Archive for February, 2011

No filing of tax returns if salary is only income

February 28, 2011 Leave a comment
    In a big relief from cumbersome tax filing process for the salaried class, Finance Minister Pranab Mukherjee today proposed to exempt them from filing tax returns unless they have other sources of income.

   The government will be issuing a notification exempting ‘classes of persons’ from the requirement of furnishing income tax returns, said the Memorandum to the Finance Bill 2011.
The decision, which will come into effect from June 1, 2011, will reduce the compliance burden on small taxpayers, it added.

   Salaried taxpayers who do not have other sources of income and whose incomes are subject to Tax Deduction at Source (TDS) will be excluded from filing returns.
“Therefore, in cases where there is no other source of income, filing of a return is duplication of existing information,” the Memorandum said.
Categories: IE's, INCOME TAX

Issue of pensioner CGHS Cards to Central Government servants before retirement.

February 27, 2011 Leave a comment

Government of India
Ministry of Health and Family Welfare
Department of Health & Family Welfare
Nirman Bhawan, Maulana Azad Road
New Delhi 110 108

No: 37-1/2009-C & P/CGHS (P)
Date: February 23, 2011


Subject:       Issue of pensioner CGHS Cards to Central Government servants before retirement.

      Central Government servants on their retirement from service are entitled to CGHS facility, if they retire from office Ministries I Departments I Offices covered by CGHS. For availing CGHS facility, if eligible, after retirement from service, pensioners are required to fill up the requisite form and deposit the appropriate amount [lump sum amount equivalent to one year’s contribution for availing CGHS facility for one year (which can be extended on an annual basis on payment of the appropriate contribution as applicable at the time of renewal) or pay in lump sum equivalent to ten years’ contribution for availing CGHS facility with life-time validity). The process of issuing of pensioner CGHS cards starts only after the Government servant retires from service and only after the Pension Pay Order (PPO) and Last Pay Certificate (LPC) are issued by the Ministry / Department I Office. The completion of the formalities takes two to three months, which puts pensioners in a problematic condition for getting treatment from the date on which they retire from service and the time when a pensioner CGHS card is issued to them. 

2. The Ministry of Health & Family Welfare has received representations from retired Central Government servants and from officials due for retirement within the next few months with the request that the policy regarding issue of pensioner CGHS cards be simplified so that they are in a position to get the pensioner CGHS card a day after their retirement from service. 

3. The matter has been examined by the Ministry of Health & Family Welfare in consultation with CGHS and it has been decided that the following course of action will be taken in respect of officials who are entitled to avail CGHS facility after his I her retirement from Government service: 

  (i)     All Ministries I Departments will, alongwith pension papers, give the application for issue of pensioner CGHS cards to the official three months before the due date for retirement of the official; 

  (ii)     The official, if he / she is interested in availing CGHS facility after his I her retirement, will: 

    a.       Fill up the form for issue of pensioner’s card; 

    b.       affix stamp sized photographs of the family members entitled to avail CGHS facility in the proforma for issue of pensioner’s card; 

    c.       enclose Demand Draft I Pay Order for the appropriate amount with reference to his I her decision to get CGHS card with life-time validity (the amount will be equal to ten years’ contribution) or with validity for one year (the amount will be equal to one year’s contribution). For obtaining the card in Delhi, the Demand Draft I Pay Order will have to be made payable to “Pay & Accounts Officer (CGHS), payable at Delhi” and for obtaining card in a CGHS city outside Delhi, the Demand Draft I Pay Order will have to be made payable to “Additional Director or Joint Director (as the case may be) of the CGHS city, payable in that city”; 

(iii) The Ministry I Department will add a certificate of pay, grade pay, etc., drawn by the applicant to the application form and also mention the entitlement of ward (Private ward I Semi-Private Ward / General Ward) at the time of retirement of the official; 

(iv) The Ministry I Department will forward the application complete in all respects to the Additional Director in the concerned CGHS city after verifying the particulars furnished by the applicant six weeks before the date of retirement of the official; 

(v) CGHS pensioner cell in the concerned CGHS city will initiate action to get the pensioner card prepared; 

(vi) The validity of the pensioner card will start from a date after the last day of service of the official; 

