The Interest rates for Deposits lowered by 0.1% from 1st April 17

ஏப்ரல் முதல் வட்டி விகிதம் 0.1% குறைப்பு

Tuesday, 25 April 2017

ரோஜாவின் மனத்தை தொடர்ந்து காஃபி யின் மனம் கமழும் அஞ்சல் தலை

https://1.bp.blogspot.com/-T1dsMUBT5rU/WP1C8NPU3nI/AAAAAAAALS8/Y3fWIn3ZZbEhONMpYS1HTHdQK5AoJp2hgCLcB/s1600/coffee%2BStamp.jpg
At an event organised by the India Post department in Bengaluru 23.04.2017, Sitharaman unveiled the stamp which is a collector’s version and is priced at Rs 100. (Source: ANI)

Union Minister Nirmala Sitharaman along with the Minister of State for Communications Manoj Sinha on Sunday released the scented postage stamp on coffee made by India Post Office. At an event organised by the India Post department in Bengaluru today, Sitharaman unveiled the stamp which is a collector’s version and is priced at Rs 100. On April 20, Sithraman took to Twitter and shared information about the launch of the coffee flavoured stamp. “#coffeeflavouredstamp release by @IndiaPostOffice on 23/4/17. @CoffeeboardI. Philatelic delight. Can smell the coffee now,here. #philately,” she twitted.

Sitharaman is currently in Bengaluru and has also launched website http://www.indiacoffeesoils.net for Coffee planting community. The Commerce Minister will also initiate the further proceedings on adopted lake at Kalena Agrahara and will distribute soil health cards top coffee growers here

According to a report published by The Hindu website, nearly one lakh stamps are ready for sale to collectors. The stamps along with first day cover, miniature sheets and information brochures will also be made available at the Philately Bureau at Bangalore General Post Office and various other head post offices in the state.
Financial Express

Allowance Report In 'Ending' Stage

7th Pay Commission: Allowance Report In 'Ending' Stage, Committee members are busy in notes preparation



NDTV Profit News : The 7th pay commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.

The Ashok Lavasa committee examining 7th pay recommendations on allowances is in the final stage of preparing its report, which is likely to be submitted to the government soon, a top employee union official said. The allowance committee is in the process of preparing notes for it to be taken up by the government, he added. There has not been any official word on whether the allowance committee has been submitted. The government had earlier said that the decision on allowances will be taken after the committee on 7th pay commissionrecommendations submits its report. Earlier, another union official had attributed the delay in submission of the report to non-availability of allowance panel members. "I believe that there has been some delay in the finalisation of the report as some allowance panel members were outside the country on an official visit," the union official said.

The allowance committee had held a meeting in this regard on April 6 which some employee union officials termed as "conclusive". The 7th pay commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances.

The 7th pay commission had recommended that house rent allowance or HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city. The 7th pay commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent. With regard to allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cent.

At a meeting held on March 28, the allowance committee on 7th pay commission recommendations had sought comments from the ministries of defence, railways and posts on treatment of some allowances. The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. But the 7th pay commission's recommendations relating to allowances were referred to the Ashok Lavasa committee.

Meanwhile, a delegation of faculty members of various universities had on April 19 approached the UGC seeking redressal of their demands including the request to make public a committee's report on the 7th pay commission. Union HRD Minister Prakash Javdekar had earlier said that a committee to review the recommendations made by a UGC panel on implementation of the 7th pay commission in educational institutions has been formed.

Read at: http://profit.ndtv.com

Postmaster Grade II Promotion orders released

Earlier News about Postmaster Cadre...............

Promotion Process for Postmaster Cadre

Postmaster cadre Promotions are under process at CO and is expected within the end of April 2017 or Ist week of May 2017.

a. Regular Promotion for Grade III to officials who have completed 5 years of service in Grade II ( Orders released for 11 Officials ) 

b. Regular Promotion for Grade II to officials who have completed 6 years of service in Grade I ( Orders released for 11 Officials )
 

Thereafter.........

a. One time relaxation for vacant Posts in Grade III to be filled up with officials who have completed 4 Years of service in Grade II.

b. One time relaxation for vacant Posts in Grade II to be filled up with officials who have completed 5 Years of service in Grade I
 

Adhoc Promotion .....

a. Officials who have completed 21/2 years in Grade II may be considered for adhoc promotion to Grade III for Post lying vacant after regular promotion if any

b. Officials who have completed 3 years in Grade I may be considered for adhoc Promotion to Grade II for Post lying vacant after regular promotion if any..
Vacancy Position as on 20.04.2017
Postmaster Grade III - 6
Postmaster Grade II - 34
(The Postmaster Grade II vacancy will depend upon existing Grade II officials accepting their Grade III promotion orders released this month )

( However there would be a cut-off date for vacancy position and may be filled up accordingly)

( since one time relaxation has been received for the cadre it is expected that all vacancies as on date will be taken into account for promotion )

Orders are expected very soon....

