NAME OS THE SCHOOL……………………………………………………………………………
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DOCUMENTS AVAILABLE IN THE SERVICE FILE
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Date of Application for the Post
of a teacher received on:-
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Experience Certificate (if Any)…………………
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Date of Birth:
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Date of Appointment:
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Date of Confirmation:
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S.No
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DOCUMENTS
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EDUCATION
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ATTACHED
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1
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X
- Mark sheet
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REG□ CROS□
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YES□ NO□
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2
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X
- Passing Certificate
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REG□ CROS□
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YES□ NO□
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3
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XII - Mark sheet
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REG□ CROS□
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YES□ NO□
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4
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XII - Passing Certificate
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REG□ CROS□
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YES□ NO□
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5
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B.A./B.SC./B.COM./ BP.Ed /BCA/
Mark sheet
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REG□ CROS□
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YES□ NO□
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6
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B.A./B.SC./B.COM./ BP.Ed/ BCA/Degree
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REG□ CROS□
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YES□ NO□
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7
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B.Ed./ SAVC/JBT/Bl.Ed/NPTT/TTC/NTT
Mark sheet
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REG□ CROS□
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YES□ NO□
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8
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B.Ed./SAVC/JBT/Bl.Ed/NPTT/TTC/NTT Degree
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REG□ CROS□
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YES□ NO□
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9
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M.A./M.SC./M.COM./MCA/MP.Ed Mark
sheet
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REG□ CROS□
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YES□ NO□
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10
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M.A./M.SC./M.COM./MCA/MP.Ed Degree
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REG□ CROS□
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YES□ NO□
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ANY OTHER DOCUMENTS
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13
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14
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CHAPTER VI: PAY,
ALLOWANCES AND PROVIDENT
FUND
6.0 What is Pay (Salary)
Pay (salary) is a fixed
regular monthly payment made to an employee by an employer for services rendered
involving professional knowledge, skill or office work.
6.1
What is a Pay Scale?
A pay scale is a document or table
designed to determine how much an employee will earn in his or her job. In this
way, the job seeker can get a good idea of how much he or she can expect to
earn while working for the Institution.
(i). The
scale of the pay and allowances shall be those agreed upon by the appointing
authority and the employee.
(ii). The
School shall deduct from the salary of the employee any dues legally recoverable,
and pay them into the Bank of credit the amounts on behalf of the employees.
6.2 Annual Increment
The annual increment is a
yearly increase of some amount, either fixed or variable. Remember, annual
increment of pay shall not be automatic, but will be subject to all – round
good performance of the employee to the satisfaction of the Managing Committee.
6.3
What is Allowance?
An
allowance is an amount of money set aside for a designated purpose. It's
different from money that you earn by working. That money is called
wages.
6.4
What is DA?
Dearness
Allowance is a kind of Allowance given to worker to bear the cost of living due
to the Inflation Rate of the area, so that he / she can at least live his life
in "some comfort".
In India, Dearness Allowance is part
of a person's salary. It is calculated as a percent of the basic salary and then
added to the basic salary along with house rent allowance to get the total
salary.
DA
is a temporary entity of a salary, it was introduced in 50's or 60's (I don't
remember date) and said to be "taken back" in future when the price
of general commodities will decrease, and it has never taken back because of
the rising price of general commodities year after year.
6.5
What is Housing Rent Allowance (HRA)?
HRA
means Housing Rent Allowance. This term is applicable to Indians. If you are
located in India, your salary package may contain additional allowance to help
you pay your housing rent. In most cases government employees have HRA inbuilt
in their salary packages and they get HRA if they do not live in government
provided cottages or houses. Rates vary as per rural/urban areas etc.
6.6
What is Travelling Allowance (T.A.)?
Travelling Allowance is a sum of
money which an employee is allowed to spend on travelling at a given rate per
mile traveled.
6.7 What is City Compensatory
Allowance (CCA)
City
Compensatory allowance is an additional allowance which enables an employee to
bear the high cost of living prevailing in an urban area or in a city. It is
paid to compensate cost of living in the city.
Dearness
Allowance is also a kind of compensation but it takes into account the general
cost of living, definitely variable according to grades of city.
Normally, CCA will be equal to all
employees’ right from the Manager to Sweeper. That is why CCA is not calculated
as percentage of Basic but paid as a fixed amount whereas DA is paid as
percentage of Basic Salary. CCA is mostly for Metro Cities. It is not exempted
from tax like HRA. CCA is abolished as per VI Pay Commission 2008.
6.8 What is Provident Fund (P.F.)?
Provident
Fund is a fund which is composed of the contributions made by the employee
during the time he/she has worked along with an equal contribution by his/her
employers. It is calculated as a percentage of his/her salary, say, 12% and is
returned to him/her on his /her retirement.
The Provident Found was originally
set up in a bid to provide monetary security to employees when they retire.
Very often, people find that the golden years of their life is years marked by
financial inadequacy and dependency on relatives/children. The Provident Fund
is designed to provide the retiring individual with dignity and security.
However, over the years, it has developed into a broad plan for social security
which covers the retirement, buying houses, medical expenses and related
expenses.
6.9
Who is eligible for
Provident Fund (P.F.)?
Employees’
Provident Fund act 1952 states that any Institutional establishment which has
20 or more salaried employees is covered under employee provident fund.
6.10 What are the features of
Employees provident fund?
The features of
Employees provident fund are as follows:
- In an employee’s provident
fund account, every employer has his/her own account on which both
employer and employee will contribute.
- The rate of contribution of
employer is 12% of the salary of employee, out of which 8.33% is diverted
to employees provident fund account.
- Employee also needs to pay
12% of his/her salary amount.
- Employer is also required to
pay a contribution of 0.5% of the emoluments towards EDLIS’1976.
- An employer is required to
pay administrative charges at 1.10% of emoluments towards provident fund
charges and 0.01% towards EDLI Scheme 1976.
- Interest will be paid to the
account of employees at the government rate which is now running @ 8.5%
per annum.
- If employees want to
contribute more than 12% of his salary on his/her account, the law allows
employees to do so, but the employer contribution is limited to 12%.
- Interest accumulated on the
EPF account is exempted from income tax.
