Welcome to All India Postal Employees Union, Group 'C', Cuttack North Division, Orissa Circle

Wednesday, March 1, 2017

Facts on cadre restructuring of Postal Employees..

Para 'F' of the Postal directorate cadre restructure order insists that "The vacancies arising out of the restructuring will be filled up only from the amongst the official who fulfill the eligibility criteria  laid down in the recruitment rules  for the post."

So, to fill-up in the newly identified posts, they have to fulfill all the eligibility service conditions, laid down in the recruitment rules.

For example 

For newly identified LSG posts: 5 years of PA service should be completed. 
For newly identified HSG-II posts: 6 years of LSG service should be completed. 
For newly identified HSG-I posts: 5 years of HSG-II service should be completed.

So initially PAs will be called willingness to post at LSG posts as per the circle gradation lists and initially LSG posts only will be filled. Most of the newly identified HSG II/HSG I posts will be vacant only even after implementing this cadre restructure at various circles if eligibility service conditions are not relaxed by the postal directorate.

Myth 2:
Could we decline the LSG promotion, while we sought the willingness by circulating the PA circle gradation list?

YES. Employees can decline the promotions offered by cadre restructure. But if the employees declined the promotions, then they will not get any further financial benefits under MACP scheme till getting the promotions. 

However there would be no loss if the MACP III officials are declined the promotion since they have already obtained the maximum financial upgradation as per the present MACP norms.

Myth 3:
Will it be any dislocation from the working office because of the cadre restructure? Will they be posted beyond their working divisions?

Fact :
May be. Those who are accepting the LSG promotions fresh, by the virtue of cadre restructure, then they may or may not be posted within their working division. It is pertinent to mention here that LSG/HSG II/HSG I cadres are circle cadres. However all the possible opportunities will be given to accommodate them within their working division.

Those who are working already in the newly identified LSG posts as PA, they may also be disturbed and posted some other offices. For example now treasurer posts are identified as LSG posts. So the officials working in treasurer post as PA will be disturbed and posted at some other places.

Myth 4:
What would be the financial benefits after cadre restructure?

Literally No financial benefit from the cadre restructure to the Group -C employees.

There are ample number of MACP employees available who already got Rs.4600/Rs.4200  grade pay. They will be filled after following due LSG/HSG recruitment rules procedures.

In future also, though service conditions are relaxed to fill-up the remaining HSG-II/HSG I posts, there would NOT be a financial benefit, if MACP 2 and 3 officials are filled up in the newly identified posts.

Myth 5:
Should RT be completed first or cadre restructure?

It is advisable to complete the cadre restructure first. 

B class/C class SPM posts may be in the purview of RT. Before cadre restructure those posts are PA cadre. If RT is completed first and those were filled by the PA cadre from the RT due officials, then after cadre restructure those B/C class posts are identified for LSG cadre. So those posts should only be filled up by the LSG officials as per the PA Circle gradation list. So if RT completed first by the PA cadre, then immediate disturbance will arise.

Myth 6:
What is the benefit of Cadre restructure?

Fact :
Till then Group C employees can get only 3 financial upgradations under MACP. They can get the grade pay upto Rs.4600/-. But now the virtue of cadre restructure, new HSG-I(NFG) posts are created for those completed 2 years service in HSG-I cadre. So Group-C employees can reach the Grade pay level Rs.4800 in future.

Myth 7:
After Cadre restructure newly identified LSG officials will do only supervisory work.

NO. If they are posted at Treasurer posts (now identified as LSG) they have to do treasurer work. If that treasurer post is allotted with some other branches on interest of service then they have to do look after those branches also.

If LSG promoted officials are posted at B/C class SPM posts then they have to do all the operative and supervisory work already allotted to that SPM posts as per the MDW.

Myth 8.
Cadre restructure is only to Group C employees of postal wing. What about other cadres like Postmaster / RMS/ SBCO

NO. After implementing the cadre restructure at Group C cadre of Postal wing, Postmaster Cadre, RMS and SBCO wing cadre restructure will be done one by one as per the bilateral agreement between staff side and department.

