ALL INDIA SERVICES (DISCIPLINE AND APPEAL) AMENDMENT RULES, 2017

Income Tax Rates FY 2016-17 (AY 2017-18) – Finmin Orders

CIRCULAR NO : 01/2017

F.No.275/192/2016-IT(B)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

North Block, New Delhi

Dated the 2nd January, 2017

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2016-17 UNDER SECTION 192 OF THE INCOME-TAX ACT, 1961.

Reference is invited to Circular No.20/2015 dated 02.12.2015 whereby the rates of deduction of income-tax from the payment of income under the head “Salaries” under Section 192 of the Income-tax Act, 1961 (hereinafter ‘the Act’), during the financial year 2015-16, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2016-17 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.

2. RATES OF INCOME-TAX AS PER FINANCE ACT, 2016:

As per the Finance Act, 2016, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head “Salaries” for the financial year 2016-17 (i.e. Assessment Year 2017-18) at the following rates:

2.1 Rates of tax

A. Normal Rates of tax:

 

B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

7th CPC Minimum Wage and Fitment Formula, Allowances, Pension and Very Good Benchmark, NPS etc.: NJCA Meeting

7th CPC Minimum Wage and Fitment Formula, Allowances, Pension and Very Good Benchmark, NPS etc.: NJCA Meeting with Cabinet Secretary on 19.01.2017 status

NJCA

National Joint Council of Action

4, State Entry Road New Delhi – 110055

No.NJCA/2017

Dated: January 19, 2017

All the Constituents of

National Council(JCM)

Dear Comrades,

Sub: Brief of the meeting held today with the Cabinet Secretary

A meeting was held today with the Cabinet Secretary, Government of India, wherein myself as well as Com M.Raghavaiah were present.

We explained him about various Issues of the Central Government Employees pending at the government level The main issues were NPS, Minimum Wage and Fitment Formula, Allowances, Pension and Very Good Benchmark, etc. etc.

The Cabinet Secretary informed us that, Pension issues have already been referred to the Cabinet, and the report of the Committee on Allowances is likely to be submitted in the next month. So far as issue of NPS is concerned, he has already directed the committee to hold a meeting with the Staff Side, which has already been fixed for 20th January 2017, The issue of Minimum Wage and Fitment Formula is also being vigorously pursued by the government.

He said that, inordinate delay was because of the various problems, but the intention of the government is very clear that, they want to resolve the problems of the Central Government Employees.

He also advised us to have patience for some time and given us an assurance that he would try to get resolved pending issues of the Central Government Employees as early as possible.

Comradely yours,

(Shiva Gopal Mishra)

Convener

Ceiling on IT for salaried persons should be raised to Rs.7.5 lakh: AIBEA to Jaitley

The ceiling on Income Tax for salaried persons should be raised upwards to Rs 7.5 lakh with exclusion of fringe benefits like housing,medical and educational facilities.

The IT rate above Rs 7.5 lakh and upto Rs 12 lakh shall be 10 per centand above Rs 12 lakh upto Rs 20 lakh 20 per cent and Rs 20 lakh andupto Rs 25 lakh it should be 25 per cent, All India Bank Employees’Association ( AIBEA) General Secretary C H.Venkatachalam said while submitting suggestions for consideration in next budget being finalized bythe Central government.

In a letter to Finance Minister Arun Jaitley, Mr Venkatachalam said the Income Tax slab for rich individuals should be raised significantly. For annual incomes between Rs 25 lakh and Rs 1 crore, tax rate should be 35 per cent and for annual Income above Rs 1 crore, it should be 40 percent.

He said Uniform tax rates for goods should be introduced throughout the country and adequate compensation should be paid to the state governments by the Centre for such introduction, for the revenues that would be affected by such move.

On the banking Sector, the AIBEA leader suggested to the Minister that the rate of interest on Savings Bank deposits shall have to be revised upwardly by atleast 2 basis points and the interest on fixed deposits shall be exempted from the purview of IT.

The banks should extend agriculture loan at the rate of 2 per cent per annum ( simple) and the banks should extend education loan at concessional rate of interest to the poorer sections of the people, at the rate of 5 per cent per annum (simple) with interest subvention.

Mr Venkatachalam also said in the letter that all private sector banks should be brought under the public sector, government should hold full control of public sector banks with 100 per cent equity holding and shall not disinvest its shareholding.

Wilful default of bank loans should be declared as a criminal offence through suitable amendment to law and the RBI should publish the list of defaulters every six months with updates, who owe to the banks more than Rs 1 crore.

Mr Venkatachalam also said Fast track courts shall have to be vested with more powers to recover the bad loans and stringent laws should be enacted to ensure more recovery.

Laws should be amended to confiscate the assets of the directors in case of default by a company, in which they are directors, the top AIBEA leader suggested to Mr Jaitley.

There should be expansion of Public Sector banks and to that effect, more branches should be opened in unbanked and rural areas, he said, adding that the merger of Associate/Subsidiary Banks of SBI with State Bank of India should be abandoned, as this would adversely affect the regional economy of the states in which the Associate/Subsidiary Banks are operating and in such areas of operations, they perform better than the SBI.

On the Rural sector, the AIBEA General Secretary suggested Mr Jaitley to ensure minimum civic amenities, the Panchayati Raj institutions should be strengthened with adequate budgetary allocations, education among rural children should be made compulsory through more enrollments in the government schools.

On Agriculture, he said, the investment in agriculture shall have to be made both by the Central and the state governments through increase in budgetary allocations, lands acquired by the banks in Settlement of loans by the small and marginal famrers must be returned to the original owners on repayment of installments on the basis of similar deals in respect of commercial companies.

Touching Education, Mr Venkatachalam said education to children should be made compulsory and the government schools should be recruited with qualified teachers to provide worthy education and added Child Labour Act should be amended so that the children should not be made to work even in ‘family run’ business. National Health Policy should be adopted and there should be National drug policy and prices of life-savings and essential drugs should be controlled, he mentioned on Health Care.

On prices, Agricultural Market Produce Committees (APMC) Act should be repealed and abolished, as these compels and forces the farmer to sell his produce to middlemen in authorized Mandis ( Markets). Farmers should be allowed to sell their products directly in the market without intermediaries/wholesalers/middlemen,he added.

On Labour Laws, Mr Venkatachalam urged the Minister that the judgement of Supreme Court be implemented to ensure ”equal pay for equal work” at all private and public sector establishments, the Contract Labour ( Regulation & Abolition) Act, 1970, should be amended to absorb the contract workers in permanent employment of the ‘principal employer’ if contract labour is abolished by the government.

On Public Sector Units, he said budgetary allocation should be made to all the sick, revivable and potentially viable public sector units, appointments of Chiefs of Public Sector Units that are remaining vacant should be expedited and massive investments in Public Sector should be made to make concerted efforts to generate public employment.

All Foreign Trade Agreements (FDA), Bilateral Investment Treaties (BITs), Double Taxation Avoidance Agreements (DTAAs) should be reviewed comprehensively in country’s economic interest as through these treaties and agreements, the black money stashed away are ploughed into India as FDI the AIBEA leader said and added that FDI in Public Sector Units, LIC, Private Sector banks, Services, Defence should not be allowed and such policy decisions should be scrapped.

Source: http://www.aibea.in/