- Partial withdraw is allowed
to employees on special occasion.
- Total payment will be paid
to the employee or his/her nominee in case of retirement, permanent
disablement, death in service or early retirement.
Please
Note:
- Revenue
Stamps should be affixed and signed by the employees every month. Each page of the Salary register should
be signed by the Principal and the Accountant.
- Income
Tax Deducted from salary payment to staff should be deposited within 7
days from the date of disbursement of salary.
- Quarterly
returns should be filed without fail.
- Each
school should obtain a separate TAN No.
PAN NO. Of the Society should be used while filing the returns.
- FORM
16 & FORM 16A should be issued to staff and contractors latest by 30th
April every
Year. Failing which penalty can be levied on
the school on day today basis.
6. DECLARATION FORM indicating the
PROPOSED SAVINGS for claiming rebate from
Income Tax should be obtained from Teachers
and other staff falling in The Income Tax
Bracket in the month of April.
Based on this Declaration, Income Tax should be calculated &
equated in 12 months and deducted from
April Salary onwards.
7. Any payment made to a contractor
/ professional which is Rs. 20,000 or more- TDS is to be
deducted as per rates applicable.
8. If the contract includes labour
& material and the turnover of the contractor is more than Rs.10 lakhs in a
year. TDS-DVAT (DELHI VALUE ADDED TAX) is also to be deducted along with TDS. (Remember:TDS
is not applicable on goods or materials purchased for any amount.)
9. A consolidated statement of
salary should be recorded in the Salary Register every month
which is to be signed by the Manager and the
Principal.
Regarding
PF, please note:
(i). PF is to be deducted from all employed staff
whether Permanent/ for short period/on contract.
(ii). If the staff is employed through
an Agency. Please ensure that PF is deducted monthly and
deposited in the Bank and each employed
staff is given a PF number.
(iii). Nominations forms should be
obtained from all employees on appointment. This form will help
in claiming PF dues and Pension by the
relatives from the EPF Department in the event of Death
of a Staff/Employee.
Please See:
(i). Inspection Book is available in
the School Office.
(ii). PF Deposit Challan is kept in
the School Office
(iii). PF deducted from staff salary
should be deposited latest by 15th of the Month in PF Office.
(iv). Annual Statement of members
Account. Form 3-A should be kept in school Office on year-wise.
CHAPTER VII: COMMISSION AND PAY
COMMISSION
7.0
What is a Commission?
There can be several possible
definitions for the term commission. It can be a specially organized group that
may have been put together in order to solve some issues or look into a
particular matter.
7.1 What is a Pay Commission?
A Pay Commission is a panel of
members of the Union Cabinet, Government of India, set up in
1956 for raising the salaries of government employees.
The
First Pay Commission
was established in 1956, and since
then, every decade has seen the birth of a commission that decides the wages of
government employees for a particular time-frame.
The Second Pay Commission
was set up in August 1957 and gave its report in two years.
The Third Pay Commission,
set up in April 1970, submitted its report in March 1973.
The recommendations of the Fourth
Pay Commission covered the period between 1986 and
1996. The Fifth Pay Commission covered
the period between 1996 and this year.
The Union Cabinet, under the
stewardship of Prime Minister Manmohan Singh approved the setting up of the
6th Pay Commission to revise the pay scales of central government employees
in July 2006. The 6th Pay Commission is
headed by its Chairman Justice B N Srikrishna, and has Ravindra Dholakia, J S
Mathur and Sushama Nath as its other members.
The Pay Commission was supposed to submit its report in 18 months.
7.2 What is a Pay Band?
A Pay Band is a part of an organized salary
compensation plan, program or system. This differentiates the level of
compensation given to certain ranges of jobs. In a very simple language we can
just define that Pay Band is the gist of so many pay scales given by the 5th
pay commission.
There were many numbers of scales in Fifth Pay
Commission starting from S1 to S34 but in Sixth Pay Commission, they are merged
into four Pay Bands
8.0 What is
Promotion?
Promotion is the advancement of
an employee's rank or position in an Institutional hierarchy system. It may be
an employee's reward for good performance i.e. positive appraisal or to give
relief from stagnation in service. In this case the residency period changes
(entry scale to senior scale to selection grade or entry scale to MACP1 to MACP2 to MACP3).
Residency
period (regular service) for grant of benefits under the MACP Scheme shall be
counted from the grade in which an employee was appointed as a direct recruit.
The governing principle of
promotion in India is generally ‘seniority-cum-merit'. At higher levels of
promotion a Departmental Promotion Committee makes promotions out of a list
prepared on the basis of 'merit and suitability in all respects with due regard
to seniority'. The relative weightage of the two factors of 'seniority' and
'merit' varies from service to service and class to class in India.
8.1
Conditions for Promotion
(i) Promotion shall be earned as a
result of demonstrable outstanding conduct and performance in the areas of
Scholarship,
teaching, administrative, professional duties and other contributions.
(ii) Normally, an academic staff
shall be qualified for consideration for promotion after spending at least five
years in the service of the Institution.
(iii) Promotion exercise shall begin
with an Annual Review of every academic member of staff.
(vi)The recommendation from the Head
shall normally include a comprehensive assessment of the candidate’s qualifications,
and overall performance in the Institution.
8.2 Kinds of Promotion
(a) Functional
Promotion (Normal Regular Promotion)
Functional
or Normal (regular) promotional means promotion to a higher rank (NNT to PRT to
TGT to PGT if the candidate has qualification for the same). This promotional
avenues are available on the basis of vacancies and shall be granted after due
screening by a regular Departmental Promotion Committee as per relevant
rules/guidelines. Here all normal rules will apply while fixing the pay, the
grant of 3% increment on change of Grade Pay is applicable for functional
promotion only.
(b) Notional
Promotion or Non- Functional Promotion or MACP1, MACP2, and MACP3
If there are no promotional
avenues available on the basis of vacancies then three Notional Promotions are
available under the 6th Central Pay Commission which are called the Modified Assured Career Progression Scheme
which aims at dealing with the problems of genuine stagnation and hardship
faced by the employees due to lack of adequate functional promotional avenues.
