Leave Rules Prescribed by the UGC for Teachers of the Universities / Colleges.

The Commission vide its Notification dated 24 December, 1998 on revision of pay scales, minimum qualifications for the appointment of teachers in universities and colleges, and other measures for the maintenance of standards has laid down service conditions (including leave rules) for teachers. It may please be noted that while issuing this notification, it was expected that entire scheme of revision of pay scales, together with all the conditions attached to it, would be implemented as a composite scheme without any modifications.

It has now been brought to the notice of the UGC that some of the universities have not given effect to the Leave Rules prescribed by the UGC as an integral part of the revised pay scales. For implementation of the Leave Rules, it is necessary for the Universities to suitably amend the relevant statutes / ordinances / rules / regulations as may be required.  A copy of the Leave Rules is enclosed for your kind reference.

May I request you to kindly confirm if your university has implemented the prescribed leave rules. In case, your university is yet to implement the revised leave rules, you may please initiate action for its implementation forthwith. You may also advise the colleges affiliated to your university to follow the prescribed leave rules. I would appreciate if you could send me a status on the same. If you require any clarifications from us on this issue, please feel free to do so.

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Filing of Income Tax Return is not mandatory if the Gross Total Income is below the Basic Exemption Limit.

As per Income Tax amendment Law, the Filing of Income Tax Return is not mandatory to an Individual or HUF, if the gross Total Income is below the Basic Exemption Limit. If the Gross Total Income is below than Basis Exemption Limit of each Financial Year i.e. for Financial Year 2012-13 is Rs. 1.80 Lakhs. It means that, if the Assessee/Taxpayee earned Gross Total Income below Basic Exemption Limit is not mandatory to submission of Income Tax Return. As far as the taxability of CPF Accumulation is concerned it may be noted that, in case of withdrawal from the recognized provident fund, the amount is exempt only if it is withdrawn from the PF account maintained for more than 5 years continuously. If it is not so, the amount withdrawn is to be included in the income of that year, and is taxed as per the prevailing income tax slabs / brackets.

The tax treatment of various components of salary normally received by an employee at the time of retirements are as under:

Provident Fund:
Lump sum payment received from Statutory Provident Fund received by the Government employee is fully exempt from income tax u/s 10(12).

Gratuity:
In the case of Government employee, Gratuity amount is exempt from income tax u/s 10(10)(i) of the Income Tax Act- 1961.

Commutation of Pension:
Commuted pension received by a employee who has joined the Central Government before 01.01.2004 is fully exempt from tax u/s 10(10A)(i).

Leave Salary:
In the case of Government employee, any amount received as cash equivalent of leave salary in respect of period of earned leave at his credit at the time of retirement/ superannuation is exempt from tax u/s 10(10AA)(i)

DA/ PENSION:
It is taxable. Even the arrears received is also taxable. However, in respect of arrears, assessee can claim a relief u/s 89(1).

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Income Tax Treatment and Encashment of Leave Salary.

While in the service period most of employee have take benefit one or two months of leave.  But after completing probation period of employee, leave of one month after completing the year credited in his account.  If he doesn’t take these leave on time, these are accumulated and paid at the time of retirement or leaving the job. This is called leave salary. However, the rules are different organization to organization, as how to pay the leave salary.
 

What is the rule?
Leave salary rule say that if the leave is not taken with in the year, the leave salary amount may be accumulated, encashed or lapse. These rules are different company to company. The leave salary amount may be encashment during the service time or retirement or leaving the job time.

Taxation of the leave salary:

Taxation of the leave salary amount is different to the nature of encashment which is as follows.

Encashment during service time.
If the leave salary encash during the service tenure, it is taxable whether the employee is government employee or the private employee.

Encashment at the retirement of the service:
If the leave salary is encashed at the retirement of the salary, the rules are different to government employees and the private employees.

In the case of government employees, the full amount of leave salary is exempt from tax and it is tax free.
In the case of private employees, income tax department give some relief to the employees with the section 10(10AA) of the income tax act.  The minimum of these are exempt from income tax which is as follows.

• Cash equivalent to leave salary.
• 10 month average salary.
• 3 lakhs
• The amount actually received at the time of retirement.

The minimum of these is exempt from income tax under section 10(10AA) of the income tax act.

Difference between retirement or leaving the job and income tax view: - Section 10(10AA) says that “retirement or otherwise”. Otherwise mean the termination of service between employer and employee. So the rule is same in the case of employee is retired or leave the job. He can claim exemption under section 10(10AA) of the income tax act. Retirement may be of various kinds, may be superannuation or voluntary.

So result is both retirement and Resignation is the end of relation with the employer.
Section 10(10AA) benefits on leave salary are both for the employee’s retirement or leaving the job.

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Leave Travel Allowance FAQs.