Sunday, 23 April 2017

மாதாந்திர பேட்டி - ஏப்ரல்

ஏப்ரல் மாத SSPOs உடனான மாதாந்திர பேட்டி வருகிற 26.04.2017 புதன் கிழமை காலை 1030 மணிக்கு நடைபெறும்.  தங்கள் பகுதியில் ஏதாவது குறைகள் இருப்பின் உடனடியாக தெரிய படுத்தவும். 
செயலாளர்கள்.
தேசிய சங்கம்

Maternity Leave of two months for recovery after delivery of the child”.-DoP&T Clarification

In the case of death of a child shortly after birth, the woman employees may be granted Maternity Leave of two months for recovery after delivery of the child”.-DoP&T Clarification

Opening of joint Account by pensioner with the first name of pensioner

Opening of joint Account by pensioner with the first name of pensioner
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-11, BHIKAJI CAMA PLACE,
NEW DELHI-110066
PHONES 25174596. 26174456, 26174438
CPAO/IT & Tech/Bank Performance/37( Val-II)/2016-17/14
19.04.2017
Office Memorandum
Subject:- Opening of joint Account by pensioner with first name of pensioner.
Attention is invited to Correction Slip No.1 dated – 08.02.2006 of Scheme for Payment of Pensions to Central Government Civil Pensioners by Authorized Ranks on crediting of pension in the Joint Account of Pensioners with spouse (copy enclosed).
It has been reported that in some cases Banks are allowing the pensioners to open their pension account as Joint Account with first name of his/her spouse which may create difficulties for pensioner at the time of filing the Income Tax Returns as the income tax is assessed on the income of the pensioner and not of the spouse.
Heads of CPPCs/Government Account Divisions of all the banks are advised to instruct their bank branches to facilitate the retiring employees approaching them for opening their pension accounts before their retirement. In case of Joint. Account, the same may be opened with first name of pensioner only.
This issues with the approval of Competent Authority.
Encl:-As above

(Vijay Siingh)
Sr. Accounts Officer (IT & Tech)

Friday, 21 April 2017

போராட்ட களத்துக்கு தயாராகிறதா NJCA ?

7th Pay Commission – NJCA may call for Strike if Committee on Allowances further delays Report

The National Joint Council of Action (NJCA), aggrieved over the delay on higher allowances under the 7th Pay Commission recommendations, may call for nationwide strike if the Committee on Allowance fails to submit its final report.
According to media reports, the Committee on Allowances is likely to submit its report on higher allowances under the 7th Pay Commission to the Finance Ministry this week. But there is no official confirmation in this regard. It’s been almost nine months since the formation of the Committee on Allowances, but it is yet to submit its report.
Meanwhile, the National Council Staff Side has called a meeting on May 2 of the Joint Consultative Machinery (JCM) to discuss the next course of action if the Committee on Allowance further delays report.
National Joint Council of Action (NJCA) convenor Shiv Gopal Mishra said the central government employees might go on strike if the Committee on Allowances delays the report further or rejected their demands.
The NJCA is leading the negotiation over 7th Pay Commission on behalf of central government employees. Shiv Gopal Mishra also informed that the issues of abolition of ‘option 1’ for pensioners will be discussed at the JCM meet too. Option 1 allowed pensioners to avail their pension hike as per the pay band in which they were enrolled at the time of retirement. Pensioners were forced to accept option 2 as option 1 had been rejected.
“The JCM meeting is called on May 2. Whether the Lavasa Committee submits it report or not (by the end of the month), the meet would be held. If the report on allowances is not tabled, then we will plan the next step of action. I cannot rule out the option of reviving the call for strike. After all, how long should the employees wait?” said Shiv Gopal Mishra.
The issue of hike in minimum pay would also be discussed at the JCM meet. “It is the centrifugal issue. All pay commission so far had kept the issue of minimum salary at the centre. We will negotiate with the government and attempt to persuade them,” he said.
The 7th Pay Commission had also recommended abolition of 52 allowances and subsuming 37 others out of 196 allowances, which triggered resentment among central government employees. Central government employees are unhappy because of the reduction in housing rent allowance (HRA) and want the government to increase basic pay from from Rs 18,000 to Rs 26,000.
Source: India.com

