This step of the central bank will help in curbing the additional interest levied on the customers in case of loan default. In its draft circular on ‘Fair Lending Activities – Penal Charges in Loan Accounts’, the quantum of penal charge should be commensurate with the extent of default/non-compliance of material terms and conditions of the loan agreement. Under the extant RBI guidelines, lenders have the freedom to implement a board approved policy for recovery of penal charges.

The central bank has now issued a draft to streamline these activities. The draft states that the purpose of imposing penal charges is to inculcate a sense of credit discipline among the borrowers and to provide fair compensation to the lender.

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It further said that penal charges are not a means of earning over and above the contracted interest rate.

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In fact, according to the tax rules, it is mandatory for government employees to file online Form 10E to claim relief under section 80. Explain that as per the recommendation of the 7th Pay Commission, the central employees get more salary, pension and allowances, it is mandatory for all the employees to file ITR. 31st July 2022 was the last date to file ITR returns in which more than 5.8 returns were filed.

Central employees can claim exemption and relief from the government for payment of dues. He is the only such taxpayer who claims relief under section 89 without filing Form 10E. They are provided by the Income Tax Department. Taxpayers will not be able to claim relief under section 89 without filing Form 10E.

Talking about the salary revision of central employees, recently the government has made it clear in the Parliament that the salary allowance will be determined according to the recommendation of the Seventh Pay Commission for the payment of salaries of government employees. There is no need to constitute another Pay Commission for this.

Not only this, the government has not claimed whether there will be 8th Central Pay Commission in future or not, but this year the salary, allowances of the employees will be determined according to the recommendation of the 7th Pay Commission. Along with this, an increase of 4 percent can be seen in the DA of the employees soon.

Form 10E can be filed by:

• Log on to http://www.incometax.gov.in.
• After logging in, click on the tab e-File.
• Click on Income Tax Form.
• Click on File Income Tax Form.
• Select the option “Tax Exemptions and Relief/Form 10E

The post 7th Pay Commission ! Important updates for employees: benefits will be available like this, know rules and instructions and process first appeared on Rightsofemployees.com.