Mostly Employees are doubtful in accordance with LTC (Leave Travel Allowances) that gots on the exepenses incured when you Travel by Airbus, Trains, Bus or Private Vehicles. In this regards I would like to try to clearing the doubts of Leave Traveling Allowances :

1. On what basis can I claim LTA?
If you fulfill two criteria, you can do so:
i. You should have taken leave from your company
ii. You should actually travel
You can either travel alone or with your family. However, if your family travels without you, no LTA can be claimed.

2. How often can I claim LTA?
i. Twice in a block of four calendar years.
ii. LTA is not related to when you started your employment as the government has fixed blocks of years for the purpose of claim.
iii. These blocks are not financial years (April 1 to March 31); they are calendar years (January 1 to December 31).
iv. The current block is 2010-13, that is, between January 2010 and December 2013.
v. During this time period, a person is entitled to two LTA claims.
vi. A person can get an income tax exemption for two journeys in a block of four calendar years. But he can make a trip only once in year.

3. What if I fail to avail of it?
In case you fail to do so, there is a carry over option.
Let's say that in the block of four years, you never did claim any LTA.
You can do so in the first year of the next block of four years.

4. What is the proof of travel to avail of LTA?
According to rule 2B, you can produce an air, rail or any public transport ticket.
You can even submit the bills issued by the car rental company if you rent a vehicle.
However, the travel is applicable anywhere in India  and not abroad. So an international air ticket will not hold.

5. Is LTA taxed?
You can receive LTA as either reimbursement or allowance.
Reimbursement
In case of LTA as reimbursement, it is not taxable.
Let's say your company offers an LTA of Rs 50,000. For proof of travel, you produce an air ticket of Rs 10,000.
In such a case, you can claim only Rs 10,000 as LTA and it will be exempt from tax.

Allowance
If you do not submit any proof of travel, you will get your LTA but will have to pay tax on it.
If you produce proof of travel, it will not be taxable to the extent your proof of travel is covered.
Let's say you are entitled to Rs 50,000 as LTA as part of your salary. Since you produced proof of travel as Rs 10,000, you will not be taxed on this amount. However you will be taxed on the net Rs 40,000 as per your

income tax slab rate.
LTA is not a fringe benefit as the latter are benefits that are usually enjoyed collectively by the employees and cannot be attributed to individual employees.

6. Can both spouses claim LTA?
If both spouses are getting the LTA benefit in their places of work, they can both claim exemption on LTA from their employers and the benefit for four journeys in one block.
They do not have to take the precaution of not travelling twice during the same year.
Moreover, they can take the same family members or different ones as long as they stick to the definition of the members for this purpose.
Family includes spouse, children as well as dependent parents, brothers and sisters. In respect of children born on or after October 1, 1998, the exemption will be restricted only to two surviving children unless the birth after one child has resulted in multiple births (twins or triplets).

7. If I and my wife travel this year, can we both claim LTA simultaneously?
No. You cannot claim LTA twice for the same journey. If both of you take a holiday together and you claim LTA, she cannot.

8. If I am entitled to a particular amount as LTA, but my expenses are higher, can I claim more?
Say in the year 2005-06, you receive on Rs 8,000 as LTA, but spend Rs 50,000 on travel. You can claim exemption only to the tune of Rs 8,000.

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LTC (Leave Travel Consession) and Other Benefits

This article is a revisit to Sixth Pay Commission Report. How the commission dealt with Leave Travel Concessions. The words are as appeared in the Report.

Introduction

Leave Travel Concession (LTC) is presently available to all persons appointed to Civil Services and posts including civilians in the defence services and members of All India Services serving in Central Government. Employees with one year of continuous service on the date of journey performed by them/their family are eligible. Railway employees and Government employees whose spouse is working in Indian Railways/National airlines are not eligible for LTC as they are entitled for free rail/air passes from their respective organisations. Under the LTC scheme, a Government employee and his/her family can travel to the declared home town once in a period of two calendar years. Journey on LTC can also be performed to any place in India in lieu of one of the two journeys to Home Town in a block of 4 years. The employees have the option of availing LTC to home town once every year. In that case they are not entitled to LTC to anywhere in India.

Demands

The Commission has received a large number of demands relating to LTC. Most of these demands seek an increase in the frequency of LTC or facility of travel anywhere in the world at least once in the entire career under the scheme or encashment of LTC.

Analysis of demands

The scheme of LTC was introduced to enable Central Government employees to discharge their social obligations at their home town as well as to acquaint themselves with different regions and cultures in the country. The facility was never intended as a supplement to the pay. The issue of encashment of LTC was also considered by the Fifth CPC who negated the demand for giving cash compensation in lieu of LTC. This Commission endorses the view of the Fifth Central Pay Commission. Accordingly, the demand for paying cash compensation in lieu of LTC cannot be accepted.

