Removal of ceiling of maximum balance to be retained in a post office savings account - amendment to Rule - 4 of POSB Accounts Rules-1981 - regarding

 

SB ORDER NO. 20/2011

No. F.No.113-23/2005-SB

Government of India

Ministry of Communications & IT

Department of Posts

Dak Bhawan, Sansad Marg,

New Delhi-110001,

Dated: 27.09.2011

To All Heads of Circles/Regions/ Addl. Director General, APS, New Delhi.

Subject:- Removal of ceiling of maximum balance to be retained in a post office savings account- amendment to Rule-4 of the Post Office Savings Account Rules 1981 regarding.

Sir/Madam,

The undersigned is directed to say that issue of removal of ceiling of Rs.1 lac in single savings account and Rs.2 Lac in Joint Savings Account fixed in the year 2000 was under consideration in the Min. of Finance (DEA). This issue was linked to the benefit of exemption in Income Tax on the interest earned in Post Office Savings Account under Section10(15) (i) of Income Tax Act, 1961 by the CBDT and Min. of Finance (DEA). After sustained efforts on the part of this Directorate, Min. of Finance (DEA) has now amended Rule-4 of the Post Office Savings Account Rules 1981 vide G.S.R.681(E) F.No.2/5/2006-NS-II dated 15.9.2011 (copy enclosed). Some major benefits of this amendment are given below:

(i) From 1.10.2011, there will be no limit for retaining balance in single as well as joint savings account.

(ii) A depositor or depositor(s) can deposit any amount into single as well as joint savings account.

(iii) Maturity value of any savings instrument can be credited into savings account of the depositor standing in the same post office irrespective of the balance in the account.

(i) Any cheque either issued by Postmaster or any other authority irrespective of any amount can be credited into post office savings account irrespective of the balance in the account.

(ii) From the Financial year 2011-12, Interest income of Rs.3500/- in the case of single account and Rs.7000/- in case of Joint account will be exempted from Income Tax. (Section 10(15) (i) of Income Tax Act, 1961 amended vide Notification No. 32/2010 {F.No. 173/13/2011-IT A.I}/S.O.1296(E) dated 03.06.2011)

(iii) It is the duty of the depositor(s) to show the interest income earned from Post Office Savings Account(s) beyond the limit prescribed above in the Income Tax return and pay due Income Tax.

1. It is requested that all field units may be directed to give wide publicity to these changes in the shape of Public Notice and printing of leaflets.

2. This issues with the approval of DDG(FS).

Yours faithfully,

(Kawal Jit Singh)

Assistant Director (SB)

Constitution of Committee to look into promotional prospects of IPOs/ASPOs

No. CHQ/IPASP/ROC/2011                                                                                     Dated : 19.09.2011

To
The Secretary (Posts)
Department of Posts
Dak Bhawan
New Delhi - 110001

Sub: Constitution of Committee to look into promotional prospects of IPOs/ASPOs  - reg.

Ref: Postal Directorate No. 01/01/2011-SR dated 9th September 2011.

Respected Madam,

        At the outset, the Association is thankful to the Department for constitution of Committee to examine the above issue. From staff side, only two members of the Association have been nominated in the said Committee. The Association requests that one more member i.e. Circle Secretary, Punjab Circle may also be nominated from the staff side to put forth its views before the Committee.

2.   We hope positive action will be taken in this regard by the Department.

Yours sincerely,

(Roop Chand)

General Secretary

Merits & Demerits of merger of the post of IP with the post of ASP

Merits & Demerits of merger of the post of IP with the post of ASP



                                                    MERITS


1. All officers working in Inspector, Posts cadre will definitely get Grade Pay of Rs.4800/- or Rs.5400/- in PB-2, as case may be, as many officers in the cadre are stagnating at the Grade Pay of Rs.4600/- or Rs.4800/- and also retiring as ASPOs or with out getting regular promotion in PS Group "B".


2. All existing incumbents in ASP grade will get bonus.


3. Merger will be beneficial at the time of next Central Pay Commission for parity with other Inspectors in CBDT/CBEC and Assistants in CSS.


4. All direct recruit Inspectors through SSC will get Grade Pay of Rs.5400/- in PB-3 as IIIrd MACP( Rs.4800/-, Rs.5400 in PB-2, Rs.5400 in PB-3 with additional increment).