(vii) If the beneficiary, while in service, has been issued plastic card, then the beneficiary identification number (Ben ID No.) will not be changed at the time of preparation of pensioner card and the same Ben ID number will be carried forward in the pensioner card; 

(viii) The pensioner card will be handed over to the retired official only after the date of superannuation I retirement from service; and 

(ix) Before the pensioner CGHS card is issued to the beneficiary, the plastic CGHS cards issued to all the members of the family will be surrendered 

4. AIr Ministries / Departments are requested to give wide publicity to the contents of these instructions.

[R Ravi]

Application Form & Instructions… Click here… 


80% CGHS drugs bought locally

February 27, 2011 2 comments

   NEW DELHI: Almost 80% of the drugs purchased for Central Government Health Scheme (CGHS) dispensaries in Delhi between 2002 and 2007 were bought from local chemist while only 20% were procured through the centralized route. 

    In absolute numbers, the value of medicines purchased through local chemists stood at Rs 366.33 crore of the total expenditure of Rs 459.21 crore. 

   Similar was the story with CGHS dispensaries (which provide health care facilities for central government employees and pensioners and their dependents residing in CGHS covered cities) in Hyderabad, Bangalore, Allahabad, Patna, Kolkata, Mumbai, Pune and Guwahati. 

   Almost 74%-91% of the drug purchases between 2002 and 2007 in these dispensaries were from local  chemists, according to the Public Accounts Committee’s latest report. Also, most of the medicines in the formulary (centralized drug list) did not have a rate contract. 

   The report said the committee was given to understand that the purchase system of approaching local chemists was introduced to enable the CGHS dispensaries to supply to the beneficiaries those medicines which were not in stock. 
“Audit had pointed out that there was procurement of smaller number of medicines from the formulary list. According to the audit, CGHS dispensaries made extensive purchases of medicines from local chemists ignoring the quality and cost effectiveness of these purchases,” the PAC report said. 

   The major suppliers of these drugs purchased in bulk were generally the well-established larger pharma companies who were providing discounts upto 40% on MRP, the report said. 

   But over the period of time the system degenerated. The committee’s examination of the subject has revealed that such degeneration crept in as there was no database regarding procurement, distribution and inventory management of the drugs for which no effective monitoring could be put in place to ascertain the reasons of largescale procurement through local purchases. 

   However, the committee headed by Murli Manohar Joshi added that the health ministry lately has swung into action and taken a number of measures to cut down on local purchases as well as to bring in efficiency in the procurement system. 

   PAC said that the measures included computerization of all the dispensaries in Delhi, culling out a list of about 262 medicines that were not in the formulary of Medical Stores Organization (MSO) but frequently prescribed by doctors and procured locally, and entering into a rate contract for all these drugs.

Source –  TOI

Categories: CGHS, MEDICAL

Performance-based incentive for Central Govt staff from next FY

February 27, 2011 Leave a comment
   NEW DELHI:    Employees of 62 central government departments could start earning a performance-based incentive, over and above their existing salaries, from as early as the next financial year. The incentive will be based on the department’s scorecard in meeting yearly targets committed by their respective secretaries and ministers as part of the results-framework documents (RFD) system. 

   The committee of secretaries looking into performance-based incentive for government employees is said to have already zeroed in on a formula that offers a secretary-level officer an incentive up to 40% of the basic salary, provided his department has met 100% RFD targets. 

   A scorecard of 70% and less in meeting RFD targets would however attract zero incentive. However, no penalty will be imposed on the non-performing officers.

   The secretaries’ panel, headed by the Cabinet secretary, has already completed three crucial meetings and is looking to finalise its recommendations in time to enable performance-linked salaries in the coming financial year.

  The corporatisation of government departments by linking babudom’s salaries with their performance was recommended by successive Pay Commissions over the last 22 years. Starting with the Fourth Pay Commission , performance-linked incentive has been a recommendation of the Fifth and Sixth pay panel reports as well. However, in the absence of any credible benchmark for measuring a government officer’s performance, the performance-based incentive proposal never got off the ground.

