PRINCIPAL CHIEF CONTROLLER OF ACCOUNTS
CENTRAL BOARD OF DIRECT TAXES
ZONAL ACCOUNTS OFFICE
4TH FLOOR, AAYAKAR BHAVAN
BASHEERBAGH, HYDERABAD – 500 004

7th Pay Commission Latest News 2022

ZAO/CBDT/HYD/ Pre-Check/2022-23/ 3389

Dt. 13th June 2022

To

The Commissioner of Income Tax (Admin),
O/o The Pr. Chief Commissioner of Income Tax (AP & TS)
I T Towers, A C Guards, Mas k, Hyderabad – 04

Sir,

Sub: Drawing Transport Allowance in r/o Officers who are drawing pay in Levels 14 and above of 7 CPC – reg.

Ref: GOI, M/o Finance, Department of Expenditure’s OM No. 21/5/2017-E-II(B) dated 07/07/2017.

With reference to the subject cited above, it is intimated that monthly Transport Allowance is being drawn by some of the officers, who are drawing pay in Levels 14 and above in the 7 CPC pay matrix and who are entitled to the use of the official car. But, as per para (iv) of the OM mentioned under reference –

• (iv) Officers drawing pay in Levels 14 and above in the Pay Matrix, who are entitled to the use of official car in terms of Department of Expenditure’s O.M. No.20(5)-E.II(A)/93 dated 28.01.1994, shall be given the option to avail the official car facility or to draw Transport Allowance at the rates of Rs.15,750/- p.m. plus Dearness Allowance thereon. Before, allowing Transport Allowance @ Rs.15,750/- plus D.A. thereon, the option exercised by an officer will be examined by the administrative Ministry and his/her entitlement to the use of official car in terms of the O.M. dated 28.01.1994 ibid will require to be certified by the competent authority. In case, an officer opts to draw Transport Allowance @Rs.15,750/- p.m. plus D.A. thereon, he/she will not be allowed to change his/her option during the remaining period of his/her current assignment.

In this regard, it is intimated that necessary certificate may be obtained in r/o the officers who are working under the jurisdiction of your office and copies of the same may please be forwarded to this office for further necessary action while processing the salary bills.

Yours faithfully,

(G Srinivas)
Sr. Accounts Officer (PC)

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Transport Allowance (TPTA) (Para 8.15.53)

Existing Provisions: Granted to cover the expenditure involved in commuting between place of residence and place of duty. The existing rates are as under:

Officers drawing GP 10000 and higher, who are entitled to the use of official car, have the option to avail of the existing facility or to draw TPTA @ Rs.7000 + DA.

Differently abled employees are granted TPTA at double rates subject to a minimum of Rs.1000+DA.

Recommendations of 7th CPC: Transport Allowance is already fully DA indexed. Therefore, following rates of Transport Allowance are recommended:

Officers in Pay Level 14 and higher, who are entitled to the use of official car, will have the option to avail themselves of the existing facility or to draw the TPTA at the rate of Rs.15,750+DA pm.

Differently abled employees will continue to be paid at double rate, subject to a minimum of Rs.2,250 plus DA.

Demands:
I. National Council (Staff Side), JCM:

i. There should be only two levels for Transport Allowance, as under:
Level 9 and above
Rs.7500+DA (Higher TPTA Cities)
Rs.3750 + DA (Other Places
Below Level 9
Rs.3750+DA (Higher TPTA Cities)
Rs.1875 + DA (Other Places)

ii. Income Tax exemption, which was available for Transport Allowance, may be reintroduced.

II. Ministry of Health and Family Welfare: SAG Doctors should be paid Transport Allowance at the rates admissible to Joint Secretary in lieu of Staff Car.

Analysis and Recommendations of the Committee: The Committee notes that the Transport Allowance is fully indexed to Dearness Allowance and the rates have accordingly been revised by the 7th CPC. As the demands do not relate to any changes recommended by the 7th CPC, the recommendations of the 7th CPC on Transport Allowance may be accepted without any change.

