Thursday, 2 November 2017

Thank you, Social Media Warriors



I salute the social media warriors. It keeps me busy trying to find out Facts and Truth.

They don’t check what they receive before they forward with that cliché ‘forwarded as received’, just like those in  Tennyson’s Charge of the Light Brigade.

“Forward, the Light Brigade!”
Was there a man dismayed?
Not though the soldier knew
Someone had blundered.
Theirs not to make reply,
Theirs not to reason why,
Theirs but to do and die.
Into the valley of Death
Rode the six hundred.

          Thank you for the WhatsApp messages by the dozen about a petition for exemption from Income Tax on pensions because MPs are getting exemption.

          And Pension is Deferred Wage. However the Nakara judgment called it Deferred Compensation at Head note, Para 3 (ii)

The pension payable to a government employee is earned by rendering long and efficient service and therefore can be said to be a deferred portion of the compensation for service rendered.

And all deferred compensation is taxable by law – more so as commuted value of pension and gratuity etc are not taxable.
 
Below are the results of a brief exploration into the annals of the matter.

More enlightened persons may wish to educate me with references so that I read and be more enlightened.

Source: - lawmin.nic.in/ld/P-ACT/1954/A1954-30.pdf

Inserted by “THE SALARY, ALLOWANCES AND PENSION OF MEMBERS OF PARLIAMENT (AMENDMENT) ACT, 2000 No. 17 of 2000 [7th June, 2000]

Section 8 A. Pension

1[Pension. 2[6(1) With effect from the 18th day of May, 2009, there shall be paid a pension of twenty thousand rupees per mensem to every person who has served for any period as a Member of the Provisional Parliament or either House of Parliament:
Provided that where a person has served as a Member of the Provisional Parliament or either House of Parliament for a period exceeding five years, there shall be paid to him an additional pension of fifteen hundred rupees per mensem for every year served in excess of five years.
Explanation.—For the purpose of this sub-section, “Provisional Parliament” shall include the body which functioned as the Constituent Assembly of the Dominion of India immediately before the commencement of the Constitution.’]
3[(1A) ***]
(2) Where any person entitled to pension under sub-section (1),-
(i) is elected to the office of the President or Vice-President or is appointed to the office of the Governor of any State or the Administrator of any Union territory; or
(ii) becomes a member of the Council of States or the House of the People or any Legislative Assembly of a State or Union territory or any Legislative Council of a State or the Metropolitan Council of Delhi constituted under section 3 of the Delhi Administration Act, 1966; or
(iii) is employed on a salary under the Central Government or any State Government or any corporation owned or controlled by the Central Government or any State Government, or any local authority or becomes otherwise entitled to any remuneration from such Government, corporation or local authority. such person shall not be entitled to any pension under sub-section (1) for the period during which he continues to hold such office or as such member, or is so employed, or continues to be entitled to such remuneration: Provided that where the salary payable to such person for holding such office or being such member or so employed, or where the remuneration referred to in clause (iii) payable to such person, is, in either case. less than the pension payable to him under sub-section ( 1 ), such person shall be entitled only to receive the balance as pension under that sub-section.
4[(3) where any person entitled to pension under sub-section (1) is also entitled to any other pension, such person shall be entitled to receive the pension under sub-section (1) in addition to such other person.]
(4) In computing the number of years, for the purposes of sub-section (1), the period during which a person has served as a Minister as defined in the Salaries and Allowances of Ministers Act, 1952 5[as an Officer of Parliament] as defined in the Salaries and Allowances of Officers of Parliament Act,1953, (other than the Chairman of the Council of States) [for as a Leader of the Opposition as defined in the Salary and Allowances of Leaders of Opposition in Parliament Act, 1977or has served in all or any two of such capacities] by virtue of his membership in the House of the People or in the Council of States shall also be taken into account.]
——————–
1. Inserted by the Salaries and Allowances of Members of Parliament (Amendment) Act. 1976 (105 of 1976). section 7 (9-1-1976).
2. Subs. by Act No. 40 of 2006 w.e.f. 12-9-2006.
3. Omited by Act No. 40 of 2006 w.e.f. 12-9-2006.
4. Substituted for ” g [1A) With effect from the commencement of the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 1988, there shall be paid a pension of five hundred rupees per menses to the spouse, if any, or dependant of any member who dies during his term of office as such member, for a period of five years from the date of his death.] “, vide The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 1998 (28 Of 1998), Dt. August 20,1998 Published in Received the assent of the President on August 20, 1998 and published in the Gazette of India, Extra., Part II, Section 1, dated 20th August, 1988. 1-3, No.43
5. Inserted, the words “one hundred and fifty rupees” by the Salary, Allowances and Pension of Members of Parliament (Amendment) Act (48 of 1993), section 2 (9-6-1993).
6. Subs. by Act 37 of 2010 w.e.f. 37 of 2010

Section 8 AA. Travel facility to ex-members

1[Travel facility to ex-members. With effect from the 18th day of January, 1999, every person who is not a sitting member but has served for any period as a member of either House of Parliament shall be entitled along with a companion to travel in any train by any railway in India in air-conditioned two-tier class without payment of any charges on the basis of an authorisation issued for this purpose by the Secretariat of either House of Parliament, as the case may be.”]
2[(2) Every person who is not a sitting member but has served for any period as a member from the Andaman and Nicobar islands or the Lakshadweep, shall be entitled to travel by the highest class of accommodation in any steamer sailing between the Andaman and Nicobar Islands or, as the case may be, the Lakshadweep and the main land territory of India in addition to the facilities available to such member under subsection (1), without payment of any charges on the basis of an authorisation issued for this purpose by the Secretariat of either House of Parliament.]
——————–
1. The Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 1999 (16 Of 1999), Dt. March 22,1999 Published in Received the assent of the President on March 22, 1999 and published in the Gazette of India, Extra., Part II, Section I, dated 22nd March, 1999, pp. 1-3, No. 21
2. Ins. by Act No. 40 of 2006 w.e.f. 12-9-2006.

