by Admin Wed Oct 07, 2009 2:34 pmCertain doubts have been raised in the googlegroups by members regarding fitment and fixation of pay in the new scales. Some of the excerpts are quoted here for ready reference by other officers. It pay please be noted that the information is provided on best of effort basis and same may be got clarified from official channel, wherever necessary.
clarification
If the wordings of circular of Hqrs is considered, the pay fixation ought to be as follows,
Person 1
31.12.2006 Manager, 11600 fixed to 26880 + increment 3% rounded off to next Rs.10, i.e. 27690 (on 1.1.2007)
1.1.2008 increment 3% rounded off to next Rs.10, i.e. 28530
Dec 2008 promotion, increment 3% in lower scale rounded off to next Rs.10, i.e. 29390 (in the scale of AGM i.e. 20600-46500)
1.1.2009 increment 3% rounded off to next Rs.10, i.e. 30280
Person 2
31.12.2006 Manager, 11350 fixed to 26300 + increment 3% rounded off to next Rs.10, i.e. 27090 (on 1.1.2007)
1.1.2008 increment 3% rounded off to next Rs.10, i.e. 27910
Dec 2008 promotion, increment 3% in lower scale rounded off to next Rs.10, i.e. 28750 (in the scale of AGM i.e. 20600-46500)
1.1.2009 increment 3% rounded off to next Rs.10, i.e. 29620
On promotion, fitment was done on the basis of adding one increment in lower scale and then fitting it to the nearest slab of the higher scale. It was never one increment in lower and one increment in higher scale. The same principle will continue even now. With the introduction of running scale, the concept of slab scales are no longer in existence, or rather the slabs have become slabs of Rs.10 each. Hence, the part of "fitting it to the nearest slab of the higher scale" would now automatically become rounding up to the next Rs.10 in the higher scale. The only exception to this rule would be where even after adding one increment in the lower scale the resultant pay is less than the minimum of the scale for the promoted post, in which case pay will be fitted at the minimum of the higher scale.
clarification
The Scales are purely financial time scales for relevant posts.
The grant of Increment, whether regular or additional or stagnation or on promotion etc, is guided by the relevant administrative circulars and/or provisions of the Staff Regulations. For the present also, the relevant EP Circular for grant of increment after 3/6 years would be applicable.
In case of any difficulty in this regard, issue may please be raised by the official channel with Hqrs through the Personnel/Establishment Division for issue of necessary clarification.
Clarification
Here's what the Income Tax dept has to say on the issue of Gratuity,
Any death cum retirement gratuity received by Government or Local Authority employees [members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence services] is exempt from tax.
[Sec. 10(10)(i)]
For Non-Government Employees the taxability depends on whether Gratuity is covered under the Gratuity Act
A) Gratuity covered under the Gratuity Act
For Gratuity covered under the Gratuity Act, total of gratuity received by an employee, covered by the Gratuity Act, from various employers in whole of service is exempt from tax to the extent of least of the following three amounts:
* 15 days' salary, based on the last drawn salary, for each completed year of service
* Rs. 3,50,000/-; or
* The gratuity actually received.
B) Gratuity not covered under the Gratuity Act
For Gratuity not covered under the Gratuity Act any gratuity not covered by the Gratuity Act, is exempt from tax to the extent of least of the three amounts
* The half month's salary for each completed year of service; or
* Rs.3,50,000/-; or
* The gratuity actually received.
As the 6th Pay Commission is primarily applicable for Govt. Employees, who are covered under Sec 10(10)(i) of the Income tax Act, no ceiling is applicable to them and the full amount is already exempt. So no notification from the Income Tax dept is required for this purpose.
For all others, the limit remains Rs.3.50 Lakhs till it is modified by a notification of CBDT or by amendment to the Income Tax Act.
My BP was 11600 and other one stood at 11350 on 31.12.06. Both were managers before December 2008. Both were promoted as AGM's in December 2008 and accordingly BP were also fixed i.e. 12550 & 12250 respectively. On fixation in the new pay scales both have the same basic pay though I should atleast get one increment more than him. As per the annexure my basic pay comes Rs. 26880 and other promotee comes Rs. 26300 on 31.12.2006 but after fixation formalities both are at Rs.30350. Kindly understand our problems. This is not only the case, many more may come while fixing the scales.
Fixation of Pay on promotion on or after 01.01.2007 ------------------ is confusing
" One notional increment equal to the increment being drawn by the executives in the pay scales before such promotion would be granted and pay fixed in the promoted pay scales and rounded up to the next of ten rupees."
kindly go through the details and fix the salary and arrears as per detailsare as under :
......................As per my calculation BP
BP as on -
31.12.2006 Old 11600 New 26880
1.01.2007 Old 11850 New 27690 (3% increment included by rounding to Rs. 10/-)
1.01.2008 Old 12100 New 28530 (3% increment included by rounding to Rs. 10/-)
5.12. 2008 Old 12550 New ????? Promotion as AGM on dec.08.
