Friday, October 29, 2010

 Lucknow, Sep 24 (PTI) A PIL was filed in the Lucknow bench of the Allahabad High Court today, seeking direction to extend the retirement age of officers of India Civil Services from 60 years to at least 65 years.
Neelendra Pandey, a local social worker, stated in his PIL that he is aggrieved with discrepancies in the retirement policy of different government services. He said IAS, IPS and IFS officers retire at 60 years, while people of about 80 years and sometime even more continue as President, Prime Minister, Governor and Chief Minister, Minister and MLAs.Professors and doctors of Central universities and institutions like AIIMS retire at 65 and primary school teachers retire at 62, Pandey said while terming the retirement policies as defective and challenging the same. He requested the court to direct Central government to consider making a universal retirement policy for all public servants.
                          MEETING IN AP CIRCLE

The Central Working Committee Meeting of AIPEDEU (CHQ) is decided to hold at WARANGAL - A.P e    The meeting is scheduled to be held on 5th, 6th & 7th of December 2010 positively.

Thursday, October 28, 2010

(Click on the above link to download the court judgement order copy)
Grant of Dearness Relief to Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC

F. No. 42/18/2010-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions  Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110001          Date: 27th October, 2010

Subject : Grant of Dearness Relief to Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scale of 5th CPC w.e.f. 1.7.2010.
In continuation to this Department’s OM No. 42/18/2010-P&PW(G) dated 29th June, 2010 sanctioning the Dearness Relief to those Central Government pensioners who are in receipt of provisional pension or pension in the pre-revised scales of 5th CPC, the President is pleased to grant the Dearness Relief to these Central Government pensioners as under :
(i) Those who are in receipt of provisional pension or pension in the pre revised scales of 5th CPC are entitled to Dearness Relief @ 103% w.e.f 1.7.2010.
(ii) The surviving CPF beneficiaries who have retired from service between the period 18.11.1960 to 31.12.1985 and are in receipt of ex-gratia @ Rs. 600/ p.m. w.e.f. 1.11.1997 under this Department’s OM No. 45/52/97-P&PW(E) dated 16.12.1997 are entitled to Dearness Relief @ 103% w.e.f. 1.7.2010.
2. The following categories of CPF beneficiaries who are in receipt of ex¬gratia payment in terms of this Department’s OM No. 45/52/97-P&PW(E) dated 16.12.1997 are entitled to DR @ 95% w.e.f. 1.7.2010.
(i) The widows and dependent children of the deceased CPF beneficiary who had retired from service prior to 1.1.1986 or who had died while in service prior to 1.1.1986 and are in receipt of Ex¬gratia payment of Rs. 605/- p.m.
(ii) Central Government employees who had retired on CPF benefits before 8.11.1960 and are in receipt of Ex-gratia payment of Rs. 654/-, Rs. 659/-, Rs. 703/- and Rs. 965/-.
3. Payment of DR involving a fraction of a rupee shall be rounded off to the next higher rupee. In their application to the pensioners/family pensioners belonging to Indian Audit and Accounts Department, these orders issue in consultation with the C&AG.
4. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO No. 1(4)/EV/2004 dated 12.10.2010.
Under Secretary to the Government of India
Posted by . at 7:44 AM 0 comments Links to this post
Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications - DOPT Order

Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications to pensioners who retired on/after 1.1.2006 but before 2.9.2008. FOR DOPT ORDER CLICK HERE
INTUC against disinvestment of public sector units
INTUC against disinvestment of public sector units
Kolkata, Oct 27 (PTI) Opposing disinvestment of profit-making public sector units, Congress-affiliated trade union INTUC today questioned why Coal India was disinvested.
"We are against disinvestment of profit-making public sector units. If the government wants to disinvest PSUs making loss there is no problem, but profit-making companies should be kept away," INTUC national president G Sanjeeva Reddy told a press conference here.
Stating that coal is a profit-making sector, he asked why disinvestment was made there. "I have spoken to the Prime Minister on this and he has agreed in principle that disinvestment should not be made in profit-making public sector units."
Regarding Coal India, the Prime Minister told him that government had sold only out 10 per cent share and it would not be increased further, Reddy said
Source: PTI

Wednesday, October 27, 2010

Department issued letter on Filling up of the vacancies of Postal Assistant I Sorting -Assistant pertaining to the years 2009 and 2010 by direct recruitment.

Department issued letter on Filling up of the vacancies of Postal Assistant I Sorting -Assistant pertaining to the years 2009 and 2010 by direct recruitment.

The selections as per the following time-line:

i)              Issue Advertisement / circulation of the vacancies.   8th November 2010.

(ii)     Last date for receipt of the applications.       8th December, 2010.

(iii)    Holding of written examination and}
Completion of Computer Test }                    9th January, 2011.

(iv)    Declaration of final result / select list           15th January, 2011.


