Thursday, July 31, 2014

Dearness Allowance will be increased by 7% w.e.f. July 2014

After the issuance of press release by Ministry of Labour and Employment, it is confirmed that Central employees and pensioners are going to get a 7% increase in Dearness allowance with effect from 1st July 2014. Consequent to 2 points increase in the All India Consumer Price Index for June 2014, the final calculation for D.A. from July 2014 can be done.

The increase will have to get cabinet approval and expected to be officially endorsed in the month of September as per existing norms.

ITEF writes letter to Chairman, CBDT regardingg Consequential Vacancies of R.Y. 2013-14

ITEF has written a letter to the Chairman, CBDT regarding consequential vacancies of R.Y. 2013-14Copy of ITEF letter No. N-1/E-2/12-15 Dated: 28th July, 2014.
Read the full contents of ITEF’s letter here:

“We write this with reference to the above two instructions issued by the Board and also the discussions the JCA representatives had with your goodself in the Quarterly Review Meeting held on 14.7.2014. Vide the second reference dated 27.05.2014, the CCAs were required to conduct the meetings of DPCs and effect promotions for the Group B & C cadres by 5th June, 2014 for vacancy year 2013-14.

We have been getting report from our field formations that though promotion orders have been issued in almost all charges, the Cadre Controlling Authorities in some charges have not taken the consequential vacancies while conducting DPC Meetings and effecting promotions. The reason communicated to us by our units is that some of the CCAs have taken the stand that although the vacancies are for RY 2013-14 as the promotions are being effected in the year 2014-15, the consequential vacancies will fall in the year 2014-15. The Stand taken by the CCAs is absolutely contrary to the Instructions of the Dept. Of Per. & Trg. dated 10.4.1989 with regard to determination of vacancies for DPC. This will also create problem and confusion in fixing the inter-se seniority of Direct Recruitees and Promotees and may lead to unnecessary litigation if the vacancy year for the consequential vacancies of a particular year is taken to a subsequent year in some regions. We reproduce below further clarification of para 4.1 of the said instructions of the DOPT.

“In reiteration of the aforesaid provision (para 4.1) of the DPC guidelines, dated 10.4.1989, it is hereby clarified that such vacancies arising in a particular vacancy year, as noted in the aforesaid Para 4.1, would be considered together by the DPC. These vacancies should also included newly created posts in the same vacancy year. Hence the DPC for a particular vacancy year held subsequent to the creation of such new posts in the same vacancy year would be required to take into consideration such newly-created posts also alongwith other already existing/anticipated vacancies arising in the same vacancy year. As a sequel to it, the zone of consideration would also get enlarged in a corresponding manner in terms of Dept. Of Per. & Trg. OM No. 22011/1/90-Estt.(D), dated 12.10.1990 and 22.4.1992”.

(Swamy’s manual on Establishment & Administration-Page 847)

Further the Dpt. Of Per & Trg in F.No. 22011/9/98-Estt(D) dated 6.10.1999 further clarified with regard to “Chain Vacancies” as under:

2. The aforesaid matter has been considered in consultation with the Union Public Service Commission. Accordingly, it is clarified that the “chain vacancies” on account of retirement etc. in the higher grades in a vacancy (panel) year shall include:-

The vacancies which can be clearly anticipated as likely to become available in the concerned grade by promotion of Officers of the service to higher grades during that vacancy (panel)year, (Expected promotion to the higher grades under the Model Calendar for DPCs would normally be against vacancies arising by retirement in all the higher grades/hierarchy as per Paragraph 7 of the OM dated 8.9.1988).

(Swamy’s manual on Establishment & Administration-Page 889)

It is clear from the above that the consequential vacancies of the promotions effected on newly created posts for RY 2013-14 should also be taken as anticipated vacancies while determining the regular vacancies for the same year. Therefore, the position taken by some of the CCAs need to be elucidated. We accordingly, request the Chairman to kindly direct the concerned to issue necessary clarification to the Pr. CCsIT to effect promotions for the consequential vacancies also during the same vacancy (panel) year and to maintain uniformity in the matter.