GPF Interest Rate 7.9% from 1st April 2017 – Finmin Orders

General Provident Fund Interest Rate for 1st April to 30th June 2017 – Finmin Orders

GPF Interest Rate for 1st April to 30th June 2017 – Finmin Orders

(PUBLISHED IN PART I SECTION 1 OF GAZETTE OF INDIA)
F.NO. 5(1)-B(PD)/2017
Government of India
Ministry of Finance
Department of Economic Affairs
(Budget Division)
New Delhi, the 18th April, 2017

RESOLUTION

It is announced for general information that during the year 2017-2018, accumulations at the credit of subscribers to the General Provident Fund and other similar funds shall carry interest at the rate of 7.9% (Seven point nine per cent) w.e.f. 1st April, 2017 to 30th June, 2017. This rate will be in force w.e.f. 1st April, 2017. The funds concerned are:—

1. The General Provident Fund (Central Services).
2. The Contributory Provident Fund (India).
3. The All India Services Provident Fund.
4. The State Railway Provident Fund.
5. The General Provident Fund (Defence Services).
6. The Indian Ordnance Department Provident Fund.
7. The Indian Ordnance Factories Workmen’s Provident Fund.
8. The Indian Naval Dockyard Workmen’s Provident Fund.
9. The Defence Services Officers Provident Fund.
10. The Armed Forces Personnel Provident Fund.

2. Ordered that the Resolution be published in Gazette of India.

(Navin Agarwal)
Director

Simplified one page Income Tax Return and linking of the PAN Card to the Aadhaar Card on the Income Tax Portal

Simplified one page Income Tax Return Form: Changes to keep in mind before filing Tax Return for AY2017-18

The financial year 2016-17 has ended and it is time to file your income tax return. However, filing your ITR is going to be less taxing now as in a move towards simplifying the cumbersome income tax forms, the government has launched a new and simplified one page ITR form-1 (Sahaj) for the financial year 2017-18.
“This is a welcome step towards ease of doing business in India and simplifying administrative procedures for the common man. This ITR Form-1(S) can be filed by an individual having income up to Rs 50 lakh from salary, one house property and other income like bank interest, etc. This marks the end of the 7-page cumbersome ITR -1 form which was earlier filed by salaried individuals,” says Gautam Kapil, Tax Consultant, V K Kapil & Co Chartered Accountants.
Who can file the simplified return form?
Only individuals having salaried income/one house property income/ bank interest income/ any other income stand to benefit.
Changes to keep in mind before filing ITR-1(S)
Part A: General Information — Aadhaar information is compulsory. In case an individual doesn’t have an Aadhaar number but has applied for it, he can give Aadhaar Enrollment ID.
Part E: Other Information – A new column has been introduced to report ‘Cash deposited during November 09, 2016 to December 30, 2016’ (if aggregate cash deposits exceeds Rs 2 lakh).
Schedule A1 – Schedule for details of Assets and Liabilities that was introduced last year has now been removed.
Columns relating to tax deductions have been rationalized, reducing the number of columns to just 5 as compared to earlier 19. “Commonly-used deductions like Section 80C(LIC), 80D (Mediclaim), 80TTA (savings account interest) & 80G (donation) have been provided for. Any other deductions can be mentioned under column ‘Any other’,” says Kapil.
There is no change in the manner of filing of ITR Forms as compared to last year. All these ITR Forms are to be filed electronically.
This will reduce the compliance burden to a significant extent on the salaried class & individual tax payers not having any business income.
As per the press release issued by the government, this initiative will benefit more than two crore tax-payers who will be eligible to file their return of income in this simplified Form.
It should be noted that from July 1, 2017, it would become mandatory for an individual to mention his Aadhaar card number or the number showing that he has applied for the Aadhaar card in the new ITR forms.
Individuals who have income of less than Rs 5 lakh (not having any refund of taxes) or are super senior citizens can download the ITR-1(S) return form from http://www.incometaxindia.gov.in/Pages/downloads/income-tax-return.aspx and have an option of filing it manually. Please note that this form is a specimen available on income tax website for manual filing.
“The new form is still not available for e-filing on the income tax India e-filing platform and is expected to be out soon,” says Kapil.
Source: FE

