Former Indian Bank's CMD sentenced to undergo rigorous imprisonment

On completion of trial, M Gopalakrishnan and Sai Jagannathan were convicted and sentenced to three years of rigorous imprisonment

Business Standard 2nd July 2016

The Central Bureau of investigation, Chennai, registered and

 investigated cases against Gopalakrishnan, the then officials 

of Indian Bank, namely N Kumarasamy, Credit Monitoring 

Officer of Zonal Office, V N Balakrishnann Regional 

Manager (South), Srinivasa Raghavan, Sr Manager (Credit), 

Regional Office, A R Arunachalam, Chief Manager, 

Nandanam Branch, P Vasantha Rajan and S Jayaraman, 

Chief Managers, Saidapet Branch, Solaiappan, (Approver),

 Zonal Manager, Chennai M  Varadarajulu @ M V Raja, 

Principal Advisor of all companies under the MVR group, 

Venky Raman (Approver), CMD of Anderson Industries 

International Ltd, V Krishna Kumar, G Sambasivam,  C S 

Usha Devi, Directors of Anderson Industries International 

Ltd, K Sai Jagannathan, Director of Sathyam Chemicals Pvt 

Ltd, Anderson Industries International Ltd and Sathyam 

Chemicals Pvt Ltd.

What is Gratuity? How you calculate your own gratuity ?

What is Gratuity?

Gratuity is a part of salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company

Gratuity is one of the least understood components of salary. InvestmentYogi explains everything about Gratuity and the tax implications for you.
                    
Gratuity is a part of salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Gratuity is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job. An employee may leave his job for various reasons, such as - retirement/superannuation, for a better job elsewhere, on being retrenched or by way of voluntary retirement.
 
Eligibility
As per Sec 10 (10) of Income Tax Act, gratuity is paid when an employee completes 5 or more years of full time service with the employer(minimum 240 days a year).
 
How does it work?
An employer may offer gratuity out of his own funds or may approach a life insurer in order to purchase a group gratuity plan. In case the employer chooses a life insurer, he has to pay annual contributions as decided by the insurer. The employee is also free to make contributions to his gratuity fund. The gratuity will be paid by the insurer based upon the terms of the group gratuity scheme.
 
Tax treatment of gratuity
The gratuity so received by the employee is taxable under the head ‘Income from salary’. In case gratuity is received by the nominee/legal heirs of the employee, the same is taxable in their hands under the head ‘Income from other sources’. This tax treatment varies for different categories of individual assessees. We shall discuss the tax treatment of gratuity for each assessee in detail.
 
For the purpose of calculation of exempt gratuity, employees may be divided into 3 categories –
 

• Government employees and
• Non-government employees covered under the Payment of Gratuity Act, 1972
• Non-government employees not covered under the Payment of Gratuity Act, 1972

 
In case of government employees – they are fully exempt from receipt of gratuity.
In case of non-government employees covered under the Payment of Gratuity Act, 1972 – Maximum exemption from tax is least of the 3 below:

1. Actual gratuity received;
2. Rs 10,00,000;
3. 15 days’ salary for each completed year of service or part thereof

Note:

• Here, salary = basic + DA + commission (if it’s a fixed % of sales turnover).
• ‘Completed year of service or part thereof’ means: full time service of > 6 months is considered as 1 completed year of service; < 6 months is ignored.
• Here, number of days in a month is considered as 26. Therefore, 15 days’ salary is arrived as = salary * 15/26
• In case of non-government employees not covered under the Payment of Gratuity Act, 1972 – Maximum exemption from tax is least of the 3 below:

1. Actual gratuity received;
2. Rs 10,00,000;
3. Half-month’s average salary for each completed year of service (no part thereof)

Note:

• Here, salary = basic + DA + commission (if it’s a fixed % of sales turnover).
• Completed year of service (no part thereof) means: full time service of > 1 year is considered as 1 completed year of service. < 1 year is ignored.
• Average salary =10 months’ salary (immediately preceding the month of leaving the job)/10

Illustration
Let’s understand the above math clearly with an example:
Varun had been working with an IT company since past 10 years, 7 months. He is retiring on 15th April, 2010. His current Basic = Rs 40,000 pm, DA = Rs 5,000 pm. He is going to receive a gratuity amount of Rs 3 lakhs on retirement. Note: Varun’s basic and DA have been the same since past 1 year.
 
