For internal circulation of BSNL only

E2-E3

Finance

Personal Claims

For internal circulation of BSNL only

WELCOME

• This is a presentation for the E2-E3 Core Module for

the Topic: Personal Claims.

• Eligibility: Those who have got the Upgradation from

E2 to E3.

• This presentation is last updated on 15-3-2011.

• You can also visit the Digital library of BSNL to see this

topic.

For internal circulation of BSNL only

PERSONAL CLAIMS

Allowance-Tour / Transfer

Leave Travel Concession

Joining time

Claims under BSNLMRS

Children Education Allow, RTF, Hostel

subsidy

Perks

News papers cost reimbursement

GPF

For internal circulation of BSNL only

TRAVELLING ALLOWANCE ON TOUR

• Determination of Grade

• Revision of claims

• Effect of increment while on tour

• Actual cost of traveling

• In transit between the two posts

For internal circulation of BSNL only

TRAVELLING ALLOWANCE ON TOUR

• Air journey cancellation charges

• Reimbursement of ‘Taktal Seva Charges’

• Reimbursement of cancellation charges

• e-ticketing charges

• Service Agents’ charges

For internal circulation of BSNL only

TRAVELLING ALLOWANCE ON TOUR

• The min pay eligibility for travel by AC II Tier in train is

Rs.23,110 in revised IDA PAY Scales on tour /

Transfer/LTC

• As regards AC III Tier / I class / AC Chair Car, the min

pay eligibility is Rs.12,860.

• For travel in Shatabdi /Rajdhani / Dooranta and Jan-

Shatabdi- Rs.23,110 & 12,860.

For internal circulation of BSNL only

TRAVELLING ALLOWANCE ON TOUR

• Air entitlement

• IDA Pay of 51610(Grade pay Rs.8700) may travel at

their discretion

• IDA Pay of 37750(Grade pay Rs.5400) may travel at

their discretion, if the distance is more than 500 Kms

and journey could not be performed overnight

(between 6 PM & 8 AM) by a direct train service.

For internal circulation of BSNL only

Entitlement of DA

• Own arrangement

• Stay in a hotel.

• Stay in Central / State / PSUs guest house

• Calculation of DA.

For internal circulation of BSNL only

TA FOR LOCAL JOURNEYS

• Local TA/DA is admissible beyond 8 kms.

• Entitlement: Mileage allowance for the journey involved plus

50% of the DA admissible for ordinary locality.

For internal circulation of BSNL only

TA ON TRANSFER

• Transfer TA comprises of:

• Composite Transfer grant.

• Furnishing Allowance.

• Actual fare for the Govt servant and members of the

family for journeys.

• Cost of transportation of personal effects

• Cost of transport of Conveyance.

For internal circulation of BSNL only

Composite Transfer Grant

• One month’s basic pay + DP in case of transfer

involving a change of station located at a distance of

20 km from each other & involving change of

residence.

• If the transfer is less than 20 kms or with in the same

city involving change of residence, one-third of

composite grant is sanctioned.

For internal circulation of BSNL only

TA ON RETIREMENT

• Entitlements for travel on retirement will be the same

as on transfer including air journey.

– Composite transfer grant

– Journey by rail/road/air/steamer

– Transport of personal effects

– Transport of conveyance

– No furnishing allowance

For internal circulation of BSNL only

Travel Leave Concession

– Eligible: Employees and dependant family

members.

• Wife or husband, two surviving unmarried

children wholly dependent on Govt. Servant.

• Parents/ un married minor brothers/

unmarried sisters wholly dependent and

residing with him/her.

• Dependency: Income from all sources

should not exceed Rs.3500/- P.M

For internal circulation of BSNL only

LEAVE TRAVEL CONCESSION (contd)

– Admissible: LTC is admissible only on completion of

one year’s service.

– Types of LTCs / Block years: Once in two years for

Home Town (2010-11, 12-13)

– Can avail during regular/casual/special CL/Maternity

leave/Study Leave/LPR

– Once in four years for All India (2010-2013) to visit

any place in India.

For internal circulation of BSNL only

LEAVE TRAVEL CONCESSION(contd)

– Journey by air/rail- as per pay range

– Grace period for availing: LTC of either type not

availed till the end of the particular 2-year / 4- year

block can be availed during the succeeding year.

