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Extra Ordinary Leave EOL
Extra-Ordinary Leave (EOL)
- Extraordinary Leave shall always be without leave salary and may be granted when no other kind of leave is admissible, or when other leave being admissible, the staff concerned has specifically applied in writing for the grant of EOL.
- The period of EOL shall not count for increment except when such leave is granted due to sickness on medical certificate or for prosecuting higher studies, provided that in case of any doubt as to whether the EOL taken was for prosecuting higher studies or not, the decision of the Board shall be final.
- Except in the case of permanent staff, the duration of EOL on any one occasion shall not exceed the following limits:
. Three Months
. Six months, where the staff has completed 3 years continuous service on the date of expiry of the leave admissible to him/her under the rules and his/her request for such leave is supported by Medial Certificate.
- c. Eighteen months, where the staff is suffering from TB, Leprosy, Cancer or Mental illness and undergoing treatment in a recognized clinic or under a sp
- EOL may also be granted to regularized periods of absence with out leave retrospectively.
- Depending upon the nature and purpose for which the period of leave is to be availed of, EOL without pay and allowances will be granted only after the completion of a qualifying minimum service of 5 years at this Institute. It may be availed of for any one of the following purposes:
- EOL for regular appointment.
- EOL along with or without leave at credit for carrying out research at higher levels in R & D organizations, universities, etc.
- EOL with or without leave at credit for the purpose of availing of research fellowships and other similar activities.
- EOL along with or without leave at credit for pursuing higher studies leading to the award of a degree.
- At any given time EOL (including leave at credit) availed of will be for a minimum period of six mo However, for availing of academic fellowship, the Institute may permit EOL for a period of upto 90 days.
viii. The period of EOL availed for the purpose of prosecuting higher studies leading to award of degrees or for the purpose of research fellowships (not salaried jobs) will count for annual increments and qualifying service for terminal benefits as well. EOL availed of for all other purposes will not be counted for terminal benefits unless they are regulated on Foreign Service terms.
- A staff member will be eligible to avail himself of a maximum of 5 years of EOL without pay and allowance during the entire period of his service at this Institute (including periods of service elsewhere if these are taken into account for retirement benefits).
- On any single occasion a staff member can avail himself of EOL (including leave at credit that may be attached) for a maximum of 2 years or the eligible period as per 1:5 norms, whichever is less.
xii. There must be a minimum interval of 3 years between two consecutive periods of long leave.(i.e.) whose duration exceeds 6 months including sabbatical leave.
xiii. The eligible period of EOL (excluding leave at credit) shall be calculated as follows:
- a. total period of service from the date of joining the Institute = n years
- total period of Special Leave and Sabbatical Leave already availed of (excluding leave at credit = a years)
- c. Total period of EOL availed of other than for higher studies and on medical grounds and excluding leave at credit = b years
- EOL availed of for higher study = c years
- e. Eligible period of EOL (excluding leave at credit) is [n-(7a – 6b – c )]/5 or 5 years whichever is less. The above period may be rounded off to a month.
Income Tax
Now taxable income can be calculated as follows –
Gross salary – total deductions = Taxable income
Beyond the 200000, has to pay 10% upto Rs.5,00,000, 20% there after upto Rs.8,00,000 and 30% in excess of Rs.8,00,000.
Rs. 5,00,000-8,00,000 Rs = Rs. 31,000 + 20% of (Total income minus Rs. 5,00,000)
Maximum deduction available is to the tune of Rs. 100,000. Assess your income to arrive at the amount you need to invest in this section. The investment avenues include; Contributory Pension Fund(CPF)/ Public Provident Fund (PPF) up to Rs. 100,000, National Saving Certificate (NSC), Life Insurance or ULIP premium, tuition fees paid for children’s education (2 children max), Equity linked savings schemes (ELSS), Post office saving deposit (POSD) and five year fixed deposits with banks among others.
Important –
Section 80CCD allows an employee, being an individual employed by the Central Government or any other employer, on or after the 1-1-2004, a deduction of an amount paid or deposited out of his income chargeable to tax under a pension scheme as notified or as may be notified by the Central Government, vide Notification F. N. 5/7/2003- ECB&PR, dated-22-12-2003.
However, the deduction shall not exceed an amount equal to 10% of his salary (includes Dearness Allowance but excludes all other allowance and perquisites).