The principle for this promotion lies on the fact that when you grow old, you
need more monetary help to look after your health to serve the Institution the
best possible way.
As per instructions, the scheme
envisages mere placement in the higher Grade Pay/grant of financial benefits
through financial up gradation to the Government servant concerned on personal
basis and, therefore, neither amounts to functional/ regular promotion nor
requires creation of new/additional posts for the purpose. In short, on grant
of financial up gradations under MACPS, there shall be no change in
designation, classification or higher status. Here Financial up gradation means
there will be no pay fixation except addition of difference of Grade Pay.
Financial
up gradation are to be granted to those employees on completion of 10, 20 and
30years of regular service who have not earned any regular promotion from the
date of appointment in the existing grade. This financial up gradation will be
applicable with effect from September
01, 2008. In other words, financial up
gradations as per the provisions of the earlier ACP Scheme (of August, 1999) would
be granted till 31.08.2008.
Under MACPS the financial up
gradation is purely personal and it does not mean that if the junior got more
pay than the senior after MACPS and the senior’s pay should be made par with
the juniors pay.
MACPS is allowed up to the highest
grade pay of 12,000 in PB-4. The pay shall be increased by 3% of the total pay
(Basic pay + Grade pay) before MACP
and it would be added with the difference in grade pay.
There shall be no further fixation
at the time of regular promotion if it is the same grade pay as granted under
MACPS. Financial up gradation will be in next higher grade pay in the hierarchy
of Grade Pay and not in the promotional hierarchy (as it was earlier).
Employees, who were granted
financial up gradation under ACP scheme after 12 years of service, will be
eligible for financial up gradation under MACPS after completion of 20 years
and 30 years of service, irrespective of regular promotion given to him/her if
any, between his 10 to 20 years of service or between 20 years and 30 years of
service. For example if an employee was given 1st ACP under old ACP Scheme
after completion of 12 years of service and a regular promotion after
completion of 18 years of service, he will be eligible for 2nd MACP after completion
of 20 years of service.
In
context to sixth pay commission, the Notional Promotion is defined as:
"change from one grade pay to another" or "change in
pay band and grade pay” or
CHAPTER IX: RETIREMENT BENEFITS
(GRATUITY,
LEAVE ENCASHMENT AND PENSION)
9.0 What is Gratuity?
Gratuity
is a voluntary Payment made by the employer to the employee in recognition of
continuous, meritorious services and sincere efforts by the employee towards
the organization. Gratuity is a defined benefit plan and is one of the many
retirement benefits like
Pensions, Provident funds etc. offered by the employer to the employee upon
leaving his job. It
is also said that in its etymological sense gratuity is a gift especially for
services rendered or return for favours received. In other words, it is a
gratuitous payment given to an employee on attaining superannuation or physical
disablement etc. It is governed under the Payment of Gratuity Act 1972.
The main purpose of the gratuity
is to help the employee after the retirement. To meet the post-retiral
expenses, it is a kind of assistance to an employee. When employed person
becomes unemployed after termination of his service, he will be in need of
financial protection. Because of his old age, incapacity etc. he may not be in
a position to work again to feed himself and his dependents. Then gratuity
protects against loss of income to some extent.
9.1 Who is eligible for gratuity?
The
Payment of Gratuity Act, 1972, provides the gratuity to an employee who is
working in such an Institution which has 10 or more salaried employees.
9.2 When one gets gratuity?
Gratuity shall be payable to an
employee:
(a)
On voluntary retirement after 20 years of continuous
service
(b)
On compulsory retirement after 20
years of continuous service or on superannuation.
(c)
on death or disablement due to
accident or disease.
9.3 What do you
mean by Compulsory Retirement?
Due to ill health or inability to
work, the Management can give compulsory retirement after 20 years of
continuous service giving all the benefits due to an employee.
9.4 What do you mean by “Superannuation?”
Superannuation
in relation to an employee means the attainment by the employee of such age as
is fixed in conditions of service as the age of on the attainment of which the
employee shall vacate the employment.
9.5 What is basis for gratuity?
Gratuity
is based on: 1. Qualifying Service 2.
Emoluments.
9.6 What
do you mean by Qualifying Service?
Qualifying
Service means the date one has taken the charge of a post to which he/she is
first appointed in a permanent officiating / temporary capacity provided
officiating / temporary service is followed without break by permanent
appointment to same or other post.
(i)
Qualifying service rendered by an employee is rounded off to the next half
year while calculating the length of service.
(ii)
Fraction of a year equal to 3 months and above will be treated as
completed one half year.
Example of rounding of qualifying
service.
Qualifying service
Years Months Days Equivalent Six Monthly Periods
10 2 28
20
10 3 12 21
12 8 27
25
12 9 3 26
9.7 What are the
periods which are not counted as qualifying service?
These
are the periods which are not counted as qualifying service.
(i)
Service rendered before attaining the age of 18 years.
(ii)
Unauthorized absence treated as dies none.
(iii)
Service rendered as casual labourer before the grant of temporary
status.
9.8 What do you
mean by Emoluments?
Emoluments mean Basic Pay
(including stagnation increments) plus Dearness Allowance immediately before
retirement or on the date of death of the employee. Any house Rent Allowance
(HRA), special allowance, travel allowance, any other allowance or any other
component of your salary cannot be included in this calculation.
9.9 How much do one gets as gratuity?
In
simple terms, one gets half a month’s salary (Basic+DA) for each completed year in service in the organization.
Thus, if somebody resigns after six years, he/she gets an amount equal to three
months’ salary (Basic+DA) as
gratuity. The maximum gratuity payable is 16
½ months’ salary (Basic+DA) for
the maximum of 33 years of service. To
be more precise one can calculate his/her gratuity applying this formula:
Gratuity Amount =(Basic+DA) x 15 x no of yrs of
service up to max. 33 years
30
9.10 How much do one gets as Death Gratuity?
The
Amount of Death Gratuity will be calculated as under:
Length of
qualifying service Amount
of Gratuity
1.
Less than 1 year 2 times of emoluments
2.
one year or more but less than 5 years 6 times of emoluments
3.
5 years or more but less than 20 years
12 times of
emoluments
4.
