Expected DA from Feb'19 to Apr'19 for banker

Expected DA for Feb'19 to Apr'19

Expected DA Calculator Updated on 31.12.2018 on announcements of CPI for the month of Nov'18 as 6893.42

On the basis of CPI for Oct'18 & Nov'18 we are providing calculations of expected DA on the following three assumptions:-

1. On assumptions that CPI would remain at least same as of Nov'18 for Dec'18. In this situation on the basis of CPI of Oct'18 and Nov'18 declared the expected (tentatively) increase in DA Slabs would come to 6 slabs and the total tentatively revised DA slabs would be 613 i.e. 61.30%.
2. On assumptions that there would be an increase of one point in CPI data in next Dec'18. In this situation the expected (tentatively) increase in DA Slabs would come to 8 slabs and the total tentatively revised DA slabs would be 615 i.e. 61.50%.
3. Keeping in view the recent fuel price cut in Nov'18 and Dec'18 in comparision to Oct'18, we are forced to assume that if there may be an decrease of one points in CPI for the month of Dec'18. In this situation the expected (tentatively) increase in DA Slabs would come to 4 slabs. Accordingly, the total tentatively revised DA slabs would may be 611 i.e. 61.10% and in case there if CPI index declines by two points in that situation the tentative increase will be of 3 slabs. However the expected DA calculator is updated with 611 slabs in third assumption.)

ONLY 1.58% BANK OFFICER ARE CORRUPTED BUT 36.04% MLA/MP ARE CORRUPTED SO TAKE ACTION FIRST FROM YOUR HOME JETLY SIR??

The government Friday said action has been taken against more than 6,000 officers of nationalised banks last fiscal in cases of lapses that led to bad loans.

In written reply, Finance Minister Arun Jaitley said that minor and major penalties have been imposed against erring officials. These include, dismissal, compulsory retirement and demotion.

"As per the inputs received from nationalised banks, in FY 2017-18, 6,049 officers have been held responsible on account of staff delinquency in NPA accounts...," Jaitley said.

Depending upon the gravity of lapses, the minister said "minor penalty/ major penalty have been imposed against erring officials" and in all the cases, depending upon the amount involved, CBI and police complaints have been lodged.

The 19 nationalised banks, including PNB and Canara Bank, reported a net loss of Rs 21,388 crore in the first half of the fiscal. This compares with a combined loss Rs 6,861 crore in the similar period of 2017-18.

Meanwhile, Minister of State for Finance Shiv Pratap Shukla said that no loan account of state-owned banks with outstanding of over Rs 25 crore has been "declared as evergreen" since June 2014.

In another written reply to the lower House, Shukla said as a result of transparent recognition of badloans, the non-performing asset (NPA) amount of all commercial banks rose from Rs 5.66 lakh crore at end-March 2016 to Rs 9.62 lakh crore at end of March 2018.

Since then the amount has declined to Rs 9.43 lakh crore.

He further said the public sector banks have reported a "record recovery" of Rs 60,713 crore in the first half of the current financial year.

This, he said, was double the amount recovered by them during corresponding period of the last financial year.

How to apply for Rs 1 crore loan in 59 minutes for MSMEs

Prime Minister Narendra Modi has announced major steps including 59-minute loan portal for sanction of up to one crore rupees for small and medium enterprises (MSME). 

He said the measures are expected to boost the MSME since the sector is one of the major generators of employment opportunities and making a significant contribution to the overall growth of the country's economy.

The loans are processed without human intervention till sanction and/or disbursement stage. On this platform, MSME borrower is not required to submit any physical document for In-Principle approval. The solution uses advanced algorithms to analyze data points from various sources such as IT returns, GST data, Bank Statements etc

A MSME can take loan starting from Rs 10 lakhs to Rs 1 crore, and their rate of Interest starts from 8% onwards. Also the collateral coverage is not mandatory as the platform is directly connected to CGTMSE scheme.

MSME must have following documents if they want to avail the Rs 1 crore loan.

1 GST Identification Number

2 - Income tax returns in XML format for last 3 years

3 - Bank statement for last six months in pdf format

4 - Director/Owners details: basic, personal, educational & ownership details and networth

Following is process to apply for Loan including FAQ

What is the portal name?

For an SME they have to create a Login at https://www.psbloansin59minutes.com/home

What amount of Loan can be availed?

An MSME can avail business loan from Rs 1 Lakh to Rs 1 Crore

How to Submit Proposal ?

− Click on above mentioned URL.

− Register using Name, Mobile Number and Email Id

− Post Registration, provide required details to avail business loan approval within 59 minutes.