Lets consider 2 situations here – (a) Varun’s employer is covered under Payment of Gratuity Act, 1972; and (b) Varun’s employer is not covered under Payment of Gratuity Act, 1972.


•    Salary = Basic + DA = Rs 40,000 pm + Rs 5,000 pm = Rs 45,000 pm
•    Average salary = 10 months’ salary (immediately preceding the month of leaving the job)/10 = (Rs 45,000 pm * 10)/10 = Rs 45,000 pm. Therefore, half-month’s average salary is = Rs 45,000/2
           
Important points to remember
•    Generally, only government employers give DA to their employees. Above example is only for illustrative purpose.
•    The salary of the employee may differ over a period of time on account of change in basic, DA and/or other factors.
•    In case gratuity is received from more than one employer during the previous year, maximum exemption allowed is up to Rs 10,00,000.
•    Where employee has already claimed gratuity exemption in any previous year (s), the maximum exemption amount allowed for the current previous year i.e. Rs 10,00,000 will be reduced by the amount of deduction already claimed in the previous years.
•    In case of an employee who is employed in a seasonal establishment ( not employed throughout the year), the gratuity exemption shall be for seven days wages for each season.

7th Pay Commission: 33 Lakh Government Employees Warn Of Strike

With widespread resentment against the "meagre" pay hike announced in the Seventh Pay Commission, as many as 33 lakh central government employees are threatening to go on strike from July 11.

"They have fixed the minimum wage at a meagre Rs. 18,000 in the Seventh Pay Commission. In the last Pay Commission, the basic pay was Rs. 7,000. They multiplied it by 2.57 (fitment formula) and came to Rs. 18,000. We are demanding 3.68 fitment formula," Shivgopal Mishra, General Secretary, All India Railway Men Federation and Convenor of National Joint Council of Action (NJCA), told IANS.

NJCA is a front formed by six government staff unions, including Confederation of Central Government Employees (CCGE), All India Defence Employee Federation and National Coordination Committee of Pensioners Association, to oppose the hikes given by the Seventh Pay Commission.

"As many as 33 lakh government employees, excluding the defence personnel, will go on strike if we do not get some kind of assurance from the government to reconsider the decision. The major contention is on the minimum wage, which we are demanding to be Rs. 26,000," K K N Kutty, president of CCGE and general secretary of national coordination committee of pensioners association, told IANS.

"We had a meeting with a group of ministers, including the home minister (Rajnath Singh), finance minister (Arun Jaitley) and railway minister (Suresh Prabhu) on the evening of June 30. They said it will be considered and will be referred to some committee," said Mr Mishra.

"We are waiting to hear back on this from the government by July 4 evening or July 5. In our meeting, it was only a verbal commitment. If the government gives us specific details like which committee will review, etc. then we will defer the strike. We have a meeting on July 5 to decide on the strike," Mr Kutty said.

"We had met the government on June 9, and suggested various improvements in the Seventh Pay Commission's recommendations. But the government has not given any heed to whatever improvements we had proposed. They have given same hike as suggested by Seventh Pay Commission," C Srikumar, general secretary, All India Defence Employees Federation, told IANS.

Mr Srikumar contends that the prices of essential commodities considered by the Seventh Pay Commission itself were faulty, which has resulted in the meagre rise.

"Price considered of essential commodities by pay commission is not right. They have taken dal price at Rs. 97. Where do you get dal for Rs. 97?" he said.

NJCA is also demanding for the withdrawal of the new national pension scheme (NPS), which came into effect from October 2004.