5. Every officer in the Inspector, Posts cadre will get financial benefit through this merger.


6. Consequent upon merger, merged post and its next promoted post of PS Group 'B' will be at par with Inspectors in CBDT/CBEC and Assistants in CSS and their next promoted post i.e. Income Tax Officer/ Superintendent/ Section Officer.


7. Anomoly created by the MoF in the year 2004 as well as 2009 will be settled for ever and merged post in the Department of Posts will be comparable with the other Inspectors in the Central Government.


                                                        DEMERITS


1. The existing incumbents working as ASP will loose their social status of Gazetted Officer after merger.


2. The immunity of ASP will be withdrawn after merger i.e. change in Appointing / Disciplinary Authority.


3. In the next Central Pay Commission, it may be possible that existing GP of Rs. 4600/- and Rs. 4800/- in Gazetted Group 'B' may get single GP which will not be available for GP of Rs. 4600/- in Non-Gazetted Group 'B'.


4. Facility of issuing a Demi-Official letter given to existing incumbents as ASP will be no more.

Grant of family pension to the eligible member of the family of a pensioner - regarding.

                                                  F.No.1/17/2011-P&PW(E)

                                                       Government of India
                                         Ministry of Personnel, P.G. & Pensions
                                      Department of Pension & Pensioners’ Welfare
                                                           Lok Nayak Bhawan,
                                                            Khan Market, New Delhi
                                                               Dated: 14th Sept, 2011

                                                               OFFICE MEMORANDUM

Sub: Grant of family pension to the eligible member of the family of a pensioner - regarding.

The undersigned is directed to refer to this Department’s earlier office memoranda No. 1/17/86-P&PW(E), dated 29th August, 1986, 25th January,1991 and 18th February, 1993 and No. 1/28/04-P&PW(E) dated 31st March, 2009 and 2nd July, 2010 regarding grant of family pension to the eligible members of the family of an employee/pensioner reported missing and whose where abouts are not known.

2. As per this Department’s O.M. Dt. 29.8.1986, subject to fulfilment of certain conditions, the family pension can be granted to the family of an employee reported missing and whose whereabouts are not known after a period of one year reckoned from the date of filing the FIR with the police authorities. Subsequently, it was clarified vide this Department’s O.M. dated 25th January, 1991, that the Department of Pension & Pensioners’ Welfare’s O.M. dated 29th August, 1986, would be applicable in the case of missing pensioners mutatis mutandis. It was further clarified vide this Department’s O.M. No. 1/17/86-P&PW(F), dated 28.02.1993 that family pension to the eligible family member of an employee reported missing, would accrue from the date of lodging the FIR or expiry of leave in the case of an employee who had disappeared, whichever is later.

3. While providing that the family pension to the family of the missing employee/ pensioner may be sanctioned after a period of six months from the date of registration of an FIR with the police vide this Department’s O.M. dated 2nd July, 2010, it was also made clear that the earlier instructions did not make any distinction between the government servant and the pensioner and cover both of them for the purpose of grant of family pension. However,doubts have been raised by some quarters to the effect as to whether family pension will accrue from the date of lodging the FIR in the case of missing pensioners as well.

4. The matter has been considered in this Department in consultation with Department of Expenditure, Ministry of Finance. It is hereby clarified that as the previous instructions did not make any distinction between the Government servant and the pensioner, the family pension to the family of a missing pensioner would accrue with effect from the date of lodging the FIR or from the date immediately succeeding the day till pension had been last paid to the pensioner, whichever is later. Accordingly, arrears in past cases would also be admissible.

5. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their U.O. No.263/E.V/2011, dated 12.9.2011.


                                                                                                                                         sd/-
                                                                                                                                       (K.K.Mittal)
                                                                                                                                          Director



Source: www.pensionersportal

Admissibility of commission to SAS Agents

 

                                                  SB ORDER NO. 17/2011

                                                     No.116-01/2007-SB
                                                    Government of India
                                           Ministry of Communications & IT
                                                   Department of Posts
                                             Dak Bhawan, Sansad Marg,
                                     New Delhi-110001, Dated: 09.09.2011

                         To
                             All Heads of Circles/Regions
                            Addl. Director General, APS, New Delhi.

Subject: - Admissibility of commission to SAS Agents.

