Transport Allowance Grant Double to Deaf and Dumb Employee of Central Government

No.20/2/2016-E-II(B)

Government of India

Ministry of Finance

Department of Expenditure

North Block, New Delhi

Dated: 17.01.2017

OFFICE MEMORANDUM

Subject: Grant of Transport Allowance at double the normal to deaf and dumb employees of Central Government

In suppression of this Department O.M.No.21(2)/2011-E-II(B) dated 19.02.2014 regarding admissibility of Transport Allowance at double the normal rates to employees who are deaf and dumb. the undersigned is directed to say that the matter has been re-examined and it has been decided with the approval of Competent Authority that Transport Allowance at double the normal rates is admissible to Hearing Impaired employees also in addition to employees who are both deaf and dumb.

2. Transport Allowance at double normal rates would be admissible to the ‘Hearing Impaired employees having loss of sixty decibels or more in the better ear in the conversation range of frequencies’ as per Persons With Disabilities (Equal Opportunities, Protection of Rights and Fun Participation) Act, 1995.

3. The admissibility of Transport Allowance at double the normal rates to above categories of employees is subject to recommendation of the Head of ENT Department of a Government Civil Hospital and fulfillment of other conditions applicable in respect of other disabilities mentioned in D/o Expenditure’s O.M. No. 19029/1/78-E-lV (B) dated 31st August, 1978 read with dated 29.08.2008.

4. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, this order issues in consultation with the Comptroller And Auditor General of India.

5. These orders would be effective from 19.02.2014.

6.  Hindi version is attached.

(Nirmala Dev)

Deputy Secretary (EG)

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Conveyance Allowance Exemption Limit increased to Rs. 3200/- per month - CBDT

Recently, CBDT has issued a 6th Amendment regarding doubles exemption limit of conveyance allowance. This 6th Amendment is takes place in Rule 2BB and effected from 1st April, 2015.

In the Income-tax Rules, 1962, in rule 2BB, in sub-rule (2), in the Table,-

• against serial number 10, in the entry under column(4),relating to the extent to which allowance is exempt, for the letters, figures and words “Rs.800 per month”, the letters, figures and words “Rs.1600 per month” shall be substituted;
• against serial number 11, in the entry under column (4),relating to the extent to which allowance is exempt, for the letters, figures and words “Rs.1600 per month”, the letters, figures and words “Rs.3200 per month” shall be substituted.

Download Notification (Click here)

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Transport Allowance and Travelling Allowance Rules at a glance

At first glance, both transport allowance and traveling 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.

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.

Traveling allowance differs based on the employee’s grade pay. The ‘Grade Pay’ for determing 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 on 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 reimbursement 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.

Source: 7thpaycommissionnews.in

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Latest Conveyance Allowance rates to Government Servants.

Maharashtra State Government has been issued a resolution regarding Conveyance allownace to all state Government Employee vide No. Pravas 1013/Pra.Kra.13/Seva-5 dated 23/09/2013. The State Government had amended Conveyance rates against resolution dated 03/03/2010 by apendix-7. 

The Traveling/Conveyance Allowance and there Dearness Allowances had rises by State Government to State Government Employee who are working under the Service Rule of Maharashtra State.  The State Government has revised following Conveyance Rates:



Rates - Conveyance Allowance to Government Servants (Click Here)

Rates of Travelling Allowance and Daily Allowance (Click Here)

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Enhancement of Allowances to Nursing Staff by 25% consequent on enhancement of 50% Dearness Allowances.

As per recommendation of the 6th Pay commission and Resolution of Ministry of Finance (Department of Expenditure) published in the Gazette of India ( Extraordinary) (Part-I-Sec-I) No. 1/1/2008-IC, dated 29.08.08 pertaining to the decision of the Government of recommendation of the 6th Pay Commission, in President is pleased to sanction the enhance of existing rates of Following Allowance to the Nursing Personnel of all categories at all category at all level working in Central Government/UT Hospitals/Institutions and Centrally funded Autonomous Bodies Like AIIMS, New Delhi, PGIMER, Chandigarh, JAIMPER, Pudducherry etc. subject to the following conditions and as per the details given below:
 

A) All these allowances will not be treated as a part of pay as already decided vide Ministry of Health and Family Welfare Order No. Z.28015/86/97-N dated 28th July, 1998.
 