Tuesday, October 26, 2010


Department of Posts has deputed a ten (10) member delegation led by Sri. A. K. Sharma, Dy. Director General (Establishment) to united kingdom to visit Royal Mail Groups Automated Mail/Parcel processing facilities for five days from 18th to 22nd October 2010. The following are the other nine members:

1.      Shri Subhash Chander, Director (SR & Legal), Department of Posts, New Delhi
2.      Com. M. Krishnan, Secretary General, NFPE
3.      Com. K. V. Sridharan, General Secretary, AIPEU Group 'C' (NFPE)
4.      Com. Giri Raj Singh, General Secretary, AIRMS & MMS EU Group – C (NFPE)
5.      Com. Ishwar Singh Dabas, General Secretary, AIPEU Postmen & MSEs (NFPE)
6.      Com. P. Suresh, General Secretary, AIRMS & MMS EU MG & MSEs (NFPE)
7.      Shri. D. Kishan Rao, General Secretary, NAPE Group 'C' (FNPO)
8.      Shri. T. N. Rahate, General Secretary, NUPE Postmen & MSE (FNPO)
9.      Shri. A. H. Siddque, General Secretary, NURMS & MMS MG & Group 'D' (FNPO)

The Tour commenced from Delhi on  17.10.2010  and reached London 17.10.2010.

The main Agenda for the visit to Royal Mail from 18th to 22nd included the following:
1.      Introduction to the week by Mr. Stan Kozlowski, the Head of British Postal Consultancy Services (BPCS).
2.      Introduction to Royal Mail Group by Mr. Stan Kozlowski
3.      Presentation on World Postal Environment by Mr. Stan Kozlowski.
4.      Presentation on Post office counter Transformation by Mr. Stans Kozlowski
5.      Visit to city of London Post office – Paul Gardner
6.      Presentation on Journey of a letter – Mr. Stan Kozlowski & the Mail Centre Manager, Royal Mails.
7.      Tour of Mail Centre.
8.      Overview of ParcelForce World Wide – David Breez, Head of International operations, Royal Mails.
9.      Tour of the International Hub and visit to National Hub.
10.  Meeting with Communication Workers Union Representatives Mr. Peter Donaghy & Mr. Carl Madess.
11.  Visit to West London Delivery office – Mr. Arrane Byne & Mr. Frances Conroy.
12.  Presentation on Royal Mails operation Transformation – Mr. Dave Briggs, Packet Pipeline Design Manager, Royal Mails.
13.  Tour to Princess Royal Delivery Centre (PRDC)
14.  Presentation on UK Regulation Liberalisation – Mr. Stan Kozlowski.
15.  Presentation on Revenue Protection – Mr. Stan Kozlowski
16.  Presentation on Royal Mail Automation programme – Mr. Stan Kozlowski
17.  Discussions on the week and Summary – Stan Kozlowski

On completion of the one week training programme individual certificate has been issued to all delegates by Royal Mail Group.

Royal Mail is the National Postal Service of United kingdom. Royal Mail Holdings Plc own Royal Mail Group Limited, which in turn operates the following brands:
(a)   Royal Mail (UK Letters)
(b)   Parcel Force Worldwide (UK Parcels)
(c)    General Logistic Systems
(d)   "Post office Ltd" which provides counter services, is a wholly owned subsidiary.

Royal Mail Holdings is a public limited company. Royal Mail is responsible for universal collection and delivery in the UK. Royal Mail delivers 33 million items every working day, 71 million items handled daily, and had a network of 11905 post offices, 1, 1600 post boxes, 450000 collection centres, 37 million delivery points, 33000 vehicles & 29 Aircrafts & 27000 bi-cycles. Total number of workforce is 1,68000 which includes regular contracts and casual workers. 70% of the workforce is delivery staff. For the financial year 2008-2009 Royal Mail had an operating profit of 321 million pounds, with all four group businesses running on profit.

In UK, Postal Sector reforms and liberalization started in the year 2006 three years ahead of other Europeon countries. Royal Mail lost its monopoly and competitors are licenced to carry mail and pass it to Royal Mail for delivery. Delivery is exclusively done by Royal Mail. There are currently fifty (50) Licenced Mail operators including Royal Mail. Royal Mail claims a market share of 75%. There is only one delivery each day. Delivery of letters, Delivery of parcels and operating post offices are separately done in different places (centres). Universal service obligation (USO) is applicable to Royal Mail only. USO Loss for 2009-2010 is 100 million pounds. No subsidy is given by Government to meet USO obligation. Tarrif is fixed by the Postal Regulator called Post comm..

All the centres – Post office, Parcel force and Letters – are fully computerized and automated. Fully automated mail/parcel processing facilities are provided for sorting of articles and also for Postmen beat sorting. The letter sorting machine has a maximum capacity of sorting 40000 letters per hour.

The Royal Mails motto is "a commercial business with a social purpose" and "Quality first and value for the money & security". It is told that the reforms & liberalization has resulted in more efficiency, better service standards, competition, stimulating innovation, reducing prices, quality raising, choice to the public and level playing field for all competitors (players).  Royal Mails borrowed 1.2 billion pounds to invest on transforming their operations, which includes further induction of latest technologies in the automation programme.

The UK Government is proposing to further intensify the Postal reforms which includes the privatization of letter mail services, closure of 2500 Post offices in the name of network transformation.