Do you need to pay Fees for Registration? 

No, you don’t need to pay the registration fee.

What are Eligibility Criteria?

For Existing Businesses: Borrower should be GST, IT compliant and must have Net Banking Facility.

Do you need to upload banks statements/ GST / ITR?

To ensure fast, easy and hassle-free loan evaluation process, we need certain details related to your personal and business to ensure authenticity and check eligibility for credit. The Bank Statements/ GST/ ITR details uploaded by the borrower are analyzed in real time to provide required data to lenders, based on which the banker will take a decision on Sanctioning/Disbursing the proposal. Please be ensured, your all personal and business specific data is secure with us. We assure that "your credentials are never stored.

If you have not upload banks statements/ GST / ITR?

You will not be able to complete the borrower journey on the portal

In how much time I will receive funds?

Through the web portal, a borrower can get in-principle approval in just 59 minutes from anywhere at any time. Post in-principle approval, the time taken for loan disbursement depends on the information and documentation provided by you on the portal and banks. The more accurate the data, the sooner you will get disbursal. Generally, post in-principle approval, the loan is expected to be disbursed in 7-8 working days.

What to do after in principal approval is obtained?

The In-Principle approval is given based on the data provided by the borrower. After offering In-Principle Approval, the preferred lender (as selected by borrower) will conduct a thorough due diligence and decide on whether to Sanction/Disburse the Proposal. The final decision will be at the lender’s discretion.

Why my application is not accepted ?

Your application might get rejected due to one or more of below mentioned reasons:

1. You answered Negative in at least in one of the primary questions
2. Your credentials do not match across documents provided by you

    3.Your business does not clear various parameters set by banking partners

Govt to infuse Rs 28,615 cr in these 7 Public Sector Banks BEFORE MARCH 2019

The amount infused will help the banks meet regulatory capital requirement, and its disbursement might take place before December 31, sources said.

Out of these seven PSBs, Bank of India is likely to get the highest amount of Rs 10,086 crore, followed by Oriental Bank of Commerce, which might get Rs 5,500 crore through recapitalisation bonds, sources added.

Other banks that are likely to receive capital infusion in this round included Bank of Maharashtra which may get Rs 4,498 crore, UCO Bank (Rs 3,056 crore) and United Bank of India (Rs 2,159 crore).

The government had earlier announced an infusion of Rs 65,000 crore in PSBs in 2018-19, of which Rs 23,000 crore has already been disbursed, while Rs 42,000 crore is remaining.

Earlier this month, Finance Minister Arun Jaitley said the government would put an additional Rs 41,000 crore in PSBs over and above what was announced earlier.

On December 20, the government sought Parliament’s approval for infusion of an additional Rs 41,000 crore.

The recapitalisation, the finance minister said, would enhance the lending capacity of PSBs and help them come out of the Reserve Bank of India’s Prompt Corrective Action (PCA) framework.

FULL PENSION FOR BANKER SHOULD BE AFTER 20 YR OF SERVICE AS IN CASE OF GOVT

I would like to add some points to be negotiated with IBA without linking the same with load factor
1. Minimum service for pension be reduced to 10 years instead of 20 years
2. Full pension after 20 years of service as in case of govt.
3.Merge special pay with basic pay.
4.Family pension at 30% of last salary
5. No stagnation in any scale. 3% increment every year.
6.Leave accumulation upto 300 days and full encashment on superannuation
7.Full amount insurance of housing loan under group insurance scheme
8.Mandatory 2 days leave per month by all employees.
9. In case of family stays at some other location due to job. Transfer option to come back to station after 2 years if post available at that station in the scale
10.Pension revision with wage revision as enough fund is available in pension fund

FREQUENTLY ASK QUESTION ABOUT WAGE REVISION

1. What is IBA?

An association of Indian Banks and FIs representing 22 Banks in India in 1946, currently 237 banking companies.

2. What is Bipartite Settlement
It is the formal process of negotiation between Management represented by IBA and Trade unions currently represented by UFBU for deciding on the pay and working conditions of bank employees and officers.

3. What are the officers organisations and employees organisations involved in wage settlement?
AIBOC, AIBOA,NOBO,INBOC for officers
AIBEA,NCBE,BEFI, NOBW, INBEF for workmen

4. What is Charter of Demands and who submits to whom?
Charter of demand is a collection of demands submitted separately by four officers organisations and five employees organisations respectively to IBA for improvement of their service conditions and wages.

5. What are the monetary heads discussed and finalised in the Bipartite settlement?
Basic, DA, Special Allowance, HRA, CCA, FPA, PQA called as payslip components and stagnation increment, Travelling Allowance, Halting Allowance, LFC, Leave encashment.