Sunday, July 27, 2014

Status of the cadre restructuring in CBEC

The proposal for DPC to the post of AC against 421 regular vacancies may be sent to the UPSC next week. CBEC approached the UPSC for the DPC of 421 (regular)+2118 (temporary) posts of AC. UPSC agreed to conduct the DPC for 421 regular posts first and asked the CBEC to get relaxation in RRs against filling-up of 2118 temporary posts as all of these posts are to be filled-up only by promotion instead of 50% by direct recruitment and 50% by promotion.

The Member (P&V) assured to send the proposal for the DPC against remaining 2118 temporary posts very soon. Staff allocation file is already with MOS, for which she has asked for presentation. Reorganisation notification is to be issued after approval of budget to make the due amendment in the Act.

Saturday, July 26, 2014

ITEF's New Circular on Various issues

INCOME TAX EMPLOYEES FEDERATION, New Dehli has issued a new circular on the minutes of secretariat meeting held on 23.07.2014. Issues of Memorandum to VII CPC, Diversion of Cadre Restructuring posts and other various issues were discussed in the meeting. The contents of the circular is as under

The extended Secretariat meeting was held on 23.7.2014 at Manishinath Bhawan, New Delhi.  The meeting was presided over by Com. Ashok B Salunkhe, President.  The following decisions were taken in the meeting.

Memorandum to VII-CPC. The Secretary General, Com. KP Rajagopal, initiating the discussion outlined the principle and logics of our approach adopted in the draft memorandum circulated for wider discussions in the Circles.  The Secretariat approved the same and authorised the CHQ to submit the final memorandum to the VII- Central Pay Commission. 

Diversion of Cadre Restructuring Posts: The secretariat discussed the draft proposal circulated by the CHQ for diversion of some posts in the cadres of ITOs and ITIs to deficient circles.  In the light of reservation expressed by few circles, the meeting authorised the President and Secretary General to sort out the issue and finalise the proposal to be taken up with the CBDT within a months’ time.

All India Delegates Conference. As decided in the last All India Conference held at Mehsana in the month of February, 2012, the next All India Delegates Conference will be held at Guwahati.  The General Secretary of NE Circle Com. Subir Majumdar informed the Secretariat that the Circle has begun the preparatory work.  The Conference will be held on 19th to 22nd February, 2015 and the accommodation for the delegates will be available from the forenoon of 18th February to forenoon of 23rdFebruary, 2015.  Taking into consideration the huge responsibility given to a small circle and the expenditure involved in organising the Conference, the Secretariat decided to appeal to all Circles to provide financial help to the NE Circle  by obtaining advertisement to the proposed Souvenir to be published on the occasion.  The Secretariat also authorised the President and Secretary General to fix probable quota for collection of Advertisement to each circles.  The NE Circle has been requested to send sufficient number of tariff forms to the circles at the earliest.

Issues Pending with the Board  for resolution: The Secretary General explained the outcome of the last Quarterly Review Meeting held with the Chairman & Member (P) on 14th July, 2014.  The Secretary General indicated that other than ritualistic response, there had been no tangible outcome on the issues or visible change in the attitude of the Authorities.  Unless pressure through agitation is brought about, no improvement can be expected.  In view of the situation, the Secretariat decided to embark upon agitation and to start with, to have a lunch hour demonstration at the earliest in consultation with the ITGOA leadership, under the banner of JCA.

Change of name of ITEF AP Circle: The Secretariat noted on record the request made by the ITEF AP Circle Executive Committee through its resolution to change the name of ITEF AP Circle to ITEF, Andhra Pradesh & Telengana Circle in view of the bifurcation of the erstwhile State into two.

Confederation Sect. decisions: The Confederation National Secretariat which met on  17.07.2014             decided to submit a memorandum to the VII-CPC endorsing the Memorandum submitted by the JCM,Staff Side and incorporating the issues which are concerning the affiliates and require more emphasis.

West Bengal Solidarity Day: National Secretariat of Confederation adopted a resolution on the continued attack by hooligans on the working class especially the affiliated organisations of the Confederation of West Bengal and decided to organize “West Bengal Solidarity Day” on 27-08-2014 throughout the country.  Copy of the resolution is enclosed.  All the Circles are requested to organise programmes as decided by the   State COCs in a befitting manner."