Further where in the case of an employee receives any contribution in the said pension scheme from the Central Government or any other employer then the employee shall be allowed a deduction from his total income of the whole amount contributed by the Central Government or any other employer subject to limit of 10% of his salary of the previous year.
Taxation at the Time of out of pension scheme and treatment of Annuity :if any amount is standing to the credit of the employee in the pension scheme referred above and deduction has been allowed as stated above and the employee or his nominee receives this amount together with the amount accrued thereon, due to the reason of
(i) Closure or opting out of the pension scheme or
(ii) Pension received from the annuity plan purchased and taken on such closure or opting out then the amount so received during the FYs shall be the income of the employee or his nominee for that Financial Year and accordingly will be charged to tax.
Where any amount paid or deposited by the employee has been taken into account for the purposes of this section, a deduction with reference to such amount shall not be allowed under section 80C.
Further it has been specified that w.r.e.f 1-4-2009 any amount received by the employee from the new pension scheme shall be deemed not to have received in the previous year if such amount is used for purchasing an annuity plan in the previous year.
Employee Contribution :It is emphasized that as per the section 80CCE the aggregate amount of deduction under sections 80C, 80CCC and Section 80CCD(1) shall not exceed Rs. 1,00,000/- .
Government’s contribution : However the contribution made by the Central Government or any other employee to a pension scheme u/s 80CCD(2) shall be excluded from the limit of Rs.1,00,000/- provided under this Section.
Contribution by Govt /Employer to New Pension scheme /Contributed Pension scheme is taxable in the hand of Employee as perquisites :. Any contribution made by the Central Government or any other employer to the account of the employee under the New Pension Scheme as notified vide Notification F.N. 5/7/2003- ECB&PR, dated 22- 12-2003 referred to in section 80CCD above shall also be included in the salary income.
govt share should be added as income in salary income. However govt share is also eligible as deduction u/s 80CCD(2)
Example :
Salary =20000 DA=10000 Other taxable allowance =10000
Total Monthly =40000 Yearly 480000
Government’s contribution to NPS (CPF)=10% of 30000=3000= Yearly=Rs 36000/-
Employee contribution to NPS (CPF) =10% of 30000=3000=Yearly= Rs 36000/-
Employee invested 30000 in Insurance Policy eligible u/s 80C
PPF =44000
Computation of Income
Income from Salary = 480000/-
Add : Government’s contribution to CPF/NPS = 36000/-
Gross Total taxable salary (income) (A) = 516000/-
Less : Deduction u/s 80C
LIC : 30000
PPF= : 44000
employee’s share CPF : 36000 (80CCD)
Total = :110000/-
(but maximum one lac) =100000/-
Less :Government’s contribution to CPF deduction u/s 80CCD(2) =36000/-
Total deduction (B) =136000/-
Net Taxable Income (A) -(B)=516000-136000=380000/-
Reference – http://www.simpletaxindia.net/2012/10/deduction-new-pension-scheme-cpf.html#ixzz2DKmJqPhi
Tax Calculator –
http://law.incometaxindia.gov.in/taxcal/income_taxcalc.aspx
http://finotax.com/itax/calc-next.htm
switch the Tab to Income and Tax Calculator and put all your Income data’s.
Dearness Allowance DA
What is Dearness Allowance ?
Dearness Allowance is cost of living adjustment allowance which the government pays to the employees of the public sector as well as pensioners of the same. DA component of the salary is applicable to employees in India.
Dearness Allowance can be basically understood as a component of salary which is some fixed percentage of the basic salary, aimed at hedging the impact of inflation.
How to Calculate Dearness Allowance?
After the Second World War, DA component was introduced by the government. After 2006, the formula for calculating dearness allowance has changed and currently DA is calculated as follows,
For Central Government employees:
Dearness Allowance % = ((Average of AICPI (Base Year 2001=100) for the past 12 months -115.76)/115.76)*100
For Central public sector employees:
Dearness Allowance % = ((Average of AICPI (Base Year 2001=100) for the past 3 months -126.33)/126.33)*100
Where, AICPI stands for All-India Consumer Price Index.
From the year 1996, DA has been included to compensate for price rise or inflation in a particular financial year and hence it is revised twice every year, once in January and then in July.
