This blog is meant for use by members of the Association for news and views. Send comments / suggestions / views to e-mail Id:

Monday, June 30, 2014

Budget 2014: Finance Ministry may double tax exemption limit under 80C to Rs 2 lakh

Seeking to boost household savings, the Finance Ministry is considering doubling the exemption limit for investments by individuals in financial instruments to Rs 2 lakh.

Presently the investments and expenditures up to a combined limit of Rs 1 lakh get exemptions under Sections 80C, 80CC and 80 CCC of the Income Tax Act.

Sources said the revenue department is assessing the burden on the exchequer in case of increase in the benefit limit. The announcement is expected in the Budget.

The Budget for 2014-15 will be presented by Finance Minister Arun Jaitley in the Lok Sabha on July 10.

There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings.

The savings rate has come down from over 38 per cent of GDP in 2008 to 30 per cent in 2012-13.

The hike in the exemption limit, sources said, would provide much needed relief to the salary earners who are reeling under the impact of high inflation.

The Direct Taxes Code (DTC) too has recommended that the combined ceiling for investments and expenditures be raised to Rs 1.5 lakh per annum.

The financial instruments which enjoy exemption include life insurance premium, public provident fund, employees provident fund, National Savings Certificates, repayment of capital on home loan, equity linked saving schemes sold by mutual funds and bank FDs of five year maturity.

Source:-The Economic Times

All there is to know about opening PPF account for children

Parents may decide to open a PPF account in the name of their minor children for long-termsavings and reduced taxes. An individual can maintain only one PPF account in his name. When investors open the PPF account for their minor children, the account of the child is maintained under the guardianship of the parent. For all practical purposes, both accounts are seen as one.

Eligibility: A resident individual can open a PPF account on behalf of a minor child in the capacity of a guardian. Either of the parents can open the PPF account on behalf of the minor.

Documentation: KYC documents, a passport size photograph along with the proof of age of the minor child (birth certificate/school certificate) are required to be submitted along with the account opening form.

Investment limit: An individual's PPF account and PPF account under his guardianship together have an annual investment cap of Rs 1 lakh. According to PPF rules, the Rs 1 lakh limit is applicable for an individual, not on per account basis. Interest will not be paid on amounts exceeding the limit.

Declaration: Individuals need to declare all their PPF accounts — held in their name or their minor childrens' name — when opening a PPF account for a minor.

Tax exemption: The guardian can claim a maximum of Rs 1 lakh under section 80C. This limit will apply on the balances in both PPF accounts.

Points to note

1. Both parents cannot open a PPF account for the same child. One account per person rule will apply.

2. In case of the death or incapability of the parents, any other court-appointed guardian can open a PPF account for a minor child.

The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre and Arti Bhargava.

Source:-The Economic Times

Five smart ways to file tax returns

Tax filing has become simpler and more convenient than the complicated process it used to be a few years ago. Yet, a lot of taxpayers find it difficult to file their returns and outsource the entire process to a tax professional. That's surprising because some of the private e-filingportals handhold the taxpayer through the entire process, and even offer guidance if you cannot find your way.

The story this week is meant to empower the reader to file his tax return himself. We have broken down the process into five steps. You start with checking your tax credit statement and reconciling it with the tax you have paid during the year. Next, you choose the correct form for filing your return. The choice of the form will depend on the type of income you have. Admittedly, this is a tricky area and even the tax experts we spoke to were divided on where the taxpayer stands.

After this, you have to decide on the mode of filing. While e-filing is mandatory for those earning more than Rs 5 lakh a year, how you do it is still your call. We also tell you what to look out for if you file your return through a private portal.

Lastly, we caution you against the common mistakes that taxpayers make. Over the next four weeks, millions of Indian taxpayers will file their returns. Many of them will make mistakes and their returns will invite notices from the tax department. We hope that after reading our story, you will be able to file an error-free return.


Start by reconciling the tax you have paid and the TDS details in your Form 26AS.

Before you get down to filing your tax return, you should check whether the tax you paid during the year has been correctly credited to you. You can do this by checking your tax credit statement. Also know as the Form 26AS, it has details of the tax paid by an individual. Any TDS linked to your PAN or self assessment tax paid by you during the year will reflect in this form. If you are a salaried taxpayer, you need to match the TDS details in the Form 16 from your employer with the details in the Form 26AS. If your bank or bond issuer has deducted tax on the interest income, it would be in this statement.