The meeting with the Communication Workers Union (CWU) Representatives was most informative and cordial. The CWU, the only one union in the Royal Mail, was formed on 26th January 1995 as the result of a merger between National Communications Union (NCU) and the Union of Communication Workers (UCW). The CWU is the sixth largest Union in Britain. The management and functioning of the union is in a most democratic manner. For calling an industrial action (strike) strike ballot is compulsory. 51% should vote for the strike. Annual conferences are held at all level. Election of office bearers are by secret ballot. CWU has 87 Postal branches & 73 Telecom Brnaches, Postal membership is 148597 and Telecom & Financial services membership is 74121. Total membership is 2,22718 (including Telecoms & Giro Bank). The last industrial action took place in the year of 2009. The CWU representatives made it clear that they strongly oppose any move of the Government to privatise the Royal Mail either by selling shares or by outright sale to other private Postal giants. Wage revision is done every year though negotiations.

The workers of the Royal Mail have full political freedom and the CWU leadership at present is joining hands with British Labour Party. Members can have their own political freedom to join any party of their choice.

It is worth mentioning here, that the Royal Mails pays maximum attention for customer satisfaction and is very much concerned with the quality and security of services. Premises of all the centres are kept neat and tidy and state of the art facilities are provided to the public. While discharging the corporate social responsibility in a most commendable manner, they are equally concerned with Revenue protection. Every safeguard is taken to prevent revenue leakage and they are updating the technology for preventing revenue leakage.

In short the visit to Royal Mail provided us an opportunity to understand the development that are taking place in the Postal Sector in a most advanced and developed nation like Britain and especially in London. While opposing the unbridled reforms and liberalization, there are of course, certain positive aspects which are to be deliberated upon, before putting it into practice in our country.

The delegation had an opportunity to visit some important tourist attractions of city of London like Tower of London, London Eye etc. The delegation left for in India on 23rd October and reached New Delhi on 24th October 2010. The guidance given by the Leader of Team Sri. A. K. Sharma, DDG (Estt.) and Sri. Subash Chander, Director (SR & Legal) is to be worth mentioned.

Saturday, October 23, 2010

French Senate passes pension overhaul

Under pressure from the govt, the French Senate voted to raise the retirement age to 62 from 60, a victory for Prez Nicholas Sarkozy  after days of street rage, acrimonious debate and strikes that dried up the supply of gasoline across the country.
Friday's vote all but sealed passage of the highly unpopular measure, but it was unlikely to end the increasingly radicalized protests.
The coming days promised more work stoppages and demonstrations by those who feel changing the retirement age threatens a French birthright.

Sarkozy made overhauling the money-losing pension system a centerpiece of his project to modernize France.

Undaunted by weeks of strikes, he ordered measures to unblock fuel depots and refineries to get gas flowing again to desperate motorists.

"History (will remember) who spoke the truth," Sarkozy declared during a visit Friday to a factory in central France.

With about a quarter of gas stations on empty - down from a third earlier in the week- motorists have been forced to reinvent their lives, particularly at the start of a school vacation period Saturday.

Hours before Friday's vote, riot police forced the reopening of a strategic refinery to help halt crippling fuel shortages.

The impact on the crucial energy sector was an ominous specter for whole sectors of the economy.

Employment Minister Laurent Wauquiez said this week that 1,500 jobs have been lost daily since the strikes began in earnest on 12th Oct.

Friday's vote came after some 140 hours of debate, with senators casting ballots by hand into a large green urn, approving the bill 177-153.

The measure is expected to win final approval by both houses of parliament next week.

Sarkozy's conservative government cut short the debate via a constitutional article that accelerates the process and gives the government final word on which of more than 1,000 amendments will get into the bill.

He accused strikers of holding the French and their economy "hostage."

Speaking before the Senate vote, Labor Minister Eric Woerth said the day will come when opponents of the change "will be grateful to the president, to the government and the parliamentary majority for having had the courage to fully assume their responsibilities."

Leftist critics called the move a denial of democracy by an increasingly confrontational president.

"No, you haven't finished with retirement. You haven't finished with the French," said Socialist Sen. Jean-Pierre Bel, alluding to an apparently unflagging determination by unions, now joined by students, to keep protests alive - even through the upcoming week of school holidays.

Students planned to block schools Tuesday, and unions scheduled strikes and protests for Thursday and again 6th Nov.

Sarkozy says overhauling the pension system is vital to ensuring benefits for future generations.

Many European governments are making similar choices as populations live longer and government debts soar.
French unions say the minimum retirement age of 60, in place since 1982, is a hard-earned right and maintain the working class will be unfairly punished.

Many fear it is also a first step to dismantling an entire network of benefits, including long vacations and state-subsidized health care, that make France an enviable place to work and live.
Guy Fischer, a Communist senator, denounced the pension overhaul as "brutal, unjust and inefficient."
Like other critics, he said that under the proposal, 85 percent of costs are paid by workers, leaving companies off the hook.

The legislation phases in the new system, with retirement at 62 in force in 2018.

It also raises the age for retirement with full benefits from 65 to 67.

Hours before the Senate vote, helmeted riot police in body armor shoved striking workers aside to force open the gates of the Total SA refinery at Grandpuits, east of Paris, one of four refineries in the Paris region.

A bastion of resistance, Grandpuits had been shut down for nine days - one of the nations' 12 refineries on strike.

"The strikers have opened the valves," said Franck Monchon, a delegate of the hard-line CGT union.

Protesters symbolically burned a coffin after the police intervention.

Despite the government's efforts to conquer union resistance, Prime Minister Francois Fillon said it would take several days to end gasoline shortages.


