Enhancement of Income Tax exemption limit for Transport Allowance

National Federation of Indian Railwaymen(NFIR) General Secretary Mr.M.Raghavaiah requested the Finance Minster to enhance the Income Tax limit for Transport allowance in the case of salaried Central Government employees. He said in his letter that the Transport allowance was introduced for the first time in the year 1997 and the maximum rate of the same was kept at Rs.800 per month. The exemption limit from income tax for this allowance in the case of salaried Central Government employees was also fixed at Rs.800 per month in the same year through a notification by CBDT.

He also noted that the exemption limit prescribed in 1997 has been continuing at the same level till date. Over this long period of 14 years, the cost of transport has increased manifold and recognizing this fact the Central Government has itself enhanced the allowance upto Rs.3200 to its employees.

He suggested that the exemption limit may be raised to the level of transport allowance admissible to Central Government employees as was done in the year 1997 as a policy.

SB ORDER NO. 16/2011 : Admissibility of Commission to SAS agents- Clarifications

Modification in PPF Scheme

Ministry of Finance

Modification in PPF Scheme : Deposit Limit Raised from Rs. 70,000 to Rs. One Lac while Rate of Interest on Advances Against Deposits in PPF Scheme Raised from 1% to 2 Percentage Points

The Committee on Comprehensive Review of National Small Savings Fund (NSSF) headed by Deputy Governor, RBI has recommended revision of certain provisions of PPF Scheme, 1968 and benchmarking of interest rates on various small savings schemes with the secondary market yields on Central Government securities of comparable maturities with suitable spread.

The Committee has recommended increasing the deposit limit under PPF Scheme from existing Rs. 70,000 to Rs. 1 lakh per annum and fixing of rate of interest on advances against deposits in PPF scheme at 2 percentage points as against the prevailing interest rate on such advances at 1%.

The Committee has further recommended benchmarking interest rate on small saving schemes to interest rate on Government securities of similar maturities with a positive spread of 25 basis points on all schemes except for 50 basis points for 10 year NSC and 100 basis point for Senior citizens Savings Scheme. Recommendations of the Committee have been referred to State Governments and concerned Ministries/ Departments of Central Government for their comments.

This information was given by the Minister of State for Finance Shri Namo Narain Meena in a written reply to a question raised in Rajya Sabha today. 

Source: PIB

Post Offices to Provide Visa Related Services In Remote Areas

India Post Signs MOU with M/S VFS Global to this Effect

India Post has signed a Memorandum of Understanding (MOU) with M/s VFS Global to provide visa related services for different countries through Post Offices. Memorandum of Understanding between India Post and M/s VFS Global was signed here on 30.08.2011 in the presence of Secretary, Department of Posts and senior officers from Department of Posts and VFS Global. The MOU sets out broad understandings and intentions of both the parties to provide visa related services at places where they are not currently available.

Post Office counters will be used for fee collections, providing visa applications forms, dissemination of visa information, biometric enrollment and other visa application process related services. India Post and VFS are also planning to cooperate in utilizing India Post’s courier service, Speed Post for movements of passports to VFS offices and concerned embassies, and their delivery back to the applicants. Both the parties will also explore to provide any other service that India Post may want to provide through VFS global network on mutually accepted terms. 

M/s VFS Global is in the business of visa application services and is working with 35 governments across the world with over 450 offices in 50 countries. India Post and VFS realize that there are many areas of mutual interest and synergy between India Post and VFS would benefit the public at large.

Currently visa related services are largely available in metros only and the people from smaller cities and rural areas have to travel long distances in order to avail these services. Lack of information is also a major area of concern as this allows unscrupulous elements to cheat unsuspecting and vulnerable people. Engagement of India Post towards provision of visa related services is expected to address this situation to a large extent.

Central and State Governments take various Measures to Popularize Small Saving Schemes

Central and State Governments take various measures from time to time to promote and popularize small saving schemes through print and electronic media as well as holding seminars, meetings and providing training to the various agencies involved in mobilising deposits under these schemes. 

A website of the National Savings Institute under Government on India, Ministry of Finance has also been launched to facilitate interface with the public through wider investors grievances. The website address is nsiindia.gov.in. 

The Committee on National Small Savings Fund has observed that 4% commission under Mahila Pradhan Kshetriya Bachat Yojna (MPKBY) is very high and is affecting the viability of National Small Savings Fund (NSSF). The committee has recognized that the Recurring Deposit Scheme requires considerable effort on part of agents in mobilising monthly deposits. However, 4% commission is distortionary and expensive. The Committee has recommended that it should be brought down to 1% in a phased manner in a period of three years with a 1% reduction every year.

Recommendations of the committee have been referred to State Governments and concerned Ministries/Departments of Central Government for their comments. 

This information was given by the Minister of State for Finance, Shri Namo Narain Meena in written reply to an Unstarred Question in Lok Sabha today.