Friday, November 11, 2016
Wednesday, November 09, 2016
Saturday, November 05, 2016
Sukanya Samriddhi Yojana: Important watchouts before you invest
Sukanya Samriddhi Yojana (SSY) is targeted towards a girl child and her financial needs such as education and marriage. However, as the exact age at which she would require the funds is uncertain, the scheme tries to be flexible. The investors, on the other hand, need to keep in mind five important years or time spans before taking the plunge in SSY. Consider, for instance, the girl child's age, and the time left for her education and marriage.
Opening an account (0-10 years)
An SSY account can only be opened in the name of a girl child (beneficiary) below 10 years, as on the date of the opening of the account. The date of birth proof is, therefore, essential. The rules allow for the opening of a maximum of two accounts for two girls in a family. One can't open two accounts for one girl. The girl child's age is very important to find out the duration of the scheme. Here's why:
5 years
The request for the first premature closure of an SSY account can be put forward after the completion of five years of the account opening. That too, as per the rules, on extreme compassionate grounds such as medical support in life-threatening diseases. Still, if the account has to be closed for another reason, it will be allowed, but the entire deposit will only get interest of a Post Office Savings Bank account.
10 years
When the beneficiary, i.e., the girl child crosses the age of 10, she can operate the account on her own. She can make any future contributions to her own account. The parents, too, can continue to deposit in the same account.
15 years
To open an SSY account, a minimum initial deposit of Rs 1,000 is required. Thereafter, a minimum of Rs 1,000 up to a maximum of Rs 1.5 lakh can be deposited in the account annually. To keep the account active, deposits need to be made only for the initial 15 years. For a 9-year-old, deposits have to continue till the child turns 24. Between ages 24 and 30 (when the account matures), the account keeps earning interest on the balance.
SSY is a long-term investment scheme. The partial and full withdrawal window is sacrosanct subject to applications made to foreclose the account prematurely.
18 years
The next window for withdrawals is allowed when the girl turns 18. And the rules make it clear that the funds are for her needs and not used for any other purpose. A maximum of 50 per cent of the account balance of the preceding year may be withdrawn for the purpose of higher education of the girl.
For this, not just a written application, but a documentary proof in the form of a confirmed admission offer in an educational institution or a fee slip from such institution clarifying such financial requirement is required. Further, the withdrawal amount will be restricted to the actual demand of fee and other charges required at the time of admission as shown in the offer of admission or the relevant fee slip issued by the institution.
21 years
Irrespective of the age, the SSY account will run for 21 years from the date of its opening. So if the girl child's age is 9, the scheme will mature when she turns 30. The rules, however, permit final closure anytime before 21 years if the parent files an application for such premature closure for the purpose of her marriage and confirms through an affidavit that the applicant is not below 18 years on the date of marriage. At times, this could be a roadblock as the closure is subject to conditions as seen above.
The attractiveness
SSY carries the highest tax-free return with sovereign guarantee and comes with the exempt-exempt-exempt (EEE) status. The annual deposit (contributions) qualifies for Section 80C benefit and the maturity benefits are non-taxable. SSY can be opened in a post office or a bank. One can also make deposits through electronic means, i.e., e-transfer to the concerned post office or bank if either has access to the core banking facility.
Alternative investments
SSY is a dedicated scheme for a girl child's needs. Public Provident Fund (PPF), a 15-year scheme that also comes with loan and partial withdrawals facilities, can be an alternative. Although a PPF account can be extended in block of five years after the initial 15 years, the possibility of funds being used for other purposes exists.
As per the rules, at any point of time, the interest rate of SSY will always be higher than that of PPF. For both schemes, the government fixes the interest rate on quarterly basis based on the G-sec yields. The interest rate and spread that SSY enjoys over the G-sec rate of comparable maturity is 75 basis points compared to PPF's 25.
Currently, the interest rate of SSY is 8.5 per cent per annum compounded annually, while it is 8 per cent per annum for PPF. Mark the date in SSY as there will not be any interest on the amount deposited after the 10th for that specific month. Even when compared to traditional life insurance plans, SSY scores higher, especially when combined with a term insurance plan.
Conclusion
Estimate how much inflated-adjusted funds would be needed for the education and marriage of the girl child. SSY is a debt investment, therefore, for a long-term need, relying more on equities helps. One may use it to invest a portion of the funds earmarked for the girl child's needs and not entirely depend on it.
This could apply even to those who have exhausted their annual Section 80C limit of Rs 1.5 lakh. Simultaneously, buy a pure term insurance to provide adequate life cover to the financial dependents. Understandably, for younger kids, the time duration for accumulating funds would be more compared to those nearing 10 years, but still SSY can be a part of one's portfolio.