Tech Awareness : Use Pen Drive as RAM in windows to boost your PC

It is very common in this world of Technology that almost Every Student and Computer user own a Pendrive. It is also very well known that Pendrive is used to dtore important data or to transfer files from one computer to another but do you know that a Pendrive can be used as RAM to Boost your PC performance?

RAM plays an important part for your PC performance. With the Introduction of Readyboost Feature in Windows, it has become easier to Boost your PC and speed it up.

To use your Pendrive as RAM, You have to make Sure that you have a Pendrive which have a Free Storage Capacity of 4GB or 8GB.

Step 1: Insert your 4GB or 8GB Pendrive.

Step 2: Take a Backup of any data already present in your pendrive, Because its advisable to format your pendrive before moving forward.
Step 3: Now go to My Computers and Right Click on your Pendrive to Select Properties.

Step 4: Click on Readyboost Tab, Now wait couple of seconds so that it analyzes your Pendrive, Next you will see something like below Picture

Step 5: Click on Use this Device, Select the number of MBs you want to use out of total space, Then Click on Apply

Step 6: Next you will see Readyboost is Configuring your Cache, When its Done, Just reboot your PC to Feel the Difference

TIP: Once you Start using ReadyBoost Feature, you will have to Practice to Remove your Pendrive Safely Before Ejecting it to Avoid any trouble.

This was a Very simple and Effective Step by Step Guide on How to Use Pendrive as RAM in Windows PC. I hope this article will help you and so will you Share it on Social Media to Help us Grow. Don't Forget to Read more Interesting and Helpful articles on our Blog.

Thursday, July 24, 2014

Income Tax offices will remain open on Saturday and Sunday, K. V. Choudhary will be New Chairman, CBDT

Income Tax offices will remain open on Saturday and Sunday, the 26th and 27th July to receive returns as the due date of filing of return is 31st July 2014. All field offices will accept returns during normal office hours.

Special arrangements may also be made by way of opening additional receipt counters, wherever required, on 26th, 27th , 28th, 30th and 31st July, 2014 to facilitate the taxpayers in filing their returns of income conveniently and in a timely manner.

New CBDT Chairman

Mr K.V. Chaudhary, 1978 batch IRS Officer will be the new Chairman CBDT from 1st August 2014. He will succeed Mr R.K. Tiwari who will retire on superannuation

Special Return Receipt Counters

The Chairman, CBDT shall inaugurate the Special Return Receipt Counters tomorrow at 10.30 AM at Pratyaksh Kar Bhavan, B-Block, ground Floor, Civic Centre, Minto Road, New Delhi-2. Extensive arrangements have been made by the Department to facilitate the taxpayers in filing their income tax returns.

Wednesday, July 23, 2014

Promotion from CIT to Pr. CIT

It is reliably learnt that the file of IRS (IT) officers belonging to 1982-87 batch has reached to the Appointment Committee of Cabinet on July 16. DPC had taken place on April 30 this year. Meaning hereby; as many as 300 IRS (IT) officers would soon get the rank of Principal Commissioner of Income Tax.

Source : Whisperinthecorridor

Monday, July 21, 2014


The Chairperson, CBEC on 18-7-2014 has issued directions to the Competent Committee DPC to address the UPSC with a proposal to conduct DPC for the promotions to AC Cadre at the earliest. This will be done under a single window scheme to avoid procedural delays and bottlenecks. The break up of vacancies is as follows 2118 + 150 + 39 + 230 which is notified vacancies reserve deficit and regular ones. The process of CR will be in place latest by September 2014. It may be added here that a onetime relaxation from the DoPT is required which is at best a technical formality since the CR already been approved by the Union Cabinet.

STAGNATION Committee has also being constituted to mitigate the acute stagnation in all cadres independent of CR.

Friday, July 11, 2014

CBDT constitutes a committee regarding recruitment and promotion of employees

As per the news published in PBD daily, the CBDT has constituted a four members committee to examine the demands of Income Tax Employees regarding recruitment and promotion issue. The committee headed by Jt. Secretary(Admin), Finance Ministry, Shri S. K. Lohani will submit its reports by July 18 and on the basis of the committee’s recommendation the CBDT will take a call regarding long pending demands of the employees.