Steps to link the PAN Card to the Aadhaar Card on the Income Tax department e-Filing Portal before July 1

Here are the steps to link the PAN Card to the Aadhaar Card on the Income Tax department website for e-filing:
Step 1: Register on the Income Tax e-Filing portal www.incometaxindiaefiling.gov.in.
Step 2: Login to the e-Filing portal of the Income Tax Department with your login ID, password and date of birth.
Step 3: A pop-up will appear that will ask you to link your PAN Card with your Aadhaar card.


Step 4: Your details will automatically appear from your profile on the e-Filing portal. Verify your personal details as mentioned on your Aadhaar Card and PAN Card.
Step 5: Enter your Aadhaar Card number and click on the ‘Link now’ on the e-Filing portal. You will receive a confirmation that your Aadhaar Card has been successfully linked to your PAN Card.
Apart from the PAN Card, linking an Aadhaar Card is also compulsory while applying for a driving licence in India. You also need to link your bank accounts and your mobile phone number to your Aadhaar Card number. Within a few months, the Aadhaar Card may also be made mandatory at all airports for domestic flyers who may be given an Aadhaar-based biometric access. Make sure you link your PAN Card and Aadhaar Card before July 1, 2017.

Thursday, 20 April 2017

Rotation Transfer 2017

இந்த ஆண்டிற்க்கான சுழல் மாறுதல் 2017 விண்ணப்பங்கள் நமது நெல்லை கோட்டத்தில் இன்று முதல் கேட்கப்படுகிறது.
உங்கள் விண்ணப்பங்கள் வர வேண்டிய கடைசி தேதி : 28.04.2017

நகலை பார்க்க இங்கே சொடுக்கவும்

Central Government Staff Side JCM Meeting with on 3rd May 2017 – Agenda

Agenda items of the Standing Committee meeting of National Council JCM.

JCM Agenda before Central Government
1. Removing the anomalous situation in the representation in the JCM.
The JCM was set up as a machinery to enable the employees to hold discussions with the Government and avoid confrontation and strike. At the beginning all the non gazette employees had representatives at the JCM, National, Departmental and regional level Councils. However, in the case of CSS and CSSS the Government had permitted even the Group B. Gazetted officers at the level of the Section officers to have representations both at the National and Departmental levels as a special case taking into account the characteristics of their job content. The classification of posts in Central Civil services underwent change thereafter. The Class I, II, III and IV were assigned the nomenclature of Group A B C and D. Later, the Department of Personnel introduced Group B Non Gazetted as another category. They specifically prohibited the Group B Non-gazetted category of officials from the purview of the JCM. Most of them became Group B Non Gazetted due to the assigning of higher scale of pay by the Successive Pay Commissions or by the Government in appreciation of their representations. It could be seen that there had been no change either in the level of responsibilities or in the duties assigned to these categories.
They continue to do the job as was the case earlier i.e. at the time of setting up of the JCM. Precluding them from the JCM scheme was therefore not only untenable but also resulted in their grievances not being able to be presented at the highest negotiating forum. After the 6th CPC recommendations were accepted and implemented most of the grades and cadres with the Grade Pay of Rs. 4200 and 4600 were classified as Group B.Non-Gazetted.
The entire Group D cadres were abolished and the functions in most of the Departments were either outsourced or contractorised. The reclassification of the erstwhile Group C Cadres as Group B. Non Gazetted resulted in their having no representation in the council. We, therefore, request that the matter must be reviewed to ensure that the cadres and grades which had representation when the JCM was initially set up is not taken out of the scheme. In other words, all non-gazetted cadres must have representation in the JCM with the special exceptions in the case of CSS and CSSS.

Wednesday, 19 April 2017

A GDS official at one level will be at that level only for ever and getting 10% allowance for the revenue generation over 100% is not at all possible : GDS Committee Recommondations regarding Revenue Generation

A GDS official at one level will be at that level only for ever and getting 10% allowance for the revenue generation over 100% is not at all possible : GDS Committee Recommondations regarding Revenue Generation


GDS Pay Committee Recommendations - formula for calculation of expenditure & Revenue norms  & monthly Revenue of of GDS Post offices:
  
 A GDS official at one level will be at that level only for ever and getting 10% allowance for the revenue generation over 100% is not at all possible.