Friday, October 22, 2010

French unions plan more strikes

French trade unions called late Thursday for more nationwide strikes and street protests against President Nicolas Sarkozy's pension reform, as the Senate prepared to vote on the measure.
A seventh day of strikes and protests is to be held October 28, and more street demonstrations were scheduled for November 6, Marcel Grignard, national secretary of the CFTD union, told journalists in Paris.
The decision was announced as the protest movement continued to disrupt the country's economy. Demonstrators briefly blockaded Marseille-Provence Airport early Thursday while truck drivers again obstructed traffic on about a dozen motorways.
Environment Minister Jean-Louis Borloo said Thursday afternoon that 2,790 of France's 12,300 service stations were without gasoline. That was about 400 fewer than on Wednesday.
He also told senators that 14 of the country's important fuel depots remained blockaded.
"Of the very important 92 or 93 (fuel depots), there are no more than 14 that are blockaded, 12 of which in the refineries" whose workers have been on strike since October 12, he said.
Blockades at seven other depots were forcibly lifted overnight after Sarkozy ordered police to take action to ensure that gasoline is widely available.
The gasoline shortages come ahead of school holidays and could affect many travel plans.
The Senate was working swiftly to pass the measure, which gradually raises the retirement age from 60 to 62 by the year 2018.
The ruling UMP party initiated a parliamentary maneuver to speed the vote so it could be held before the weekend.
Meanwhile, French firms were beginning to add up the costs of the strikes. Air France said Thursday that it had lost about $34 million in two months because of the numerous job stoppages.
Citing a spokesman for the industry, French media reported that chemicals producers were losing about $135 million a day because of the strikes and protests. (RBY-22/10)

Thursday, October 21, 2010

200 year-old tunnel found in Mumbai. (with Videos)

Mumbai:  An ancient tunnel dating back 200 years was discovered on the premises of the General Post Office (GPO) at CST in Mumbai on Monday (19.10.10).

MiD DAY learnt about this slice of history and informed the GPO authorities three days ago. Initially, the authorities refused to believe that they could be sitting, in more ways than one, on such an ancient passageway.

Chief Postmaster General (Maharashtra & Goa) Faiz ur Rehman was not amused when he was first told about the tunnel. "In the last 25 years that I've been working at this building, I've never heard about any such thing," said Rehman. "We'd like to confirm any such existence before making any comments to the media."

Yesterday ie) 19.10.10, Rehman, who was in Aurangabad, told, "It's like a treasure for the GPO. We are thankful to MiD DAY for bringing this fact to our notice and want to explore it as much as we can to understand what it could have been for ages together,". "We will seek assistance from the heritage department and others concerned to unearth this mystery."

With other senior officials at the GPO, it was a similar tale of disbelief turning into surprise. "Neither have I ever heard of any such a passageway," said Postal Director Abha Singh who later said she admitted that the entire area surrounding the GPO may be steeped in history. "Truly, it's a treasure and we'd love to preserve it," said Singh. She hoped that the passage could someday be converted into a museum and thrown open to the public.

Acting on a tip-off by this correspondent, Postal Director Abha Singh and a few employees started making enquiries with liftman S S Jadhav who has been employed with the department for 26 years. Jadhav confirmed having learnt of such an underground opening. Along with Jadhav and a few other employees, MiD DAY went to a garden in front of the building. There, we came across a cement structure covered with a lid and a flowerpot placed on it. It took at least three people to open the lid.

Inside was a rusted iron ladder, leading to a muddy floor. None of the people around mustered courage to step in. There were two other openings leading below each within a few metres of the other.  Postal Director Abha Singh gets the employees to open the lid in a garden in front of the GPO building.

A BMC drainage cleaning employee, who was at the spot, confirmed to MiD DAY that it could not be a drainage tank, as there was no foul stench of gas being emitted from the opening. "I know each and every underground passage in front of the GPO but I've never come across anything like this before," he said.

Finally, postal employee Devji Waghela dared to enter, armed with an emergency lamp. "The mouth of the tunnel is wide open and any person can walk inside," said Waghela. "Neither did I feel suffocated nor was the place stinking. I could see mud all over the place." Waghela said he flashed the lamp he had and he could see a walkway-like passage flanked by strong walls as far as the eye reached.

Chairman of Mumbai Heritage Committee, Dinesh Afzalpurkar, said he would ask his officials to visit the site and study if the place has any historical background.

Assistant Director of the state Archaeological Department, Balchandra Kulkarni, said, "It would truly be a great contribution by MiD DAY if this leads to a forgotten treasure from the British era."Kulkarni said the tunnel could either be a drainage line used during the British era or an escape route. Kulkarni, who has studied Mumbai's forts said the British feared an attack by Napoleon and had constructed an underground escape route stretching from Apollo Bunder to where the Bombay High Court stands and St George's Fort (covering St George Hospital to Masjid Bunder).

A 1.5-km tunnel also exists in the adjacent St George Hospital's ward number 5. "I have studied the St George fort passageway which opens inside St George Hospital but that passage connects to a dead end and nothing concrete could be concluded from there," said Kulkarni.

History check
The British who were ruling Bombay during the 18th century feared that Napoleon would attack Bombay. In order to protect themselves, they constructed an underground escape passage route called Bombay Fort. However, Napolean was defeated in the Battle of Waterloo in 1815.