6. What are the non monetary heads discussed in the Bipartite settlement?
 Working hours, holidays, working conditions, leave, etc.,

7. Whether it is mandatory to finalise the non monetary components along with the monetary components during the wage settlement?
Need not be. Monetary benefits are decided once in five years and the non monetary components can be discussed and settled at any time as the both the parties are permanently co existing. But, in practice both are being settled together.

8. What are the differences between wage and allowance?
Wage is the monetary compensation paid by an employer to an employee for the work done.
Allowance is the additional compensation which is generally tax free , for the discomforts experienced by the employee.
Wage is the basic minimum compensation. Allowance differs according to work situation and the work environment (Ex . Hill and Fuel allowance)

9. What is the meaning of pay slip component?
The various components appeared in the pay slip like Basic, DA, Special Allowance, HRA, CCA, FPA, PQA, stagnation increment and conveyance in case of employees.

10. Whether the special allowance is eligible for pension?
No

11. Whether the allowances are uniformly available irrespective of the Banks?
No. Basic pay and DA are uniform. All other components in the payslip vary to places to places and persons to persons.Rest are not uniform. Allowances are decided by the respective banks.

12. How the wage increase is offered and settled by the IBA?
A certain percentage of total payslip components of the participating banks up to the mandated scales is offered by the IBA to be distributed among the various components of payslip.

13. How such quantum is decided as on date?
It depends on the negotiating strength of the trade unions and paying capacity of the banks.

14. What would be the approximate quantum available for every one percentage of offer as on 01 11 2017?
About 500 cr. Which may likely to go down if the mandate is available up to scale 3.

15. What would be the quantum available for officers to be distributed towards various pay slip components?
Approximately 50% of the above as another 50% will go to the employees?

16. Whether the available amount for the 3.50 lac officers of the Industry would be ₹3750 crores even if the offered amount is 15% of the pay slip components?
Yes.

17. Whether the value of the originally offered 2% was ₹500 crores for 3.50 lac officers?
Yes.

18. What is the amount provided towards bad debts in a year by the Banks?
No idea. But as claimed by PNB, they alone have provided entire liability of Nirav Modi which is approximately about 14000 crores.

19. What is the meaning of minimum wages formula?
Paying wages to the employee for him to lead a decent life matching to the status of the employee in the institution without linking to the Institution’s profit and paying capacity.

20. What is the basis for the MINIMUM WAGES FORMULA?
International labour organisation had passed a resolution on MINIMUM WAGES FORMULA in 1970 and about 93% of the member countries have implemented already.
In India, it is implemented through seventh central pay commission which has increased the salary sizeable despite the deficit budget.

Besides, Government of India is willing to adopt such MINIMUM WAGES FORMULA to the officers working in the Banking and insurance sector which was evident from the CODE OF WAGES BILL 2017 on which the Govt. through a parliamentary committee gathers views of the stake holder and the views of the Banking sector was already gathered.

21. What is the basic difference between MINIMUM WAGES FORMULA and current model of wage negotiation?
The current model is enabling the industry to fix salary based on the PAYING CAPACITY of the Institution whereas the MINIMUM WAGES FORMULA suggests to fix the salary matching to the qualification, job responsibility and status of the Individual officer.

22. Why then the MINIMUM WAGES FORMULA was not demanded by the trade unions?
No, though the employees organisations did not demand, all the four officers’ organisations incorporated this demand in the Charter of demand submitted.

23. What is the development on this demand as on date?
The minutes of the wage talks with IBA released by the UFBU indicates that the discussions are on the usual percentage formula only and it appears that the MINIMUM WAGES FORMULA was not discussed.

Meanwhile the majority employee union rejected this formula and the related officers organisation also rejected this formula though that organisation signed the Charter of demand?

24. What would be the benefit if the MINIMUM WAGES FORMULA is adopted?
The initial basic of scale officers is ₹ 23700 as on date which is so as the salary is fixed based on the paying capacity of the Bank. But if the MINIMUM WAGES FORMULA is introduced the scale 1 officer’s initial wages could be ₹ 56100 as it is the salary of group A officers of the GOI.

25. How the demand of scale 1 officers salary matching to Grade A officers salary is justified?
Before Nationalisation, the officers were getting different pay scales and while Group A officers were getting ₹700 some banks were giving more than ₹700 to the scale 1 officers. So, to rationalise the Bank officers salary Pillai committee was formed in 1979 and as per the committee recommendation ₹ 700 was uniformly fixed to all the officers which was equivalent to grade A officers salary then.