20 years or more
Half of emolument
for every completed six
monthly period of qualifying service subject to 33 times of emoluments
9.11 Is Gratuity
Tax exempted?
Gratuity is not tax exempted if
it goes beyond the limit of maximum payable gratuity, Rs. 10, 00,000. Let us study Income Tax (IT) Treatment of Gratuity
Proceeds.
Any
amount that you receive as gratuity is added to your income for that year under
the head “Income from Salary”. However
exemption is available up to a certain amount under section 10(10) of the
Income Tax (IT) Act. To calculate this exemption, employees are classified in
three categories depending on their type of employment and their coverage under
the Payment of Gratuity Act, 1972.
(a)
Government employees covered under the Payment of Gratuity Act,
1972. - The entire amount received as gratuity is tax-free for
Government employees.
(b)
Non-Government employees covered under the Payment of Gratuity Act, 1972:-
The Maximum possible exemption from tax is least
of the 3 below:
(i)
Actual gratuity received
(ii)
Rs. 350,000; through the “Payment of
Gratuity (Amendment) Act 2010”, the limit of maximum payable gratuity has been
raised to Rs. 10, 00,000 from Rs. 3, 50,000
(iii)
15 days’ salary for each completed
year of service or part thereof.
(c)
Non-Government employees not covered under the Payment of Gratuity
Act, 1972. Gratuity
is Tax exempted up to Rs. 10,00,000/- from 2010-11 as per Income Tax act,1961
U/s 10 earlier it was Rs. 3,50,000/- so need not to worry about tax.
9.12 Supreme Court Judgment on the Payment of Gratuity for
Teachers
Teachers not
entitled to gratuity: SC
In a significant ruling affecting
teachers across India, the Supreme Court has held that they are not entitled to
payment of gratuity at the end of their service as they cannot be classified as
'employee' under the provisions of the Payment of Gratuity Act, 1972.
A bench, comprising Justice Shiva
raj V Patil and Justice D M Dharmadhikari, gave this ruling while upholding a
full bench verdict of the Gujarat high court.
It dismissed an appeal filed by
Ahmedabad Private Primary Teachers' Association challenging the high court
order.
Under section 2(e) of the Payment
of Gratuity Act, 1972, an "employee means any person (other than an
apprentice) employed on wages, in any establishment, factory, mine, oilfield,
plantation, port, railway company or shop, to do any skilled, semi-skilled, or
unskilled, manual, supervisory, technical or clerical work, . . . whether or
not such person is employed in a managerial or administrative capacity."
The government, by a notification
dated April 3, 1997, had extended the provision of the Gratuity Act, 1972 to
educational institutions employing ten or more persons.
However, the Apex Court after
going through the various definitions of employee came to the conclusion that
"the teaching staff being not covered by the definition of ‘employee’ can
get no advantage because, by notification, educational institutions as
establishments are covered by the provisions of the Act."
Writing for the bench, Justice
Dharmadhikari said: "We are of the view that even on plain construction of
the words and expressions used in definition clause 2(e) of the Act, 'teachers'
who are mainly employed for imparting education are not intended to be covered
for extending gratuity benefits under the Act."
"Teachers do not answer to
the description of being employees who are 'skilled,' 'semi-skilled' or
'unskilled,' the bench said, rejecting the plea that teachers should be treated
as included in the expression 'unskilled' or 'skilled.'
After giving the ruling, the
bench said that its conclusion that teachers were not entitled to gratuity
benefits under the 1972 Act should not be misunderstood.
It said: "Our conclusion
should not be misunderstood that teachers, although engaged in very noble
profession of educating our young generation, should not be given any gratuity
benefit."
"There are already separate
statutes, rules and regulations in several states granting gratuity benefits to
teachers in educational institutions which are more or less beneficial than the
gratuity benefits provided under the Act," it said.
The Apex Court said it was for
the legislature to take cognizance of the situation and think of a separate
legislation providing for gratuity to such teachers in various establishments
where gratuity benefits were not available.
"That is a subject matter
solely of the legislature to consider and decide," the Bench said, while
dismissing the appeal filed by the private teachers association.
9.13
Parliament passes Gratuity Bill (Updated on Friday, December 18, 2009,)
New Delhi: Parliament on Friday passed a bill
for widening the definition of employees for the purpose of receiving gratuity,
which will benefit over 60 lakh teachers.
The Payment of Gratuity
(Amendment) Bill, which aims at amending definition of employees in the 1972
legislation for covering teachers in private institutions with retrospective
effect from April 3, 1997, was passed in the Rajya Sabha. It was approved by Lok Sabha on December 16.
"Over 60 lakh teachers will
be benefited by this amendment," Minister of State for Labour Harish Rawat
said winding up the debate on the bill. He said the government has made the
amendment with retrospective effect from 1997, accepting the suggestion of the
Standing Committee. He also said the government would try to bring before
Parliament another amendment in the bill during the next session for raising
the current ceiling from Rs 3.50 lakh. "We are discussing the issue with
the stakeholders," he said.
Now, the definition of
"employee" has been widened for the purpose of gratuity to include
any person who is employed for wages, other than an apprentice. It also clears
that the terms of such employment may be expressed or implied, in any kind of
work, manual or otherwise.
Responding to a demand to mention
the term 'teacher' explicitly in the bill, Rawat said it was not incorporated
as such on the advice of the Law Ministry.
Rawat also said the government
was in the process of changing the law since 2004 after the Supreme Court
pointed out that teachers are not covered under the definition of 'employee'
under the Payment of Gratuity Act though they are covered under the Employees
Provident Fund law.
He ruled out reducing the minimum
5-year norm for availing the benefits of gratuity. "If we reduce it to
less than five year, it will be like a wage and no more be a terminal
benefit," he said.