1862 - Year the Bombay Fort was demolished by the British
1913 - Year the GPO building was erected.

Source :
The tunnel-like structure has attracted much media interest
An ancient "tunnel-like" structure has been unearthed in the garden of the General Post Office in the Indian city of Mumbai (Bombay).The authorities say it is clear that the previously undiscovered structure is not a sewage or storm-water drain. It was only revealed when a local newspaper reporter asked to see it.
The post office was built 97 years ago.
Chief Postmaster General Faiz-ur-Rehman told the BBC that the discovery of the structure came as a surprise. "When we managed to open it there was no foul smell. We have called in the experts now and they will establish whether it connects anywhere else."
Source : - By Prachi Pinglay BBC News, Mumbai.
For Videos,
01. Inside Tunnel Video.
02. Ms.Abha Singh, Director, Mumbai GPO - Press meet.

Wednesday, October 20, 2010

The Reserve Bank of India has given permission to the Department of Posts (DoP) to launch its prepaid debit card, in partnership with Master Card

The Reserve Bank of India has given permission to the Department of Posts (DoP) to launch its prepaid debit card, in partnership with Master Card, which will allow customers to purchase products from all major retail outlets across the country.

The prepaid debit card by India Post would have a minimum value of Rs 1,000 and a maximum of Rs 50,000, a senior official from the department told Business Standard. Subsequently, the cards will be topped up with the required value.

The customers would also be able to withdraw money from ATMs using the new card from DoP. It could also be used for making online transactions, for mobile commerce and to facilitate electronic money transfer.

"The department has already received all the requisite approvals from RBI for the launch of the card and we expect to commercially announce it within a few months," the official said. DoP might also rope in a bank as partner in the venture, the official added, refusing to divulge further details.

The nature of the card would be in line with debit card offered by different banks. The software for the solution would be offered by one or more banks, while the required infrastructure and staff would be provided by the postal department.

According to the request for proposal issued by the department earlier this year, "the card (magnetic stripe-based) could be operated at merchant establishments or ATMs, where Master Card is acceptable, and in various post offices. Up to four add-on cards are proposed to be issued to one customer, along with the primary card."

The debit card would be issued to customers by major post offices, after a payment of activation fees and the amount to be loaded on to the card.

The official said such cards could also be used by organizations for giving allowances and other benefits to their employees.

Business Standard

Monday, October 18, 2010

IndiaPost gets IRDA nod to sell insurance policies
India’s largest distribution network with 1.55 lakh offices has been thrown open to the insurance industry with the industry regulator allowing IndiaPost to sell policies of multiple insurance companies.
This opens a new distribution channel for insurers who have been desperately trying to poach bank distributors from rivals to increase their reach.

Insurers now expect a battle for prime circles, given that the Insurance Regulatory and Development Authority (IRDA) has limited the number of companies that each postal circle can tie up with.

The revised guidelines allow each of the 22 circles of Indiapost to act as a corporate agent of two non-life insurers, two life insurance companies, one agricultural insurance company and one stand alone health insurance company. The regulator has however barred IndiaPost from selling customer data to insurance companies under some referral arrangement.

In its revised guidelines released last week, IRDA said, “Each circle of India post should be treated as a separate unit in order to grant independent corporate agent licence with various insurers.

However the Head of ‘Circle’ may approach IRDA for prior approval of further division in the ‘Circle’ as separate units, in the case of metropolitan areas, to obtain licence to act as corporate agent, in view of the large population under the circle,” said IRDA in its circular.

IRDA has said that the head of the circle would be deemed to be the corporate insurance executive (CIE) — the key executive responsible for all insurance agency dealings.

“Also, all the permanent employees of the India Post having an educational qualification of 10+2 or equivalent shall be deemed to be complying with the relevant provisions regarding requirements of minimum educational qualification, training and examinations prescribed for ‘Specified Persons’.

In this regard, India Post shall take necessary steps to impart required training to its permanent employees to be designated as ‘Specified Persons’ within a period of one year from commencement of corporate agency, IRDA said.
Corporate agency guidelines prevent banks from selling products of two competing firms.

Given the limited number of banks, insurance companies have been struggling to find low-cost institutional distributors with a pan-India reach.

The dispensation will also give the department of posts a new revenue stream. The postal department which had ambitions of becoming major distributors of financial products stopped selling mutual funds of most companies after a ban on front-loads resulted in commissions disappearing. (Economic Times dated 18-10-2010)

Friday, October 15, 2010


Thursday, October 14, 2010


D.G. Posts No. 6-11/2009-PE-II dated 30.09.2010.

            I am directed to refer to this office letter of even no. dated 01.09.2010, on the above mentioned subject.

2.         A specific time frame on course of action to be taken was indicated in the above said letter for action by the Divisional Heads and Director of Accounts Postal. The time frame set was:

Course of action
Time-frame by which action to be completed.
Collection of Option from Gramin Dak Sevaks & Obtaining applications from willing Gramin Dak Sevaks to join Service Discharge Benefit Scheme (SDBs)
Dispatch of applications obtained from Gramin Dak sevaks to the concerned facilitation centres of Central Record Keeping Agency (CRA) by Divisional Offices.
Dispatch of applications in from NL-CC by Divisional heads to concerned DA(P)
Dispatch of completed and authorized NL-CC applications and NL-AO applications to Directorate by Director of Accounts Postal.