Section 8 AC. Family pension

1[Family pension. (1) On the death of a member of either House of Parliament during his term of office, his spouse, if any, or dependent of such member shall be paid during the remaining period of life of such spouse or, as the case may be, such dependent so long as such dependent continues to be a dependent within the meaning of clause {ad) of Section 2, family pension equivalent to one-half of the pension which such number of Parliament would have received had he retired (emphasis supplied):
Provided that no such family pension shall be payable to a dependent if such dependent is a sitting member of Parliament or is drawing pension under Section 8-A.
(2) The family pension payable under sub-section (1) shall also be payable to the spouse or dependent of a person who was a member of either House of Parliament or the Provisional Parliament at any time before the commencement of the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2006 and died after serving as such member:
Provided that such spouse or dependent is not drawing any pension under this Act or is not entitled to draw family pension under the proviso to sub-section (1):
Provided further that no person shall be entitled to claim arrears of any family pension under this sub-section in respect of a period before the commencement of the Salary, Allowances and Pension of Members of Parliament (Amendment) Act, 2006.
Explanation.-For the purposes of this section, “Provisional Parliament” shall include the body which functioned as the Constituent Assembly of the Dominion of India immediately before the commencement of the Constitution.]
——————–
1. Ins. by Act No. 40 of 2006 w.e.f. 12-9-2006.

Section 9. Power to make rules

(1) For the purpose of making rules under this section, there shall be constituted a Joint Committee of both Houses of Parliament consisting of five members from the Council of States nominated by the Chairman and ten members from the House of the People nominated by the Speaker.
(2) The Joint Committee constituted under sub-section (I) shall elect its Chairman and shall have power to regulate its procedure.
2[2A] A Member of the Joint Committee shall hold office as such member for one year from the date of his nomination and any casual vacancy in the Joint Committee may be filled by nomination by the Chairman of the Council of States or the Speaker of the House of the People, as the case may be.
Explanation.– In the case of a Member of a Joint Committee holding office as such immediately before the commencement of the Salaries and Allowances of Members of Parliament (Amendment) Act. 1958. the period of one year shall be computed from the date of such commencement.]
(3) The Joint Committee constituted under sub-section (1) may 3[after consultation with the Central Government] make rules’ to provide for all or any of the following matters, namely :-
(a) the routes for the performance of any journey;
(b) the manner in which fractions of a day shall be dealt with for purpose of determining the daily allowance admissible for that day;
(c) the travelling allowance admissible where a member is provided with free transit for the whole or any part of a journey 4[and the reduction of the daily allowance where a member is provided with free board or lodging at the expense of the Government or a local authority;]
“(cc) the rate at which road mileage shall be paid under sub-clause (ii) of clause (c) of sub-section (1) of section 4-;
(d) the travelling allowance admissible where the place from which a member commences his journey or to which he returns is not his usual place of residence;
(dd) the travelling allowance admissible in respect of journeys performed by any vessel where there is no regular steamer service;
(ddd) the traveiling and daily allowances admissible for journeys performed by a member in the course of a lour outside India undertaken in connection with his duties as such member;
(e) the form in which certificates, if any, shall be furnished by a member for the purpose of claiming any allowance under this Act:
“(ee) the form in which certificates, if any, shall be furnished by any person for the purpose of claiming any pension under this Act.”
(f) the constituency allowance and medical and other facilities mentioned insections 8-and the amount to be paid in cash in lieu of such facilities;
(ff) the amount which may be paid by way of repayable advance for the purchase of conveyance; the rate of interest thereon and the mode of recovery of such amount and interest thereon; and.
(g) general for regulating the payment of 1[daily and travelling allowances and pension under this Act.
(4) Any rules made under sub-section (3) shall not take effect until they are approved and confirmed by the Chairman of the Council of States and the Speaker of the House of the People and are published in the Official Gazette, and such publication of the rules shall be conclusive proof that they have been duly made,
——————–
1. Inserted by the Salaries and Allowances of Members of Parliament (Amendment) Act, 1958 (LV of 1958). Section 8 (30-12-1958).
2. Inserted by the Salary, Allowances and Pension of Members of Parliament (Second Amendment) Act, 1982(61 of 1982), section 4 (6-11-1982).
3. Inserted by the Salaries and Allowances of Members of Parliament (Amendment) Act, 1976 (105 of 1976). Section 8(a) (9-9-1976).
4. Substituted by the Salaries, Allowances and Pension of Members of Parliament (Amendment) Act (74 of 1985). Section 8 (26-12-1985).
Exemption from Income Tax – Please see Section 10 of the  Finance Act 2017



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