Time to submit our investment receipts for tax saving. Last minute investors busily searching various channels to invest for tax saving. A brief information of different 80C channels I have listed.

Say, a person’s gross annual income is Rs.5 lakh and he invests Rs.1 lakh under 80C, his net taxable income becomes Rs.4 lakh.

If failed to invest this year at least we can make proactive decesion in the coming financial year by investing early.

80C Tax-saving channels

Saving option

Lock-in period


Provident fund,

pension fund

Till end of service


Public Provident Fund

15 years


National Savings


6 years


Bank fixed deposits

5 years


Insurance policies

(endowment, money-back)

Policy term


Ulips, pension plans

3-5 years

Low to high

Tax plans of mutual funds

3 years


Other expenses that qualify under section 80C are, School fee of two children of the taxpayer and home loan repayment of the principal portion.

Vagabond day in Velachery

After discharging from work I planned to go to Ilay machi’s home (I call him KD) after a long time. At last rain deterred my plan and I sadly settled in my room and end up in washing my clothes. Anxious Ilayaraja buzzed my mobile and started scolding me for not yet started to Velachery, and I consoled him by explaining my situation and told him I will make it up on Sunday. With disappointment he ended the call I suppose.

Next day, bright sunny Sunday. Along with Dakshina mama we started our house hunt for mama in Tiruvanmiyur. Before starting Bagya called me, mam’s veetuku varuvingala matingala and I replied I am on the way to home only. In Tiruvanmiyur few pleasing homes came across in our way and some were kept for consideration. At noon, mama left for his friend’s home and I started towards Ilay’s home in Velachery. After parking my bike I started climbing the staircase. Biriyani aroma started pulling me heavily towards the home.I knocked the door, Bharthi opened the door by welcoming me vanga mama, ethana naal achu pathu. By answering I entered the home and to my left Thangaraj mam’s was sitting and in the down Ilay KD was lying and was engaged in watching television. After a brief chat, I started towards kitchen to see periyamma who was totally busy in preparing lunch. After enquiring about her health I settled down in the hall and started chatting. Bagya was missing and mama and athai too were missing on that day :-(.

Lunch preparation was almost finished and we dined in the hall itself and eagerly waiting to attack Biriyani. Everybody had a satisfactory lunch and Biriyani’s spice was at its best. Post lunch we became so tired and placed ourself in 180 degree. Suddenly planned to go for movie and Poo, which many appraised as good became our target and decided to see it. Ilay KD called Kovith who was already busy packing his luggages for shifting his home from Kotturpuram to Beasant nagar. As he was ready, we took our car and reached kotturpuram and dumped all his luggages inside the car and reached Besant nagar and placed the luggages in his new home and made him comfortable over there. Kovith was so tired that he couldn’t able to accompany us for the movie. After confirming the ticked availability in Mayajaal we were heading for Mayajaal leaving Kovith in home.

I wish to keyboard my experience about that movie, but due to short of time, will do it possibly in the forthcoming post.


முயலும் வெல்லும்!
ஆமையும் வெல்லும்!!
முயலாமை வெல்லாது!!!

Karupan da

Before retiring for the night I started searching for my mobile in my home to have it nearby (mobile is least bothered in my native). After I got it I started looking my received calls and SMS’s. SMS from Ramesh(friends call him karupan) indeed made me bright and joy. The SMS read, “I have gifted by male baby.” All my family members were glad and blessed the baby when I shared that news to them.

A sudden flash back started revolving in my head about the days we spent during the college …He joined the college very late and if any question posed on him during the class hours he will reply “I am new comer” and use this as an excuse to escape but the funny part is till the year end whatever question asked, his reply was “I am new comer, I am new comer” :-) …We almost ruled the entire Salem city those days. Often paired with Ramesh, we go for movies, in almost all theatres across Salem starting from Junction till old bus stand. …The night out studies in his room in Yerikadai …The promises we took for not seeing any movies and start concentrating on studies for the semester but, the very next day itself we denounce our promise and move for movie … We plan by dividing 5 units among us to study for semester and each after finish studying will give KT to others but he without studying any of the units he will hear only the story from us without any pain and he is the one and only man who uses more number of pages in the examination but God only understand his bullet speed handwriting …After successfully completing the degree we started heading towards the alien city (till then), Chennai. In our room Ashok, Kannan, Srini, Venky and myself (Sanjeev won't attend this session because he is big dhadha) will have mock interviews, in that if we ask Ramesh to answer Tell me about your-self? He will reply, “I am S Ramesh Kumar. My native place is Aaralvoimozhi. It is full of windmills….” A heavy laughter will break out :-) by commenting him.