Recently GOI issued a Government order equating the scale 1 officers with GOI officers in case of deciding the creamy layer and thus to improve the officers salary to grade A officers salary became necessary, otherwise the officers would lose the benefits otherwise they are eligible to get when their salary also is not matching to the Grade A officers.

Today the Industry has employed the Indian youths to the tune of about 70% of the work force of the Banking industry who are educationally highly qualified and thus matching salary to their qualifications became necessary to recruit and retain the talents in the Banking Industry.

26. Whether minimum wages formula will affect the bipartite discussions and settlement?
No, the demand is to adopt the MINIMUM WAGES FORMULA while arriving the wages during the Bi partite discussions, but, not to discontinue the Bi partite discussions.

27. Whether the demand of MINIMUM WAGES FORMULA will result in the wage revision to happen once in ten years as it is happening in central pay commission?
No. The Central pay commission also has recommended the automatic revision of salary ONCE IN FIVE YEARS.

28. Why then the IBA is not offering the wages as per MINIMUM WAGES FORMULA?
The IBA argument is that they don’t have the paying capacity which is an unjustified argument as per the ILO resolution and the GOI initiatives.

29. Why then the Employees organisation is against the formula?
No Justification. They toe the line of the IBA argument.

30. Whether the minimum wages formula will in any way affect the wage revision implemented once in five years?
No. Wage revision can be continued through Bi partite, once in five years. The Central pay commission also has recommended the automatic revision of salary ONCE IN FIVE YEARS for the Government employees.

31. What is the plea of recent writ admitted by the Madurai High court on wage revision?
To give instructions to IBA/DFS towards settlement of salary based on minimum wages formula recommended by ILO and implemented by the VII pay commission.

32. What are the grounds on which the writ was pleaded?
Refer replies to question no. 25.

33. Whether the writ questions the settlement through Bipartite negotiations?
No, rather the writ prays for the settlement using the MINIMUM WAGES FORMULA through Bipartite negotiations.

34. What are the benefits if the admitted writ is decided in the petitioner’s favour?
We will get a better pay based on minimum wage formula which ensures the salary requirements calculated scientifically without linking to the profit and paying capacity.

35. Who are the respondents?
IBA, DFS, AIBOC, Canara Bank CO Madurai, Canara Bank H O and CBOA.

36. Whether any respondent submitted counter affidavit?
Yes, submitted, but, in support of the petitioner.

37. What is the meaning of stagnation ?
After reaching a certain level of basic in the particular pay scale, there will be no annual increments unless one is promoted to next scale.

38. Whether stagnation is linked to promotions?
Yes. A scale 1 officer will get the increments till he reaches the scale II maximum Basic pay and a scale II will get up to scale III maximum Basic pay.

39. What are the factors that decide the promotion?
Promotions are not automatic in the Banking industry and the promotion policy varies from bank to bank. Vacancies are decided based on the business growth and retirement of the work force. Individuals are getting based on their performance, knowledge and service.

40. Whether promotion policy is uniform in the banks that have given mandates for wage settlement?
No. Varies bank to bank.

41. Is it logical to link promotion with basic pay and increments?
Certainly not, as long as the promotion is not an automatic. A direct officer may reach the stagnation in about 10 years if he is not promoted to next scale.

42. What is mandate?
It is the authority given by member banks to IBA to negotiate wage and working conditions with the trade unions.

43. What is the meaning of fractured mandate?
Majority member banks have given the mandate to negotiate upto Scale III only against the earlier practice of up scale VII.

44. Whether non submission of mandate and submission of fractured mandate will affect the quantum available to distribute?
Yes, The available quantum for allocation would be the Payslip components paid up to scale III of the member banks gave the mandate.

Modi Govt and Common Sense of GST

In a democracy nothing makes a politician see things as clearly as an election result that goes against him.

With the recent loss in the assembly elections, prime minister Narendra Modi and the Bhartiya Janata Party (BJP), seem to be waking up to the several self-goals they scored on the economic front, over the last few years.

A big self-goal was a hurried and a botched-up implementation of the goods and services tax (GST), with many slabs, high rates of tax, too much procedure and a very moody website, which tended to shut down or go slow, when needed the most. Of course, this had an impact on the overall population in general and the trading community, which is a huge supporter of the BJP, in particular.

With the 2019 Lok Sabha elections around the corner, PM Modi is trying to correct for the botched-up implementation of the GST. As he said yesterday: "All things related to common man will be 18% or below that... 99% articles will be 18% or below 18% rate."