There is no chance to grow up from level 1 to level 2 and to getting 10% allowances above 100% revenue generation will not be so easy for level 2.

We illustrate practical statistics as below 

The GDS Pay Committee has given  the table (table 4.18 ) for calculation of monthly revenue of GDS Post offices. On observation on income side getting more income is very difficult as to rough calculations a B.O. transacted 

3,000 RD       :     3,000 ×63.74÷12 = 15,935 /-

1,500 SB         :     1500 × 63.74 ÷12 = 7 ,967 /-

1,500 MGNREGS :1500 × 24.88  12 = 3, 110 /-

Monthly RPLI collection :  1,00,000 ×4÷ 100
Approx.(150  P0licies )      = 4 ,000 /- 

Will get around Rs.31,012 /- income per month. 

Where as , as per below Expenditure table (No.4.19 expenditure table) the average expenditure on a B.O. will be around Rs.36,000 as given in the table in respect of double handed offices. Totally doing the above 6,000 above transactions is remote in a village.

There is no chance to grow up from level 1 to level 2 and to 10% above 100% revenue will not be so easy for level 2. It appears that an official at one level will be at that level only for ever and getting 10% allowance for the revenue over 100% is not at all possible.

CH.Laxmi Narayana
President , NUGDS

GDS Pay Committee Recommendations - formula for calculation of expenditure & Revenue norms  &  monthly Revenue of of GDS Post offices.




Revision of method for calculation of Income and Cost of Branch Post Offices - Reg.




Flash News on GDS Committee

GDS Sub Committee submitted its's report to Secretary DOP on 18.04.2017.

நமக்கு கிடைத்த நம்பகமான தகவலின் படி GDS Sub Committee தனது அறிக்கையை Secretary DOPயிடம் அளித்துள்ளதாக தெரிகிறது.              
 - செயலர், தேசிய சங்கம் 

Amendments to the Constitution approved by the DOP

AMENDMENTS TO THE CONSTITUTION APPROVED BY THE DOP



Flexi Fare in Shadabdi, Rajdhani Trains – LTC eligibility – Govt clarification

DoPT OM regarding admissibility of Flexi-fare in Shatabdi/Rajdhani/Duronto trains while availing LTC eligibility – Govt clarification

Ministry of Personnel, PG  and Pensions OM clarifying admissibility of flexi-fare in Shatabdi/Rajdhani/Duronto trains while availing LTC.
                                     No. 31011/3/2016-Estt.(A-IV)
Government of India
Ministry of Personnel, PG and Pensions
Department of Personnel & Training
Establishment A-IV Desk
North Block, New Delhi- 110001
Dated April 17, 2017
 
OFFICE MEMORANDUM
Subject: Clarification regarding admissibility of flexi-fare in Shatabdi/Rajdhani/Duronto trains while availing LTC.
As per Railway Board’s Circular No. 46 of 2016 dated 07.09.2016, Ministry of Railways have introduced a flexi-fare system in Rajdhani/Shatabdi/Duronto trains, where the base fares will increase by 10% with every 10% of berths sold subject to a prescribed ceiling limit. In this regard, this Department is in receipt of references from various segments seeking clarification on the issue of admissibility of flexi-fare while booking the tickets of these trains for the purpose of LTC.
2. The matter has been examined in consultation with Department of Expenditure, Ministry of Finance and it has been decided that flexi fare (dynamic fare) applicable in Rajdhani/Shatabdi/Duronto trains shall be admissible for the journey(s) performed by these trains on LTC. This dynamic fare component shall not be admissible in cases where a non entitled Government servant travels by air and claims reimbursement for the entitled class of Rajdhani/Shatabdi/Duronto trains. Such Government servants will get reimbursement of fare after deducting the dynamic fare component.










