Taxable Archives - CENTRAL GOVERNMENT EMPLOYEES NEWS https://centralgovernmentnews.com/tag/taxable/ All about Central Government Employees News. Get the central govt employees latest news, DoPT Orders, 7th Pay Commission, DA Hike, latest notification for pensioners, MACP latest order, da for central government employees, and more. Sun, 28 Jun 2020 15:55:48 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://centralgovernmentnews.com/wp-content/uploads/2019/02/cropped-central-government-employees-news-32x32.png Taxable Archives - CENTRAL GOVERNMENT EMPLOYEES NEWS https://centralgovernmentnews.com/tag/taxable/ 32 32 Introduction of Taxable Floating Rate Savings Bonds 2020 – PIB https://centralgovernmentnews.com/introduction-of-taxable-floating-rate-savings-bonds-2020-pib/ https://centralgovernmentnews.com/introduction-of-taxable-floating-rate-savings-bonds-2020-pib/#respond Sun, 28 Jun 2020 15:55:41 +0000 https://centralgovernmentnews.com/?p=27208 Ministry of Finance Introduction of Floating Rate Savings Bonds, 2020 (Taxable) 26 JUN 2020 The Government has notified the new Floating Rate Savings Bonds, 2020 (Taxable)Scheme in place of 7.75 percent Savings (Taxable) Bonds, 2018 Scheme which ceased for subscription from the close of banking business on May 28, 2020. The broad features of the […]

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Introduction of Floating Rate Savings Bonds, 2020 (Taxable)

Taxable Floating Rate Savings Bonds 2020 - PIB

26 JUN 2020

The Government has notified the new Floating Rate Savings Bonds, 2020 (Taxable)Scheme in place of 7.75 percent Savings (Taxable) Bonds, 2018 Scheme which ceased for subscription from the close of banking business on May 28, 2020. The broad features of the new Floating Rate Savings Bonds, 2020 (Taxable) scheme are given below:

New Floating Rate Savings Bonds, 2020 (Taxable) scheme

 
Item		Details
1.Scheme nameFloating Rate Savings Bonds, 2020 (Taxable)
2.IssuanceTo be issued by Reserve Bank India on behalf
of the Government of India.
3.EligibilityThe Bonds may be held by –
(i) a person resident in India, –
(a) in his individual capacity, or
(b) in individual capacity on joint basis, or
(c) in individual capacity on any one or survivor basis, or
(d) on behalf of a minor as father /mother/ legal guardian
(ii) a Hindu Undivided Family. Explanation:
For the purpose of this paragraph, the “person resident in India” shall have the same meaning as defined in clause (v) of Section 2 of the Foreign Exchange Management Act 1999(42 of 1999)
4.Issue price / Denomination / Minimum SubscriptionThe Bonds will be issued at parat Rs.100/- for a
minimum amount of Rs.1000/- (nominal value)
and in multiples thereof.
5.Date of IssueThe Bonds, in the form of Bonds Ledger Account,
will be opened (issued) from the date of tender of
cash (up to Rs.20,000/- only), or date of realization
of cheque /draft /funds.
6.Maximum limitThere will be no maximum limit for investment
in the Bonds.
7.Forms / CertificateThe Bonds will be issued only in the form of Bond Ledger Account and may be held at the credit of the holder in an account called Bond Ledger Account (BLA). The investors will be issued a Certificate of Holding for the same.
8.Payment optionSubscription to the Bonds will be in the form of Cash (upto Rs.20,000 only) /drafts / cheques or any electronic mode acceptable to the Receiving Office. Cheques or drafts should be drawn in favour of the Receiving Office and payable at the place where the applications are tendered.
9.Repayment / TenorThe Bonds shall be repayable on the expiration of 7 (Seven) years from the date of issue. Premature redemption shall be allowed for specified categories of senior citizens.
10.Receiving OfficesApplications will be received at the branches of SBI, Nationalised banks and specified private sector banks, either directly or through their agents.
11.Interest Rate (Floating)The interest on the bonds is payable semi-annually on 1st Jan and 1st July every year.The coupon on 1st January 2021 shall be paid at 7.15%. The Interest rate for next half-year will be reset every
six months, the first reset being on January 01, 2021. There is no option to pay interest on cumulative basis.
12.Tax treatmentInterest on the Bonds will be taxable under the Income-tax Act, 1961 as amended from time to time and as applicable according to the relevant tax status of the Bonds holder.
13.TransferabilityThe Bonds in the form of Bond Ledger Account shall not be transferable except transfer to a nominee(s) /legal heir in case of death of the holder of the bonds
14.NominationA sole holder or all the joint holders of Bonds, being individual/s, may nominate in Form C or as near thereto as may be, one or more persons who shall been titled to the Bonds and the payment there on, in the event of his /their death.
15.Tradability / AdvancesThe Bonds shall not be tradable in the secondary market and shall not be eligible as collateral for loans from banks, financial Institutions and Non-Banking Financial Company (NBFC) etc.
16.Brokerage / CommissionBrokerage at the rate of 0.5% of the amount mobilized will be paid to the Receiving Offices
and they shall share at least 50% of the brokerage so received with brokers/ sub brokers registered with them.