In view of a Supreme Court order
in a matter pertaining to qualification of teachers for payment of gratuity
under the Act, the amendments were first introduced in Lok Sabha on
9.14 Teaching Staff
not entitled for Gratuity
The gratuity applicability is
governed by the Payment of Gratuity Act. However, till now teachers are not
eligible to get gratuity. At the same time, all administrative staff, like
clerks, attendants, laboratory assistants etc. and the Principal who also does
some kind of administrative work in connection with the school are eligible to
get gratuity at the same rate as applicable to employees of industrial and
other establishments as per the provisions of the Payment of Gratuity Act. But
what is interesting is that by employees are meant only employees employed in
administrative functions but not teachers as they are engaged in a NOBLE
PROFESSION
However, a bill has been
presented to amend the Payment of Gratuity Act incorporating teachers also
under the definition of employees so that they would also become eligible to
get gratuity. So far no amendment has taken place in the Gratuity Act enforcing
the same
9.15 What is a Pension?
In
general, a pension is an arrangement to provide people with a regular payment
upon retirement when they are no longer earning a regular income from employment. This payment allows
them to subsist without working. It is usually not taxed.
CHAPTER X: FEE COLLECTION
9.0 What is Fee?
Fee
is an amount of money charged by
institutions to cover costs of certain services given by the Institution.
9.1 Introduction
It
is found that the fees collected in many Schools under different categories are
not (Abibhavak Manasangh V/s Union of India & Others Civil writ petition
No. 3008 of 2000) hence it is better
that schools categorize the fee
structure in conformity with the decisions of the Hon’ble High Court of Delhi
to avoid any legal action. For guidance the relevant portion from the decision
of the Hon’ble High are given in brief below:
1. One Time Charges (Registration,
Admission Fees and Caution Money)
The first category should
comprise of the Registration Fee and all one time charges, levied at the time
of admission of the student such as “Admission Fee (Admission Fee is taken
Rs.200 only, for new Admission and not more than) and “Caution Money”. It should
however, be made mandatory for the schools to refund the Caution Money, with
interest thereon at the time of the student leaving the school, without the
same being claimed by the student/parents.
Comment: These are the fees fixed by
the Director of Education hence hiking the amount beyond the given limit is an
offense and Competent Authorities can take punity action against the offending
school.
2. Tuition Fee
Tuition
Fee should be fixed in such a manner that it should be able to cover all staff
related expenses, the standard cost of establishment including provisions for
D.A. bonus, Office cum Administrative expenses, and all Terminal benefits as
also all expenditure of revenue nature concerning the co-curricular activities.
The pupil-teacher ratio and the ratio between the teaching and non-teaching
staff should be the main determinants while arriving at the standard cost.
Tuition fee means fee charged to
give educational instruction or teaching. This fee is charged to assist with
funding of staff and faculty, course offerings, lab equipment, computer
systems, libraries, facility upkeep, and to provide a comfortable student
learning experience they are set by the government and paid directly by the
student. Admission fee is the fee charged for admission.
Comment: Tuition fee can absorbed
many a expenses fall under various Heads of expenditure apart from that
incidental savings is also permitted and such savings can be diverted to
establish any other recognized school or assist any other school or educational
institution, not being a college, under management of the same society or trust
by which the first mention school is run. Under Rule 177 of DSER, 1973.
Adequate amount (Approx. one month’s gross salary of the staff) be transferred
to the Employees Terminal Benefit Fund maintained separately. While fixing the
Tuition Fee the recent amendment made in the Income Tax Act, 1961 may be taken
under consideration so that it may be parent friendly (“Tuition Fees whether at
the time of admission or thereafter, to any university, college, school or
other educational institution situated in India for the purpose of full-time
education of any two children of the assessed, up to Rs.12, 000 in respect of
each such child. However, any development fees or donation or payment of
similarly nature shall not be eligible for rebate.)
3. Annual Charges
Remember,
a maximum discipline is required in fixing up the Annual Charges .Annual
charges should be so determined, as to be sufficient to cover all expenditure
of a revenue nature not included in the second category (Tuition Fee), besides
“Over- heads” and expenses on exams, on playground, sports equipment,
gymnasium, cultural and other co-curricular activities as distinct from curricular
activities of the schools.
Comment: Neither savings nor diversion is
allowed from the money collected under the head Annual charges.
4. Earmarked Fee
All
“earmarked” levies for the services rendered by the schools, to be recovered
only from the “user” students, in respect of the facilities availed of by the latter
(like Bus facility, swimming, sketting, cricket, judo etc.). The income from
the earmarked levis, should be spend only for the purpose, for which these are
collected with the role of the schools, being confined to that of a catalyst or a facilitator, for
managing the service on a “No profit no loss” basis. All transaction relation
to the “earmarked” activities should form an integral part of the school
account.
5. Development Fee
Besides the above four categories,
the schools could also levy a Development Fee, as a capital receipt, annually
not exceeding 15% of the total Annual Tuition Fee, for supplementing the
resources for purchases, up gradation and replacement of furniture, fixture and
equipment, provided the school is maintaining, a Depreciation Reserve Fund,
equivalent to the depreciation charged in the revenue account. While these
receipts should form part of the Capital Account of the School, the collection
under this head along with any income generated from the investment made out of
this fund, should however, be kept in a separate “Development Fund Account”. It
is used for the continual improvement and upgrading of the school, Construction
of New Building / new wing and purchase of all fixed Assets.
Comment: Proper allocation to and maintenance of
Depreciation Reserve Fund will reduce the surplus of income over expenditure to
a great extent and the Balance Sheet shall reflect the true picture of the Financial
Health of the school.
8.6.1
Conclusion
Schools
are not allowed to charge any other fees other than the above mentioned Fees
without the prior sanction/
approval of the Director of Education, Delhi.
It is always safe to play the game within the rules. Hence the School
Fee Booklets: should reflect only the
following Heads:
- Admission
Fee
- Tuition
Fee
- Annual
Charges
- Bus
Fees/Earmarked Fee
- Development
Fee
- Late
Fee
CHAPTER X: LEAVE RULES FOR VACATIONAL/ NON VACATIONAL STAFF
10.0 What is Leave?
Leave
is a provision to stay away from work for genuine reasons with prior approval
of the authorities. It may be granted
for a casual purpose or a planned activity, on medical grounds or in
extra-ordinary conditions.