Tuesday, February 28, 2017

General body meeting to be held on 5th March,2017..

An important general body meeting will be held on 5th March,2017 (Sunday) at 11A.M for discussion on success of forthcoming oneday strike on 16th March,2017 for restoration of self respect of all the Central Government Employees in general and Postal Employees in particular.All the members are requested to attend the said meeting at Hotel Golden Palace conference hall near new bus stand Kendrapara.

Sri Sarada Prasad Das
Divisional Secretary
Cuttack North Division.

Tuesday, February 14, 2017

Income Tax FAQ

What is considered as salary income?

section 17​​ of the Income-tax Act defines the term ‘salary’. However, not going into the technical definition, generally whatever is received by an employee from an employer in cash, kind or as a facility [perquisite] is considered as salary.

​What are allowances? Are all allowances taxable?

Allowances are fixed periodic amounts, apart from salary, which are paid by an employer for the purpose of meeting some particular requirements of the employee. E.g., Tiffin allowance, transport allowance, uniform allowance, etc.
There are generally three types of allowances for the purpose of Income-tax Act – taxable allowances, fully exempted allowances and partially exempted allowances.​

​My employer reimburses to me all my expenses on grocery and children’s education. Would these be considered as my income?

​Yes, these are in the nature of perquisites and should be valued as per the rules prescribed in this behalf.​​

​During the year I had worked with three different employers and none of them deducted any tax from salary paid to me. If all these amounts are clubbed together, my income will exceed the basic exemption limit. Do I have to pay taxes on my own?
​Yes, you will have to pay self-assessment tax and file the return of income.​

​Even if no taxes have been deducted from salary, is there any need for my employer to issue Form-16 to me?

​​Form-16 is a certificate of TDS. In your case it will not apply. However, your employer can issue a salary statement.​

​Is pension income taxed as salary income?

​Yes. However, pension received from the United Nations Organisation is exempt.​​

​Is Family pension taxed as salary income?

​No, it is taxable as income from other sources.​

​If I receive my pension through a bank who will issue Form-16 or pension statement to me- the bank or my former employer?

​​The bank.​

​Are retirement benefits like PF and Gratuity taxable?

​​In the hands of a Government employee Gratuity and PF receipts on retirement are exempt from tax. In the hands of non-Government employee, gratuity is exempt subject to the limits prescribed in this regard and PF receipts are exempt from tax, if the same are received from a recognised PF after rendering continuous service of not less than 5 years.​

​Are arrears of salary taxable?

​​​​Yes. However, the benefit of spread over of income to the years to which it relates to can be availed for lower incidence of tax. This is called as relief u/s 89​ of the Income-tax Act.​​

​Can my employer consider relief u/s 89 for the purposes of calculating the TDS from salary?

​​Yes, if you are a Government employee or an employee of a PSU or company or co-operative society or local authority or university or institution or association or body. In such a case you need to furnish Form No. 10E to your employer. ​​

​My income from let out house property is negative. Can I ask my employer to consider this loss against my salary income while computing the TDS on my salary?

​Yes, however, losses other than losses under the head ‘Income from house property’ cannot be set-off while determining the TDS from salary.​​

​Is leave encashment taxable as salary?

​​It is taxable if received while in service. Leave encashment received at the time of retirement is exempt in the hands of the Government employee. In the hands of non-Government employee leave encashment will be exempt subject to the limit prescribed in this behalf under the Income-tax Law.​

​Are receipts from life insurance policies on maturity along with bonus taxable?​

As per section 10(10D), any amount received under a life insurance policy, including bonus is exempt from tax. However, following receipts would be subject to tax:
  • Any sum received under sub-section (3) of section 80DD; or
  • Any sum received under Keyman insurance policy; or
  • Any sum received in respect of policies issued on or after April 1st, 2003, in respect of which the amount of premium paid on such policy in any financial year exceeds 20% (10% in respect of policy taken on or after 1st April, 2012) of the actual capital sum assured; or
  • Any sum received for insurance on life of *specified person (issued on or after April 1st 2013) in respect of which the amount of premium exceeds 15% of the actual capital sum assured.
* Any person who is –

i) A person with disability or severe disability specified under section 80U​; or

ii) suffering from disease or ailment as specified in the rule made under section 80DDB.