Also check: Revision of interest rates for Small Savings Schemes

Source: PIB

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]]> https://centralgovernmentnews.com/introduction-of-taxable-floating-rate-savings-bonds-2020-pib/feed/ 0 Taxable and Non-Taxable Elements of Pay and Allowances https://centralgovernmentnews.com/taxable-and-non-taxable-elements-of-pay-and-allowances/ https://centralgovernmentnews.com/taxable-and-non-taxable-elements-of-pay-and-allowances/#respond Mon, 25 Jul 2016 06:49:24 +0000 http://centralgovernmentnews.com/?p=14607 Taxable and Non-Taxable Elements of Pay and Allowances List of Taxable Elements of Pay Taxable Element of Pay : Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances. Non-Taxable Elements of Pay : Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. […]

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List of Taxable Elements of Pay

Taxable Element of Pay : Provisions are applicable equally for monthly payment of Allowances as well as arrears for the said head of Pay/Allowances.

Non-Taxable Elements of Pay : Salary for this purpose includes Pay in Pay Band + Grade Pay + MSP (w.e.f. 01 Sep 08) + DA + NPA (if any).

Sl. No. Taxable Elements of Pay
1. Pay in the Pay Band
2. Grade Pay
3. Military Service Pay
4. Dearness Allowance
5. Non-Practicing Allowance (if any)
6. Hazard/Special Hazard Pay
7. Para Allowance/Para Reserve Allowance/Special Commando Allowance
8. City Compensatory Allowance
9. Deputation (Duty) Allowance (If any)
10. Reimbursement of Furniture
11. Reimbursement of Water
12. Reimbursement of Electricity
13. Technical Allowance
14. Qualification Pay
15. Special Action Group Allowance (on posting to National Security
Guard)
16. Technical Pay
17. Language Allowance
18. Qualification Grant
19. Language Award
20. Flying Allowance
21. Leave Encashment on LTC
22. Specialist Allowance
23. Test Pilot Allowance
24. Instructor Allowance
25. Flight Test Allowance
26. Security Allowance
27. Strategic Force Allowance
Sl No. Non-Taxable element of Pay Authority Limit of Exemption
1. Gallantary Award A.O. 46/79;U/S 10 (18)(i) of IT Actsw.e.f. 1947 Fully Exempt
2. Entertainment Allowance U/S 16 (ii) of IT Act w.e.f.01/04/81 A sums equal to1/5th of
salary(excluding any allowance/benefit) orRs.5000/- per annum whichever isless.
3. Leave Travel Concession (LTC) U/S 10 (5) of IT Act w.e.f.01/04/89 Actual Expenditure upto the limit of entitlement
4. Foreign Allowance U/S 10 (7) of IT Act Fully Exempt
5. Bhutan Compensatory Allowance (BCA) AO 395/74and U/S 10(7) of IT Act Fully Exempt
6. Servant Wages Allowance along with BCA AO 395/74 and U/S 10 (7) of IT
Act		 Fully Exempt
7. Purchase of Crockery/Cutlery/Glassware U/S 10 (7) of IT Act Fully Exempt
8. Outfit allowance on posting to Embassy U/S 10 (7) of IT Act Fully Exempt
9. Arrears of Cash Grant – Foreign Allowance (Nepal) U/S 10 (7) of IT Act Fully Exempt
10. Myanmar Allowance U/S 10 (7) of IT Act Fully Exempt
11. Representation Grant for use of crockery set U/S 10 (7) of Act Fully Exempt
12. Encashment of Leave on retirement whether on superannuation/voluntary
retirement/release/invalidment etc.		 U/S 10 (10AA) (i) of IT Act w.e.f. 01/04/78 Fully Exempt
13. House Rent Allowance/House Rent Reimbursement (HRA/HRR) U/S 10 (13A) of IT Act w.e.f. 06/10/1964;
Limit of exemption as per Rule 2A of IT Rules		 *Quantum of exemption is least of the following – a) For
Bombay/Kolkata/Delhi Chennai i) Allowance actually received. ii) Rent paid in
excess of 10% of salary iii) 50% of salary b) For other cities i) Allowance
actually received. ii) Rent paid in excess of 10% of salary. iii) 40% of
salary
14. Children Education Allowance U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.5 of the IT