Such a fun filled days we came over. Now he has become father, with loads of responsibilities, and has to run his family with vigour. Lots of thought comes in my mind but I have one thing to say “inimelavathu vandi oota kathukoda

I wish the baby and his parents.. all the happiness.


A controversy statement give by honourable CM of Kerala Mr V S Achuthanandan (atleast I can give this honour for the CM post), when he made a visit to see the deceased Major Sandeep, who is a keralite, igniting a controversy after smarting under the snub from the angry father of the officer when he went to Bangalore to offer his condolences.

“Even the karnataka CM had visited major's home but the Kerala CM didn't find time to visit. After serious of pressure and for political mileage he made a visit” Unnikrishnan said, the father of Sandeep. The chief minister asked “Is there a rule that the chief ministers of Kerala and Karnataka should be there at the same time? After a pause, the chief minister went on to say “If it had not been Sandeep’s house, not even a dog would have glanced that way.” Sandeep’s family and that is why we went. A soldier’s father should have had the sense to understand that,” the chief minister said.

But Sandeep’s father said politicians were under “compulsions and duress” to express solidarity with the terror victims in an apparent attempt to get political mileage and “I did not want to respond to them.”
“Sandeep was a person who disliked anything under compulsion and duress. I am his father, he would have inherited the same thing from me,” Unnikrishnan said, a day after the Kerala chief minister virtually threw him out.

“Sandeep was not a regional, not even a national, he was a universal figure. He did not want such a recognition,” he said, adding “I felt very bad that it is under compulsion from all quarters that these two ministers came. So I didn’t allow him. In the process the chief minister sneaked him. Somebody brought him inside and then I entered the house. I was in a bad state of mind at that time.”

CM had refused to convey his appology in his state assembly initially, but at last CM had conveyed his apology through one of the television channels.

Whatever it might be, even the CM had said a decent statement and it was wrongly interpreted by the media, Major Sandeep deserve high respect and nobody can't even think to spoil his reputation.

May his soul rest in peace. Jai Hind.

Sridhar's Reception

Regrettably I couldn’t make on Sridhar’s wedding day. Thank God, I wasn’t trapped in any other work on his reception day, the November 30, 2008. I kicked off my journey towards Ashok Pillar, where Hotel Gokulum is situated. It was a cloudy day such that rain can pour at any time. Not bothering about the weather I was travelling in midst of the snail traffic thinking about how many diversions would be there due to rain. The heavy rain, which lashed Chennai those days, was the reason behind the snail traffic. The bridge nearby Kasi theatre was crowded and people were seeing the lake as if it is to be a wonder. The water was about to touch the bridge, a rare sight in Chennai. At last I reached the destination with no difficulty.

Ashok called me to enquire my whereabouts. After disclosing my location he joined with me along keerthi’s brother. Stepped into the hotel and at the reception we came to know his reception was in progress at 4th floor. Using Lift, we reached 4th floor and there was a grand welcome by spraying “panneer” and distributed “kalkand” and “sandal water” and at the entrance another person was standing holding a tray with mango juice. By tasting the juice we glanced on the couples. They were busy posing photographs along with their known ones. By that time, one by one, joined the crew. Rajasekhar, Manikandan, Dinesh, Senthil and RC Karthik were those. What these people do when they gather? As usual, “vetti” chat begun by commenting each other. A surprise man came, its none other than our Sudeep along with a gift. Hurray, we got a gift :-). Later some time Sridhar had time to notice us and waved his hand. We assumed he waved towards us only. By that time second round of mango juice was happily going on. Later we decided to take photo along with the couple and started approaching him. Suddenly there was a commotion inside our group. Sudeep was missing along with the gift and we took a brief look around the hall, at corner he was busy in a phone call. After seeing him only we all got relaxed and settled down on chair till his return (gift avan kittala iruku :-)). Later we congratulated the couples and posed for photograph by standing as per the photographer’s instruction. Then what next?