– Declaration of Home Town:

For internal circulation of BSNL only

LEAVE TRAVEL CONCESSION(contd)

– If both husband and wife are central Govt.

Servants:

– For availing the concession, prior intimation to

the controlling officer is necessary.

– Encashment of earned leave upto 10 days at the

time of availing LTC is admissible.

For internal circulation of BSNL only

LEAVE TRAVEL CONCESSION(contd)

• Class of accommodation decided by status on the day

of journey.

• The concession is not taxable.

• Penal interest for deviating the conditions: 2% above

the rate of interest allowed by Govt. on PF balances.

• Time limit:

For internal circulation of BSNL only

JOINING TIME

For internal circulation of BSNL only

PERKS

• perks were granted to executives and non-executives

• Furnishing Allowance

• Professional/ skill Upgradation Allowance

• Rural Duty Allowance

For internal circulation of BSNL only

PERKS (contd)

• TRANSPORT ALLOWANCE– The following are the rates of transport allowances

admissible to BSNL employees.• Pay of scale A-1/A Cities others

• Below Rs.8570-12245 Rs.100 Rs. 75

• Rs.8570-12245(NE) Rs.400 Rs.200

• Rs.16400-40500& above Rs.800 Rs.500

below 24900-50500

• Rs. 24900-50500 & above Rs.1400 Rs.800

(Double the rates for physically challenged persons The

allowance is taxable beyond Rs.800/1600)

For internal circulation of BSNL only

PERKS (contd)

• REIMBURSEMENT OF COST OF NEWSPAPER AND MAGAZINES

• The facility of reimbursement of cost of news papers and magazines supplied at the residence of Group B and above level officers of BSNL is allowed w.e.f 01.10.2004.

– Officers of JAG & below - Rs.100 P.M– SAG/HAG level officers - Rs.300 P.M– Board of Directors - Rs.500 P.M– Reimbursement is limited to 85% of the cost of

Newspapers and 95% of the cost of Magazines

For internal circulation of BSNL only

PERKS (contd)

• Grant of Head quarter Allowance

C.O Lr.No 1-33/2008-PAT (BSNL)/Hqr. Allowance/2 dated

04.09.2009.

IDA Scales per month

Rs.29100-54500 (E4) Rs.800

Rs.32900-58000 /

Rs.43200-66000 (E5/ E7) Rs.1000

For internal circulation of BSNL only

MEDICAL CLAIMS REIMBURSEMENT

• BSNL MR Scheme introduced w.e.f 24.02.2003

– Outdoor treatment

– In-Patient Treatment

For internal circulation of BSNL only

OUT DOOR TREATMENT

• Option for taking cash payment

– against vouchers -25 days sal

– without vouchers -12.5 “

For internal circulation of BSNL only

• Executive Health Checkup

– Executive Health check up for the Sr.Executives and

his/her spouse is available subject to a cap of

Rs.3500.00 for each occasion.

– Executive Cardiac & Health Screening Plus in lieu of

one of the existing normal two checkups applicable

to Sr. Executives (of 55 years & above age)

(C.O Lr. No.BSNL/Admn.I/15-1/07 dtd 01.12.2008.)

MEDICAL CLAIMS REIMBURSEMENT (contd)

For internal circulation of BSNL only

CHILDREN EDUCATION ALLOWANCE

– All employees for their children.

– When employee is compelled to send his child to

school away from the station of posting owing to the

absence of required standard at the station.

– The allowance is admissible @ Rs.100/- P.M per

child up to HSC for three children born up to

31.12.87 / two children born thereafter between the

age of 5 yrs and 20 yrs.

– CEA will not be admissible if RTF / Hostel subsidy is

availed for the child.

For internal circulation of BSNL only

CHILDREN EDUCATION ALLOWANCE (contd)

• REIMBURSEMENT OF TUITION FEEtuition fee actually paid for a child is reimbursed as

below:1. Classes 1 to X Rs.40/- P.M per child2. Classes XI to XII Rs.50/- “3. In respect of physically & mentally

challenged retarded childrenClasses 1 to XII Rs.100/- P.M. per child

• 4. Classes IX to XII -Science fee upto Rs.10/-P.M per child is also reimbursed.

– amount is taxable.