You can access the Form 26AS on the Income Tax department's e-filing portal (https:// When you click on "Check tax credit statement" you will be directed to the relevant page. First time users will have to register before they can log in and access their tax credit statement. But there is an easier way if you have a netbanking account. Just click on your tax credit statement and you will be directed to the Traces (TDS Reconciliation Analysis and Correction Enabling System) webpage without the hassles of registration.

Five smart ways to file tax returnsIf there is a mismatch in the details, you need to bring it to the notice of the establishment that deducted the tax and get the mistake rectified. "Tax authorities use Form 26AS as the basis for issuing notices and refunds. Therefore, you must verify the details in advance," says Vineet Agarwal, director, KPMG India.

The Form 26AS should serve as a warning for taxpayers who, deliberately or otherwise, under-report their income in the tax return. Many taxpayers wrongly assume that if TDS has been deducted on the interest earned on fixed deposits and bonds, they don't have to pay any more tax. But TDS on bank deposits is 10% while the tax may be 30% if the person earns over Rs 10 lakh. If he ignores the income from interest, the tax department will immediately find out. The TDS will reflect in the Form 26AS but the corresponding income will not be reported. "The Form 26AS will help a taxpayer identify and report the sources of income which he might have missed out," says Vaibhav Sankla, director, H&R Block, a tax consultancy firm.

Five smart ways to file tax returns

Most taxpayers falter at this stage because they don't know which form is applicable to them. The ambiguity in the rules only adds to the confusion.

The form to be used for filing your tax return is crucial. If you choose the wrong option, the return may get rejected. The frequent changes in rules of tax return filing has not helped matters much. The simple ITR-1 is the most used tax form, but many assessees may not be using it correctly. Last year, the Central Board of Direct Taxes had made it mandatory for taxpayers to use ITR-2 if their exempt income exceeded Rs 5,000 a year.

This rule is open to a lot of interpretations. Going by the definition, exempt income would include the allowances for house rent, leave travel, medical and transport. So, most salaried taxpayers would have to use ITR-2 instead of ITR-1.

"This exempt income should mean taxfree maturity proceeds of life insurance policies, PPF, dividend income and EPF withdrawals and so on. However, if you were to go strictly by the wordings, you will have to include the basic allowances that form part of most salaried individuals' packages," says certified financial planner Pankaj Mathpal. Others feel that exempt income in this context only refers to earnings like dividend and agricultural incomes and not the allowances from employers.

However, Vaibhav Sankla, director, H&R Block, maintains that tax department's notification will have to be followed in letter and spirit. "Last year, many assessees who should have opted for ITR-2 because they had exempt income of more than Rs 5,000 used ITR-1 for filing their returns. Though their returns were accepted, the same leeway may not be extended this year," he says. The tax department has not issued any formal clarification on this matter.

One of the advantages of choosing a private portal is that it automatically chooses the correct form for you. As you enter the details of your income and the exemptions claimed, the portal processes your return using the appropriate form. But, as we will explain later, this convenience comes for a price.
Five smart ways to file tax returns
Five smart ways to file tax returns

If you are cost conscious, you can e-file your tax return for free through the official website. Go for a private portal if you are seeking convenience.

E-filing is mandatory for taxpayers with an income of over Rs 5 lakh a year. You can do that for free through the official website of the income tax department, or you can file through a private portal by paying a small fee.

If you opt for the tax department's portal, you will have to complete the process on your own. It has become simpler this year, with Java utility being made available, but the filing through a private portal is far more convenient.

This convenience comes for a cost: you pay anything between Rs 250 and Rs 1,500, depending on the form you use and the type of income you have. Some portals charge a small fee for scrutinising your returns for mistakes and ensuring that all deductions have been availed.

Choosing a tax filing portal

Charges are not the only factor. Here are other things to consider when choosing an e-filing portal.

Is the e-filing portal comprehensive? 

Some portals make the process very simple for taxpayers. While this helps, some exemptions may be missed if the form is not detailed enough. The more questions the portal asks you, the better it is for you.

Assistance during and after filing

Will the e-filing portal guide you in the process to ensure there are no mistakes? Some portals offer this service for a small fee. Some even send you an alert if the ITR V has not been posted within the deadline.

How free is the free option? 