The demand for allowing travel abroad at least once in the entire career under the scheme is not in consonance with the basic objective of the scheme. The Government employee cannot gain any perspective of the Indian culture by traveling abroad. Besides, the attendant cost in foreign travel would also make the expenditure under this scheme much higher. The Commission is, therefore, not inclined to concede the demand to allow foreign travel under LTC.

As regards the frequency of travel allowed under LTC, it is noted that an employee having his/her family at home town can avail of this concession for self alone every year instead of availing it for both himself/herself and family once in two years. The benefit of LTC to any place in India is also not available in this case. While this provision allows the employee to travel to meet the family every year, it curtails the facility for the family members who cannot make use of this benefit at all. The Fifth CPC had recommended that Government employees who are posted outside their home town should be given an option to avail of the concession to travel to their home town on three occasions in a block of four years by surrendering their claim to the all India LTC. The Government, however, has not implemented this recommendation. The Commission is of the view that the problem of traveling to home town is more acute for young officials as at that time the requirement to visit home town is higher and also the salaries are not sufficiently high to permit even annual travel on their own cost to their home town. Clearly, a more liberal LTC package needs to be given to the officers during their early career in the Government. The Commission, accordingly, recommends that Central Government employees should be allowed to travel to their home town along with their families on three occasions in a block of four years and to any place in India on the fourth occasion. This facility shall be available to the Government officers only for the first two blocks of four years applicable after joining the Government for the first time. The blocs of 4 years shall apply with reference to the initial date of joining the Government even though the employee changes the job within Government subsequently. The existing blocks will remain the same but the entitlements of the new recruit will be different in the first eight years of service. All other provisions concerning frequency of travel under LTC are proposed to be retained.

Recommendations

Presently, entitlements for class travel under LTC are slightly more strict vis-à-vis the travel entitlements during official tours and transfer. The Commission is of the view that travel entitlements under LTC should also be same as those on official tour and transfer. It is, therefore, recommended that travel entitlements, whether for the purpose of official tour/transfer or LTC, should be same but no daily allowance shall be payable for travel on LTC. Further, the facility shall be admissible only in respect of journeys performed in vehicles operated by the Government or any Corporation in the public sector run by the Central or State Government or a local body.

Presently, the definition of family for the purposes of LTC includes parents and/or stepmother residing with and wholly dependent on the Government employee. Stepfathers residing with and wholly dependent on the Government employee are denied the benefit available to similarly placed stepmothers. The definition also places an unreasonable restriction in such of those cases where parents, despite not having any source of income and being totally dependent on the Government employees, continue to live in the native place. The parents in such cases are denied the option to travel to the place of posting of the Government official under LTC. The Commission, therefore, recommends that parents and/or step parents (stepmother and stepfather) who are wholly dependent on the Government employee shall be included in the definition of family for the purpose of LTC irrespective of whether they are residing with the Government employee or not. The definition of dependency is being linked to the minimum family pension for all purposes. Accordingly, all parents and/or step parents whose total income from all sources is less than the minimum family pension prescribed in Central Government and dearness relief thereon would be included in the definition of family for this purpose. The extant conditions in respect of other relations included in the family including married /divorced /abandoned /separated /widowed daughters shall continue without any change.

Recommendations for defraying incidentals

Another demand frequently made concerns defraying the incidental expenses during LTC. The Fifth CPC had considered the issue and recommended encashment of Earned Leave of 10 days along with LTC subject to a maximum of 60 days in the entire career. The Earned Leave so encashed during LTC was, however, deductible from the maximum limit of Earned Leave encashable at the time of retirement. The recommendation was accepted by the Government but has not been of much use to the Government employees as any prudent employee would like to preserve the maximum available encashment for their retirement. Many employees, especially those belonging to Group C and D, are loath to utilize the benefit of LTC because they are unable to bear the incidental expenses involved on travel. This is not justified. The Commission would like to rectify this situation. It is, accordingly, recommended that while encashment of Earned Leave upto 10 days along with LTC to the extent of total of 60 days may be continued, the leave encashed at the time of availing LTC should not be deducted from the maximum amount of Earned Leave encashable at the time of retirement. Consequently, the employees would be eligible to encash 300 days of Earned Leave at the time of their retirement, even though they may have encashed Earned Leave of upto 60 days during their career while availing LTC, whether to their home town or to any place in India. Insofar as Railways is concerned, the employees shall be allowed to avail of this encashment at the time of availing of passes for a maximum of 60 days in the entire career subject to the condition that successive encashment cannot be made before a minimum period of two years has elapsed.

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When a lien or a suspended lien cannot be terminated

When a lien or a suspended lien cannot be terminated: (1) Except as provided in sub-rule (2) below, a Government servant's lien on a post may in no circumstances be terminated even with his consent, if the result will be to leave him without a lien or a suspended lien upon a permanent post. (2) A Government servant's lien on a post shall stand terminated on his acquiring a lien on a permanent post (whether under the Central Government or State government) outside the cadre on which he is borne.

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