Even at 18% or lower, there are three rates to deal with (5%, 12% and 18%). This makes the system difficult for those who have to follow it. A simple point which both the bureaucrats and the politicians don't seem to understand. It is easy to see why the bureaucrats don't get it. They have no skin in this game. But the politicians at least need to get this, given that they have elections to fight every few years. GST has negatively impacted a large section of the nation's informal economy, which has votes.

India is one of the few countries in the world with so many GST rates.

As the World Bank pointed out in a report: "The Indian GST system currently has 4 non-zero GST rates (5, 12, 18, and 28 percent)... Most countries around the World have a single rate of GST: 49 countries use a single rate, 28 use two rates, and only 5 countries including India use four rates. The countries that use four or more rates of GST include Italy, Luxembourg, Pakistan and Ghana. Thus, India has among the highest number of different GST rates in the world." We are clearly not in great company here.

Other than having too many rates of tax, India also has one of the highest tax rates in the world, when it comes to the GST. As the World Bank pointed out: "Comparing the design of India's GST system with those prevailing internationally, we note that the tax rates in the Indian GST system are among the highest in the world. The highest GST rate in India, while only applying to a subset of goods and services traded, is 28 percent, which is the second highest among a sample of 115 countries which have a GST (VAT) system and for which data is available."

While taxing 99% of the items at 18% or below is great, as it lowers the high tax rates, it still doesn't solve the problem of one too many rates. The fact that having too many rates and high tax rates, is clearly not working for the government can be seen from the GST collections this year.

In the first seven months of the financial year, the central GST collections have been Rs 2.62 lakh crore. This is not even half of the target of Rs 6.04 lakh crore, which was set when the budget for this financial year was presented in February 2018. (Don't fall for all the claims of Rs 1 lakh crore GST collections made every month. This is the gross number which includes GST that has to be shared with state governments. It also includes refunds that will have to be made in the months to come).

Life has very few universal truths. But one universal truth is that human beings do not like paying taxes in any form. In this situation they will do everything they possibly can, not to pay them. Given this, any successful tax system basically has two attributes: 1) It's simple to follow. 2) The rates of tax aren't very high.

The Modi government's GST system fell flat on both counts. Of course, bureaucrats love a complicated tax system (or a complicated anything for that matter) because that is how they can stall the functioning ease of the system and make money in the process (Or rents as economists like to call it).

Once we take all these factors into account, it's easy to see why a single rate of 12% or 15% GST would have worked out for the best of everyone. But that wasn't to be, even with the BJP governing so many states.

Having said that, the country has now been on GST for more than a year and there is enough evidence to suggest that the current GST design is clearly not working. Hence, it's time for a huge course correction.

Governments botch up on implementing policies all the time, given that they are run by human beings. But a bigger mistake it to keep running a botched up policy.

Time for that to change is here. Hence, the common sense that should be inherent to any tax system should be allowed to prevail in the case of GST as well.

How to pay Zero Tax for Income up to Rs 12 Lakh from Salary for FY 2018-19

 December is the month when all salaried class start planning to save tax as they have to submit their investment declaration and expenditure details. Every year the ideal time for tax planning should be beginning of the year in which you can discuss with your employer what all allowances or exempt income you are eligible and how to take maximum benefit from it

“Avoidance of tax is not tax evasion and it carries no ignomity with it, for it is sound law and certainly not bad morality, for anybody to so arrange his affairs with a view to reduce burden of taxes to minimum” ( Madras HC ) . Tax planning can be through incentives granted as per law, so if one arrange it affairs within ambit of law to attract the least amount of tax is perfectly legal. An individual who is earning income from salary can plan his expenditure and investment in such a way that it can be used an effective tool for tax planning. Following are some of the ways which can be adopted so that the income tax outgo is minimum

Pay Zero Tax for Income up to Rs 12 Lakhs from Salary F Y 2017-18	Amount Rs
Basic Exemption	2,50,000
PPF, Insurance, ELSS, FD, NSC, etc (Section 80 C Deduction )	1,50,000
Investment in NPS (Section 80 CCD 1B )	50,000
Contribution of NPS By Employer (Section 80 CCCD 2)	1,50,000
Home Loan Interest or House Rent Allowance (Section 24 and Section 10)	2,50,000
Standard Deduction (Section 16)	40,000
Medical Expenses for Self and Parents (Section 80D)	50,000
Leave Travel Allowance (Section 10(13))	30,000
Travel and Fuel Reimbursement, Helper, Academic, Uniform Etc	1,50,000
Meal Coupons, New paper and Periodicals (Rs 50 Per Meal is Tax Free)	30,000
Relief under Section 87 of Rs 2500/-  (i.e 5% of Income)	50,000
Total Income – TaxFree	12,00,000