For internal circulation of BSNL only

CHILDREN EDUCATION ALLOWANCE (contd)

• Hostel Subsidy:

• Hostel Subsidy of Rs.300.00 per month per child is

admissible if a Govt. servant is obliged to keep his

child in the hostel of a residential school away from the

station of his posting.

• The subsidy is payable upto 10+2 stage.

• Not admissible if CEA is claimed.

For internal circulation of BSNL only

GENERAL PROVIDENT FUND

• Subscription

– Subscription to GPF is compulsory:

– Min. of 6% of pay (basic pay+ Spl Pay+ P.P +

Stagnation Increment + D.P) (as on 31st March of

the preceding Year) is compulsory.

– May subscribe maximum emoluments (pay+DP)

– May enhance twice and reduce once in a year.

– In r/o retiring Govt. servants, subscription for the last

three months should be stopped.

For internal circulation of BSNL only

GENERAL PROVIDENT FUND (contd)

• Advances from GPF

• Withdrawls

• Nominations

– A subscriber should nominate only family

member/members to receive the amounts.

– Can be changed by giving fresh nomination

– Contingency as specified:

– If no nomination exists: Equal shares to the surviving

family members.

For internal circulation of BSNL only

GENERAL PROVIDENT FUND (contd)

• DEPOSIT LINKED INSURANCE SCHEME

– The benefit equal to average monthly balance in the

a/c during the preceding 36 months, subject to a

max. of Rs.60,000 is paid to the nominee.

– The balance at the credit of such subscriber should

not at any time during the 3 yrs preceding the death

of the sub be less than the minimum as prescribed (

4 categories)

For internal circulation of BSNL only

LOANS AND ADVANCES

• Advances can be availed by BSNL employees:

• Festival Advance

• House Building advance

• Motor Cycle advance

• Personal Computer Advance

• Warm clothing advance

• Flood / draught advance

• Fan advance

• Bicycle Advance

For internal circulation of BSNL only

LOANS AND ADVANCES

• The following are the advances can be availed from

Banks with the permission of BSNL:

• House Building Advance

• Car Loan

• Two-wheeler Loan

• Personal Loan

• Education loan

• Natural Calamity Loan

For internal circulation of BSNL only

LOANS AND ADVANCES

Festival advance

• Granted to Non-executives

• Once in a financial year

• Maximum of Rs.5000

• Recoverable in 10 installments

• Interest free advance

For internal circulation of BSNL only

LOANS AND ADVANCES

Fan advance

• Only to group ‘D’ employees

• Not within 10 yrs of previous advance

• Max Rs.1000 or actual cost

• Recoverable in 10 installments

For internal circulation of BSNL only

LOANS AND ADVANCES

Bicycle advance

• Can be granted to Group ‘C’ & ‘D’ employees

• Not within 3 years of previous advance

• Max of Rs.1500 or price of the bicycle which ever is

less

• Recoverable in 30 installments

For internal circulation of BSNL only

LOANS AND ADVANCES

Flood/Draught /Cyclone advance

• To non-executives

• Max Rs.2500

• Recoverable in 25 installments

• Based on the declaration of state Govt and the official

should have lost the property

For internal circulation of BSNL only

LOANS AND ADVANCES

Warm clothing advance

• To Group ‘C & D’ employees

• Once in three years

• Max of Rs.1500

• Recoverable in 10 installments

• Official is likely to stay at the hill station for 12 months

or more

For internal circulation of BSNL only

LOANS AND ADVANCES

House Building advance by BSNL:

• All permanent officials with 10 yrs of service

• If both husband & wife are Govt. servants, advance

can be granted to only one of them

• 34 times of revised pay or 7.5 lakhs or cost of the

house or repaying capacity which ever is less.