3.         The Directorate has not received response from any Circle so far. The acknowledgement for the communication dated 01.09.2010 was received from Gujarat, MP, Orissa, and UP Circle only.

4.         The applications of Divisional  Heads for registration as Collection Centres are supposed to be sent to concerned DAPs for counter signature and onwards submission to Directorate by 25.09.2010.No DAP in the country has so far sent the applications for registration as Collection Centres and Accounts Offices. This is a time bound issue on which the Department has given an assurance to Parliamentary Standing Committee on Ministry of Information and Technology.

5.         The Circles Heads are requested to expedite submission of the applications of concerned Divisional Heads for registration as Collection Centres and also that concerned DAPs for registration as Accounts Offices to reach Directorate immediately for submission and Development Authority (PFRDA).

6.         Action is required to be for obtaining the options and applications of Gramin Dak Sevaks and their submission to concerned Central Record Keeping Agency (CRA) facilitation centre for issue of digitized smart cards. The applications have to be forwarded to concerned Central Record Keeping Agency (CRA) by 10.10.2010 along with the details of GDS opting for the scheme in the prescribed proforma.

7.         The Circle Heads are requested to send compliance on para 5 and 6 immediately for submitting the position to Secretary (Posts).

(A.K. Sharma)
Deputy Director General(Estt.)
Recent orders on GDS appointment
Modified instructions on Recruitment of GDS through Employment Exchange - Clarification of term "Effective No. of Candidates"

Attention of all concerned is invited to Para 3 of this Dte Order No. 19-4 / 97-ED & Trg Dt 19.08.98 which provided that "in case the notification and public advertisement so issued fail to elicit any response within the stipulated date or if the effective number of candidates applied for the post is less than 3, the vacancies will be re-notified to the Employment Exchange & fresh advertisement issued calling for nominations etc within 15 days"
2. The term "effective No. of candidates / applications" has undergone judicial scrutiny by CAT, Hyderabad in OA No. 516 / 2009 in the matter of Shri.Chennuri Raju vs Union of India & relying on judgment of High Court of Madras in WP No. 22500 & 20422 / 1999 in similar case CAT, Hyderabad has held in its judgment on 15.06.10 that "three effective applications mean three applications should be received and even if one of the candidates amongst the three applicants is eligible, the selection should be finalized"
3. The issue has been considered in this Dte in the light of the aforesaid judgment and I am directed to convey that term "effective No. of Candidates" finding a mention in the order of this Dte ibid may be interpreted to mean that three applications from the different candidates should be received and even if one of the candidates amongst the three applicants is found eligible, the selection should be finalized in conformity with the interpretation as referred to in Para 2 above.
DG (P) Letter No: 19-27 / 2010-GDS Dt. 07.10.10.

Deduction of TDS, filing of TDS return and issue of TDS certificate to SAS Agents/ MPKBY Agents.

Now one can find one more addition on the web site.  During the course of a Workshop in Chandigarh there was a request to upload the SB Orders on the official web site of Department of Posts to ensure advance information and wider reach.  DDG Financial Services had agreed to the suggestion / request and now all SB Orders issued by the Department since 2007 onwards can be assessed at  This will go a long way to ascertain latest position with regard to SB orders.    

An analysis of all SB orders uploaded on the web site reveals that more than 40% of all SB orders have been issued just to fine tune the orders on TDS.  The latest order which supercedes  all previous orders on the subject is given below:  [  This SB Order is also available on ]

SB ORDER NO. 20/2010

Government of India
Ministry of Communications & IT
Department of Posts
Dak Bhawan, Sansad Marg,
New Delhi-110016.
Date: 21.09.2010
To All Heads of Circles/Regions Addl. Director General, APS, New Delhi.
Subject:-Deduction of TDS, filing of TDS return and issue of TDS certificate-regarding.
Sir / Madam,
The undersigned is directed to refer to this office SB Orders issued on the above subject from time to time. This order will supersede all the previous orders issued on TDS in small savings schemes.
2. There are two small savings schemes which are covered under the TDS regime. First is NSS-87 for which provisions of Section 194EE of the Income Tax Act are applicable. The second is SCSS-2004 for which provisions of Section 194A are applicable. Department is also liable to deduct TDS on the commission paid to agents appointed under SAS, MPKBY and PPF schemes for which provisions of Section 194H are applicable. Detailed provisions under above three categories are given below:-
(i) NSS-87 (Section 194EE)
As per Section 194EE, the person responsible for paying to any person any amount exceeding Rs.2500/- in a financial year has to deduct TDS @ 20%. No TDS is to be deducted if the payee gives declaration in Form 15-G that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be NIL. In case of Sr. Citizens of the age of 65 years or above age, declaration should be in Form 15-H. These declarations can be given only if the total amount receivable does not exceed the maximum amount which is not chargeable to income Tax i.e Rs.1,60,000/- in case of individuals, Rs. 1,90,000/- in case of women and Rs.2,40,000/- in case of persons of 65 years or above age. No surcharge or education cess and Secondary education cess is to be charged. The tax is to be deducted at the time of payment either in cash or by cheque or by credit into savings account or by any other mode whichever is earlier.
(ii) Sr. Citizen Savings Scheme (Section 194A)
As per Section 194A, any person who is responsible for paying interest other than interest on Securities to a resident shall be required to deduct tax at source @ 10% if the amount of interest exceeds Rs.10,000/- in a financial year. No TDS is to be deducted if the payee up to the age of 65 years gives declaration in Form 15-G that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be NIL. In case of Sr. Citizens of the age of 65 years or above age, declaration should be in Form 15-H. These declarations can be given only if the total amount of interest receivable does not exceed the maximum amount which is not chargeable to income Tax i.e Rs.1,60,000/- in case of individuals, Rs. 1,90,000/- in case of women and Rs.2,40,000/- in case of persons of 65 years or above age. No surcharge or education cess and Secondary education cess is to be charged. TDS is to be calculated o whole amount of interest paid if the same exceeds Rs.10,000/- in a financial year. The tax is to be deducted at the time of payment either in cash or by cheque or by credit into savings account or by any other mode whichever is earlier.
(iii) Agent Commission (Section 194H)
As per Section 194H, any person who is responsible for paying to a resident, by way of commission, shall at the time of payment either in cash or by cheque or by credit into savings account or by any other mode whichever is earlier, deduct income tax at the rate of 10% if the total amount of commission in a financial years exceeds Rs.5000/-.
(iv) Rate of TDS if certificate under Section 197 is produced.
If a certificate from Assessing Officer under Section 197 is produced, the payee shall deduct TDS @ mentioned in the certificate or shall not charge any TDS if the same is exempted in the certificate.
Deposit of TDS, filing of TDS return and issue of TDS certificate.
Deposit of TDS