B) The additional expenditure due to enhancement of these allowances would be met by the respective institutions from their sanctioned budget.

2.  This orders will take effect from 1st September, 2008.

3.  Nursing Allowance will be payable to all Nurses whether working in Dispensaries or in Hospitals.

4.  The rates of above allowances shall automatically increases by 25% every time the dearness allowance payable on the revised pay structure goes up by 50%.
 

5.  This issue with the approval of AS&FA vide Dy. No. 6289, dated 04.11.2008 and Ministry of Finance, Department of Expenditure, IC U.O. No. 7.17/2/2008-IC, dated 07.01.2008.

Download G.R. (Click Here)

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Tax calculation on Salary Allowances for the Asstt. Year 2013-14.

Allowance is defined as a fixed quantity of money or other substance given regularly in addition to salary for meeting specific requirements of the employees. As a general rule, all allowances are to be included in the total income unless specifically exempted.

Exemption in respect of following allowances is allowable to the exent mentioned against each :-

House Rent Allowance:- Provided that expenditure on rent is actually incurred, exemption available

shall be the least of the following :

(i)                 HRA received.

(ii)               Rent paid less 10% of salary.

(iii)             40% of Salary (50% in case of Mumbai, Chennai, Kolkata, Delhi) Salary here means Basic +

Dearness Allowance, if dearness allowance is provided by the terms of employment.

Leave Travel Allowance: The amount actually incurred on performance of travel on leave to any place in India by the shortest route to that place is exempt. This is subject to a maximum of the air economy fare or AC 1st Class fare (if journey is performed by mode other than air) by such route, provided that the exemption shall be available only in respect of two journeys performed in a block of 4 calendar years.

Certain allowances given by the employer to the employee are exempt u/s 10(14). All these exempt allowance are detailed in Rule 2BB of Incometax Rules and are briefly given below:

For the purpose of Section 10(14)(i), following allowances are exempt, subject to actual expenses incurred:

(i)                 Allowance granted to meet cost of travel on tour or on transfer.

(ii)               Allowance granted on tour or journey in connection with transfer to meet the daily charges incurred by the employee.

(iii)             Allowance granted to meet conveyance expenses incurred in performance of duty, provided no free conveyance is provided.

(iv)             Allowance granted to meet expenses incurred on a helper engaged for performance of official duty.

(v)               Academic, research or training allowance granted in educational or research institutions.

Allowance granted to meet expenditure on purchase/ maintenance of uniform for performance of official duty.

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How to claim Vehicle Maintenance or Conveyance Allowance on TDS of Salary?

Use of any vehicle provided by the employer to an employee for journey by him from his residence to office or from office to his residence shall not be chargeable to tax.

Where the car is owned by the employee or employer and maintenance & running expenses including driver salary, are met by the employer and if the car is used wholly for official purposes, no value shall be taken as perquisite provided :

• The employer has maintained complete details of the journey undertaken for official purposes; 
• The employer gives a certificate that the expenditure was incurred wholly for official duties.

Section 10(14) includes only those allowances which are not in the nature of perquisite within the meaning of section 17(2). Vehicle maintenance reimbursement falls within the purview of section 17(2). Hence, this exemption is not available to the employees claiming vehicle reimbursement for official purposes. 

Conveyance allowance to the extent of Rs 800/- p.m. or Rs. 1600 p.m (for a blind person) is allowable to all employees other than those claiming Vehicle reimbursement to meet the expenditure for the purpose of commuting between place of residence and place of office.

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How to Calculate your H.R.A. Exemption (Salaried Employee)?

Some times Employee claimed unexpected exemption from Income Tax and unnecessarily Income Tax Department send notice for Self Assessment. Keeping in view employee mostly asked common queries that Is take benefit of HRA exemption? How it claim ? Who got benefit of HRA Exemptions? etc.  In accordance with this some points are found, which is as under:

• Each and every Allowance in Gross Salary is a fixed monetary which paid by Employer to Employee, whether personal or for the performance of his duties.
• Claim exemption of allowance i.e. Conv. Allowance, House Rent Allowance etc. while submitting Annual Income Tax Return. These allowances generally taxable unless a specific deduction/exemption is provided by law.