Some portals offer to file your returns without any charge. Be careful of such offers. They may be selling your data to third parties. Check how the portal intends to use your data in the privacy policy.

How dependable is the portal?

There has been quite a profusion of tax filing portals after e-filing was made mandatory for those earning more than Rs 5 lakh. Choose a portal with a good track record and established credentials.


The tax forms seek more information on income and expenses this year.

New tax reliefs: In case of ITR-1, the form now has created space for claiming deduction under section 80EE that is available to first-time home buyers. So, if you have obtained a home loan in the period April 1, 2013 to March 31, 2014, you can claim an additional deduction of Rs 1 lakh on the housing loan interest paid. However, to be eligible for this tax benefit, your loan amount should be less than Rs 25 lakh and the value of this self-occupied house should not exceed Rs 40 lakh.

Exempt allowances: You will now have to furnish details of allowances exempt under section 10. ITR-2 has incorporated fields for providing information on house rent allowance, leave travel allowance, tax paid by employer on non-monetary perks and other allowances. Till last year, you only had to mention the sum total of all such tax-exempt allowances.

Capital gains: You will have to provide detailed information on capital gains too. The new form ITR-2 requires you to divide capital gains into several categories, based on the nature of the capital gains and the asset sold.

House property: If you sell property after three years, you can claim deduction on the capital gains by using the amount to buy another house or investing in bonds issued by the NHAI or REC. In the ITR-2, you will have to provide details of such deductions claimed on capital gains.

Refunds: The tax department will not send you a cheque anymore. The refund will be directly credited to your bank account through ECS. So make sure your bank account and branch code details are correct.


1. WAIT TILL LAST DAY: The earlier you file your return, the better it is. E-filing websites tend to get clogged just before the deadline expires. The refunds also come faster if you file earlier.
2. MISCALCULATING TAX: If you changed jobs during the year, the first company may have deducted tax correctly, but the second might have deducted very little. Calculate the tax by adding both incomes.

3. IGNORING INTEREST: The new Sec 80TTA gives deduction of up to Rs 10,000 on interest from a savings account. This does not include the interest earned on bank deposits. That is taxable.

4. NOT SENDING ITR-V: E-filing your returns does not complete the process. If you didn't use a digital signature, you have to send your ITR-V by post within 120 days of uploading the return to the CPC.

5. IGNORING ITR-V INSTRUCTIONS: Don't send the ITR-V by courier. It should be sent by ordinary or speed post. Also, it should be printed in black and signed in original. No photocopies.

Source:-The Economic Times

Retirement on Superannuation in Odisha Circle

Shri A.K. Ganguly, DDM(PLI), O/o CPMG, Odisha Circlee, Bhubaneswar-751001 and Shri S.N. Panda, SSRM, RMS 'N' Division are retiring from Govt. Service today the 30th June, 2014 (A/N) on superannuation.

On the occasion of their retirement from Govt. Service, All India Association of Inspectors and Assistant Superintendents of Posts , Odisha Circle Branch bids them a respectful farewell and wishes them a good-health and peaceful life in their post-retirement days.

CHQ News:-Sri S. Samuel Ex-GS retiring on 30/6/2014

Our senior colleague and Ex-General Secretary Shri S. Samuel is going to retire from Govt. service on superannuation today the 30th June,2014. He hold the post of General Secretary from 2005 to 2010. During the two terms he did his best to discharge the duties cast upon him without fear of reprisal. During his tenure following specific achievements were taken place (i) Conferment of gazetted status to the post of ASP, (ii) Free supply of newspaper at the residence of ASP (iii) Reimbursement of mobile phone recharge coupon/residential telephone bill (iv) Allotment of willing surplus qualified Inspector Posts candidates to other Circles, (v) Re-allotment of women Inspector Posts to respective home Circle under spouse category without waiting to complete mandatory waiting period etc. (vi) Supply of Laptop to all Sub Divisions. For his grand and successful service to this Association, we have to salute him. His mobile No. is 09444144764. 

On the occasion of his retirement from Govt. Service, Odisha Circle Branch of AIAIASP is privileged to bid him a respectful farewell and wishes him all the best in his post-retirement period. 

UPU News:-Which letter will be music to jury’s ear?

The letters have been received, and a jury of international experts is hard at work selecting the winners of the UPU’s 43rd International Letter-Writing Competition for Young People.