3. The above decision shall be applicable retrospectively with effect from 9th September, 2016, i.e. the date from which flexi-fare system was introduced by Railways.
4. Hindi version will follow.
(Surya Narayan Jha)
Under Secretary to the Government of India
Click here to download

List of Heritage Buildings in Indiapost

List of Heritage Buildings in Indiapost 

Click Here to see the List of Heritage Buildings in Indiapost

Statutory Powers of Secretary Posts

STATUTORY POWERS OF DG POSTS WILL BE EXERCISED BY SECRETARY POSTS 

STATUTORY POWERS OF DG POSTS WILL BE EXERCISED BY SECRETARY POSTS IN ADDITION TO HIS OWN DUTIES

 

Tuesday, 18 April 2017

PM Grade II second list for willingness calledfor

Postmaster Grade III promotion order

Finance Ministry okays 8.65 per cent interest on EPF

The Finance Ministry is believed to have permitted the Labour Ministry to go ahead with 8.65 per cent rate of interest on employees' provident fund for 2016-17, which will benefit over four crore EPFO members. 

The Finance Ministry in its communication to the Labour Ministry has, however, put a rider that the interest rate should not result in a deficit for the retirement fund. This will enable the Labour Ministry to provide 8.65 per cent rate as decided by the Employees' Provident Fund Organisation (EPFO) trustees. 

According to EPFO estimates, the fund will see a surplus after providing 8.65 per cent interest rate for the last fiscal. 

A reluctant Finance Ministry had been nudging the Labour Ministry to lower the EPF rate to below 8.65 per cent as approved by the EPFO trustees in December last year. 

"The Finance Ministry in its recommendation to the Labour Ministry said it is up to the latter to decide on what interest rate should be given. However, it should be ensured that there should not be any deficit to the fund," according to a source. 

"The Finance Ministry had earlier suggested an EPF rate slightly lower than approved by the trustees as it wanted the interest to be aligned with the rates of small savings," added the source. 

Labour Minister Bandaru Dattatreya has been maintaining that the EPFO subscribers would be provided 8.65 per cent rate of interest for 2016-17. 

"The Central Board of Trustees (CBT) had decided to give 8.65 per cent. Our ministry keeps on discussing with the Finance Ministry. We would have surplus of Rs 158 crore on providing 8.65 per cent," Dattatreya had said earlier last week when asked whether the Finance Ministry is making a case for lowering the interest rate. 

"If need be, I will talk to them (the Finance Ministry). I have requested them to approve 8.65 per cent. In any case this amount (interest income) will be given to workers," the minister had said.

As per the practice, the board's decision is concurred by the Finance Ministry after evaluating whether the EPFO would be able to provide the rate approved by trustees through its own income or not. 

Once the Finance Ministry ratifies the rate of interest approved by the CBT, it is credited into the account of EPFO members for that particular financial year. 

The Finance Ministry had last year also decided to lower the EPF interest rate of 8.8 per cent for 2015-16, decided by the CBT, to 8.7 per cent. The decision had drawn flak from all quarters forcing the government to uphold 8.8 per cent. 

The Finance Ministry has been asking the Labour Ministry to rationalise the EPF interest rate in view of lowering of returns on various administered saving schemes like PPF. 

The government generally ratifies the rate of return approved by the CBT because the EPFO is an autonomous body and provides interest on EPF deposits from its own income. 

Source:-The Economic Times

Public Provident Fund (PPF) Rate At 40-Year Low. Can It Fall Further?

PPF or public provident fund deposits will fetch 7.9 per cent interest rate for the April-June quarter – the lowest interest rate in nearly 40 years.
The Finance Ministry on March 31 lowered interest rate from 8 per cent to 7.9 per cent on PPF deposits in its latest quarterly revision. Interest rate on PPF as well as other small savings schemes has been going down steadily in line with a broad decline in overall interest rate in the financial system.
Since April last year, interest rates of all small saving schemes, including PPF, have been recalibrated on a quarterly basis. Earlier, they used to be revised annually. The interest rates are linked to yields on government bonds. Interest on small savings schemes, including PPF, enjoy a small mark-up over yields of bonds of comparable duration. Now the important question is, whether PPF interest rates will be revised further lower?
Experts don’t rule out a further cut. “PPF rates will see a slow decrease till the time the inflation remains in the RBI target band of 4-5 per cent. Further cuts in the PPF rates cannot be ruled out even though the RBI stance has turned from accommodative to neutral. However, the cuts in the PPF rates will be minor given the political implications they may have,” said Manoj Nagpal, CEO of Outlook Asia Capital.
Besides macro-economic factors like inflation and overseas flows into bonds, yields also take cue from RBI’s policy stance. Bond yields have hardened since RBI in February announced a change in its policy stance to neutral though strong overseas flows have kept yields in a range.
Is PPF Really Worth It?
Yes, say some financial planners. “PPF continues to offer positive real returns. In comparison, bank fixed deposits offer around 7 per cent. Considering a post-tax interest rate of around 5-7 per cent, depending on one’s tax slab, for people in higher tax slab clearly this will only help them match inflation, Mr Nagpal added. “Bank fixed deposit will at best be a value protector.”
PPF comes under the exempt-exempt-exempt (EEE) tax regime, meaning interest earned as well as the withdrawals from the PPF is tax-free.
Profit : Proftndtv

