Showing posts with label Encashment. Show all posts
Showing posts with label Encashment. Show all posts

Saturday, October 23, 2010

How to calculate the amount of Encashment of Leave Salary...





How to calculate the amount of Encashment of Leave Salary...





Here we have taken for reference the Office Order issued by Ministry of Labour & Employment, Labour Bureau dated on 23.09.2010.





In this order the department calculate the encashment of leave salary for 300 days earned leave for an employee, who retired on 31.08.2010. [As per the Rule 39(2) C.C.S. (Leave) Rules, 1972 - DOPT Office Memorandum No.14028-7-97-Estt(L) dated 7th October, 1997]





The Calculation of leave salary is as under :-





Earned leave standing at the credit on the date of retirement = 300 days.





















Pay 16290
Grade Pay 4800
DA @ 45% as on 1.7.2010 9491
Total 30581




Calculation for 300 days...








30581 X 300 / 30 305810






Total Leave Salary admissible = Rs.3,05,810


(Rupees Three Lakh five thousand eight hundred ten only)



To view the Office Order click here


Saturday, December 5, 2009

Amendment in the Central Civil Services (Leave) Rules, 1972





Government of India

Ministry of Personnel, Public Grievances and Pensions

(Department of Personnel and Training)

NOTIFICATION



New Delhi, the, 1st December, 2009.



GSR… In exercise of the powers conferred by the proviso to article 309 read with clause (5) of article 148 of the Constitution and after consultation with the Comptroller and Auditor General of India in relation to the persons
serving in the Indian Audit and Accounts Department, the President hereby makes the following rules further to amend the Central Civil Services (Leave)Rules, 1972, namely: –



1.(1) These rules may be called the Central Civil Services (Leave)
(Amendment) Rules, 2009.

(2) They shall come into force on the date of their publication in the
Official Gazette.



2. In the Central Civil Services (Leave) Rules, 1972, (hereinafter referred to
as the said rules), for rule 6 the following rule shall be substituted, namely, –
“6. Transfer to industrial establishment.– If a Government servant governed by these rules is appointed in an industrial establishment wherein his leave terms are governed by the Factories Act, 1948 (63 of 1948), the authority competent to grant leave shall, suo motu, issue an order granting cash equivalent of leave salary in respect of earned leave and half pay leave at his credit subject to a maximum of 300 days and the cash so granted shall be a sum equal to the leave salary as admissible for earned leave and leave salary as admissible for half pay leave plus dearness allowance admissible on that leave salary at the rate in force on the date the Government servant ceases to be governed by the provisions of the said rules:


Provided that in the event of his return to a post or service to which the Central Civil Services (Leave) Rules, 1972 apply, the benefit of cash equivalent of leave salary payable under rule 39 shall be modified as under –


(a) On superannuation .- encashment of leave shall be subject to the condition that the number of days of both earned leave and half pay leave for which encashment has already been allowed under this rule and the number of days of earned leave and half pay leave to be encashed on superannuation does not exceed 300 days;



(b) On premature retirement.- cash equivalent of unutilised earned leave and half pay leave should be subject to the condition that the number of days of earned leave and half pay leave for which encashment had already been allowed under this rule and the number of days of earned leave and half pay leave to be encashed on premature retirement shall not exceed 300 days.”.




3. In the said rules, for rule 28, the following rules shall be substituted,
namely, –


‘28. Earned leave for persons serving in Vacation Departments. –
(1) (a) A Government servant (other than a military officer) serving in a
Vacation Department shall not be entitled to any earned leave in respect
of duty performed in any year in which he avails the full vacation;




(b) In respect of any year in which a Government servant avails a portion of
the vacation, he shall be entitled to earned leave in such proportion of 30 days,
as the number of days of vacation not taken bears to the full vacation:




Provided that no such leave shall be admissible to a Government
servant not in permanent employ or quasi-permanent employ in respect
of the first year of his service ;



(c) If, in any year, the Government servant does not avail any vacation,
earned leave shall be admissible to him in respect of that year under rule
26.



EXPLANATION: For the purpose of this rule, the term “year” shall be
construed not as meaning a calendar year in which duty is performed but as
meaning twelve months of actual duty in a Vacation Department.



NOTE 1. – A Government servant entitled to vacation shall be considered to
have availed a vacation or a portion of a vacation unless he has been required
by general or special order of a higher authority to forgo such vacation or
portion of a vacation



Provided that if he has been prevented by such order from enjoying
more than fifteen days of the vacation, he shall be considered to have
availed himself of no portion of the vacation.