As per Notification No. 41/10 [ F.No.142/27/2009-SO(TL)] dated 31.5.2010, from 1st April 2010, TDS deducted by Government Department has to be deposited by Book Entry Challan in the form of a statement in Form No.24G within ten days from the end of the month to the agency authorized by Director General of Income Tax (Systems) in respect of tax deducted by the deductors and reported to him for the month and intimate the number (Book Identification number) generated by the agency to each of the deductors in respect of whom the sum deducted has been credited.
(ii) Filing of TDS return
Date of ending financial year
of the quarter of the
Due Date
30th June
15th of July
30th September
15th October
31st December
15th January
31st March
15th May of the Financial Year immediately following the financial year in which deduction is made.
All tax deductors have to file Quarterly return. In case of TDS deducted from NSS/SCSS depositors and agent’s commission, return has to be filed in Form 26Q. The time schedule of filing return for the TDS

(iii) Filing of e-returns of Tax deducted on or after 1st April 2010.
(a)      As per Notification No. 41/2010[F.No.142/27/2009-SO(TL)] dated 31.5.2010, in case TDS deductor is an office of Government, e filing of return is compulsory. The tax collector at the time of preparing statements of tax deducted shall:-

(i)       quote his tax deduction and collection account number (TAN) in the statement.
(ii)      quote Permanent Account Number (PAN) of all collectees.
(ii)      furnish particulars of the tax paid to the Central Government including Book Identification Number.
(b)      For preparation of e-TDS return, the return should be prepared in one of the authorized media i.e Floppy, CD-DOM or on-line transmission of electronic data to a server designated by e-filing Administrator. The file should be as per data structure given by the e-filing Administrator. Each computer media used for preparing the e-return should be labeled. The label should indicate Name, Permanent Account Number and address of deductor.
(c)      As per CBDT Press Release No. 402/92/2006-MC (27 of 2010), dated 2.6.2010, Government Authorities (Pay and Accounts Officer or Treasury Officer or Cheque Drawing and Disbursing Officer) responsible for crediting tax deducted at source to the credit of Central Government by book-entry are now required to electronically file monthly statement in a new form No.24G containing details of credit of TDS to the agency authorized by Director General of Income Tax (Systems).
(iv)     TDS Certificate  :  Form in which certificate of TDS deducted is required to be issued quarterly is Form 16A in case of NSS/SCSS and Commission paid to agents. The format of form 16A has been revised vide CBDT Notification No. 41/2010 [F.No. 142/27/2009-SO(TPL)] dated 31.5.2010. The certificate has to be prepared in two copies i.e original copy for payee and duplicate as office copy. Duplicate copy of TDS certificate can be issued with same details as in the original if original is lost on making application by the depositor/agent. On duplicate certificate, “DUPLICATE” should be clearly marked on top in bold letters. It has now become mandatory to specify the following information in the Form 16A:-
Valid TAN no. of the deductor
Book Identification Number.
Receipt number of the Form 24G
DDO Sequence number in the Book Adjustment Mini Statement.

TDS certificate has to be issued on quarterly basis from 1.4.2010 and due date for issue of TDS certificate is now within 15 days from the due date for furnishing the quarterly statement of TDS. This certificate should be prepared and handed over to the customer or agent within this specified period. If the customer/agent failed to receive the certificate personally, it should be sent to customer/agent by ordinary post at the last available address.
4. Penalties
Following are the provisions of penalties in various Sections of Income Tax Act:-
Non deduction of tax at source
Equal to the tax not deducted at source
Form 15G/Form 15H not delivered to the Income Tax department
Rs.100/- per day but penalty not to exceed the amount of tax deductible.
Failure to issue TDS Certificate
Rs.100/per day of default subject to  maximum of the tax deducted.