This year, an estimated 1.5 young people up to 15 wrote a letter about how music can touch lives, the competition’s theme.
Once again, the competition generated good participation among the UPU’s membership. Fifty-three countries from all regions of the world organized national competitions to select the one letter that would represent them at the international level.
The winners of the UPU’s gold, silver and bronze medals will be announced in August 2014.

Music in their blood

This year’s jury members include: Jesse Boere, a young singer-songwriter from the Netherlands and member of the International Music Council; Matt Clark, programme manager with Jeunesses Musicales International, the world’s largest youth music non-governmental organization; Emily Randall, outreach assistant at Playing for Change, a U.S.-based organization that creates and supports music schools around the world; Adrian Kreda, professor and dean of piano at the Conservatoire de Musique de Genève; and Damiano Giuranna, music and artistic director of the World Youth Orchestra, a UNICEF goodwill ambassador.
The UPU’s International Letter-Writing Competition for Young People was officially launched in 1971.
Since then, millions of young people all over the world have participated in the competition at national and international levels. The competition aims to make young people aware of the role postal services play in our societies, develop their skills in composition and the ability to express their thoughts clearly, and foster their enjoyment of letter writing.

Friday, June 27, 2014

Adhoc Promotion and transfer & posting in JTS Group-A cadre

C.O. Memo No. ST/2-34(3)/2012 dated 27-06-2014.
Shri Muralidhar Sethi, SSPOs, Koraput Division is transferred in public interest and in the interest of the service and posted as Manager, Postal Printing Press, Bhubaneswar.
The following PS Gr- B officers on their promotion to JTS Group-A cadre on temporary and ad hoc basis from the date of assumption of charge and allotted to the Region / posted as mentioned below:-
Sl No
Name of Officer
Present place of posting
Allotted to the Region
Posted on adhoc Promotion
Satyabadi Biswal
Asst. Director(Tech/LC), O/o CPMG, Odisha Circle, Bhubaneswar
Bhubaneswar HQ Region
Offtg DDM(PLI), O/o CPMG, Odisha Circle, Bhubaneswar
Manmohan Mohapatra
SPOs, Cuttack North Division(on leave vacancy)
Bhubaneswar HQ Region
Offtg SSRM, RMS N Division, Cuttack
Daitari Rana
Asst. Director(Staff), O/o CPMG, Odisha Circle, Bhubaneswar
Berhampur  Region
Posting order is to be issued by RO, Berhampur

Transfer and posting in PS Group-B Cadre

C.O. Memo No. ST/2-4(3)/2014 dated 26-06-2014


Shri Debi Prasad Dash, Asst. Director (Estt/Plg/TO), O/o CPMG, Odisha Circle, Bhubaneswar is transferred and posted as Asst. Director(ST/TO), O/o CPMG, Odisha Circle, Bhubaneswar.

The following officers working on temporary and ad hoc basis in PS Gr- B cadre are transferred and posted as mentioned below vide C.O. Memo No. ST/2-4(3)/2014 dated 27-06-2014.
Sl No
Name of the Officer
Present place of Posting
Posted on transfer
K.C. Chinara
SPOs, Bhadrak Division, Bhadrak
Supdt., CSD, Bhubaneswar
K.S. Panda
Supdt., CSD, Bhubaneswar
Supdt., PSD, Bhubaneswar
Sk. Md. Noman
Supdt., PSD, Bhubaneswar
Asst. Director(Tech/LC), O/o CPMG, Odisha Circle, Bhubaneswar


In partial modification of Circle Office Memo No. ST/2-4(3)/2014 dated 26-06-2014 Shri B.M. Das Mohapatra, ASP(HQ), Keonjhar Division who was posted as Asst. Director(Tech/LC), O/o CPMG, Odisha Circle, Bhubaneswar is posted as SPOs, Bhadrak Division, Bhadrak

Adhoc Promotion to PS Group-B Cadre and posting thereof

The following officers on their promotion to PS Gr- B cadre on temporary and ad hoc basis from the date of assumption of charge and allotted to the Region / posted as mentioned below vide C.O. Memo No. ST/2-4(3)/2014 dated 26-06-2014.