Meanwhile, The JCA comprising of ITGOA and ITEF has suspended their agitation till July 18. The JCA had organized a day long demonstration on Monday to protest against arbitrary rules of the CBDT regarding promotion of the staff and neglecting their demand to fill large number of vacant posts in the department.

The effort of Delhi Circle, in favour of welfare of employees, is very much appreciable, as these efforts are made only by the associations of Delhi Circle level and not by the associations of any other regions & Central HQ level.

Thursday, July 10, 2014

Income Tax exemption limit raised to Rs 2.5 lakh; investment ceiling hiked to Rs 1.5L

Bringing cheer to individual taxpayers, Finance Minister Arun Jaitley in his maiden Union Budget 2014-15 in Parliament on Thursday, raised personal tax exemption limit to Rs 2.5 lakh from the current Rs 2 lakh.

Income tax exemption limit for senior citizens has been raised to Rs 3 lakh.

The Investment limit under Section 80C has also been hiked to Rs 1.5 lakh from the current Rs 1 lakh, while the FM increased housing loan interest rate deduction limit to Rs 2 Lakh.

In further relief to the depositors, the FM announced that the PPF (Public Provident Fund) deposit ceiling will be raised to Rs 1.5 lakh from the existing Rs 1 lakh.

The FM also announced to raise FDI in Defence and Insurance sectors to 49 percent and said that the subsidy regime, particularly food and fuel, will be overhauled.

Assuring investors that retrospective amendments to tax laws will be undertaken with extreme caution, Jaitley said all fresh cases arising out of the 2012 amendment of IT Act will be looked into by a high-level CBDT committee.

However, the existing tax disputes, arising out of Retrospective Amendment to the Income tax Act, 1961, and are pending in courts, will be allowed to reach their logical conclusions, he said.

Stating that his predecessors have left a very daunting target of meeting the fiscal deficit, Jaitley said that the BJP government will take this as a challenge and meet the fiscal deficit target of 4.1 percent of GDP.

Jaitley told Parliament that India `s 1.2 billion people were" exasperated "after two years of economic growth of below 5 percent.

He vowed that Asia's third largest economy would expand at a rate of 7-8 percent within three to four years.

DOPT rejects 6 days week working schedule

The Department of Personnel and Training (DoPT) will soon inform Parliament that the government is not going back to a six-day week for its employees, even as a senior representative of the central government employees said that women employees were biggest opponents of any such change by the new government.

A senior DoPT official told ET on Tuesday that all individual ministries would be advised that before they ask employees to come to work on Saturdays, they were expected to first consult the Joint Consultative Machinery set up in each ministry which has representatives from the staff side before implementing the same. There was confusion among government ranks last week after the road ministry issued an order asking employees to report to work on all Saturdays except the second. The same was apparently withdrawn after women employees in the ministry took it up with transport minister Nitin Gadkari.

Employees in many other ministries have also been asked informally to report to work on Saturdays in case senior officials or the respective minister is in office. ET has learnt that DoPT will soon inform Parliament that the government would continue to work 5-days-a-week to end all speculation on this as it has received questions on the same from MPs.

Shiva Gopal Mishra, Secretary (staff side) of the National Council, JCM, told ET that "no government ministry can enforce six-day week on employees without the concurrence of the DoPT." Not just DoPT's concurrence, the government also needs to consult employees on the same through the JCM mechanism.

There will be no use of going back to a six-day week system as it will only raise electricity costs of the government. Also, women employees form a sizeable proportion of the workforce and they are strongly against any move to resort to a six-day week, "Mishra, who is also general secretary, All India Railwaymen's Federation, told ET.

Most women employees use the weekend for pending household chores. The JCM, chaired by the Cabinet Secretary, is a joint group of various staff unions of central government employees supposed to act as a platform for constructive dialogue between the representatives of the staff side and the official side for peaceful resolution of all disputes.

Source: Times of India

Wednesday, July 9, 2014

Don't forget to claim Rs. 10,000/ - deduction u/s 80TTA while filing your Tax Returns

What is Section 80TTA?