For internal circulation of BSNL only

LOANS AND ADVANCES

Amount of advance (HBA):

Purpose Amount

Purchase of plot & Constn 50 times of pay

Max 7.5 Lakhs

Construction on existing plot -do-

Purchase of ready built House -do-

Enlargement Limited to 1.8 L

For internal circulation of BSNL only

LOANS AND ADVANCES

Motor car advance by BSNL

• Entitlement: those who are drawing pay of not less than

Rs.10,500 in CDA

• Maximum of Rs.1.8 lakh limited to 11 months basic pay or

the anticipated cost which ever is less

• 2nd advance Rs.1.6 after 4 yrs of 1st advance

• Installments 200

• Purchase should be completed within a month of drawl of

advance

For internal circulation of BSNL only

LOANS AND ADVANCES

Motor Cycle advance by BSNL

• Eligibility: those who are drawing 15150

• Maximum amount Rs.30,000 limited to 6 ms pay

• 2nd advance rs.24,000 limited to 5 ms B.P after 3 yrs of

1st advance

• Recoverable in 70 installments.

For internal circulation of BSNL only

LOANS AND ADVANCES

Computer advance

• Eligible: those who are drawing pay of Rs.34570

• Maximum amount :Rs.80,000 or the cost which ever is

less

• 2nd advance Rs.75,000 after 3 yrs of 1st advance

• For those drawing pay o Rs.15150, Maximum of

Rs.30,000 or actual price whichever is less.

• Recoverable in 150 installments

• Rate of interest: Simple interest

TDS &TCS

Salaries - Section 192

Payment of rent - Section 194-I

Payment to contractors - Section 194-C

Fees for professional and

Technical services - Section 194-J

Commission or Brokerage - Section 194 H

Sale of scrap - Section 206-C

For internal circulation of BSNL only

MEANING OF CERTAIN EXPRESSIONS

Previous Year (Sec 3): The year in which the income

is received or otherwise earned.

Assessment Year [Sec 2(9)]: The income is assessed

to tax in the year commencing on 1st April next

following the close of previous year.

for BSNL internal circulation only

MEANING OF CERTAIN EXPRESSIONS

Assessee [sec 2(7)]: a person by whom Income

Tax is payable under Income Tax Act.

Person includes [Sec 2(31)]- an individual, a HUF,

a company, a firm, an AOP/BOI, a local authority

and every artificial juridical person.

For internal circulation of BSNL only

MEANING OF CERTAIN EXPRESSIONS

Tax Deduction Account Number (TAN)

49 B

Permanent Account Number (PAN)

49 A

For internal circulation of BSNL only

HEADS OF INCOME

Income of a person falls under

1. Salaries

2. Income from house property

3. Profits and gains from business or profession

4. Capital gains

5. Income from other sources

For internal circulation of BSNL only

INCOME TAX ON SALARIES (SEC 192)

I. Salaries [Sec 17(1)]:BP, SP, PP, DA, DP, IR, OTA,

Leave encashment while in service,

Leave salary while on leave,

Tuition fees, Honoraria,

Other allowances,

Bonus etc.

For internal circulation of BSNL only

EXEMPTED INCOME

(i) HRA - Least of (a) rent paid in excess of 10%

salary

(b) HRA received

(c) 50%/40% salary

(ii) Death/Retirement Gratuity

(iii) Commuted value of pension

(iv) Cash equivalent of leave salary

For internal circulation of BSNL only

EXEMPTED INCOME

(v) Leave travel concession

(vi) Traveling allowance including DA

(vii) Conveyance allowance

(viii) Uniform allowance

(ix) CEA, Hostel expenditure for children

(x) Transport allowance

For internal circulation of BSNL only

INCOME TAX ON SALARIES

II. Total salary income

Less: Profession tax Paid

III. Gross total income

Add: Add Taxable perquisites

For internal circulation of BSNL only

TAXABLE PERQUISITES

Major Perquisites which are

taxable:A. Medical

B. Accommodation

C. Interest free or concessional loans

For internal circulation of BSNL only

A. MEDICAL

Medical facilities:

1. Fixed medical allowances - fully taxable

2. Treatment in hospital:

(i) Maintained by employer -Not taxable

(ii) Maintained by Central, State Govt.,

local authority - Not taxable

(iii) Approved by Chief

Commissioner of IT - Not taxable

For internal circulation of BSNL only

A. MEDICAL

(iii) Maintained by any other person but approved by

the Govt. for the treatment of its employees

- Not taxable

(iv) Health insurance policy (i.e. group medical

insurance premium) - Not taxable

(iv) Maintained by other persons – Up to Rs.15,000

- Not taxable

For internal circulation of BSNL only

B. ACCOMMODATION (AY 2006-07 ONWARDS)

1. Rent free unfurnished accommodation provided by any employer other than Central or

State Government.