Following points should be noted in this regard:
Exemption is available only in respect of amount received from life insurance policy.
Exemption under section 10(10D)​ is unconditionally available in respect of sum received for a policy which is issued on or before March 31, 2003.
Amount received on the death of the person will continue to be exempt without any condition.​

Tuesday, January 24, 2017


7th Central Pay Commission has quoted in para - 1.29 of " Foreword " , the following observations of the Supreme Court in the case of Bhupendranath Hazarika and another Vs State of Assam and others (reported in 2013 (2) Sec 516).

"It should always be borne in mind that legitimate aspirations of the employees are not guillotined and a situation is not created where hopes end in despair.......... A sense of calm sensibility and concerned sincerity should be reflected in every step. An atmosphere of trust has to prevail and when the employees are absolutely sure that their trust shall not be betrayed and they shall be treated with dignified fairness ; then only the concept of good governance can be concretized. We say no more."

Unfortunately, the NDA Government and the Group of Ministers consisting of Sri Rajnath Singh, Hon'ble Home Minister, Sri Arun Jaitley, Hon'ble Finance Minister, Sri Suresh Prabhu, Hon'ble Railway Minister who gave assurance on 30th June 2016 that Minimum wage and Fitment formula will be increased and a High Level Committee will be Constituted with a time - frame of four months , have given least concern for the above observations of the Apex Court. Now seven months are almost over. Further there is no guarantee that Allowance Committee will increase the percentage of HRA recommended by 7th CPC. Instead there is every chance, to deny retrospective effect from 01.01.2016 to the revised allowances and it may be implemented prospectively from 01.01.2017 or 01.04.2017, thus denying the eligible arrears for one year or more. It has become certain that the Option - 1 for pensioners recommended by 7th CPC, which is the one and only favourable recommendation, stands rejected. Orders on abolition of Advances including Festival advance and imposing "very good " condition for MACP are issued unilaterally .

Request of the JCM National Council Staff side Secretary to give one more opportunity to present it's case before the Allowance Committee is not conceded by the Finance Secretary, who is the Chairman of the Committee. The request of the JCM Staff side to modify the Terms of Reference of Anomaly Committee is also not yet considered by the Department of Personnel and Training. The Committee constituted for New Pension Scheme is only for streamlining the NPS by making some cosmetic changes as recommended by 7th CPC and not for considering the demand of the JCM Staff side to scrap NPS. Not even a single demand of the staff side submitted to Cabinet Secretary on 10th December 2015, requesting modifications in the recommendations of 7th CPC is settled by the Government. The so-called group of senior officer's committee had, in fact, ridiculed and humiliated the JCM Staff Side standing committee.

The All India Conference of the Confederation of Central Government Employees & Workers held in August 2016 at Chennai had taken a decision to request all constituents of NJCA to revive the indefinite strike , if Government is not ready to honour it's commitment before 30th October 2016.  The AIC had further decided that, in case NJCA is not ready to revive the deferred indefinite strike, then Confederation should organise independent trade union action including strike. Confederation strongly feels that there in no meaning in waiting indefinittely for Government's decision. We cannot cheat the employees like NDA Government. As no consensus decision could be taken in NJCA, Confederation had decided to  go for one day strike and organised country wide demonstrations, mass dharnas and massive Parliament March. Strike notice for one day strike on 15th February 2017 was served on 28th December 2016. Due to announcement of assembly elections in five states by Election Commission of India and 15th February being a polling day, the strike was postponed to 16th March 2017.

Intensive campaign and mobilisation is going on in full swing all over the country. About 13 to 15 lakhs Central Government employees will participate in the strike, with the full support and solidarity of about 34 lakhs pensioners, Central Trade Unions, independent Federations of State Government employees, Bank and Insurance employees and other public sector employees.

After reviewing the participation of employees in the one day strike, Confederation shall explore the possibility of declaring higher form of trade union action including indefinite strike .