Govt notifies new disability pensions rule for armed forces

New Delhi: The government has notified a new set of rules for disability pensions for the armed forces, a move that came in for criticism from the opposition parties and the security establishment.

Defence Minister Manohar Parrikar

The new rules replaces the decade-old system governed by the Sixth Central Pay Commission (6th CPC) instituted in 2006 under which disability pensions arising from battle injuries, or disabilities attributable to/aggravated by military service, were calculated on a "percentage basis", related to the last pay drawn.

However, under the new scheme, disability pensions will be calculated according to a "slab system" that existed earlier.

What the military personnel are upset about is that civilians will continue to be paid pensions according to the earlier "percentage system", which means that a civilian employee will have higher disability pension than his military counterpart.

"This is very wrong. Our soldiers deserve better. I urge centre to increase disability pension n not decrease it," Delhi Chief Minister Arvind Kejriwal tweeted.

Congress spokesperson Randeep Surjewala also attacked the Modi government for what it termed as "downgrading" the armed forces.

"On one hand, the government carries out a surgical strike and on the other it reduces the disability pension, thereby downgrading their morale. Why have you thrown into dustbin the recommendations of the three service chiefs," Surjewala said.

Sources said that until the September 30 notification, officers and soldiers who had suffered 100 per cent disability in battle were entitled disability pension that matched their last pay drawn.

In addition, they would draw a "service component" of pension, which amounted to 50 per cent of their last pay drawn.

Under the new rules, which come into effect retrospectively from January 1, 2016, the "service component" remains unchanged, but a "slab system" has been introduced for disability pension, which is lower than the percentage system - Rs 27,000 a month for officers, 17,000 for junior commissioned officers (JCOs), and Rs 12,000 for all other ranks (ORs).

Senior officers from the services also expressed their disappointment with the new pension rules.

PTI

Income Tax dept to use powers to arrest, detain wilful defaulters

New Delhi, Jun 21 (PTI) Challenged by increasing cases of defaulters who smartly evade paying due taxes, the Income Tax department has asked its officers not to shy away from invoking the rare provisions of arrest, detention and auctioning of attached assets of the accused.

Atulesh Jindal, chairman of the CBDT, the controlling body of the income tax department.

The Central Board of Direct Taxes, in a strategy paper for the current fiscal, has directed the tax department to use this provision, used rarely till now, stated under Section 276C (2) of the IT Act that stipulates action to ensure rigorous imprisonment for a period between three months and three years which may also carry a fine.

The IT department has a designated official to execute these rare powers, called the Tax Recovery Officer (TRO) within its establishment.

"The machinery of the TRO should be strengthened by providing more infrastructure and manpower. The TROs should be further trained specifically for their work in order to increase their effectiveness. In respect of non-compliant defaulters, the provisions of arrest and detention as per the provisions of Rules 73 to 81 of Schedule II should be invoked by the TRO.

"Stringent action can be taken in suitable cases including use of the provision for prosecution under section 276C(2) of the Act," it said.

The strategy papers act as a guiding light for the taxman for the financial year, in this case 2016-17.

The directives have also asked the supervising authority of the TROs (Principal Commissioner of IT) to "monitor" their work "especially in the area of attachment and sale of property to ensure that the attached properties are sold within one year."

"The role of a TRO comes at the fag end in a tax evasion case when the demand raised by the department gets converted into wilful default. A TRO executes his power of arrest and detention when there is a chronic default. That is why we see these provisions have been rarely invoked in the past. But now, more action on this front will be undertaken as defaults are becoming a menace now," an IT official explained.

The instructions also make it clear to the TRO that in case of liquidation of assets there should be "prompt lodging of the claim" with the official liquidator and constant monitoring of the case in order to guard the interest of the revenue or the department.

It has also been directed, as per the strategy paper, that supervisory officers "may instruct" the TRO or the Assessing Officer of a case to monitor cases which are being heard in the Debt Recovery Tribunals (DRTs).

They (TRO) should, it said, consider lodging of claims of outstanding demand in such cases before the DRT.

"At any level of a default case, the department's interest of getting taxes is supreme and hence the TRO is being directed to pursue the cases upto the level of DRTs too.

Getting revenue and due taxes from an entity is the ultimate aim of the IT department. By using these new strategies, the department also ensures that a strong message goes to all such people that the taxman will not let it go easily," the official said.

PTI

IT dept to block PAN, LPG subsidy of defaulters

New Delhi: In order to cripple and check the activities of wilful tax defaulters, the Income Tax department has decided to "block" Permanent Account Number (PAN) of such entities, get their LPG subsidy cancelled and take measures to ensure that they are not sanctioned loans.

CBDT Chairman A K Jain

A number of such measures have been mooted by the tax department, to be undertaken this financial year, in order to curb the menace of large-scale tax avoidance and evasion.

As per a strategy paper prepared by the department, also accessed by PTI, the taxman will block PAN in such a way "that these defaulters are not sanctioned any loans or overdraft facility by public sector banks, as the same is bound to become non-performing assets".

Further, it said, "Ministry of Finance can be suggested to withdrawn facility like LPG subsidy which is directly credited in to the bank accounts of the said defaulters."

This step, the strategy paper said, will act to "disincentive" the defaulters.

The taxman also proposes that the identities of such blocked PANs be circulated to the Registrar of Properties "with a request for not allowing any registration of immovable properties where such PANs are involved."

Such defaulters' information has also been recommended to be circulated across tax offices so that their activities loans or government subsidy can be plugged country-wide.

The department has also decided to subscribe to the Credit Information Bureau Limited (CIBIL) data, on a possible payment basis, to check out the financial activities of defaulters and undertake action against them for recovery and freezing of assets.

CIBIL is an agency to collect and maintain records of an entities' payments pertaining to loans and credit cards.

The department, beginning last year, has also started to 'name and shame' large tax defaulters (over Rs 20 crore default) by publishing their names and other credentials in leading national dailies and on its official web portal.

Till now, 67 such entities have been put in public domain by the department.

The IT department, beginning this financial year, has also decided to publicly name all category of taxpayers who have a default of Rs one crore and above.

"Tax default is a major menace that the department is grappling with.These new measures are aimed to curb these instances in the right earnest," a senior IT official said.

PTI