* CHRONICLE - PENSIONERS CONVERGE HERE, DISCUSS ISSUES OF THEIR CHOICE * CHRONICLE - WHERE EVEN THE CHAT COLUMN PRODUCES GREAT DISCUSSIONS * CHRONICLE - WHERE THE MUSIC IS RISING IN CRESCENDO !

               
                                   

Thursday, July 17, 2014

MC JAIN CASE - CLARIFICATIONS GIVEN BY SHRI MAHADEVAN

We have published certain clarifications given by SHRI CH MAHADEVAN under the caption MC JAIN CASE.  Certain other clarifications given by Shri Mahadevan are also published below for the information of the pensioners. We had originally published the correspondence as emanating from A PENSIONER. The pensioner was Shri RK Viswanathan.

Dear Mr RKV,

After referring to my old salary pass book maintained by me from 1988,I could get the no.of DA slabs for your pre revised scale( pre-August 1992).
February 1992 to April 1992: 126, May 1992 to July 1992 : 131, August 1992 : 137
Your revised DA slab was 27.201. So your notional Basic Pay for the 10 months prior to your retirement will be as follows:

April 1992 :8477
May 1992 to July 1992 :8613
Revised Basic Pay from 1/8/1992 : 9950
The last 10 months average emoluments will be 94016.
The refixed Pension will be 4701 w.e f 1/11/1993
.

Kind regards.
C H Mahadevan

Thank u sir for taking lot of trouble in calculating my revised pension 
and I am eagerly waiting for the court order as it will speak whether 
Interest for delayed payment is allowed or not. 

The Jaipur HC order under CWP of M C Jain did not speak about the interest.Taking for granted that the arrears itself without interest would be a substantial amount, according to IT Act arrears are taxable for the same fiscal year 2014-2015.Taking the pension+the arrears for a senior citizen pensioner will push him beyond the threshold limit of 300000 into the 10% tax bracket even after his savings Under 80 (C) upto 150000.If interest is paid it will somewhat neutralize the tax burden. I only hope the expected order does mention about the interest payable.

R.K.Viswanathan
Dear Mr RKV,
If interest is not allowed, the difference will not be substantial. If LIC insists on paying CV without interest, you will have negative values in respect of arrears for a number of months. This is because the DR anomaly is not resolved by this judgment and it only orders refixation of pension on 1/11/1993 with the same anomaly upto 1/8/1997.
The real benefit can come only from implementation of Jaipur SJB judgment dt 12/1/2010.

Kind regards.
CH MAHADEVAN