Sir / Madam,

The undersigned is directed to say that there are lot of audit paras raised by teams of DG P&T Audit in many circles regarding irregular commission paid to SAS agents where the investment was made exceeding the limit of Rs.50,000/- by cash at a time. One Draft Audit Para relating to Delhi and NE Circles has become CAG Para.
2. As per agency rules, prior to issue of SB Order No.3/2011 dated 11.3.2011, limit for acceptance of cash at a time from SAS agents was Rs.50,000/- which has now been reduced to Rs.10,000/-. In 2004, Regional Director, National Savings Institute, New Delhi vide letter no. Misc/2004 dated 3.11.2001 had intimated the Delhi Circle that agents are not entitled for commission on cash deposits of more than Rs., 50,000/- at a time. CAG Para was also referred to Min. of Finance (DEA) which opined that commission if paid in such cases is irregular and recovery of commission paid cannot be waived.
3. It is therefore requested that where any SAS agent deposited cash more than Rs.50,000/- at a time in any post office and commission was paid to him, the commission paid has to be recovered from the concerned agent if his agency is active and action should be taken against the officials responsible for accepting cash deposits exceeding the prescribed limit. Where the agent is inactive but his agency is not lapsed, his appointing authority may be asked to recover the amount from his security deposit. In case the agency of agent is expired and not further renewed or agent has already expired, such cases may be referred to this office.
4. In future, it may be ensured that no cash more than the prescribed limit of Rs.10,000/- at a time should be accepted from the SAS agents as no commission is payable on such irregular deposits.
5. It is requested that necessary action may be taken immediately to circulate this letter to field units and any violation of these orders by postal staff should be viewed seriously.
6. This issues with the approval of DDG(FS).

                                                                                                                            Yours faithfully,

                                                                                                                            (Kawal Jit Singh)

Monday, September 12, 2011

Income Tax exemption limit for Children Education Allowance should be revised

National Federation of Indian Railwaymen(NFIR) General Secretary Mr.M.Raghavaiah has expressed his views in a letter on 1st September, 2011 to the Hon’ble Finance Minister regarding the exemption limit for Children Education Allowance under Income Tax Act.

He explained that the present exemption limit for Children Education Allowance (CEA) under section 10 (14) of the Income Tax Act is Rs.I00 per month per child. This limit as fixed more than 2 decades back when the maximum amount of Children Education AIlowance for Central Government Employees was fixed at Rs. 100/- per month per child under the IVth Central Pay Commission. Now the current rate of this allowance is Rs.1000 per child.

He further stated that the Federation feels that this can never be the intention of the Government as education and developing knowledge of youth is top priority matter for the country. The distortion has taken place due to non—revision of the exemption limit for payment of income tax.

Finally, NFIR requests the Hon’ble Finance Minister to kindly consider and grant enhancement of exemption limit as suggested above and make it effective from the financial year 2011—12.

Enhancement of Income Tax exemption limit for Transport Allowance

Enhancement of Income Tax exemption limit for Transport Allowance in the case of Central Government Employees.

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.

Probation in various Central Civil Services

G.I., Dept.of Pers. & Trg., O.M.No.18011/1/2010-Estt. (C) dated 8.9.2011
Probation in various Central Civil Services.

The undersigned in directed to say that the period of probation to be prescribed for different posts/services in Central Government have been laid down in this Department’s 0M. No. F 44/1/59-Ests(A) dated 15.4 1959 as amended from time to time. With a view to prevent Government servants from becoming possible victims of arbitrary actions or inordinate delay in considering completion of probation/confirmation, the existing instructions on provisions regarding probation in the service recruitment rules relating to Central Civil Services and Posts have been reviewed. It is proposed that in the service / recruitment rules for all Central Civil Services and Posts, in addition to the period of probation, wherever prescribed, corresponding provisions as envisaged in the draft guidelines enclosed herewith, may be incorporated in consultation with this Department.

2.Before the guidelines in the draft O.M. is finalized, all Cadre Controlling Authorities are requested to offer their comments/views in this regard, if any. by 8.10.2011 to the undersigned or by e-mail at dse@nic.in

sd/-
(P.Prabhakaran)
Director

**********************************************************************************************************************************************
G.I., Dept.of Pers. & Trg., O.M.No.18011/1/2010-Estt. (C) dated September, 2011

Probation in various Central Civil Services.