When this allowance was introduced by 5th CPC, the entire amount was exempted from Income Tax. However, the Committee is not making any recommendations relating to raising of Income Tax ceiling on Transport Allowance as it is not within the purview of the Committee. The matter may be taken up separately with Department of Revenue.

Authority: www.doe.gov.in

Click to view the Report

The post Transport Allowance (TPTA) : Report of the Committee on Allowances appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

7th CPC Allowances Gazette Notification : Transport Allowance (TPTA) and Travelling Allowance

Finance Ministry just now released the Gazette Notification on all allowances recommended by the 7th Central Pay Commission on its portal.

The post 7th CPC Allowances Gazette Notification : Transport Allowance (TPTA) and Travelling Allowance appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Transport Allowance (TPTA) is granted to cover the expenditure involved in commuting between place of residence and place of duty. The existing rates are as under:

Moreover, officers drawing GP 10000 and higher, who are entitled to the use of an official car, have the option to avail themselves of the existing facility or to draw the TPTA at the rate of Rs.7,000+DA pm. Differently abled employees are granted this allowance at double the rate, subject to a minimum amount of Rs.1,000 plus DA.

Many representations have been received regarding Transport Allowance. Most of them advocate granting the allowance at the same rate to all employees, irrespective of their place of posting, on the grounds that fuel prices affect everybody equally.

Analysis and Recommendations: The Commission notes that TPTA is fully DA-indexed. The first issue to be considered is whether the rate of Transport Allowance should be the same for all places. There are arguments both for and against this view.

Proponents of the idea argue that petrol prices are almost the same everywhere. Moreover, the public transport system is better developed in many of the A1/A Class cities, thereby reducing the cost of commuting significantly. The argument, therefore, is that A1/A category places do not need to have a higher rate.

Opponents point out that the categorization of A1/A has been abolished for other purposes (like HRA, CCA) but retained for Transport Allowance. Incidentally, only 13 cities fall under this categorization: six in A1, viz., Hyderabad, Delhi, Bengaluru, Greater Mumbai, Chennai, Kolkata, and seven in A, viz., Ahmedabad, Surat, Nagpur, Pune, Jaipur, Lucknow, and Kanpur. Recently, six more cities, viz., Patna, Kochi, Kozhikode, Indore, Coimbatore, and Ghaziabad have been added to A1/A categories, making it nineteen in all. (Incidentally, vide a recent notification No. 21(2)/2015-E.II(B) dated 06.08.2015, the use of the term ‘A1/A’ has been dropped for these nineteen cities. Hence, the Commission will refer to these nineteen cities as Higher TPTA cities.). In all these places the commuting distances are far more than in other cities. Moreover, the public transport system is not as developed as it should be in all these places. Therefore, it is argued, the distinction should remain.

After considering both the viewpoints, the Commission is of the view that by and large the commuting distances and associated difficulties involved in Higher TPTA cities are much more compared to other places. Hence, the argument that the distinction should stay is a valid one.

The second issue is whether Transport Allowance should be the same for all personnel posted at the same place. Here the Commission feels that a question of the status of employee is involved and hence, complete parity is not possible.

Regarding the optimal rate of 7th CPC Transport Allowance, the Commission notes that the allowance is already fully DA indexed. Therefore, since DA has already reached 119 percent and is likely to rise further before the implementation of our report, the following rates of Transport Allowance are recommended:

Officers in Pay Level 14 and higher, who are entitled to the use of an official car, will have the option to avail themselves of the existing facility or to draw the TPTA at the rate of Rs.15,750+DA pm. Differently abled employees will continue to be paid at double rate, subject to a minimum of Rs.2,250 plus DA.