"A lady employee, who got the job after her husband's death, retired after 12 years of service. She comes under the new NPS scheme as she joined service after 2004. She gets Rs. 960 pension per month," Mr Srikumar said.

However, while the fate of the strike is still unknown, a central government junior staffer on the condition of anonymity told IANS, "I don't think much will come out of the strike. The only thing the government might do is increase the allowances slightly, that's it."

The Bharatiya Mazdoor Sangh (BMS) has also expressed its "dissatisfaction" at the Seventh Pay Commission's recommendations.

"A huge gap has been created between the minimum and the maximum wage after the government approved the Seventh Pay Commission Report's recommendation," BMS general secretary Virjesh Upadhyay told IANS earlier.

However, BMS is not expected to go on strike as it is not a part of  NJCA.

The Union Cabinet has decided to constitute three separate committees, including one to look into the anomalies likely to arise out of enforcement of the commission's report.

"The two separate committees constituted includes for suggesting measures for streamlining the implementation of National Pension System (NPS) and to look into anomalies likely to arise out of implementation of the Commission's Report," said an official statement earlier.

The Cabinet approved the Seventh Pay Commission's recommendations for central government employees on July 29, which will impact some 47 lakh central government employees and 53 lakh pensioners.

ICICI Bank to add 400 branches, 1,000 ATMs this fiscal

Country's second-largest lender ICICI BankBSE 0.08 % will add 400 more branches and expand its ATM network by another 1,000 in the current fiscal to boost business from retail operations. 

"We believe that a wide branch network is a cornerstone in retail banking. Keeping this in mind, we plan to add around 400 branches this fiscal. We also plan to expand our ATM network by adding over 1,000 ATMs," Chanda Kochhar Managing Director and Chief Executive Officer of ICICI Bank said in an iteraction
 
Kochhar said research done by the bank has shown customers value a wide branch network, and the proximity to one's home or office plays an important role when customers evaluate a bank with which they want to start a relationship. 

"It also helps deepen the relationship with the customer as it forms a focal point for a range of products and services like mortgages, other loans and investments," she said. 

ICICI Bank is of the view that branch expansion will continue, although their nature of branches are yet to evolve. 

"The branches will become digital and more advisory in nature. In fact, our branches, in their advisory role, source over half of our home loan and new cards customers. Our ATMs are like mini-branches today wherein we provide many banking services in addition to dispensing cash," said bank's head. 

Besides, automated teller machines (ATMs) also involve services such as Aadhar card updation to utility bill payments, pre-approved loan eligibility and even fund transfers to any bank. 

"Today, over a third of all financial transactions are done through ATMs," Kochhar said. 

ICICI Bank had said in the previous fiscal it added 400 branches to its network, which is equivalent to the branch network of a small bank. 

As of March 31, 2016, the ICICI Bank said it had the largest retail network among private sector banks in the country with 18,216 branches and ATMs. Of this 4,450 are branches and 13,766 are ATMs. 

Advancing with new age requirements, the bank has also successfully weaved digital strategy alongside its brick and mortar model. 

ICICI Bank has 110 fully digital and automated 'Touch Banking' branches across 33 cities available round-the-clock on all days. 

As part of branch automation strategy, the bank said it has deployed more than 1,800 self-service kiosks, which include cash deposit machines and insta banking kiosks, across its branches. 

Central strike from July 11 likely to be deferred, Union is waiting Govt. assurance

The proposed indefinite strike of Central Govt. employees in protest of "negligible increase" of salary may be deferred for some time. National Joint Council of Action, the umbrella body of Central associations will decide the fate of strike on Tuesday. 
"They have fixed the minimum wage at a meagre Rs 18,000 in the 7th Pay Commission. In the last Pay Commission, the basic pay was Rs 7,000. They multiplied it by 2.57 (fitment formula) and came to Rs 18,000. We are demanding 3.68 fitment formula," Shivgopal Mishra, General Secretary, All India Railway Men Federation and Convenor of National Joint Council of Action (NJCA), toldIANS.