At SBI, You Don’t Need To Maintain Minimum Balance In These Accounts

State Bank of India or SBI has said it is exempting its customers holding certain account types from maintenance of average monthly balance.
Such accounts include small savings bank accounts, basic savings bank accounts and Jan Dhan accounts, or the accounts opened under the government’s financial inclusion scheme Pradhan Mantri Jan-Dhan Yojana or PMJDY.
This was said in a tweet by the bank, which recently adopted a new brand identity after merger with five associate banks and Bharatiya Mahila Bank. SBI had earlier decided to increase the minimum balance required for maintaining savings accounts from April 1, hitting 31 crore depositors including pensioners and students.
Besides, State Bank of India is also offering corporate salary accounts without the requirement to maintain minimum monthly balance.
The monthly average balance (MAB) requirement was increased to as high as Rs. 5,000 for branches in six metros. In case of non-compliance, savings bank account holders will invite a penalty ranging from Rs. 20 (in rural branches) to Rs. 100 (in metro cities), as per the bank’s website.
Here are some of the other features SBI offers under these accounts, according to its website.
Small savings bank account
SBI’s small savings bank account has a maximum balance limit of Rs. 50,000 and offers a rate of interest applicable to savings bank accounts. Account holders get an ATM-cum-Debit card, issued free of cost and without any annual maintenance charge, as per the SBI website. All credits in a financial year should not aggregate to more than Rs. 1 lakh and Rs. 10,000 in case of withdrawals and transfers.
Basic savings account
SBI’s basic savings account has no minimum balance or maximum balance limits. Holders of this account type “will not be eligible to open any other Savings Bank Account” at the bank. Such an account – in case the customer already holds one – will have to be closed within 30 days of opening the basic savings bank deposit account.
Corporate salary package
SBI’s salary account under corporate salary package offers many benefits to the employer and the employee alike. This account type reduces employer’s paperwork and salary administration cost. Employees get free internet banking and mobile banking services, among other features, as per the SBI website.
Source: NDTV

Sunday, 16 April 2017

Suspense Over Allowance Committee Report Continues

7th Pay Commission: Suspense Over Allowance Committee Report Continues
 
The views of allowance committee, which is examining 7th Pay Commission recommendations, are not yet known, a top employee union official said. The panel could submit its report in five to six days, he added. Hopes were high that the allowance committee on 7th Pay Commission may submit its report to the government this week. The allowance committee had held a meeting in this regard on April 6 which some employee union officials termed as “conclusive”. The 7th pay commission had examined a total of 196 existing allowances and recommended abolition of 51 allowances and subsuming of 37 allowances
.The 7th Pay Commission had recommended that house rent allowance or HRA be paid at the rate of 24 per cent, 16 per cent and 8 per cent of the new basic pay, depending on the type of city. The 7th Pay Commission had also recommended that the rate of HRA be revised to 27 per cent, 18 per cent and 9 per cent when DA crosses 50 per cent, and further revised to 30 per cent, 20 per cent and 10 per cent when DA crosses 100 per cent. With regard to allowances, employee unions have demanded HRA at the rate of 30 per cent, 20 per cent and 10 per cen
At a previous meeting held on March 28, the allowance committee on 7th Pay Commission recommendations had sought comments from the ministries of defence, railways and posts on treatment of some allowances.
The government had earlier said that that the decision on allowances will be taken after the committee on 7th Pay Commission submits its report. The government had in June accepted the recommendation of Justice AK Mathur-headed Seventh Pay Commission in respect of the hike in basic pay and pension. But the 7th Pay Commission’s recommendations relating to allowances were referred to the Ashok Lavasa committee.
 
NDTV

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