1) Investment in 80C for taking full benefit of 1.5 Lakhs

Any individual or HUF can get a tax deduction up to Rs. 150,000 per financial year under Section 80C of the Income Tax Act. The deduction can be claimed basically for investment or expenditure made on following

1. Investment Schemes: ELSS Mutual Funds, Unit Linked Insurance Policies (ULIPs)
2. Insurance Schemes: Term Insurance, Endowment Insurance
3. Retirement Savings Schemes: Public Provident Fund, (PPF), Employees Provident Fund, National Pension System (NPS)
4. Fixed Income Schemes: National Savings Certificate (NSC), Senior Citizens Saving Scheme (SCSS), Sukanya Samriddhi Yojana, Investment in 5 Year FD
5. Miscellaneous: Home loan repayment, tuition fee payment etc
   

2) Investment in National Pension Scheme up to Rs 2 Lakhs

Finance Minister Arun Jaitley in Budget 2015-16 introduced an additional income tax deduction of Rs. 50,000 for contribution to the New Pension Scheme (NPS) under Section 80CCD. NPS is a voluntary pension scheme, which is regulated by the Pension Fund Regulatory and Development Authority. This extra deduction of Rs. 50,000 on NPS will increase the total deduction allowed under Section 80C and 80CCD of Income Tax Act to Rs. 2 lakh. The finance minister has made withdrawals from NPS on maturity tax free upto 60% of the total corpus accumulated. For government employees NPS withdrawal is totally tax exempt making it one of the best investment option available. Government in Budget 2019 is looking to make NPS withdrawal fully exempt for all which will make it more attractive for investments.

NPS offers additional tax deduction on employer contribution up to 10% of basic and DA. This is over and above other limits as discussed above. All you have to do is to ask your employer to make minor adjustments in your salary structure. The government gives special tax exemption for contribution towards the National Pension System (NPS) by employers on behalf of employees under the corporate model. In that way you can convince your employer and get benefit from additional deduction of 10% of Basic which can be as high as 2 Lacs a Year.

3) Home Loan Interest and / or  House Rent Allowance Rs 2.5 Lakhs

A home loan must be taken for the purchase/construction of a house and the construction of the house must be completed within 5 years from the end of financial year in which loan was taken. If you are paying EMI for the housing loan, it has two components – interest payment and principal repayment. The interest portion of the EMI paid for the year can be claimed as a deduction from your total income up to a maximum of Rs 2 lakh under Section 24. First time home buyers to get additional deduction of Rs 50,000 on interest for loan upto Rs 35 lakh. This additional deduction has been given on interest for loan up to Rs 35 lakh, provided the house value doesn't exceed Rs 50 lakh.  Assuming a loan of Rs 35 lakh to be paid over 20 years, the annual deduction comes to around Rs 2.5 lakh, including the Rs 2 lakh currently available. At 9%, the interest outgo in the first year would be Rs 3.12 lakh. So, the buyer will save Rs 75,000 if he is in the 30% tax-bracket

You can structure your salary in such a manner that you get an HRA component. Usually it is 50% of the basic salary you have earned so that you can claim maximum HRA benefit as per formula. You can pay rent amount to your family members like father or mother (who might be not earning or less than 30% bracket) and Claim HRA benefit. In a recent case assesee was allowed HRA benefit when he paid rent to Wife. Details of case are “AO disallowed assessee’s claim for HRA exemption on the ground that assessee and his wife was living together and claim of payment of rent by assessee to his wife was made to reduce his tax liability and the CIT(A) confirmed the addition on the ground the tenant (i.e. assessee) and the landlord (i.e. his wife) were staying together which indicated that the whole arrangement was a colorable device, it was held that the assessee had submitted the rent receipts and the payments had been duly verified. Therefore, the assessee had fulfilled the twin requirement of the provision i.e. occupation of the house and the payment of rent. Thus, he was entitled to exemption under section 10(13A). [Bajrang Prasad Ramdharani v. ACIT (2013) 37 taxmann.com 186 (Ahmd) (Trib)]”

Thus it can be seen that only two things are required, possession of the property – Means person claiming HRA should be staying in the rented property and secondly rent payment must be made. In this way you can claim additional benefits and save tax on your income

You can claim both home loan interest and HRA also if you satisfy all the condition as mention above