Banthithan. Buffet was arranged on the terrace. We had a good dinner over there. There too that photographer didn’t leave us. He made us to stand in a “U” shape and took us photographs. Dinesh and RC Karthik had a very fast attack during dinner. After enquiring for the reason RC has to start to Bangalore and still 45 min more to catch the bus. They hurried up and soon left the spot. We took our own time. After dinner we bid good-bye to the couples and came out by collecting “thamboolam”. Rajsekhar started scolding me for not collecting the thamboolam. Without understanding I told him what I am going to do with?. He replied machi we cooking in my room at least you should have got and give it to me. I started laughing, ada machi shall I go and get for you? He replied with no. Before we left the place we had a chat about our next meet. Along with Senthil I started and after dropping Senthil at Tiruvanmiyur I reached my room.

I wish Sridhar and Krithiga a happy married life.


என்னை விட்டுப் போன கண்ணன் வரக்காணேனே!

பொழுது மிகவாச்சுதே சகியே என்னை விட்டுப்போன
கண்ணன் வரக் காணேனே (பொழுது)

குழலோசை கேட்டு கூடிடும் மங்கையர்
விழியால் வலை வீசி அழைத்துச் சென்றனரோ (பொழுது)

புழுவென நான் இங்கு புலம்பித் துடிக்கையிலே
பூவையருடன் அங்கு பேசிச் சிரிக்கப் போமோ?
பைங்கிளி உனைக்கணம் பிரியேன் என்ற
பேச்சும் மறந்தானோ பேதையைத் துறந்தானோ? (பொழுது)

இயற்றியவர்: அம்புஜம் கிருஷ்ணா
இராகம்: ரேவதி


Very tired and bored I thought for refreshment by watching a movie. Yeah, today is Friday, a day to enjoy a day to party and a reason to celebrate. What’s much in Friday? After I deeply thought for a reason, later I came to a conclusion there is nothing in it, of course nothing. Usually Kannan and me go for a movie on Friday night and we decided to go for movie tonight. Kadhalil vizhunthen, a new release but I was not interested or even not confident about that movie. Yes, I have a strong reason for that. No quality movies nowadays and I was frustrated by seeing many flop movies. I usually collect lots of new movie music’s but it’s been quite long I went in search for them, as no quality music instead I feel like a noise and more than that I even can’t catch few words in my Tamil songs. Totally wrath with Kollywood.

By the time, time was 15 past 9 and was getting late for the show. We immediately left for the day from the office but was not ready to compromise our dinner. Soon I took my bike and kannan in the pillion we started to fly at galloping speed towards Hotel Insuvai. We hurried up after taking dosai and started towards Arvind Multiplex, my favourite hangout place, without aware of a big disappointment that we are going to face. Finally we reached there and to our shock the show was house-full. We were upset and returned home after taking a vow to make our presence on tomorrow’s first show. As my mind was set to see a movie I wont get sleep without seeing one, so I took “Aadavari mataluku arthaley veruley” DVD and watched till I feel asleep.