How fixation has to be done please clarify. As per practise in vogue one lower increment upto the higher stage with one increment in promoted capacity was being given. But in the accepted scales this thing is missing. I found one AGM who was also promoted in Dec. 08 whose Basic Pay was 11350 i.e. on 31.12.2006. After fixation his basic pay comes to the same figure which I had at this stage. I don't find there is anamoly in the scales as all the PSU follow the same procedure.
clarification
If the wordings of circular of Hqrs is considered, the pay fixation ought to be as follows,
Person 1
31.12.2006 Manager, 11600 fixed to 26880 + increment 3% rounded off to next Rs.10, i.e. 27690 (on 1.1.2007)
1.1.2008 increment 3% rounded off to next Rs.10, i.e. 28530
Dec 2008 promotion, increment 3% in lower scale rounded off to next Rs.10, i.e. 29390 (in the scale of AGM i.e. 20600-46500)
1.1.2009 increment 3% rounded off to next Rs.10, i.e. 30280
Person 2
31.12.2006 Manager, 11350 fixed to 26300 + increment 3% rounded off to next Rs.10, i.e. 27090 (on 1.1.2007)
1.1.2008 increment 3% rounded off to next Rs.10, i.e. 27910
Dec 2008 promotion, increment 3% in lower scale rounded off to next Rs.10, i.e. 28750 (in the scale of AGM i.e. 20600-46500)
1.1.2009 increment 3% rounded off to next Rs.10, i.e. 29620
On promotion, fitment was done on the basis of adding one increment in lower scale and then fitting it to the nearest slab of the higher scale. It was never one increment in lower and one increment in higher scale. The same principle will continue even now. With the introduction of running scale, the concept of slab scales are no longer in existence, or rather the slabs have become slabs of Rs.10 each. Hence, the part of "fitting it to the nearest slab of the higher scale" would now automatically become rounding up to the next Rs.10 in the higher scale. The only exception to this rule would be where even after adding one increment in the lower scale the resultant pay is less than the minimum of the scale for the promoted post, in which case pay will be fitted at the minimum of the higher scale.
In the manager cadre there is provision if he/she completes 3 or 6 years with good remaks he/she gets one additional increment. While fixing the same new scales the same can be considered or not though nothing is mentioned in the new scales. In my opinion, if you agree, such cases are not to be considered after 31;12;2006. This increment is neither of selection grade or stagnation.
clarification
The Scales are purely financial time scales for relevant posts.
The grant of Increment, whether regular or additional or stagnation or on promotion etc, is guided by the relevant administrative circulars and/or provisions of the Staff Regulations. For the present also, the relevant EP Circular for grant of increment after 3/6 years would be applicable.
In case of any difficulty in this regard, issue may please be raised by the official channel with Hqrs through the Personnel/Establishment Division for issue of necessary clarification.
Your kind attention is invited to H.O.circular NoFIN.19/T-100/2009-2010 dt.24.9.09 signed by DGM(Finance) advised all offices to deduct I.T. on Gratuity above Rs.3.50 lac as per IT Act. But it is understood I.T. Deptt. issued exemption upto Rs.10 Lac as per 6th Pay commission (Ref. Swamy's guide)
Clarification
Here's what the Income Tax dept has to say on the issue of Gratuity,
Any death cum retirement gratuity received by Government or Local Authority employees [members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority or any payment of retiring gratuity received under the Pension Code or Regulations applicable to the members of the defence services] is exempt from tax.
[Sec. 10(10)(i)]
For Non-Government Employees the taxability depends on whether Gratuity is covered under the Gratuity Act
A) Gratuity covered under the Gratuity Act
For Gratuity covered under the Gratuity Act, total of gratuity received by an employee, covered by the Gratuity Act, from various employers in whole of service is exempt from tax to the extent of least of the following three amounts:
* 15 days' salary, based on the last drawn salary, for each completed year of service
* Rs. 3,50,000/-; or
* The gratuity actually received.
B) Gratuity not covered under the Gratuity Act
For Gratuity not covered under the Gratuity Act any gratuity not covered by the Gratuity Act, is exempt from tax to the extent of least of the three amounts
* The half month's salary for each completed year of service; or
* Rs.3,50,000/-; or
* The gratuity actually received.
As the 6th Pay Commission is primarily applicable for Govt. Employees, who are covered under Sec 10(10)(i) of the Income tax Act, no ceiling is applicable to them and the full amount is already exempt. So no notification from the Income Tax dept is required for this purpose.
For all others, the limit remains Rs.3.50 Lakhs till it is modified by a notification of CBDT or by amendment to the Income Tax Act.
Last edited by Admin on Tue Oct 13, 2009 12:54 am; edited 3 times in total