City Accommodation

owned by the

employer

Accommodation is taken

on lease or rent by the

employer

Population exceeding 25 L

as per 2001 census

15% of salary Lease rent or 15% of salary

whichever is lower

Population exceeding 10 L

but not exceeding 25 L

as per 2001 census

10% of salary Same as above

Any other city 7.5% of salary Same as above

For internal circulation of BSNL only

For internal circulation of BSNL only

B. ACCOMMODATION

2.Accommodation provided at

concessional rent:Un furnished accommodation provided by any employer

other than Central and State Governments- difference

between the amount at B.1 and the rent recoverable or

payable by the assessee

For internal circulation of BSNL only

B. ACCOMMODATION

3. Rent free furnished accommodation (not being in hotel) -

The charges at B.1 + 10% of cost of furniture or actual hire

charges of furniture, if hired.

Rent free furnished accommodation in a Hotel (includes

Guest house) - 24 % of salary or actual charges paid by the

employer whichever is lower

For internal circulation of BSNL only

B. ACCOMMODATION

Salary includes all monetary payments

except exempted allowance & perquisites,

DA if not considered for retirement benefits.

For internal circulation of BSNL only

C. INTEREST FREE & CONCESSIONAL LOAN FROM EMPLOYER

Loans above Rs.20,000/-

Perquisite = Lending rate of SBIs - Interest actually

recovered for the year

Calculation is based on the maximum outstanding

balance on the last day of each month

Loans for medical purpose are out of purview of

this section

For internal circulation of BSNL only

SBI LENDING RATES (AY 2010-11)

Housing

loan

Up to 5 years

Above 5 years but up to 15 years

Above 15 years but up to 20 years

09.75%

10.00%

10.25%

Car loan Up to 3 years (Rs.7.5 lakhs & above

Up to 3 years (below 7.5 lakhs)

Above 3 years and up to 5 years

Above 5 years and up to 7 years

11.50%

11.75%

11.75%

12.00%

Two Wheeler

loan

16.25%

For internal circulation of BSNL only

INCOME FROM HOUSE PROPERTY (SEC 22)

1. Let out house propertyGross annual Value xxxx

(Municipal valuation or Fair rent whichever is

higher subject to max. of Standard Rent. If the

actual rent received/receivable is higher then that

is the gross annual value)

Less Municipal taxes xxxx

Net annual value xxxx

For internal circulation of BSNL only

INCOME FROM HOUSE PROPERTY

Less deduction under sec 24:

1.Standard deduction 30% of net

annual value xxxx

2. Interest on borrowed capital xxxx

(Accrual Basis, No max. limit)

Interest on pre-construction period in 5 equal

instalments from the construction year

Income from house property xxxx

For internal circulation of BSNL only

INCOME FROM HOUSE PROPERTY

2. Self Occupied Property

Gross annual value Nil

Less Municipal taxes Nil

Net annual value Nil

For internal circulation of BSNL only

INCOME FROM HOUSE PROPERTY

Less deduction under sec 24:

1. Standard deduction 30% Nil

2. Interest on borrowed capital xxxx

Capital is borrowed before 1-4-1999 - Max Rs.30,000.

Capital is borrowed on or after 1-4-1999 & the house is

acquired/constructed within 3 years from the end of F.Y in

which the capital is borrowed – Max. Rs.1,50,000 (Accrual

basis).

Interest on pre-construction period in 5 equal instalments

from the construction year

Income from house property xxxx

For internal circulation of BSNL only

INCOME TAX ON SALARIES

Total Salary incomeLess deductions: Deductions under

(i) 80C/80CCC/80CCD - Restricted to Rs.1,00,000

(ii) 80CCF Investment in notified infrastructure bonds

Rs.20,000 (from F.Y. 2010-11)

(ii) 80D - Med Insurance - Rs.15,000.