   With the 2010-11 RFD scorecards for 62 departments set to be finalised by May and brought into the public domain by June 2011 – incidentally, though the RFD scorecards for the three months of 2010 were never published, they are very much available – the committee of secretaries on performance-linked incentive is said to have worked out a formula to calculate the incentive for a secretary as well as the officials lower down. For a secretary-level officer, the incentive is proposed to be 15% of cost savings (budgeted expenditure minus actual expenditure) by the department multiplied by its composite score less 70, divided by 30.

  The incentive will be higher with each passing year. In other words, secretary of a department that meets 100% RFD targets for a year would get 20% performance-based incentive in the first three years, 30% in the next three years and 40% between the sixth and ninth year. A 70% scorecard would however attract no incentive.

   For a joint secretary, the incentive will be sum of 30% of departmental composite score and 70% of divisional composite score. Since the incentive will be paid from cost savings of the department resulting from improved performance, there will be no extra burden on the exchequer. The government, incidentally, is not in favour of penalising the non-performing officers.

   The reasoning being that not getting any incentive, or absence of recognition, would be punishment enough for the under-performers. With the committee of secretaries also planning to lay down the condition that performance-linked incentive will accrue to only those departments that have submitted RFDs for two consecutive years, the key five departments of PMO , home, finance, defence, external affairs who are still not covered by the RFD system will not qualify for the incentive.

Source – ET


Conditions for reimbursement of medical fee in Private Hospitals

February 27, 2011 Leave a comment

General Concepts of Medical Rules

Employees and their family members are entitled to reimbursement for medical attendance and treatment.
3 Categories of Hospital facilities are admissible for employees.

  • CGHS Hospitals.
  • Recognized Private Hospitals.
  • Private Hospitals (Other than Recognized).

What are the Medical facilities available for reimbursement ?

In India

  • Operation for sterilization.
  • Treatment of sterility
  • Venereal diseases and Delirium Tremens
  • Avitaminosis and Hypovitaminosis.
  • Correction of eye.
  • Treatment for immunizing and prophylactic purposes.
  • Diseases causing General debility and secondary anemia.
  • Confinement including at residence if attended by Child Welfare and Maternity Centres staff; Pre-natal and Post-natal Treatment.
  • Testing of eyesight for glasses for employees only.
  • Blood and blood transfusion charges.
  • Dental Treatment
  • Anti-rabic treatment
  • cost of hepatitis Vaccine B, C & D.

Outside India

  • Cardio Vascular Surgery
  • Kidney transplant
  • Other organ transplant
  • Joint replacement and surgery
  • Bone-marrow transplant
  • Certain types of medical and ontological disorder, such as leukemia and neoplastic conditions.
  • Micro vascular surgery and neuro surgery.
  • Treatment with Laser which obviates the need of open surgery.
  • Treatment with laser which obviates the need of open surgery.
  • Extra corporeal stone disintegration by ultrasonic shock waves.

What are the recognized Hospitals for Medical Treatment ?

  • All State Government Hospitals including District Hospitals and Municipal Hospitals
  • All Hospitals recognized by primary health centres and dispensaries recognized by state government for treatment of their employees and or members of their family.
  • All maternity and child welfare centres with facilities for indoor treatment and recognized by state government.
  • Cantonment hospitals in cantonment areas where there are no government hospitals.
  • All railway hospitals
  • All Government hospitals recognized by state government / CGHS rules / CS(MA) Rules
  • Hospitals funded by Central / State government.
  • Pay clinics in Bihar, Punjab , Haryana, UP ,MP, Rajasthan and Chandigarh.

How to Get medical Reimbursement when treated in a Private Hospital ?

An employee has to go to nearest CGHS or Government hospital for treatment. But in some emergency cases they may be forced  to go to nearby Private hospital which may not be a recognized hospital.
In such cases the employee has to obtain an emergency certificatefrom the doctor of this private hospital. In this emergency certificate,  the reason for choosing the private hospital should be specified and it should be duly signed by the doctor.

How much  amount can be reimbursed for medical treatment for employees ?

There is no limit for the reimbursable amount. Full amount for the medicines will be reimbursed and for other expenses including lab tests, scanning, operation, doctors fee etc specific rates approved according to CS(MA) rules will be given.



Who are eligible for medical reimbursement ?

  • Central Government employees.
  • Dependant family members of employees.