Rules		 Rs.100/- per month per child upto a maximum of 2 children.
15. Hostel Subsidy U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl No.6 of the IT Rules, Rs.300/- per month per child
upto a maximum of 2 children
16. Siachen Allowance U/S 10 (14) (ii) of IT Act and Rule 2BB (2) –Table Sl No.1 (II) of
the IT Rules		 Rs.7000/ per month w.e.f. 01/08/1997
17. Special Compensatory (Remote Locality) Allowance U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.2 of the IT
Rules		 Category I – SCA ‘A’ – Rs.1300/- per month Category III – SCA ‘B’ –
Rs.1050/- per month. Category IV – SCA ‘C’ – Rs.750/- per month. Category VI
– SCA ‘D’ – Rs.200/- per month.
18. Compensatory Field Area Allowance (CFAA) U/S 10 (14) (ii) of IT
Act and Rule		 2BB (2) – Table Sl No.7 of the IT Rules Rs.2600/- per month w.e.f.
01/05/1999
19. Compensatory Modified Field
Area Allowance (CMFAA)		 U/S 10 (14) (ii) of IT Act and
Rule 2BB (2) – Table Sl No.8 of the IT Rules		 Rs.1000/- per month w.e.f. 01/05/1999
20. Any Special Allowance in the nature of Counter Insurgency Allowance
(SCCIA)		 U/S 10 (14) (ii) of IT Act and
Rule 2BB (2) – Table Sl.No.9 of the IT Rules		 Rs.3900/- per month w.e.f. 01/05/1999
21. Transport Allowance granted to
meet expenditure for the purpose of commuting between place of residence and
duty		 U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.10 of the
IT Rules		 For whole of India – Rs.1600/-
per month
22. Transport Allowance granted to
a blind or orthopedically handicapped employee with disability of lower
extremities to meet expenditure for
the purpose of commuting between place of residence and duty		 U/S 10 (14) (ii) of IT Act and Rule For Whole of India – Rs.3200/- per month 2BB (2) – Table Sl.No.11 of the
IT Rules
23. High Altitude Uncongenial Climate Allowance (HAUCA) U/S 10 (14) (ii) of IT Act and Rule 2BB (2) Table Sl.No.13 of the IT
Rules		 For areas of (a)Altitude of 9000 to 15000 feet (HAUCA ‘I) – Rs.1060/-
per month w.e.f. 01/05/1999. (b)Altitude above 15000 feet (HAUCA ‘II’ &
‘III) – Rs.1600/- per month w.e.f. 01/05/1999.
24. Highly Active Field Area
Allowance (HAFA)		 U/S 10 (14) (ii) of IT Act and Rule 2BB (2) –Table Sl.No.14 of the IT
Rules		 Rs.4200/- per month
25. Island (duty) Allowance granted to the members of Armed Forces U/S 10 (14) (ii) of IT Act and Rule 2BB (2) – Table Sl.No.15 of the
IT Rules.		 For Andaman & Nicobar and Lakshadweep group of islands –
Rs.3250/- per month inserted w.e.f. 29/02/2000.
26. Outfit Allowance (Initial/Renewal) U/S 10 (14) (i) of IT Act and
Rule 2BB (1) (f) of IT Rules.		 Fully Exempt
27. Compensation for the change of uniform U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules Fully Exempt
28 . Kit Maintenance Allowance U/S 10 (14) (i) of IT Act and Rule 2 BB (1) (f) of the IT Rules Fully Exempt
29. Uniform Allowance (MNS) U/S 10 (14) (i) of IT Act and Rule 2BB (1) (f) of the IT Rules Fully Exempt
30. Special Winter Uniform Allowance U/S 10 (14) (i) of IT Act and
Rule 2BB (1) (f) of the IT Rules		 Fully Exempt
31. Reimbursement of Medical
Expenses		 U/S 17 (2) (viii) (v) of IT Act Actual expenditure upto Rs.15000/- per annum.
32. Any payment from Provident Fund U/S 10 (11) of IT Act Fully Exempt
33. Payment of Compensation – Disability Pension CBDT F.No. 200/51/99- ITA1 dated 02 Jul 2001 Fully Exempt.

DISCLAIMER: The above provisions are with the understanding and interpretation of IT Act 1961/IT Rules as amended and instructions issued by CBDT from time to time. Rules, provisions, further amendments and clarifications are issued by IT department/CBDT only and this office does not have any role in framing the same except IT deductions at source with reference to them.

Authority: www.pcdaopune.gov.in

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