10.1 DIFFERENT TYPES OF LEAVE AVAILABLE TO CENTRAL GOVERNMENT EMPLOYEES AND A BRIEF
DESCRIPTION OF EACH LEAVE
1. Casual
Leave
2. Earned
Leave
3. Maternity Leave
4. Paternity
Leave
5. Half
Pay Leave
6. Extra Ordinary Leave
7. Leave
Not Due
8. Study
Leave
9.
Commuted Leave
10. Child
Care Leave
10.2 GENERAL CONDITIONS
1. Leave
shall be determined for the calendar year (i.e. January to December)
2. The
Leave will be credited to an employee’s account on 1st of January every
year. In case an employee joins after the above date, leave will be granted on
pro-rata basis.
3. No
employee shall be entitled to leave during the probationary period (except due
to sickness/ personal exigencies). However, such probationary period preceding
confirmation will be taken into account while calculating leave entitlement.
4. Intervening
weekly offs and paid holidays will not be counted as part of availed leave.
5. Employee cannot avail leave as a matter of
right.
6. The Managing Committee/Manager/Principal
reserves the right to refuse, revoke or curtail leave as per the exigencies of
work.
7. Except in unavoidable circumstances,
applications for leave in writing shall be made in advance; a letter or a phone
message giving reasons should reach the Principal on the day of absence. When a
phone message is sent, it should be confirmed in writing by the subsequent day.
Merely applying for leave will not mean sanction, until and unless the leave is
sanctioned by the sanctioning authority.
8. The
employee will not absent himself/herself without prior sanction from the
Manager/Principal or will not leave station without having first obtained
written permission from the proper authority. In an emergency an application
should be sent as soon as possible stating reasons for absence.
9. Taking
Leave or extending leave without sanction will be treated as absence from duty
and renders an employee liable disciplinary action.
10. The absence of an employee for eight days or
overstay of sanctioned leave for eight days without sanction makes his/her lose
him/her place on the job. The Management shall be within its right to presume
that such employee has abandoned the job of his/her accord.
11. An
employee on leave shall be allowed to return to duty before the expire of leave
only with the prior permission of the sanctioning authority. However, if
required by the Manager/Principal to come to School during these days, they are
required to comply without any claim or without any compensatory leave or any
remuneration.
12. Before
proceeding on leave, even for one day, the teacher will leave instruction in
writing about the work to be carried on during his /her leave.
13. Non–teaching
(non-vocational) employees may be given a weekly off on different days to suit
the need of the school.
14. Persons
serving in departments other than vacation departments are not entitled for any
break
(autumn
break and Winter break) and Summer Vacation.
15. No employee while on leave shall take up any service
or employment elsewhere including private practice of any kind without obtaining prior sanction
of the authority granting leave.
Note: - An application for leave or
extension of leave should ordinarily be made in good time before the date from
which the leave or its extension is sought. If any employee does not apply
within seven days of the expiry of leave for further leave, or has been absent
from the school without leave for then school days, the employee may be deemed
to have deserted his post.
10.3
CASUAL LEAVE
Casual
leave is not a recognized form of leave and is not subject to any rules made by
the Government of India. An official on Casual Leave is not treated as absent
from duty and pay is not intermitted.
Casual leave enables an employee to attend some urgent or unforeseen
contingencies.
- Every
employee is entitled for 8 days casual leave in a calendar year.
- An
employee joining during the middle of a year may avail casual leave
proportionately.
- Sundays
and holidays falling during the period of casual leave shall not be
counted as part of casual leave.
- Sundays/public
holidays/restricted holidays/weekly offs can be prefixed/suffixed to
Casual Leave.
- Casual
Leave essentially intended for short periods. It should not normally be
granted for more than 5 days at any one time except under special
circumstances.
- Casual leave can be taken
for a half day also.
- Casual leave cannot be
accumulated beyond the calendar year.
- An employee on
probation/ad-hoc tenure may be granted Casual Leave for many days as
completed month of service.
- Casual
Leave can be taken while on tour, but no daily allowance will be
admissible for the period.
- LTC
can be availed during Casual Leave.
- Application for casual leave
has to be made at least two days in advance. However due to reasons beyond
the employee’s control, if he/she could not obtain prior sanction it shall
not be treated as a breach of code of conduct if he/she submits the
application immediately on joining the duty along with an explanation for
proceeding on leave without prior sanction.
- Three late arrivals (not
exceeding 1 hour each) and/or early departure (before one hour of the day
end) will be considered as one day of Casual Leave.
10.4 EARNED LEAVE
- Permanent non-teaching
(non-vacation) employee is eligible for 30 days earned leave during a year
which will be calculated at the rate of 2½ days per completed month of
service. The credit for earn leave will awarded at a rate of 15 days on
the 1st of January and at a rate of 15 days on 1st of July every year.
- Every employee serving in
vacation departments (Principals, Teachers, Vice Principals, Head Masters,
Librarians, Laboratory Assistants) is entitled for 10 days of earned leave
in a year i.e. at the rate of 5/6 day for completed calendar month of
service (with effect from 5.9.1981).
- Earned leave can be
accumulated for a maximum period of 300 days during the whole tenure of
the employee.
- Application for earned leave
has to be made at least 7 days in advance.
- When an employee retires on
attaining the normal age prescribed for retirement under the terms and
conditions governing the service the Management shall grant cash
equivalent of leave salary for earned leave, if any, at the credit of
employee on the date of his or her retirement subject to the maximum of
300 days’ pay admissible on the date of retirement plus D.A. No other
allowances shall be payable.
- If any employee resigns or
quits service he or she may be granted cash equivalent in respect of
earned leave at his/ her credit on the date of cessation of service, to
the extent of half of such leave at his or her credit subject to a maximum
of 150 days.
- Maximum earned leave that
may be granted at a time shall be 180 days.
- A dismissed employee is not
entitled for earned leave encashment at his credit.
- Earned leave cannot be taken
for a half day.
Note: - Regarding time and limit of availing E.L. a consensus
decision may be arrived at after seeking
the views of the Principals of the schools.
10.5 MATERNITY
LEAVE
Maternity leave is granted to women
government employee.
1) Pregnancy: 180
days – Admissible only to employees with less than two surviving children.