As many taxpayers are not aware about section 80TTA under Income Tax Act'1961 which was introduced through Finance Act, 2012. Section 80TTA provides a deduction of Rs. 10,000/ - on your income from interest on saving bank accounts.

Who can claim deduction u/s 80TTA?
Deduction u / s 80TTA is applicable to individual taxpayers and HUF only. This benefit is not available to a firm, an Association of Persons or a Body of Individuals.

Eligible savings account for claiming deduction:

Saving accounts with any of following entities will qualify:
Bank or banking company;
Co-operative Society engaged in carrying on the banking business and as specified.
Post office Saving Account.

How does it work?

Interest earned on your savings a/c or FDs has always been taxable under the head "Income from Other Sources". In order to claim deduction, you have to first include interest income in your total income and then claim deduction u / s 80TTA. For example, if you have received interest of Rs 18,000/- from your saving bank accounts then you have to pay tax on Rs 8000/- only i.e. (18,000-10,000) thus Rs 10,000 / - can be claimed as a deduction u/s 80TTA. But if total interest income from all your savings accounts is Rs. 9000/ - only, then you don't need to pay tax at all and the entire amount would be deductible u / s 80TTA.

Is section 80TTA applicable to FD Interest?

No, this deduction is NOT applicable to the interest you received on your FDs/ time deposit or term deposit. Term deposit means a deposit received by the bank for a fixed period and can be withdrawn only after the expiry of the predefined fixed period.

Does no "TDS" means "no need to pay Tax"?

Income Tax Act allows certain deposits & accounts on which no tax is required to be deducted irrespective of any limit for the amount of such interest. Hence there is no TDS on your saving account interest. Regarding FDs, Banks deducts Tax only if your total interest income is more than Rs. 10000 / -.

In any case, you have to pay tax on FD or saving account interest as per your tax slab. And as mentioned above you can claim deduction up to Rs. 10000/- with respect to your savings a/c interest. For e.g. if bank is deducting 10% tax on your FD interest and you fall under the higher slab of say 20% or 30% then you need to pay the balance tax.


Tuesday, July 8, 2014

IT department to send tax refund updates via SMS, email

The income tax (IT) department will soon start updating taxpayers on the status of their IT refunds and the processing of certain tax statements by sending real-time text messages (through SMS) and emails, on the same lines as credit card and bank transactions.

The department's systems wing has now deployed a robust software and hardware platform that would host and streamline the personal email addresses and mobile numbers of an individual or any other entity who files an IT return, electronically or manually.

The Central Board of Direct Taxes, the apex authority of the IT department, has recently notified new rules stating taxpayers filing their returns this year (assessment year 2014-15) will have to mandatorily share their personal email addresses and mobile numbers with the department.

The IT department's central processing centre in Bangalore, henceforth, will send a communication to the taxpayer on the status of refunds or if there is any problem regarding his or her returns filed. The aim is to update and stay in touch with the taxpayer as done by credit card firms and banks.

The new measure will make a huge difference in addressing the grievances of taxpayers with regard to refunds and issues in filing of IT returns.

Monday, July 7, 2014

Status of promotion to ACIT for R.Y. 2013-14

INCOME TAX GAZETTED OFFICERS'ASSOCIATION(ITGOA) issued a circular providing the status report on Promotion to ACIT for the R.Y. 2013-14 . ITGOA stated that the CBDT had submitted two Review / Regular proposals for promotion to the post of ACsIT to UPSC on 18.02.2014. CBDT was advised by UPSC to obtain opinion of DOLA on the issue as to whether holding DPC from the existing seniority list of ITOs subject to revision of seniority of ITI / ITO based on the judgment of Hon'ble Supreme Court in NR Parmar will tantamount to contempt or not.

DOLA referred back the matter to the Board for obtaining views of DoPT and to clarify its stand taken before the Hon'ble Supreme Court in the contempt petition titled as' Virender Kumar vs Dr. Sudha Sharma, ex-chairperson, CBDT '. The CHQ has been pursuing the matter at all levels in CBDT as well as other agencies involved in the process. The CBDT clarified the relevant issues placing reliance on the opinion dated 05.05.2014 of DoPT, clarifying the O.M. dated 04.03.2014 and sent the matter for examination to DOLA in first week of June, 2014. After considering the facts, the DOLA has opined that the matter can be taken up with the UPSC for holding DPC subject to determination of final seniority in terms of judgement of the court in N R Parmar's case.