"As many as 33 lakh government employees, excluding the defence personnel, will go on strike if we do not get some kind of assurance from the government to reconsider the decision. The major contention is on the minimum wage, which we are demanding to be Rs 26,000," KKN Kutty, President of CCGE and general secretary of national coordination committee of pensioners association, told IANS.

"We had a meeting with a group of ministers, including the Home Minister (Rajnath Singh), Finance Minister (Arun Jaitley) and Railway Minister (Suresh Prabhu) on the evening of June 30. They said it will be considered and will be referred to some committee," said Mishra.

"We are waiting to hear back on this from the government by July 4 evening or July 5. In our meeting, it was only a verbal commitment. If the government gives us specific details like which committee will review, etc. then we will defer the strike. We have a meeting on July 5 to decide on the strike," Kutty said.

However while the fate of the strike is still unknown, a central government junior staffer on the condition of anonymity told IANS: "I don't think much will come out of the strike. The only thing the government might do is increase the allowances slightly, that's it."

The Bharatiya Mazdoor Sangh (BMS), affiliated to the Rashtriya Swayamsevak Sangh, the parent body of the ruling Bharatiya Janata Party, has also expressed its "dissatisfaction" at the 7th Pay Commission's recommendations.

"A huge gap has been created between the minimum and the maximum wage after the government approved the Seventh Pay Commission Report's recommendation," BMS general secretary Virjesh Upadhyay told IANS earlier.

However, BMS is not expected to go on strike as it is not a part of the NJCA.

The Union Cabinet has decided to constitute three separate committees, including one to look into the anomalies likely to arise out of enforcement of the commission's report.

Source : Business Standard

Three Directors Of J&K Bank Resign

Jammu & Kashmir Bank on Wednesday said three of its directors of the board have resigned from their positions citing personal reasons.

Srinagar-headquartered state-run bank in a regulatory filing said that "three directors have tendered their resignations from the Directorships of the Bank due to personal reasons with effect from June 29, 2016".

The three directors are Dalip Kumar Kaul, Khaver Alam Jeelani and Vikrant Kuthiala.

Thus, the J&K Bank said, the board of directors in their meeting held on Wednesday took on record the changes in composition of the board.

As on record (June 29, 2016), the bank said there are seven directors on its board.

Of these, one is the chairman and chief executive officer Mushtaq Ahmad.

Among others are three independent directors Azhar-ul-Amin, Masooda Jabeen and Rakesh Kumar Gupta. one RBI nominee - J P Sharma - and two non-executive directors - Abdul Majid Mir and Navin Kumar Choudhary. 

Shares in J&K Bank, on Wednesday, ended 2.05 per cent higher at Rs 69.65 apiece on the BSE, whose benchmark Sensex finished up 0.81 per cent. 

A peon in government sector and an officer of a bank will get the same salary...with different responsibility!!

Its time for leaders to self analysis. What we have GOT in our bipartite settlement. 
1.How much hike..?
2. How many strike with salary deduction.?
3.How many bank employees suffer with yours negative decisions..
4. What you have learn from LIC bipartite settlement without any strike and salary deduction.
5. Now what are going to learned from 7Th PAY COMMISSION.
23 % SALARY hike without a single stike. But in this also they r no satisfied.. and our leaders were satisfied in 2% only..
6.A peon in government sector and an officer of a bank will get the same salary...with different responsibility!!

one of my facebook friend wrote this word in my wall please read

1>Hum Sab bhokne bale kuttey hain..katne wale nahi..last BPS se pehle Aise bahut bhokey they hum..Kuch nahi hua..agli bar v hum churiya pehen k tali bajayenge aur fb Pe bhokegey..kisi ko bura lagta hain toh.....lagne do..dhobi k kuttey ki aukat kya hain..

2>Who make all Dalal to Neta. We and only We. Pl. withdraw all membership and then see fate of these so called Neta or representative of bankers voice.
.