Non submission of quarterly Statement
Rs.100/per day of default subject to maximum of tax payable.
Non-intimating PAN to tax deductor.
Rs. 10,000/-
TAN not obtained
Quoting false TAN

5. Collection of PAN or deduction of higher rate of TDS.
As per CBDT Press Release No. 402/92/2006-MC(04 of 2010) dated 20.1.2010;
(i)            a new provision relating to tax deduction at source (TDS) under Income Tax Act 1961 will become applicable from 1st April 2010 according to which Tax at the higher rate of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number(PAN) of the deductee is not available.
(ii)      all deductors are liable to deduct tax at the higher rate in all transactions not having PAN of the deductees on or after 1st April 2010.All deductors are advised to intimate their deductees to obtain and furnish their PAN so as to avoid TDS at the higher rate.

1.                       Birds Eye view of TDS provisions.

Section & payment
Threshold Limit
Any person other than individual
Person responsible for paying amount
Any person
Rs.2500/- in a financial year.
194H(commission to agents)
Any person
Any person
Rs.5000/- with effect from 1st July 2010 in a financial year.
Note:- SCSS-2004 No TDS is to be deducted if the payee up to the age of 65 years gives declaration in Form 15-G that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be NIL. In case of Sr. Citizens of the age of 65 years or above age, declaration should be in Form 15-H. NSS-87 No TDS is to be deducted if the payee gives declaration in Form 15-G that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be NIL. In case of Sr. Citizens of the age of 65 years or above age, declaration should be in Form 15-H. Limit for submitting Declaration The above declarations can be given only if the total amount receivable does not exceed the maximum amount which is not chargeable to income Tax i.e Rs.1,60,000/- in case of individuals, Rs. 1,90,000/- in case of women and Rs.2,40,000/- in case of persons of 65 years or above age.

2.                  Points for immediate Action
Following actions are required to be taken immediately:-
(i)       A notice should be pasted on the notice board placed at public hall of each post office for intimation to the NSS/SCSS account holders and agents in the following language:-
(1)      All NSS/SCSS Account holders who have not given declaration either in Form 15G or 15H, are requested to provide their PAN number to the Postmaster immediately failing which TDS at higher rates or 20% shall be deducted at the time of withdrawal/closure of NSS-87 or payment of quarterly interest of SCSS accounts on 30.9.2010.
(2)      All SAS/MPKBY/PPF agents whose commission in financial year 2010-11 is likely to cross Rs.5000/- should intimate their PAN number to the postmaster by 30th September 2010 failing which TDS @ 20% shall be deducted at the time of payment of next commission at source.
Note:- Higher rate will be higher of the following:-
at the rate specified in the relevant provision of this Income Tax Act

at the rate or rates in force; or
at the rate of twenty (20%) percent.

(ii)          PAN numbers of all above mentioned account holders and agents should be recorded and quoted at the time of preparation of monthly statement in Form 26Q.
(iii)     Obtain BIN (Book Identification number) from the agency authorized by DG of Income Tax (Systems) and mention the same in TDS certificate.
(iv)     Divisional/Regional/Circle offices should contact officers of Income Tax Department and understand the procedure for electronically filing of monthly statement in Form 24G, quarterly return in Form26Q, generation of DDO registration number, Book Identification Number and receipt number of monthly statement etc.
(v)      All SOs are to quote PAN number of each depositor or agent from whom TDS is deducted in the daily schedule to be sent to HPO.
(vi)     All SOs shall prepare schedule of TDS deducted on daily basis in the following format:-
Schedule of tax deducted on the interest paid in SCSS accounts or from NSS87 accounts on ………………………HO/SO
Sl.No .
Name of deposit or
Account number
Amount of interest paid in SCSS/withdrawal from NSS87
Tax deducted Rs.
Permanent Account Number (PAN)
Remark s



Date / Stamp Signature of SPM

a)       The schedule will be prepared in triplicate in sub offices and two copies will sent to HO alongwith forms 15 G and 15 H in support of amount charged in the daily account and SO account. The third copy of the schedule will be filed in a separate guard file to be opened for each financial year. In the Head Office the consolidated schedule will be prepared in triplicate incorporating the transactions of the HO and sub offices as a whole.

b)       The amount of tax deducted will be shown on the receipt side in all the account records under a separate head “Tax deducted on the interest paid in SCSS accounts/W/D from NSS-87.”

(vii)    Similar schedule is also required to be sent to HO by SOs in case of commission paid to agents in the following format:-
Schedule of commission paid and Tax deducted (TDS) from the agents on…………. ……………………… SO
Name of agent
Permanent Account Number (PAN)
Account number/certificate Registration number
Amount invested
Amount of commission paid
Tax deducted Rs.

Date / Stamp Signature of SPM
(viii) HO shall prepare consolidated schedules including HO as well as SOs transactions of SCSS accounts/NSS-87 withdrawal/agent commission paid from which TDS was deducted separately and on the basis of this schedule file monthly/quarterly return of TDS deducted electronically.
(ix) TDS certificates in new Format of Form-16A will be prepared by each HO and forwarded to concerned SOs on quarterly basis.

This issues with the approval of DDG(FS). Yours faithfully,

(Kawal Jit Singh)
Assistant Director (SB)

Encl:- Format of 24G, 26Q and revised Form 16A