The undersigned in directed to say that the period of probation to be prescribed for different posts/services in Central Government have been laid down in this Department’s O M No.F 44/1/59-Ests(A) dated 15.4 1959 as amended from time to time. Although instructions exist to the effect that save for exceptional reasons probation should not be extended for more than a year and no employee should be kept on probation for more than double the normal period apart from instructions for timely action on completion of probation/confirmation, these are not invariably followed.

2. With a view to prevent Government servants from becoming possible victims of arbitrary actions or inordinate delay in considering completion of probation/confirmation, the existing instructions on provisions regarding probation in the service/recruitment rules relating to Central Civil Services and Posts have been reviewed, lt has now been decided that:

(i) 1f during the period of probation, a probationer has not undergone the requisite training course or passed the requisite departmental examinations.if any prescribed, or has not been on duty/training for at least 75% of the probation period the period of probation may be extended by such period or periods as may be necessary subject to the condition that the total period of probation does not exceed double the prescribed period of probation except in the cases mentioned in (ii) below:

(ii) the period of probation may be extended for such period as the Central Government may think fit in the circumstances of the case in respect of a probationer who is:

(a) under suspension
(b) against whom disciplinary proceedings are pending: or
(c) against whom prosecution for criminal charge is pending

(iii) Where a probationer who has completed the period of probation to the satisfaction of the Central Government is required to be confirmed, he shall be confirmed in the Services/Post at the end of his period of probation, having been completed satisfactorily. In such cases, where no order extending the probation period has been issued and no order of confirmation is issued within one year of completion of the prescribed period of probation, the probationer would be deemed to be confirmed in the service/post.

3. In the Service/Recruitment Rules for all Central Civil Services and Posts, in addition to the period of probation. wherever prescribed, corresponding provisions, as in para 2 above, may be incorporated in consultation with this Department in the light of the above instructions.

The Hindi Version of this O.M. will follow

sd/-
(P. Prabhakaran)
Director

Source: www.persmin.nic.in

Constitution of Committee to look into promotional prospects of IPOs/ASPOs

Postal Directorate has issued Office Order on the above subject vide No. 01/01/2011-SR dated 09.09.2011 which is reproduced below:-

Sub:- Secretary (P)'s meeting with All India Association &Asstt. Superintendent Posts on 11.08.2011- Para (ii)- Constitution of Committee to look into promotional prospects of IPOs/ASPOs-reg.

2.   This has reference to minutes of Secretary (P)'s meeting dated 11.08.2011 circulated vide communication of even number dated 25.08.2011 on the above subject.

3.   As per decision taken in regard to Para (ii) dealing with promotional prospects of IPOs/ASPOs, a Committee comprising the following is constituted to examine the issue and submit its report.

           OFFICIAL SIDE                                                            STAFF SIDE
Member (Personnel)- Chairperson                                    President, AIAIPASP
DDG (Personnel)                                                              General Secretary, AIAIPASP
DDG (Establishment)
Director (T&C)

                                                                                                                               -Sd-
                                                                                                                (Subhash Chander)
                                                                                                               Director (SR&Legal)

Post Offices to provide Visa related services in Remote Areas

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.

Source : PIB Release ID :75449

Over Ninety Percent Departmental Post Offices Computerised

Shri Sachin Pilot, the Minister of State for Communications and Information Technology informed Rajya Sabha today in written reply to a question that 24015 (94 per cent) Departmental Post Offices out of 25538 Departmental Post Offices have been supplied with computer hardware. Remaining Departmental Post Offices along with Branch Post Offices will be computerized under the Department’s IT Modernisation Project 2012 to be completed by 2012-13 subject to availability of funds and resources.

The reply further stated that there is no project proposal of the State Government of Madhya Pradesh pending before the Ministry for computerization of Post Offices.

Source : PIB Release ID :75467

Modernisation & Tax Payer Services

                                       Modernisation & Tax Payer Services

Taxation in India has existed since ancient times. Taxation was considered as a sacred duty in Vedic times. It finds its references in many ancient books.

Kautilya’s ‘Arthashstra’ deals with taxation in an elaborate and planned manner suggesting ways to guide a king in running the state in an efficient and fruitful manner. According to him, treasury is the root of administration (‘kosh moolo dandah’).