NOTE 2. – When a Government servant serving in a Vacation Department
proceeds on leave before completing a full year of duty, the earned leave
admissible to him shall be calculated not with reference to the vacations which
fall during the period of actual duty rendered before proceeding on leave but
with reference to the vacation that falls during the year commencing from the
date on which he completed the previous year of duty.




(2) Vacation may be taken in combination with or in continuation of
any kind of leave under these rules:



Provided that the total duration of vacation and earned leave taken
in conjunction, whether the earned leave is taken in combination with or
in continuation of other leave or not, shall not exceed the amount of
earned leave due and admissible to the Government at a time under rule
26.


(3) The earned leave under this rule at the credit of a Government servant at
the close of the previous half year shall be carried forward to the next half
year, subject to the condition that the leave so carried forward plus the credit
for the half year shall not exceed the maximum limit of 300 days.



NOTE. – The facility of crediting of unavailed portion of joining time shall be
admissible to persons serving in Vacation Departments, in accordance with
the provisions of sub-clause (ii) of clause (a) of sub-rule (1) of rule 26.”.



4. In the said rules, in rule 29, for sub-rule (1), the following sub-rule shall
be substituted, namely:-



“(1) The half pay leave account of every Government servant (other
than a military officer) shall be credited with half pay leave in advance,
in two installments of ten days each on the first day of January and July
of every calendar year.”.



5. In the said rules, in rule 38-A, –
(a) sub rule (1) shall be omitted;



(b) for sub-rule (5), the following sub-rule shall be substituted, namely:-



“(5) The period of leave encashed shall not be deducted from the
quantum of leave that can normally be encashed by him under rules 6,
39, 39-A, 39-B, 39-C and 39-D.”.



6. In the said rules, in rules 39, –



(a) for sub-rule (2), the following sub-rule shall be substituted, namely, –



“(2) (a) Where a Government servant retires on attaining the normal age
prescribed for retirement under the terms and conditions governing his service,
the authority competent to grant leave shall, suo motu, issue an order granting
cash equivalent of leave salary for both earned leave and half pay leave, if
any, at the credit of the Government servant on the date of his retirement
subject to a maximum of 300 days;


Click to view the OM

Tuesday, November 24, 2009

Encashment of earned leave alongwith LTC -Clarification





NO. 1402812/2009-Estt.(L)



GOVERNMENT OF INDIA



Ministry of Personnel, Public Grievances & Pensions



Department of Personnel & Training



2nd Floor, Loknayak Bhavan, Khan Market

New Delhi, the 24th November, 2009



OFFICE MEMORANDUM







Subject:- Encashment of earned leave alongwith LTC -Clarification






The undersigned is directed to refer to DOP&T
0.M.No.310111412008-Estt.(A), dated 23rd September, 2008
allowing encashment of earned leave alongwith LTC and to say
that various references are being received from
MinistriesIDepartments with regard to the applicability of Rule
38-A of the CCS (Leave) Rules, 1972 to the Central Govt.
employees. In this regard it is clarified that



(1) Central Govt. employees governed by CCS (Leave)
Rules, 1972 who are entitled to LTC but opt for the
facility of LTC provided to their spouses employed in
PSUslCorporationlAutonomous Bodies etc. and



(2) Central Govt. employees governed by CCS (Leave)
Rules, 1972 who are otherwise not entitled to LTC, on
account of their spouse being employed in Indian
Railways/National Airlines who are entitled to privilege
passeslconcessional tickets



are entitled to leave encashment while availing the LTC facility
of their spouselprivilege passes/concessional tickets of their
spouse on fulfillment of all the conditions as stipulated in Rule
38-A of the CCS (Leave) Rules, 1972 twice in a four years block
of LTC.

Thursday, November 19, 2009

Recommendations of the Sixth Central Pay Commission relating to encashment of leave in respect of Central Government employees.





N0.14028/3/2008-Estt.(L)



GOVERNMENT OF INDIA



Ministry of Personnel, Public Grievances & Pensions



Department of Personnel & Training



2nd Floor, Loknayak Bhavan, Khan Market

New Delhi, the 16th November, 2009



OFFICE MEMORANDUM







Subject:- Recommendations of the Sixth Central Pay Commission relating to encashment of leave in respect of Central Government employees.