JCM Staff Side suggestion on Transport Allowance: The 5th CPC had introduced transport allowance for employees working in classified towns on account of various factors like unprecedented growth of city limits, increase in the volume of traffic and non-availability of residential accommodation at reasonable rents near offices, which are usually located in the heart of cities. If these were the factors it appears that the 5th CPC did not take into account that it is usually a low-paid employee who finds residence at a very long distance from his office whereas officers are offered residences very near to their offices. If, therefore, transport allowance was meant to defray the transportation charges from residence to office and back the higher rates should have been recommended for the low paid employees who were residing at a distant place. Since the 6th CPC’s recommendation in this regard was implemented, there had been several rounds of increase in the fuel charges making a cascading impact on the public transport fares.

Taking these factors into account, we suggest that the following rates of transport allowance may please be recommended.

At first glance, both transport allowance and travelling allowance might look the same. But, the two are very different for Central Government employees. Recent spate of orders issued by the DOPT and Finance Ministry on TRAVELLING ALLOWANCE was the inspiration behind this write-up.

7th CPC Transport Allowance and Travelling Allowance Rules at a glance

In its order last week, the DOPT said that senior officers who have to travel by air for official purposes may not have to submit the boarding passes while settlement of TA claims. They will have to henceforth submit the passes only when required. The very next day, the Finance Ministry issued an order that made it mandatory for senior officials to submit boarding passes alongwith TA bills for air journey performed on Government account.

The concept of Transport Allowance was introduced by the 5th CPC to defray the cost of commuting between residence and office. The 6th CPC while recommending CCA to be subsumed in Transport Allowance. Transport Allowance is given to the Central Government employees for their everyday commute to and from the workplace. Based on their Grade Pay or Band Pay, this could be anything between Rs. 400 to Rs. 3200 per month. It also depends on the population of the city or town where the office is located. Transport allowance is twice the normal amount for physically challenged employees.

Travelling allowance is given to employees who have to travel out of station for official work. There are a number of rules, guidelines and restrictions that control travelling allowance. DOPT and the Ministry of Finance issues amendment orders related to travelling allowances from time to time.

Travelling allowance differs based on the employee’s grade pay. The ‘Grade Pay’ for determining the TA/DA entitlement is as indicated in Central Civil Service(RP)Rules 2008. Depending on the grade pay, the employee has to opt for the appropriate class of accommodation while travelling via bus, train, ship or by aeroplane. The employee can refund only that amount that he is entitlement for. The Finance Ministry order published on 23.9.2008, OM explained the details of the Travelling allowance and entitlements for Government officials as per title given below…

Government officials on Tour: Travelling Allowance and Entitlements, Entitlement for journeys on tour and travel entitlements within the country, International Travel Entitlement, Mileage allowance for journeys by road, Daily Allowance, Travelling Allowance on Transfer, Transfer Grant and Packing Allowance, Transportation of Personal Effects, Transportation of Conveyance, Travelling allowance Entitlement of Retiring employees, Lumpsum Transfer Grant and Packing Allowance

Daily Allowance: If the official tour is of longer duration, then the employee is paid Daily Allowance to meet his boarding and lodging expenses. This too depends on the Grade pay of the employee. This is what is known as TA/DA. While seeking the TA/DA claims, the employee has to present receipts and bills.

In this regard, the notification, that senior officials are not required to submit the boarding passes while seeking settlement of TA claims of their air travel expenses, was confusing.

The order is not applicable to Group C employees. But some have misunderstood the order and have assumed that it was for the air travel facility that is available as part of the Leave Travel Concession.

The post 7th CPC Transport Allowance & calculation appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

Transport Allowance (TPTA) is granted to cover the expenditure involved in commuting between place of residence and place of duty. The existing rates are as under:

The following rates of Transport Allowance are recommended:

 Regarding the optimal rate of Transport Allowance, the Commission notes that the allowance is already fully DA indexed. Therefore, since DA has already reached 119 percent and is likely to rise further before the implementation of our report, the following rates of Transport Allowance are recommended.

Authority: http://7cpc.india.gov.in/

The post 7th CPC: Recommended Transport Allowance (TPTA) appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.