For Sr. citizen - Rs.20,000/-

For internal circulation of BSNL only

INCOME TAX ON SALARIES

(iii) 80DD Med treatment for

handicapped Rs.50,000/-

(iv) 80 DDB Med treatment for specified

illness-Rs.40,000

(v) 80E Interest on education loan

(vi) 80G Donation to National Fund

( limited extent. No deduction by DDO, but can claim for

refund)

(vii) 80 U Individual with disability Rs.50,000/-

For internal circulation of BSNL only

INCOME TAX ON SALARIES

5. Surcharge - 10% on IT if net income exceeds Rs.10

Lakhs

(Withdrawn from the year 2009-10 onwards)

Surcharge for Domestic Company:

7.5% if net income exceeds Rs. 1 Crore.

6. Education cess - 2%

7. Secondary & Higher

education cess - 1%

8. Computation of average IT

For internal circulation of BSNL only

TDS ON PAYMENT OF RENT OF

LAND/BUILDING/FURNITURE/FITTINGS

Rent Means- any payment for the use of

any land or any building (including factory)

together with furniture and fittings

For internal circulation of BSNL only

TDS ON PAYMENT OF RENT OF

LAND/BUILDING/FURNITURE/FITTINGS

Rent includes- Non-refundable deposit, Advance

rent, rent for space sub-let for hoardings, rent for

hiring of halls/Grounds for holding

seminars/exhibitions, ware housing charges, hotel

room rent if hired regularly, site sharing expenses,

composite payment for rent and services or

amenities.

For internal circulation of BSNL only

TDS RATES

When rent exceeds Rs.1,20,000 during a

financial year (Rs.1,80,000 w.e.f. 1-7-2010 )

1.Rent of Land /Building/ Furniture/ Fittings

- 10%

2.Rent of Plant or Machinery or Equipment

- 2%

For internal circulation of BSNL only

TDS FOR THE WORKS DONE BY CONTRACTORS

Tax shall be deducted at source-On payments for contracts

On payment towards advance

On gross amount including reimbursements and cost of

materials

For internal circulation of BSNL only

TDS FOR THE WORKS DONE BY CONTRACTORS OR SUB

CONTRACTORS

If the payment exceeds 20,000 (Rs.30,000

w.e.f 1-72010) in a single payment or Rs.50,000 (Rs,75,000

w,e,f 1-7-2010) in a financial year, TDS will be

(a) Individual or HUF - 1%

(b) Other than Individual or HUF - 2%

No TDS from the payment to the contractor of goods

carriage service, if he furnishes PAN w.e.f 1-7-2009

For internal circulation of BSNL only

TDS ON INTEREST OTHER THAN INTEREST ON SECURITIES

If the annual payment exceeds 20,000/- (Rs.30,000

w.e.f. 1-7-2010)

Tax payable is 10%

For internal circulation of BSNL only

TDS ON INTEREST OTHER THAN INTEREST ON SECURITIES

Exceeding Rs.5,000 (Interest paid by Banks/PO/Co-

operative Society exceeds Rs.10,000/-)

TDS rate is - 10%

For internal circulation of BSNL only

TDS ON COMMISSION OR BROKERAGE

If the amount of

payment exceeds Rs.2,500/-

( Rs.5,000 w.e.f. 1-7-2010)

Tax payable is 10%

For internal circulation of BSNL only

TAX COLLECTION AT SOURCE (SEC 206 C)

Every person, being a seller, shall collect from the

buyer of goods specified in section 206 C tax at

source.

For internal circulation of BSNL only

If Deductiee fails to furnish

PAN to Deductor,

TDS will be 20%

w.e.f. -01-04-2010

For internal circulation of BSNL only

PAYMENT EXCEEDING RS.20,000 BY CHEQUE [SEC-40A(3)]

If a payment exceeding Rs.20,000/- is made

through cash, 100% of the payment (20% up to

F.Y 2006-07) will be disallowed for the purpose of

calculation of profit as per IT Act, which results

in extra burden of corporate tax to the extent of

33.99% of the amount for BSNL

For internal circulation of BSNL only

E - TD RETURNS

Returns to be filed every quarter, due dates are

15th July 15th October, 15th January and 30th June

For internal circulation of BSNL only

RETURN /ASSESSMENT OF INCOME

When return is to be filedCompany - Any income or loss

A person other than a - If the total income

Company exceeds the

maximum amount

which is not charge-

able to IT

For internal circulation of BSNL only

TIME FOR FILING RETURN OF INCOME

Where the assesee is a

company - By 31st October

Other cases (Individual) - By 31st July

For internal circulation of BSNL only