Who are the Dependant Family Members eligible for Medical Reimbursement ?

  • Husband / Wife
  • Parents / Stepmother
  • For female employee, either her parents or parents-in-law.
  • Children including adopted children.
  • For unmarried son, Till he starts earning or attains the age of 25.
  • For Daughter, Till she starts earning or gets married.
  • No age limit for  son suffering from permanent disability.
  • Widowed daughters and dependent divorced / separated daughter.
  • Sisters including unmarried / divorced / abandoned or separated from husband / widowed sister irrespective of age limit.
  • Minor brothers.

Forms required for Medical Reimbursement 

What are the things to remember when claiming for Medical Reimbursement ?

  • Forms selected are correct or not.
  • All the certificates are duly signed by the Doctor.
  • Seal of the hospital is included in all the bills and the certificates.
  • In case of Private hospital, emergency certificate is also present.
  • If insurance policy is also claimed, then total reimbursement should not exceed the total expenditure.


Categories: CGHS, MEDICAL

150 Rs Coin to released on Budget Day By Finance Minister

February 27, 2011 Leave a comment

   For the first time in the country’s minting history, government will issue coins of Rs 150, marking the number of years of taxation in India. 

  The special coins, to be released by Finance Minister Pranab Mukherjee before his Budget speech, will also be brought out in Rs 5 denomination on the occasion of completion of 150 years, from 1860 to 2010, of the Income Tax department. 

   This is the first time that coins of Rs 150 denomination are being minted by the government. The Department of Economic Affairs under the Finance Ministry recently notified the order. 

   The Rs 150 coin , made of an alloy of Silver, Copper, Nickel and Zinc, will have an international design with ‘Satyameva Jayate’ and ‘India’ on the front side while a portrait of ‘Chanakya and lotus with honeybee’ on the reverse side. 

   The Rs five coins will also be minted in the same fashion. While 200 coins will be minted in Rs 150 denomination, 100 such coins of Rs five will be issued. 

   “The Income Tax department celebrated 150 years of taxation in the country last year and the these coins, especially the one in Rs 150 denomination will be minted for the first time,” a senior I-T official said.

Categories: Uncategorized

Railway Employees’ Welfare, Recruitment and Training

February 26, 2011 Leave a comment

  The Minister for Railways, Mamata Banerjee announced a number of measures for the welfare of Railway employees in her budget speech in Parliament today. They are as follows:-

1.      Expand the scope of Liberalised Active Retirement Scheme for Guaranteed Employment for safety category staff by enhancing the existing criteria of grade pay from Rs. 1800/-  to Rs. 1900/-
2.      Considering the Indian family structure and values, extending medical facilities to both dependent father and mother of railway employees.
3.      Increasing the scholarship for the girl child of gangmen and group ‘D’ employees to Rs.1200 per month for higher education.
4.      Setting up of a Railway Vidyalaya Prabandhan Board (RVPB) to improve quality of education to children studying in 269 railway schools. The Board will draw up a plan for improving the physical and educational infrastructure of these schools to be implemented in a time frame of three years.
5.      To provide 20 Road Medical Vans in remote and inaccessible areas for railway employees for easy access to medical facilities.
6.      20 hostels for children of railway employees have been commissioned and another 20 would be set up next year.
7.      Undertaking of restructuring of all cadres in the Railways to afford adequate promotional opportunities to the officers and staff.
8.      Recruitment process has already been set in motion for filling the vacancies of about 1.75 lakh in Group ‘C’ and Group ‘D’ posts. Steps have also been taken to fill up about 13,000 posts in Railway Protection Force. These mega recruitment drives will cover the backlog of SC/ST and physically handicapped quota.
9.      For the first time, the Ministry is inducting 16,000 ex-servicemen by end of March 2011. More than 1200 ex-servicemen in Railway Protection Force are being recruited.
10.  A Training centre is proposed to be started at Kharagpur to enhance skills of frontline staff in dealing with the customers.  Multi-disciplinary training centres would be set up at Dharwad, Kolkata and Pune including an exclusive international centre at Agra. A new basic training centre at Kurseong is proposed to cater to the needs of North East Frontier Railway including Darjeeling-Himalayan Railway.


Categories: RAILWAY