4) Standard Deduction of Rs 40,000

In order to provide relief to salaried taxpayers, standard deduction has been reintroduced w.e.f. financial year 2018-19. While computing the income chargeable under the head “salary” besides other deductions, a deduction of RS 40000 or the amount of the salary, whichever is less will be allowed. The benefit of Transport allowance and medical reimbursement is withdrawn from FY 2018-19 and a flat benefit of Rs 40000/- as standard deduction is allowed to all employees

5) Medical insurance for Self, Parents and Dependents up to Rs 50,000

Payment of premium on life insurance policy and health insurance policy not only gives insurance cover to a taxpayer but also offers certain tax benefits. Medical insurance premium paid by assessee, being individual/HUF by any mode other than cash. Sum paid by assessee, being individual on account of preventive health check-up. Medical expenditure incurred by assessee, being individual/HUF on the health of a very senior citizen person provided that no amount has been paid to effect or to keep in force an insurance on the health of such person.

6) Leave Travel Allowance Up to Rs 25,000

An LTA is the remuneration paid by an employer for Employee’s travel in the country, when he is on leave with the family or alone. Amount from LTA is tax free. Section 10(5) of the Income-Tax Act, 1961, which provides for the exemption and outlines the conditions subject to which LTA is exempt. The exemption can be availed for the journey undertaken while on leave during the tenure of service or even after retirement/termination from service. The exemption is allowed only in respect of fare. Expense incurred on porterage, conveyance from residence to the railway station/airport/bus stand and back, boarding and lodging or expenses during the journey will not qualify for exemption.

7) Reimbursement of Expenses in nature of allowance which are tax free

Travelling allowances: any allowances granted to meet the cost of travel on tour or on transfer of duty.” allowance granted to meet the cost of travel on transfer “ includes any sum paid in connection with transfer, packing and transportation of personal effects on such transfer;

Daily allowance: any allowance, whether granted on tour or for the period of journey in connection with transfer, to meet the ordinary daily charges incurred by an employee on account of absence from his normal place of duties;

Conveyance allowance: any allowance granted to meet the expenditure incurred on conveyance in performance of duties of an office or employment of profit, provided that free conveyance is not provided but the employer;

Helper allowance: any allowance, by whatever name called, granted to meet the expenditure incurred on a helper where such helper is engaged for the performance of the duties of an office or employment of profit;

Academic allowance: any allowance, by whatever name called, granted for encouraging academic, research and training pursuits in educational and research institutions;

Uniform allowance: any allowance, by whatever name called, granted to meet the expenditure incurred on the purchase or maintenance of uniform for wear during the performance of duties of an office or employment of profit.

New paper and periodicals allowance are reimburse by the employer fully exempt

Children education allowance: Exempt up to actual amount received per child or RS 100 p.m. per child up to a maximum of 2 children, whichever is less.

Hostel expenditure allowance: Exempt up to actual amount received per child or RS 300 p.m. per child up to a maximum of two children, whichever is less.

The above allowances shall be exempt to the extent of minimum actual allowance received or actual amount spent for the purpose of duties of office or employment.

8) Meal Coupons up to Rs 10000

Is Food Coupon like Sodexo coupons which are very famous given by employers to employee. The Rule says Food coupons or meal vouchers are tax exempt up to a limit of Rs 50 per meal. Such a meal voucher issued by a company to its employee should be used only during working hours and is restricted to two meals per day.  The Paid vouchers must be Non Transferable and usable at eating joint only.  If such coupons are used at places other than waiting joints then the value of coupon received by employee is not tax free. This works to Rs 100 per working day, as it's generally assumed that an individual would have two meals during a working day. Let's assume that if an employee consumes two meals a day using meal vouchers in a working day and works for 25 days in a month, then meal vouchers can be tax exempt only to the extent of Rs 2,500 per month (Rs. 50 per meal x 2 x 25 days). Now meal can be either breakfast, lunch or dinner. It's also important to note that the meal vouchers issued to employees are non-transferable and should be used at restaurants and other eateries. 

9) Relief under Section 87A

The rebate can be claimed if you satisfy both these conditions: You are a RESIDENT INDIVIDUAL. Your Total Income Less Deductions (under Section 80) is equal to or less than Rs 3,50,00

If both the above conditions are satisfied, rebate of Rs 2,500 will be available under Section 87A. The rebate is limited to Rs 2,500. Which means if the total tax payable is lower than Rs 2,500, such lower amount of tax will be the rebate under section 87A. This rebate is applied on total tax before adding Education Cess(3%). This rebate is also available to Senior Citizens who are 60 years old but less than 80 years old.

