolished as separate identities, but subsumed either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by the proposed Risk and Hardship Matrix.
      Risk and Hardship Allowance: Allowances relating to Risk and Hardship will be governed by the newly proposed nine-cell Risk and Hardship Matrix, with one extra cell at the top, viz., RH-Max to include Siachen Allowance.
The current Siachen Allowance per month and the revised rates recommended are as follows:

Service Officers

This would be the ceiling for risk/hardship allowances and there would be no individual RHA with an amount higher than this allowance.
House Rent Allowance: Since the Basic Pay has been revised upwards, the Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.
In the case of PBORs of Defence, CAPFs and Indian Coast Guard compensation for housing is presently limited to the authorised married establishment hence many users are being deprived. The HRA coverage has now been expanded to cover all.
Any allowance not mentioned in the report shall cease to exist.
Emphasis has been placed on simplifying the process of claiming allowances.
All non-interest bearing Advances have been abolished.
Regarding interest-bearing Advances, only Personal Computer Advance and House Building Advance (HBA) have been retained. HBA ceiling has been increased to 25 lakhs from the present 7.5 lakhs.
Central Government Employees Group Insurance Scheme (CGEGIS): The Rates of contribution as also the insurance coverage under the CGEGIS have remained unchanged for long. They have now been enhanced suitably. The following rates of CGEGIS are recommended:

Level of Employee
Monthly Deduction
Insurance Amount
Monthly Deduction
Insurance Amount
10 and above
6 to 9
1 to 5

Medical Facilities:
Introduction of a Health Insurance Scheme for Central Government employees and pensioners has been recommended.
Meanwhile, for the benefit of pensioners residing outside the CGHS areas, CGHS should empanel those hospitals which are already empanelled under CS (MA)/ECHS for catering to the medical requirement of these pensioners on a cashless basis.
  All postal pensioners should be covered under CGHS. All postal dispensaries should be merged with CGHS.
Pension: The Commission recommends a revised pension formulation for civil employees including CAPF personnel as well as for Defence personnel, who have retired before 01.01.2016. This formulation will bring about parity between past pensioners and current retirees for the same length of service in the pay scale at the time of retirement.
The past pensioners shall first be fixed in the Pay Matrix being recommended by the Commission on the basis of Pay Band and Grade Pay at which they retired, at the minimum of the corresponding level in the pay matrix.
This amount shall be raised to arrive at the notional pay of retirees, by adding number of increments he/she had earned in that level while in service at the rate of 3 percent.
In the case of defence forces personnel this amount will include Military Service Pay as admissible.
Fifty percent of the total amount so arrived at shall be the new pension.
An alternative calculation will be carried out, which will be a multiple of 2.57 times of the current basic pension.
The pensioner will get the higher of the two.
Gratuity: Enhancement in the ceiling of gratuity from the existing ₹10 lakh to ₹20 lakh. The ceiling on gratuity may be raised by 25 percent whenever DA rises by 50 percent.
Disability Pension for Armed Forces: The Commission is recommending reverting to a slab based system for disability element, instead of existing percentile based disability pension regime.
Ex-gratia Lump sum Compensation to Next of Kin: The Commission is recommending the revision of rates of lump sum compensation for next of kin (NOK) in case of death arising in various circumstances relating to performance of duties, to be applied uniformly for the defence forces personnel and civilians including CAPF personnel.
Martyr Status for CAPF Personnel: The Commission is of the view that in case of death in the line of duty, the force personnel of CAPFs should be accorded martyr status, at par with the defence forces personnel.
New Pension System: The Commission received many grievances relating to NPS. It has recommended a number of steps to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.
Regulatory Bodies:  The Commission has recommended a consolidated pay package of ₹4,50,000 and ₹4,00,000 per month for Chairpersons and Members respectively of select Regulatory bodies. In case of retired government servants, their pension will not be deducted from their consolidated pay. The consolidated pay package will be raised by 25 percent as and when Dearness Allowance goes up by 50 percent. For Members of the remaining Regulatory bodies normal replacement pay has been recommended.
Performance Related Pay: The Commission has recommended introduction of the Performance Related Pay (PRP) for all categories of Central Government employees, based on quality Results Framework Documents, reformed Annual Performance Appraisal Reports and some other broad Guidelines. The Commission has also recommended that the PRP should subsume the existing Bonus schemes.
There are few recommendations of the Commission where there was no unanimity of view and these are as follows:
The Edge: An edge is presently accordeded to the Indian Administrative Service (IAS) and the Indian Foreign Service (IFS) at three promotion stages from Senior Time Scale (STS), to the Junior Administrative Grade (JAG) and the NFSG. is recommended by the Chairman, to be extended to the Indian Police Service (IPS) and Indian Forest Service (IFoS).
Shri Vivek Rae, Member is of the view that financial edge is justified only for the IAS and IFS. Dr. Rathin Roy, Member is of the view that the financial edge accorded to the IAS and IFS should be removed.
Empanelment: The Chairman and Dr. Rathin Roy, Member, recommend that All India Service officers and Central Services Group A officers who have completed 17 years of service should be eligible for empanelment under the Central Staffing Scheme and there should not be “two year edge”, vis-à-vis the IAS. Shri Vivek Rae, Member, has not agreed with this view and has recommended review of the Central Staffing Scheme guidelines.
Non Functional Upgradation for Organised Group ‘A’ Services: The Chairman is of the view that NFU availed by all the organised Group `A’ Services should be allowed to continue and be extended to all officers in the CAPFs, Indian Coast Guard and the Defence forces. NFU should henceforth be based on the respective residency periods in the preceding substantive grade. Shri Vivek Rae, Member and Dr. Rathin Roy, Member, have favoured abolition of NFU at SAG and HAG level.
Superannuation: Chairman and Dr. Rathin Roy, Member, recommend the age of superannuation for all CAPF personnel should be 60 years uniformly. Shri Vivek Rae, Member, has not agreed with this recommendation and has endorsed the stand of the Ministry of Home Affairs.

Please find below the Pay Matrix you can use to Calculate Salary or Pension based on the recommendations.

7th Pay Commission Calculator
7th Pay Commission Calculator