Travelling through medieval era the taxation in India was practised in different ways till it was introduced by Sir James Wilson on July 24, 1860 as a tax selectively imposed on the rich, royalty and Britishers. Since then there have been a number reforms to realise the crucial role of Income Tax Department not only to finance the government but also to establish social welfare schemes. As a result taxation in India has now acquired a modern look.

Following are the recent initiatives for modernisation and taxpayer services:-

Website

The website of the Department www.incometaxindia.gov.in was launched in the year 2003 to provide a host of informational, interactive and transactional services to the Taxpayers.

TIN

Tax Information Network (TIN) was established to integrate primary information of tax collection, tax deduction and third party information. The system allows the Department to create separate account for each PAN holder.

TAXNET

An All India Tax Network (TAXNET) was setup in 2007 by consolidating 36 independent regional databases into a single centralized database (PDC or Primary Data Centre) at Delhi with a Business Continuity site at Mumbai & limited Disaster Recovery site at Chennai. It created 2.5 TB consolidated database which was one of the largest databases of Government of India. 718 Income Tax offices in 520 cities are part of this network.

E-Payment

Taxpayers have the facility to pay their taxes online, through ATMs, Debit Cards or Cheques at agency bank branches across the country.

E-Filing

In 2006-07 the high impact and high visibility project for electronic filing (e-filing) of Income Tax Returns was launched. Returns could be filed online using digital signature, without digital signature, or through e-Return intermediaries. In the first year 3.63 Lakh taxpayers used this facility. The number has now grown to 92 Lakhs in the year 2010-11.

TRPS

Tax Return Preparer Scheme was launched in 2006 to assist individual and HUF taxpayers to file their Return of Income. The Department trained nearly 4700 unemployed or under employed graduates at 100 centers across the country to enable them to prepare Returns of taxpayers at marginal cost. The scheme used Online Learning Management System for distance learning for the first time.

Income Tax Ombudsman

In 2006, the institution of Income Tax Ombudsman was set up in 12 cities throughout the country to look into tax related grievances of the common public.

Refund Banker

The Refund Banker Scheme was launched in January 2007 in Delhi and Patna charges. Data of Refunds determined by the Assessing Officer gets transferred to the Refund Banker (State Bank of India) which issues refund through Electronic Clearing System (ECS) in cases where MICR code is available or through Cheque, if MICR is not available. The scheme has now been extended to the whole country.

Sevottam

Sevottam Scheme was launched in the year 2007 to standardize service delivery to the taxpayers. The Department identified the services delivered to different taxpayer segments and promised definite time lines for delivery of these services. The first citizen friendly single window Aayakar Seva Kendra (ASK) to rollout these services was setup at Pune. Today 15 ASK centres are functional in the country.

ITDMS

Integrated Taxpayer Data Management System (ITDMS) for drawing of 360° taxpayer profile was launched in 2007. The system creates 360° profile by using huge volume of data available from internal and external databases and builds individual profiles, family relationships etc. by using sophisticated data mining tools and search engine. ITDMS has provided an exceptionally potent tool to the investigation wing for non-intrusive investigation.

CFL

Cyber Forensic Labs were setup in 2008 to identify relevant digital data during search and survey operations, recover hidden or password protected or deleted data and store retrieved data in a manner so that it could be used as evidence in judicial proceedings.

CPC

Centralized Processing Centre was setup in Bengaluru in 2009 for bulk processing of e-filed and paper returns. The Centre operates without any interface with taxpayers in a jurisdiction – free manner. The Centre processed 86.9 lakh returns in 2010-11. To replace the 50 years old Income-tax Act, 1961, simplified ‘The Direct Taxes Code Bill, 2010’ was introduced in the Parliament in 2010. (PIB Features)

*Inputs from the Directorate of Income Tax

PRA/VN

SS-147/SF-147/02.09.2011

Post Offices to provide Visa related services in Remote Areas

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.

Source : PIB Release ID :75449

Over Ninety Percent Departmental Post Offices Computerised

Shri Sachin Pilot, the Minister of State for Communications and Information Technology informed Rajya Sabha today in written reply to a question that 24015 (94 per cent) Departmental Post Offices out of 25538 Departmental Post Offices have been supplied with computer hardware. Remaining Departmental Post Offices along with Branch Post Offices will be computerized under the Department’s IT Modernisation Project 2012 to be completed by 2012-13 subject to availability of funds and resources.

The reply further stated that there is no project proposal of the State Government of Madhya Pradesh pending before the Ministry for computerization of Post Offices.