10) Claiming 80TTA up to Rs 10000/- and 80TTB for senior citizen Rs 50000/-

Section 80TTA is in respect of interest on deposits in savings account in the Income Tax Act. An individual can claim exemption on up to Rs. 10,000 received as interest on your savings account deposits.  

Section 80TTB is a provision whereby individual who is a resident senior citizen, aged 60 years or above can get a deduction of Rs 50,000 on an amount received as interest on saving or bank deposits and post office deposit

AIBOC WANT MINIMUM SALARY FOR OFFICER IS 57100/-OTHERWISE THEY WILL NOT ACCEPT BIPARTITE

Dear Friends

Sri.Soumya Dutta,General Secretary,AIBOC visited Madurai today. We learnt that he is visiting Madurai Highcourt to file a vakalat in all three writ petitions filed.

We met him in the advocate chamber Highcourt campus and explained the stand of CBOA.

In the chamber, Sri Soumyaji explained to us that he is committed for Minimum Wages formula and delinking of paying capacity and load factor. He assured us that he won't put his signature in the settlement unless untill Minimum Wages formula and other demands as per COD are met. Further he assured us that he won't do injustice to Officers community.

He told us that he came all the way to Madurai to sign vakalat and gave instructions to the advocate because of the importance of the case and to file a counter affidavit in line of Minimum Wages formula of RS 18000/- at entry level. We thanked him.

AIBOC meeting was held at 04.15 pm for just more than half an hour.

Sri.Soumya GS AIBOC and Dr.Chidambara Kumar President Bank of India and other affiliated office bearers attended the meeting.

In that meeting GS AIBOC assured the affiliated office bearers that demands in the COD will be met and AIBOC will fight for it.

He praised that Sri G V
Manimaran General Secretary CBOA a knowledgeable comrade along with affiliated office bearers drafted the COD

In the meeting he explained that the Minimum Wages formula is Rs.18000 x 3.11 = 57100/- based on the CPC formula and AIBOC will not accept less than that.In this regard he stated that AIBOC has to fight for the same and all should support.

K R A Murugan
DGS
CBOA - Madurai

26th ALL IN DIA ONE DAY BANK STRIKE IS WORTHLESS AND BASE LESS

I Think 26th all India Bank strike by 9  union is worthless base less without any vision only eye wash and gimmick Already so many public and private sector bank  merged with one another and we everyone observed the power of bank union. .IN recent time when SBT and SBH merged with SBI union called strike as per their capacity one day and protest on road against meger but outcome  is known by everyone. So what is the utility of one day strike ?

It is because in past, so many banks have been merged and amalgamated and perhaps we didn't got any thing in return of those strike in favor of hindering the process of merger.

We should only focus on our rights i.e. Wage revision, pension Five day's banking. and that's all.

We request banking leader  please  

1> Call indefinite strike  if you are honestly  against merger.  

2> Call indefinite strike  if you are honestly  want wage revision upto scale vii

3> Call indefinite strike  if you are honestly  want  early wage settlement

4>Call indefinite strike  if you are honestly  want  five days banking

5>Call indefinite strike  if you are honestly  want minimum 30% pay hike for banker.. 

Otherwise stop your drama. One day strike nothing to do. We are not ready to pay one day's salary for your benefit . we are ready for  sacrifice 10 days salary for above benefit.

UFBU request AIBOC to join next bipartite talk

UFBU has requested the AIBOC for reconsider their decision of Boycotting all the further IBA's meeting. On meeting of UBU with IBA on 12th Dec 2018, the discussion revolved around two issues:

A) The issue of extending fraternal support by UFBU constituents to AIBOC on 21st December'18.

B) The view of all constituents on the decision of AIBOC of not taking part in further talks, and also to seek opinion of each affiliate whether they would be taking part in talks should IBA convene any meeting.

Read - Calculate your expected basic Pay with 12% Hike

On the first issue, there was no unanimity amongst constituents, hence, UFBU Convenor left the decision to individual affiliates.

We are happy to share that some affiliates openly expressed their support and also joined the Dharna at Delhi scheduled on 14th December'18.

AIBOC also categorically stated that in future we will also take a call on extending fraternal support, should any affiliate call for a strike or announce any agitational program.

On the second issue, all other affiliates expressed that they would be joining future talks.

UFBU Convenor, requested AIBOC to reconsider the decision of not taking part in further talks.

During the deliberation, AIBOC clarified it's position that they are firm and resolute in their stand of going ahead with the strike and not taking part in further talks unless the mandate issue was settled.

We also expressed that after assessing the impact of our strike, we will take stock, discuss with all our affiliates and chalk out our future course of action.

General Secretary.

AIBOC