2) Miscarriage/abortion (induced or
otherwise): Total of 45 days in the entire
service. However, any such leave taken prior to 16.6.1994 will not be taken
into account for this limitation. Admissible irrespective of number of
surviving children. Application to be supported by a certificate from a
registered medical practitioner for NGOs and from AMA for GOs.
3) The maternity leave is not debited to leave account
and full pay is granted. It cannot be combined with any other leaves
and counts as service for increments and pension.
4) The
female employee of un-recognized schools and schools situated outside the NCT
of Delhi may be granted leave for a period of 90 days as per the provisions of
Maternity Benefit Act.
5) Maternity leave may be combined
with leave of any other kind except casual leave.
6) Application for maternity leave
has to be submitted along with medical certificate issued by a Registered
Medical Practitioner at least 3 months in advance.
7) Leave
to a female employee on adoption of a child: A leave to a female employee on adoption of a
child may be granted leave of the kind DUE and ADMISSIBLE for a period up to
one year or till such time the child is one year old, whichever is earlier.
However, this facility will not be admissible in case she is already having two
surviving children at the time of adoption.
10.6 PATERNITY LEAVE
- A male employee with less
than two surviving children may be granted Paternity Leave for a period of
15 days during the confinement of his wife i.e. up to 15 days before or up
to 6 months from the date of delivery of the child and if such leave is
not availed of within this period, it shall be treated as lapsed.. During
the period of such leave he shall be paid leave salary equal to the pay
drawn immediately before proceeding on leave.
- Paternity Leave shall not be
debited against the leave account and may be combined with other kind of
leave as in the case of Maternity Leave.
- This privilege is not
extended to employees of un-recognized schools and schools situated outside
NCT of Delhi.
10.7 HALF PAY LEAVE
- Every employee serving in a
department other than vacation department is entitled for 20 day’s half pay leave * in a year i.e. 5/3 days for
each completed calendar month of service.(* Deduction of leave plus half
basic pay, half D.A. and other allowances in full.)
- From
1st January 1986, half pay leave is credited in advance at the rate
of 10 days on the 1st of January and 1st of July every year.
- Half pay leave can be
availed with or without MC (Medical Certificate) or on private affairs.
- Commuted leave not exceeding
half the amount of half pay leave may be granted on medical grounds.
Before joining the duty the employee has to produce a fitness certificate
from a Registered Medical Practitioner.
- Application for commuted
leave on medical grounds should be accompanied by medical certificate from
a Registered Medical Practitioner.
- Half pay leave can be
accumulated but cannot be enchased.
Please note the following regarding
Half Pay Leave:
From 1st September
2008, Half Pay
Leave will be applicable to Teachers, Principals, Headmasters, Librarians,
Laboratory Assistants and Water man working in school.
For the year 2008, Service Book will be credited
with 5 EL in January, 2 EL in July and 7 HPL from September 2008 to 31st
December 2008.
From 1.1.2009 : Half Pay Leave is credited in
advance at the rate of 10 days on the 1st
of January and 1st July every year.
New Appointments made during the
year: - Half Pay
Leave will be credited in Advance at the rate of 5/3 for each completed
calendar month of service he/she is likely to render in the half year in which
he/she is appointed.
The
credit for the half year in which a staff is due to retire/ resigns will be
afforded at the rate of 5/3 days for each completed calendar month of the
service in that half year up to the date of retirement/ resignation.
The
Credit for the half year in which the staff is removed/dismissed from service
or dies in service will be afforded at the rate of 5/3 days for each completed
calendar month up to the end of the calendar month preceding the last calendar
month of service.
HALF
PAY LEAVE MAY BE GRANTED ON MEDICAL CERTIFICATE OR ON PRIVATE AFFAIRS.
When
Half Pay Leave is taken on Medical grounds i.e. leave is commuted, twice
the amount of such leave shall be debited against the half pay leave due. 2
half pay leave will be reduced from the balance due for 1 day leave taken on
medical ground. Medical & Fitness certificate is MUST when leave is
taken on commuted
Half
Pay Leave.
Commuted
Leave (Half Pay leave taken on Medical Grounds) can be granted even when Earned
Leave is due.
Commuted
Leave not exceeding half the amount of Half Pay Leave due can be granted on
Medical Certificate.
Commuted
Leave can be taken WITHOUT MEDICAL CERTIFICATE ON THE FOLLOWING GROUNDS:
•
Up
to a maximum of 90 days in the entire service if utilized for an approved
course of study certified to be in public interest.
•
Up
to maximum of 60 days by a female staff if it is in continuation of maternity
leave.
•
Up
to a maximum of 60 days by a female staff with less than two living children if
she adopts a child less than one year old.
Commuted
Leave can be granted only when the leave sanctioning authority is satisfied
that there is a reasonable prospect of the staff returning to duty on its
expiry. So it cannot be granted as leave
preparatory to retirement.
If
Half Pay Leave is taken on Private Affairs:
Half Salary will be deducted for each Day leave is taken (Basic +Grade
Pay & D.A.).If
half pay leave is taken for the full month T.A. WILL BE DUDUCTED IN FULL in
addition to the above.
10.8 EXTRA ORDINARY LEAVE (Leave
without pay)
Extraordinary
leave is granted to an employee when no other leave is admissible. This is
known as ((Leave without pay). This type of leave is granted at the sole
discretion of the Management.
PLEASE
NOTE
When
a member of staff remains absent after refusal of leave or after the expiry of
sanctioned period of leave, it will be treated as “Dies Non” i.e. no salary for
period of absence, stoppage of increment due for the year. In extreme cases
this can also lead to a break in service which means in effect a fresh
appointment and loss of accumulated leave, gratuity and other financial
benefits. The above will not apply to casual leave provided the period of
absence does not exceed 8 days. In the case of summer vacations all vacation
staff are expected to join duty on the first day after the summer vacation and
absent from duty thereafter will be treated a “ Dies Non”.
While
isolated case of late attendance by not more than an hour can be condoned,
habitual late comers should be warned in writing, and if the person persists in
coming late to work, he/she should be penalized by deducting half day’s casual
leave from his/her casual leave for each day of late attendance.
The
Principals are to refer all cases of absence without authorized leave or
overstay of authorized leave to the Chairman of the School Managing Committee
through the Manager of the School for necessary order.