Source : PIB Release ID :75467

Modernisation & Tax Payer Services

                                       Modernisation & Tax Payer Services

Taxation in India has existed since ancient times. Taxation was considered as a sacred duty in Vedic times. It finds its references in many ancient books.

Kautilya’s ‘Arthashstra’ deals with taxation in an elaborate and planned manner suggesting ways to guide a king in running the state in an efficient and fruitful manner. According to him, treasury is the root of administration (‘kosh moolo dandah’).

Travelling through medieval era the taxation in India was practised in different ways till it was introduced by Sir James Wilson on July 24, 1860 as a tax selectively imposed on the rich, royalty and Britishers. Since then there have been a number reforms to realise the crucial role of Income Tax Department not only to finance the government but also to establish social welfare schemes. As a result taxation in India has now acquired a modern look.

Following are the recent initiatives for modernisation and taxpayer services:-

Website

The website of the Department www.incometaxindia.gov.in was launched in the year 2003 to provide a host of informational, interactive and transactional services to the Taxpayers.

TIN

Tax Information Network (TIN) was established to integrate primary information of tax collection, tax deduction and third party information. The system allows the Department to create separate account for each PAN holder.

TAXNET

An All India Tax Network (TAXNET) was setup in 2007 by consolidating 36 independent regional databases into a single centralized database (PDC or Primary Data Centre) at Delhi with a Business Continuity site at Mumbai & limited Disaster Recovery site at Chennai. It created 2.5 TB consolidated database which was one of the largest databases of Government of India. 718 Income Tax offices in 520 cities are part of this network.

E-Payment

Taxpayers have the facility to pay their taxes online, through ATMs, Debit Cards or Cheques at agency bank branches across the country.

E-Filing

In 2006-07 the high impact and high visibility project for electronic filing (e-filing) of Income Tax Returns was launched. Returns could be filed online using digital signature, without digital signature, or through e-Return intermediaries. In the first year 3.63 Lakh taxpayers used this facility. The number has now grown to 92 Lakhs in the year 2010-11.

TRPS

Tax Return Preparer Scheme was launched in 2006 to assist individual and HUF taxpayers to file their Return of Income. The Department trained nearly 4700 unemployed or under employed graduates at 100 centers across the country to enable them to prepare Returns of taxpayers at marginal cost. The scheme used Online Learning Management System for distance learning for the first time.

Income Tax Ombudsman

In 2006, the institution of Income Tax Ombudsman was set up in 12 cities throughout the country to look into tax related grievances of the common public.

Refund Banker

The Refund Banker Scheme was launched in January 2007 in Delhi and Patna charges. Data of Refunds determined by the Assessing Officer gets transferred to the Refund Banker (State Bank of India) which issues refund through Electronic Clearing System (ECS) in cases where MICR code is available or through Cheque, if MICR is not available. The scheme has now been extended to the whole country.

Sevottam

Sevottam Scheme was launched in the year 2007 to standardize service delivery to the taxpayers. The Department identified the services delivered to different taxpayer segments and promised definite time lines for delivery of these services. The first citizen friendly single window Aayakar Seva Kendra (ASK) to rollout these services was setup at Pune. Today 15 ASK centres are functional in the country.

ITDMS

Integrated Taxpayer Data Management System (ITDMS) for drawing of 360° taxpayer profile was launched in 2007. The system creates 360° profile by using huge volume of data available from internal and external databases and builds individual profiles, family relationships etc. by using sophisticated data mining tools and search engine. ITDMS has provided an exceptionally potent tool to the investigation wing for non-intrusive investigation.

CFL

Cyber Forensic Labs were setup in 2008 to identify relevant digital data during search and survey operations, recover hidden or password protected or deleted data and store retrieved data in a manner so that it could be used as evidence in judicial proceedings.

CPC

Centralized Processing Centre was setup in Bengaluru in 2009 for bulk processing of e-filed and paper returns. The Centre operates without any interface with taxpayers in a jurisdiction – free manner. The Centre processed 86.9 lakh returns in 2010-11. To replace the 50 years old Income-tax Act, 1961, simplified ‘The Direct Taxes Code Bill, 2010’ was introduced in the Parliament in 2010. (PIB Features)

*Inputs from the Directorate of Income Tax

PRA/VN

SS-147/SF-147/02.09.2011