Sunday, July 6, 2014


We all know that whatsapp is the most popular instant messaging application available for our smartphones. Every other person in the world is using whatsapp for communicating with friends, relatives and family. Here is a very important trick by which you can e
asily restore deleted whatsapp messages.

As you all know that touchscreen devices are just awesome but sometimes they can be very annoying. With one wrong touch everything can get easily erased. Let me put a situation for you. By touching a wrong option you can easily delete your all important conversations available on whatsapp and then what will be your next step?

Steps for recovery:

There are very less amount of people who know's that whatsapp creates daily backup of all the data at the system time ie, at 4 am These backup's normally get stored in the SD card. So, if you are searching for how to get back deleted messages easily then carefully start following the below listed steps.

Step 1. Firstly, Open your SD card and then go to WhatsApp> Databases.

Step 2. After opening the Databases Folder you will see your conversation backup files which are like msgstore-2014-04-05.1.db.crypt. These files are not given these names simply but if you see carefully then you will notice that these files consist dates.

Step 3. In that folder you will see that there is one file named as msgstore.db.crypt, You have to simply rename that file by adding a word in front of it.

Step 4. After performing the above steps carefully, search for the file which shows you date before you have deleted your conversation.

Step 6. Now go to Settings> Applications> Manage applications> Whatsapp and then clear all the data.

Open whatsapp again and then choose the restore option which will be automatically be shown to you as you open the application.

That's it. You have now all your deleted messages which are not actually deleted from your phone. 

Source :

Friday, July 4, 2014

A valid Email ID and Mobile Number to be Registered / Updated on the E-Filing Website of the Income Tax Department

A valid Email ID and Mobile Number has to be registered / updated on the e-filing website of the Income Tax Department so that direct communication with taxpayer can be possible. For details, taxpayers can log on to:

The Department will send separate One Time Passwords (OTP) also referred as PIN on the mobile and email provided by the taxpayer. The OTPs have to be entered by the taxpayer after logging into their e-filing account to authenticate the same. The OTPs will remain valid for 24 hours within which the taxpayer has to complete the process. For 'Foreign / NRI' taxpayers, the OTP validation of the email ID would be sufficient.

Validation of email and mobile numbers has been introduced to facilitate taxpayers as in many cases incorrect emails and mobile numbers have been provided and taxpayers did not receive important communication from the Department. Further, it has been observed that in many cases taxpayers are not able to reset their password since the new temporary password from the Department may be sent to their registered email which may be different from the taxpayer's personal email, eg email of their intermediary.

This is a one-time process to validate the mobile number and email ID. However, whenever the taxpayer changes the Mobile Number or email ID in their Profile, the process will be repeated to ensure that the particulars provided are correct. Further, this validation will ensure that Department can send an OTP for resetting the password used for Login in case the taxpayer has forgotten the password.

One mobile number or email ID can be used for a maximum of 10 user accounts as the Primary Contact-Mobile Number and Email ID in e-Filing. This is to ensure that family members and related business concerns (not exceeding 10 separate users) not having personal email or mobile can be covered under a common email or mobile, but in general taxpayers should have their own unique email ID and Mobile registered with the Department.

The taxpayer can enter any other person's email or mobile number in addition, as a Secondary Contact (without any restriction on the number of user accounts linked as a Secondary Contact). Using "Profile Settings à My Profile" the taxpayer can select to include the Secondary Contact to also receive emails, alerts etc.

It is advised that the emails and SMS from the Income tax Department may be included in the 'safe list' or 'white list' to prevent the communications from the Department from being blocked or rejected or sent to Spam folder. Taxpayers are also advised not to share their user-id and password of their e-filing account with others to prevent un-authorized access.Taxpayers can reset their password using the `Forgot Password?` Link while logging in to their e-filing account and by providing the necessary details.

The Department requests the cooperation of all taxpayers for completing this validation process at the earliest for a smooth and convenient return filing process.

Source: PIB

Tuesday, July 1, 2014

Tax exemption limit may be doubled 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 : Times of India