According to law House Rent Allowance (HRA) is give by the employer to the employee to meet the expenses in connection with rent of the accommodation.  HRA is exempt under section 10(13A) to the extent of the minimum of the following three amounts :

Actual House Rent Allowance received by the employee

• Excees of rent paid for the accommodation occupied by him over 10 % of the salary.
• 50% of salary where the residential house is situated at Mumbai, Calcutta, Delhi or Chennai and 40% of the salary where the house is situated at any other place.

The minimum of the above three amounts shall be exempt from tax and the balance shall be taxable and thus included in gross salary of employee.

Meaning of Salary for calculation the exemption of HRA

• Salary means (Basic + D.A + Commission based on fixed percentage on turnover).
• Salary is to be taken on due basis in respect of the period during which the period accommodation is occupied by the employee in the previous year.

Calculation Monthly or Yearly?
 

The exemption in respect of HRA is based upon the following factors:
 

Salary
HRA received
Place of Residence,
Rent Paid,
HRA exemption should not be calculated on yearly basis, if there was any change in above factors during previous year.

Examples for calculation of exemption/deduction of HRA
X has received following amount during the previous year.

• Basic Salary – Rs. (5000*12) – Rs. 60,000/-
• Dearness Allowance (D.A) – Rs. (1000*12) – Rs. 12000/-
• House Rent Allowance (H.R.A.) – Rs. (2000*12) – Rs. 24000/-
• Actual Rent Paid – Rs.(2000*12) – Rs. 24000/-

Calculation
The minimum of the following amount shall be exempt

• Actual HRA received (2000*12) – Rs. 24000/-
• Rent Paid in excess of 10% of salary ( 24000-7200) – Rs. 16800
• 40% of Salary – Rs. 28800/-

Therefore, Rs. 16800 shall be exempt and the balance Rs. 7200 shall be included in gross salary.

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Can Claim Exemption of Conveyance Allowance jointly ?

In the Income Tax Law, if a both employee (Husband & Wife) works with same Employer they can't be claim exemption of Conveyance Allowance u/s. 10 of Income Tax Act and the both assessee purchase immovable property as Long Term Capital gain jointly, the exemption is available u/s. 54 of Income Tax Act.

It’s a very interesting query with two different views are possible. There is nothing specific in the Income Tax Act/ Rules to express one side opinion on the issue. One can form an opinion that section 10(14) read with Rule 2BB restricts an exemption towards conveyance allowance to Rs. 800/- per month for both the employments taken together. The possibility of another interpretation that Rs. 800/ per month is a deduction admissible per employment and not per assessee cannot be over ruled. I have a conservative opinion & of the view that Rs. 800/- per month deduction is available per assessee and not separately for each employment.

No deduction is admissible u/s 54 towards Short term capital gain. Exemption u/s 54 is available only if the assessee has Long Term Capital Gain (LTCG).

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Dearness Allowance Rate w.e.f. from 01.07.2012 in Maharashtra with Expected 7% D. A. from July-12

 The Dearness Allowance Rates in Maharashtra for 4th Pay, 5th Pay and 6th Pay Commission which are applicable to State Employee, Non-Govt. Employee, Aided Employee whose salary drawn by Maharashtra State Government. From Time to time, we updated all latest information for Employee and analyze the Resolutions, which passed by the Government.


The latest updated Dearness Allowance Rates are as follows:

DATE	D.A. RATES	PAY COMMISSION
01/01/1994	104.00%	D.A. RATES AS PER 4TH PAY COMMISSION
01/07/1994	114.00%
01/01/1995	125.00%
01/07/1995	136.00%
01/01/1996	148.00%
01/07/1996	159.00%
01/01/1997	170.00%
01/07/1997	182.00%
01/01/1998	190.00%
01/07/1998	203.00%
01/01/1999	213.00%
01/07/1999	218.00%
Note: The 5th Pay Commission was announced and implemented on 01 Jan. 1996.
01/01/1996	0.00%	D.A. RATES AS PER 5TH PAY COMMISSION
01/07/1996	4.00%
01/01/1997	8.00%
01/07/1997	13.00%
01/01/1998	16.00%
01/07/1998	22.00%
01/01/1999	32.00%
01/07/1999	37.00%
01/01/2001	38.00%
01/10/2001	41.50%
01/04/2002	44.50%
01/08/2003	55.00%
01/06/2004	61.00%
D. A. Merge 50% in Basic Pay as "D.P." from 01.08.2004
01/08/2004	50% + 11%
01/04/2005	50% + 14%
01/07/2005	50% + 21%
01/05/2006	50% + 24%
01/09/2009	50% + 29%
01/04/2007	50% + 35%
01/07/2007	50% + 41%
01/01/2008	50% + 47%
01/07/2008	50% + 54%
01/01/2009	50% + 64%
01/07/2009	50% + 73%
01/06/2010	50% + 87%
01/11/2010	50% + 103%
01/05/2011	50% + 115%
01/10/2011	50% + 127%
Note: The 6th Pay Commission was announced and implemented on 01 Jan. 2006.
01/01/2006	0.00%	D.A. RATES AS PER 6TH PAY COMMISSION Coming Soon (7% D.A. Increases)
01/07/2006	2.00%
01/01/2007	6.00%
01/07/2007	9.00%
01/01/2008	12.00%
01/07/2008	16.00%
01/01/2009	22.00%
01/07/2009	27.00%
01/06/2010	35.00%
01/11/2010	45.00%
01/05/2011	51.00%
01/10/2011 01/01/2012 01/07/2012	58.00% 65.00% 72.00%

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Dis-Allowance Interest Deductions u/s. 36(i)(iii) of Income Tax Act.

Income Tax Department Disallowance Interest Deductions u/s 36(1)(iii)(proviso) which is applicable to extension of existing business and not to setting up altogether different or new business as per below terms:

• Proviso to section 36(1)(iii) provides that no interest paid shall be allowed as deduction in respect of capital borrowed for acquisition of an asset for extension of existing business for any period beginning from the date on which the capital was borrowed for acquisition of the asset till the date on which the asset was first put to use.

• In this provision the reference is first to the existing business and then to its extension. It does not refer to setting up an altogether different or new business.

• In the absence of any specific statutory meaning to the expression 'extension of existing business', one has to go by its meaning as understood in common parlance.

• Assessee shifting its business from rented office to its own Office premises acquired with borrowed funds is extension of existing business within the meaning of proviso to section 36(1)(iii) The instant case is of 'extension of existing business' and not that of setting up of a new business, inasmuch as by having its own premises and doing the same business, the assessee will now be in position to carry on its operation at a much wider scale in a hassle free manner. This would obviously result in extension of its existing business.

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Medical, House Rent & Conveyance Allowance Expenditure and Tax liability.

When Employer paid salary to employee in breakup form like as Basic, Dearness allowance, House Rent Allowance, Conveyance Allowance and Medical Allowance etc. either in Private Sector or Public Sector, the question is arise that whether the paid salary or entire salary amount is taxable or exempted. How to calculate tax liability on drawn salary ? etc. thus the some clarification regarding such type of queries of Employer as follows:

1. Medical Allowance:

• Only reimbursement of medical expenses up to Rs. 15,000/- is exempt from income tax. Amount received over and above Rs. 15,000/- is taxable as “Income From Salary”.
• Fixed Medical allowance is taxable in the hand of employee. It is not plainly exempt from income tax even if it is actually expended for medical treatment by the employee.
  

2. House Rent Allowance (HRA):
In respect of HRA, the least of the following is exempt from tax u/s 10(13A):

• 40% of salary (50% for Mumbai, Kolkata, Delhi and Chennai).
• HRA for the period the house is occupied by the employee.
• The excess of rent paid over 10% of salary. However, an employee living in his own house or where he does not pay any rent is not eligible for this exemption.
  

3. Conveyance Allowance:
Any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit is fully exempt from tax u/s. 10(14) read with Rule 2BB (1)(c). However, transport allowance for commuting between residence and place of duty is exempt up to Rs 800/- per month.

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