Source : http://economictimes.indiatimes.com
Status of Contempt Petition regarding up-gradation of Grade Pay of Inspector Posts w.e.f 01.01.2006
It is learnt that as per cause list, our Contempt Petition bearing No. C.P/180/137/2016 filed before Hon’ble CAT Ernakulam Bench in OA No. 289/2013 regarding up-gradation of GP of Inspector Posts w.e.f. 1/1/2006 is listed for hearing on 07/11/2016 (Monday) in Court No.1.
Friday, November 04, 2016
MEETING ON ALLOWANCES
A
meeting on Department of Posts specific allowances was held with the Committee
on allowances under chairmanship of Secretary Finance and secretary
Expenditure. From Department of Post, Secretary (Post), Member (Personal), DDG
(Personal), DDG (Estates) , DDG(Estt. & SR), Director Estt. attended the
meeting. From Staff Side Com. R.N. Parashar, Secretary General NFPE,Shri
Theagarajan, Secretary General FNPO & Shri S.K. Mishra , Secretary General,
BPEF, participated in the meeting. Many other officers of DOP&T,
Finance, Health Ministries also participated.
Three meetings were held with Department and Administration and Unions after discussing threadbare came to conclusion and accordingly presentation was prepared which was presented before the Committee. Secretary (Finance) shown much interest and he asked so many questions and raised queries on each allowance and asked the Department to submit a report on financial implications.
The
meeting was concluded in a very co-ordial manner and hope for positive outcome.
On the following allowances we submitted our proposal which is mentioned below:
Fixed Monetary
Compensation to Postman:
Proposal:
Not to abolish the allowance. It is proposed to grant Rs.300/- per day for
additional full beat and Rs.150/- per day for sharing of beat(half beat)
and further proposed to increase by 25% every time when DA reaches at
50%.(Department earlier proposed that allowance as Rs.200/- and
Rs.100/- but on the demand of Federations, now it is proposed same
as Rs.300/- and Rs.150/-.
Special Allowance to
PO & RMS Accountants:
Proposal: The
allowance is required to be continued as this special allowance has been
sanctioned in lieu of higher pay scale. If abolished, one increment is to
be allowed on promotion which costs more to the Department.Therefore, it
is proposed to grant special allowance equivalent to one
increment which will be kept separately and not to be added in the basic pay.Other
conditions applicable to present allowance will remain in force. (i.e. if this allowance is drawn for three years it
will be added to basic pay while pay fixation on promotion.)
Cycle Allowance to
Postman:
Proposal: Must
be retained while doubling the amount to Rs.180 p.m. and further increase by 25% every time
the DA increases by 50%.
Cash Handling and
Treasury Allowance:
Proposal:
The Cash Handling Allowance should be retained and need to be doubled and
further increase by 25% every time the DA increases by 50%.
Fixed Medical
Allowance:
Proposal: 33
Postal Dispensaries may be merged with CGHS.All Postal Pensioners irrespective
of their participation in CGHS while in service should be
covered under CGHS after making requisite subscription.Till such time, the FMA
may be allowed @ Rs.2000/- per month enhancing from Rs.500/- p.m. being
paid at present.
Headquarter Allowance:
Proposal:
Proposes to retain the Headquarters Allowance at the uniform rate of 10% of the
basic pay subject to ceiling of Rs.9000/- per month.
Overtime Allowance:
Proposal: Department
recommends to grant additional duty allowance in lieu of OTA in operative
offices only for performing additional duty of absentee official.
It
is proposed Rs. 100/- per hour maximum of three hours in a day and
further increase by 25% every time the DA increases by 50%.
Besides
these DOP demanded S.B.Allowance and Supervisory allowance to be continued and
enhanced proportionately.
Dearness Allowances from July, 2016, @ 2 % Order Issued
To view MoF OM No. 1/2/2016-E-II(B) dated 4th November 2016, please Click Here
Monday, October 31, 2016
Sunday, October 30, 2016
Friday, October 28, 2016
LANDMARK JUDGMENT BY SUPREME COURT FOR PAYMENT OF “EQUAL PAY FOR EQUAL WORK” TO THE DAILY WAGE EMPLOYEES, ADHOC APPOINTEES, EMPLOYEES APPOINTED ON CASUAL BASIS, CONTRACTUAL EMPLOYEES AND THE LIKE.
The Hon’ble Supreme Court in its Historical 102 pages Judgment in Civil Appeal No. 2013 of 2013 dated 26.10.2016 has directed that Temporary Employees, Adhoc Appointees, employees appointed on Casual basis, contractual employees and the like, if the concerned employees are rendering similar duties and responsibilities as were being discharged by regular employees holding the same/corresponding posts are entitled “for equal pay for equal work” such employees are entitled for draw wages at the minimum of the payscale extended to regular employees holding the same posts. We will be representing to the Govt. To implement this Judgment and issue a common order in this regard. Full judgement is reproduced below:
Wednesday, October 26, 2016
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