10.9 COMMUTED LEAVE
Commuted
leave not exceeding half the amount of half-pay leave due can be taken on
medical certificate. Up to a maximum of 90 days can be taken during the entire
service without medical certificate where such leave is utilized
for an approved course of study certified to be in university interest. It can
be taken up to a maximum of 60 days can be granted to a female employee
in continuation of maternity leave without medical certificate and up to a
maximum of 60 days can be granted without medical certificate to a female
employee with less than two living children, on adoption of a child less than
one year old. Commuted leave may be granted at the request of the employee even
when earned leave is due to him.
10.10 LEAVE
NOT DUE
Leave not
due is granted when there is no half-pay leave at credit and the employee
requests for the grant of Leave Not Due. Temporary officials with one
year’s service and suffering from TB, Leprosy, Cancer or Mental illness may
also be granted LND if the post from which the official proceeds on leave is
likely to last till his return.
It is granted only medical
certificate if the leave sanctioning authority is satisfied that there is
a reasonable prospect of the employee returning to duty on its expiry. It
may be granted without medical certificate in continuation of maternity leave
and may be granted without medical certificate to a female employee with
less than two living children, on adoption of a child less than one year
old. The amount of leave should be limited to the half-pay leave that the
employee is likely to earn subsequently.
Leave not
due during the entire service is limited to a maximum of 360 days and due
will be debited against the half-pay leave that the employee may earn
subsequently.
10.11 STUDY
LEAVE
Study
leave may be granted to all government employees with not less than five
years’ service for undergoing a special course consisting of higher studies or
specialized training in a professional or technical subject
having a direct and close connection with the sphere of his duties as a civil
servant.
The course for which the study leave
is taken should be certified to be of definite advantage to govt from the point
of view of public interest and that particular study should be approved by the
authority competent to grant leave.
The official should submit a full
report on the work done during study leave. Maximum of 24 months of leave is
sanctioned. In the case of CHS officers 36 months of leave can be granted
at a stretch or in different spells.
Study leave will not be debited to the leave account and may be combined
with other leave due. Study leave is
not granted for studies outside India if facilities are available in India and
to an official due to retire within 3 years of return from the study leave.
10.12 CHILD
CARE LEAVE
Woman
employees having minor children may be granted Child Care Leave by an authority
competent to grant leave for a maximum period of 730 days (2 years)
during their entire service for taking care of up to two children., whether for
rearing or to look after any of their needs like examination, sickness, etc.
Conditions for Child Care Leave
1. Child care leave shall not be admissible if the child is eighteen
years of age or older equal to the pay drawn immediately before proceeding on
leave.
2. It can be availed in more than one spell.
3. It cannot be debited against the leave account.
4. It may be combined with leave of the kind due and admissible.
10.13 What is ‘Leave Account’?
‘Leave
Account’ is maintenance of a Leave Balance summary of all the leave applicable
to an employee. An employee can view the entire leave details in tabular format
specifying his/her year-start balance, year-end balance and the current
balances.
10.14 What is leave encashment?
Simply put encashment of the paid
leave that you have and which has not been utilized is called 'leave salary' or
Leave Encashment.
10.15
Is Leave encashment taxable?
Leave encashment received at the
time of retirement is fully exempted in the case of Government Servants. In the
case of non-Govt. employees, leave encashment is exempted to the extent of the
least of the following four amounts: -
- Rs.
3,00,000/-
- Ten
months' average salary;
- Cash
equivalent of the leave due at the time of retirement;
- Leave
encashment actually received at the time of retirement.
Here
the average salary means the average of the salary drawn during the last ten
months before retirement.
10.16 LEAVE ENCASHMENT FORMULA
Encashment
of Earned leave is the cash equivalent
of leave salary for the period of leave
not availed at the time retirement restricted to 300 days
and is calculated as under :-
(Basic pay + DA) X No of days of unveiled earn leave at credit subject
to maximum of 300 days.
30
Please Note:
On termination of service by
notice: - Encashment of EL up to 300 days is
allowed.
One resignation or quitting service: - Encashment up to half of such
leave to his credit, Subject to maximum of 150 days is allowed.
10.17
CALCULATION OF ENCASHMENT OF HALF PAY LEAVE
HPL = (Basic pay/2 + DA) X No of days of HPL
at credit subject to maximum of 300 days.
30
CHAPTER XI: INCOME TAX, PAN, TAN,
TIN, VAT
11.0 What is Income tax?
Income
Tax is an annual charge levied on both earned income (wages, salaries,
commission) and unearned income (dividends, interest, rents).
Money which you earn from different
sources is taxed differently. So if you are a salary earner, your salary income
to be taxed will be calculated in a different way from gains. The term "Salaries"
includes remuneration in any form for personal service, under an expressed or
implied contract of employment or service. Section 17 of Income Tax Act defines
salary to include:- Wages, Pensions or Annuities,
Gratuities, Advance of Salary, Any cess, commission, perquisites or profits in
lieu of or in addition to salary or wages, Any encashment of leave salary., Any
amount of credit to provident fund of employee to the extent it is taxable.
Therefore "salary"
includes basic salary, encashment of leave salary, advance of salary, arrears
of salary, various allowances such as dearness allowance, entertainment
allowance, house rent allowance, conveyance allowance and also includes
perquisites by way of free housing, free car, free schooling for children of
employees, etc.
Salary is taxable in the year of
receipt or in the year of earning of the salary income, whichever is earlier.
i.e. if the salary has been received first, then it will be taxable in the year
of receipt. If it has been earned first but not yet received then it will be
taxable in the year of earning. Salary income is taxable in the hands of
individuals only. No other type of person such as a firm or HUF, companies can
earn salary income.
There are two basic types Income
Tax:-
(1)
Personal income tax :-Personal income tax, levied on
incomes of individuals, households, partnerships, and sole-proprietorships; and
(2)
Corporation income tax:-Corporation income tax, levied on
profits (net earnings) of incorporated firms. Remember, Income tax is the most
important tax in our country, every person whose total income Exceed Maximum
Exemption Limit (MEL) has to deal with Income Tax Act and Income Tax
Authorities.
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