The uudersigned is directed to refer to this Department's O.M. of even number dated 25th September, 2008 on the subiect mentioned above according to which encashment of leave in respect & central Government employees will be considered both for earned leave and half pay leave subject to overall limit of 300 days and in respect of encashment of half pay leave, no reduction shall be made on account of pension and pension equivalent of other retirement benefits. In case of shortfall in earned leave, no commutation of half pay leave is permissible. The order was made effective from the lst September, 2008. The matter was reconsidered in this Department in consultation with the Department of Expenditure (Implementation Cell) and it has been decided to modify the date of effect of this Department's 0.M of even number dated 25th September, 2008 to "01.01.2006 instead of 01.09.2008 subject to the following conditions:-


(i) The benefit will be admissible in respect of past cases on
receipt of applications to that effect from the pensioners
concerned by the Administrative Ministry concerned.


(ii) In respect of retirees who have already received encashment
of earned leave of maximum limit of 300 days together with
encashment of HPL standing at their credit on the date of
retirement, such cases need not be reopened. However, such
cases in which there was a shortfall in reaching the maximum
limit of 300 days can be reopened.


(iii) Calculation of cash equivalent in respect of HPL at credit shall be made mutatis mutandis in the manner given in this
Department's O.M. of even number dated 25.09.2008.


2. In respect of persons serving in the Indian Audit & Accounts
Departments, these O.M. issues with the concurrence of the Comptroller and
Auditor General of India.

Wednesday, June 3, 2009

Encashment of earned leave along with Leave Travel Concession while in service.

No.14028/4/2009-Esst.(L)


Government of India


Ministry of Personnel & Training


****


New Delhi, the 3rd June, 2009.


Office Memorandum



Subject: Encashment of earned leave along with Leave Travel Concession while in service.


****





The undersinged is directed to refer to Rule 38-A of CCS (Leave Rules, 1972 regarding encashment of earned leave alongwith LTC while in service which says that Government servants are permitted to encash earned leave upto 10 days at the time of availing Leave Travel Concession subject to the condition that earned leave of at least an equivalent duration is also availed of by the Government servant simultaneously. This Department has been receiving a number of references from various faced by them as the facility of LTC is also admissible while availing Casual Leave.



2. The matter has been examined in this Department in consultation with the Ministry of Finance and it has now been decided to permit Government servants encashment of earned leave upto 10 days at the time of availing LTC without any linkage to the number of days and the nature of leave availed while proceeding on LTC.



3. These orders shall take effect from the date of issue.



4. Formal amendment to the provisions of CCS(Leave) Rules, 1972 are being issued separately.



5. Hindi version will follow.




(Simmi R.Nakra)

Director




Wednesday, April 8, 2009

Income Tax for Leave Travel Concession Amount and Encashment Leave Amount





Income Tax for Leave Travel Concession Amount

The LTC that you get is fully exempt from Income Tax, provided it satisfies certain conditions. Here are the conditions.

The amount is actually spent on travel:

You have to actually spend this amount on transportation. The spending cab be for you and your family members, but you have to be one of the travelers.

Here, family means spouse and children (including adopted children and stepchildren). Parents, brothers and sisters are also included if they are dependent on you.


It has to be for transportation:

The amount has to be spent on transportation either Air, Rail or Road.

Any amount spent for lodging and boarding is not considered. Thus, food related expenses and hotel expenses are not exempt from income tax.

Also, this exemption is for primary travel between your city of stay and your destination. Other travel expenses like taxi / cab fare, auto fare, etc, can not be claimed as exempt. The travel has to be within India, foreign travel is not considered.

Carry forward of LTC benefits:

What if you can not claim LTC exemption for some reason? No need to worry. The exemption doesn’t lapse, ti can be carried forward to the next block of four years.

The only condition in this case is that the exemption has to be availed in the very first year of this subsequent block.

Thus, in this next block, you can claim a total of three exemptions.

Leave encashment – is it taxable?

The amount received from any leave enchased while you are still in service is added to your income, and is fully taxable. It is taxed as per the income tax slab applicable to you.



Wednesday, October 29, 2008

Encahment of leave in respect of Central Government employees





Encahment of leave in respect of CG employees: (Those who are retire after 1.Sep.2008)



Consequent upon the decisions taken by the Govt. relating to encashment of leave, both Earned Leave and Half Pay Leave shall be considered for encashment of leave subject to overall limit of 300 days.
The cash equivalent payable for Earned Leave shall continue unchanged.



The cash equivalent payable for Hal Pay Leave shall be equal to leave salary as admisible for Half Pay Leave plus Dearness Allowance admissible on the leave salary without any reduction being made on account of pension and persion equivalent of other reirement benefits payable.



To make up the shortfall in Earned Leave, no commutation of Half Pay Leave shall be permissible.



The cahs equivalent for half pay leave component shall, henceforth, be calculated in the manner indicated below,Cash payment in lieu of half pay leave component=Half pay leave salary / 30 x Number of days of half pay leave.



These orders shall take effect from 1st september 2008