Sl No
Name of Officer
Present place of posting
Allotted to the Region
Posted on adhoc Promotion
S.N. Satpathy
ASP(OD), Bhubaneswar
Bhubaneswar HQ Region
Dy. Manager, PPP, Bhubaneswar
J.K. Jena
ASP(I/C), Dhenkanal
Sambalpur Region
Posting order is to be issued by RO, Sambalpur
B.M. Dasmohapatra
ASP(HQ), Keonjhar

AD(LC/Tech), CO, Bhubaneswar

Minutes of Bi-Monthly Meeting with the DPS(HQ) held on 06-06-2014 issued vide CO No.WL/30-4/Assn/2012 dated 23-06-2014


Administrative Side

Staff Side
Shri Pawan Ku. Singh,
DPS(HQ), Circle Office,
Shri Pitabasa Jena, Circle Secretary, AIAIASP -cum- ASP(TO), O/o the CPMG, Bhubaneswar
Shri Debi Prasad Dash,
Asst. Director (WL)
Circle Office,
Shri Khageswar Mallick, Representative, Exe Body Member, AIAIASP -cum- Manager (Project Arrow), O/o the CPMG, Bhubaneswar

New Items

Item No. 1-06/2014:- Request for supply of Scanner and Photocopier to Sub-Divisions.    
Brief: Sub-Divisional Heads are often depending on the local market for scanning the documents to send through e-mail and to make photo copy of various documents for official purpose and especially for NREGS purpose. If there will be provision of Scanner and Photocopier to Sub-Divisions, it will be much easier for the Sub-Divisional Heads.   

Therefore, this Association requests for supply of Scanner and Photocopier to Sub-Divisions as there is a functional necessity.

Reply:-       Matter will be looked into favourably.

Action: AD(TO)
Old Items

Item No. 3-9/2013:- Release of 10 percent of the PLI incentive deducted at the time of sanction of incentive for procurement of Proposal.

Brief:-  Considering the request of this Association through Agenda No.5-04/2013 in four monthly meeting of CPMG, instruction has been issued vide C.O. Letter No.L1/1-12/2010 dated 11-04-2013 to all concerned for releasing the 10% of the incentive which was not paid earlier on verification of first six deposits. But there is no clarity regarding releasing the 10% of the incentive which was not paid for which 90% of the incentive was sanctioned by PLI Section of Circle Office. 
Therefore, this Association requests for issuance of an instruction clarifying the position viz. who will release remaining 10% and how.

Reply:-       With reference to the above mentioned letter, all the Divisional Heads were requested vide this office letter dated 11/04/2013 followed by reminder dated 06-05-2013 and email dated 04-10-2013 to sanction the 10% incentive to all the sales force only on verification of first six monthly premium deposits. Further, the 10% of the incentive which was not paid for which 90% of the incentive was already sanctioned by PLI section of Circle Office, first six monthly premium deposits for the same is to be verified by the concerned Divisional Heads. Either same may be intimated to the DDM (PLI) after necessary verification of sanction of the pending incentive or the same may be sanctioned at Divisional level.

          The DDM (PLI) will supply the list of PLI policy against which 90% incentive is approved /sanctioned to each Departmental PLI agent. On receipt of the same the concerned Divisional Heads will sanction the rest 10% incentives to the concerned official by 31st August.

Action: DDM (PLI)

Item No.1-3/2012:-    Request for required amenities and civil maintenance of Inspection Rooms in the Circle.

Brief:- Most of the Inspection Rooms in the Circle are in very bad shape and condition without regular maintenance of civil work. In some cases there is even no required furniture like fixed Beds, Mattresses, Sofa, Almirahs, Dining Table, Sofa etc. Case of the IR at Ashoknagar MDG is cited as an example. Most of the fixed beds and mattresses in the IR at Ashoknagar MDG are damaged and is being managed with folding beds. The Association requests for issuing orders for providing the required civil maintenance and amenities/ furniture like fixed Beds, Mattresses, Sofa, Almirahs, Dining Table, Sofa etc in the Inspection Rooms in the Circle.

Reply:-        The SSPOs, Bhubaneswar will be asked to change the broken furniture items in IR of Ashoknagar Nagar MDG, Bhubaneswar within 30-06-2014. Items like Almirah, Chair, Small Dining table etc. are required to be procured and provided in the said IR. Further, AD (MM) will please prepare a check list of items that should remain in each IR of the Circle. The said check list after approval must be shared with all the Unit Heads and it will be the responsible of AD (MM) to ensure that each IR has the items. Further he will ensure that check lists is prepared within 25-06-2014 and items as per the check list is provided in each IR within 31-03-2015.