27th September, 6.15pm. At the same time outgoing call from my mobile and incoming call in kannan’s mobile. Just I called him and nothing more than that and asked him to come to Udupi Hotel. After buying two fresh coffees from there we started running towards theatre as show was started already. Somehow we managed to buy tickets in that crowd, thanks to kannan, and stepped into the theatre along with the hot coffee in our hands. As soon as we entered, there was huge applause and whistle tearing the air and was about to exceed the maximum limit, by mistake I thought they all were welcoming us and soon I realised it was for the song “Naaka Mukka…” which was running in its full glory on the screen. I became still for a second on seeing the song and immediately few poetic words in local Tamil language came behind me to move aside and I apology ‘ed him saying sorry thala, and went in search for seat and settled. The song was playing in full tempo and dance at its fast pace as well. A suitable song that has to be enjoyed amidst of the crowd in a C Class theatre. In mid of that song I happened to turn towards kannan, he was unconsciously dancing according to the tempo. Again the line “Ad ra ra naaka mukka naaka mukka nakka mukka…” Good choreography by Sridhar, an extra-ordinary music by Vijay Antony and lyrics by the director itself. That song I wish to name magnetic song, happiness giver, such an energy booster and I was fully charged after seeing that song and I added this song to second in my list after “Manmatha raasa” which is of this kind. A perfect ‘Kuthu’ song. After completion of this song Tamil along with his brother entered theatre and joined us. Oh, he missed a kalakal song.

In a hospital scene, nakul the lead actor of this movie, when he shivered while he was lying in the bed, I automatically shivered along him. An excellent acting from him and it was totally above my expectation from him. A good start out for nakul. The movie was as speed as I couldn’t even believe how first half got completed. In the interval we got ice cream for time pass. While tasting ice cream we noticed some one sitting in my well-known area in my office (First floor of my office is visible from theatre balcony). Yeah, it was Saravanai perumal and next to him Gopi. They seemed to be deeply buried in their work and thought of disturbing them. Took the mobile and called him. After a few seconds of talk I asked him to turn to his right. He bent forward by having his mobile over his ear and tilted his head to right and peeked us through the glass window. We three were standing next to next by waving our hands. He, “ada paavingala inga work pannitu irukarappo theatrela iruth tata kaati kadupethringala…ha ha ha” as it continued. Later mobile was switched over to Gopi, he, “thala yaar yaaru vanthinga, neenga, periya thala, tamila oh enjoy enjoy“. After talking I pressed End Call button and was shocked to see my cream was missing in my cone. The semi solid cream was converted to liquid state and all leaked out by the time when I was talking and left empty cone in my hand. No heart to leave that empty cone also and had that. Bell alarmed, we rushed to our seats. The second half of the movie started with a suspense and thriller and it was quite different till end of the reel. Nakul had given his best performance and made use of his opportunity well. The movie was all about how an extreme love and affection will take a person to do anything he desired. An example too was shown, how a monkey, which was, too affection towards his baby was happily living with it with out knowing it was dead. That was a heart-touching video.

Last but not least, another interesting thing was the female lead Sunena (கவிதை போல) and the uninteresting thing was she was alive till the first half :-(. The movie was youthful and even though it was an extract of many already released movie PV Prasath, the director has given in an interesting way. Camera of SD Vijay Milton has played like anything and the movie is worth watching. I remember seeing the movie “Iruvar mattum – By 2”, where only two person acted in that movie also have the same story line. We left the theatre with a feel of seeing a good movie. Then we reached Gnanambal Idly Kadai for dinner. While taking dinner we were discssing and making comments on the movie along with posing for few snaps infront of kannan’s nokia 7100 technology. After dinner Tamil along his brother started towards North and kannan and me started towards south and reached our room and our day happily ended.

KATHALIL VIZHUNTHENThe nakka mukka film.

CMMi Meeting

Thanks to Sudha(my SET trainer who motivated to blog) and Arun(my younger brother, who inspired me by his wonderful blog) who en kindled to blog.

Team meeting on 25th September wasn’t a usual meeting. A day before itself we got an email to our PHS ODC group email id from my PM which clearly explained about the agenda, day, time and location of the meeting. The agenda was quite simple, learning CMMi (to me a boring and dry subject). As per the email that we got, we should gather at First floor conference hall between 2.30pm and 3.30pm.

The clock ticked 2.30; few including me became busy at work, may be we would have forgot about the meeting. Thanks to my colleagues who reminded us about the meeting and started kidding each other by saying these people become busy whenever we have meetings. By laughing, I WIN+L’ed my pc and marched towards the first floor conference room pretending to be an interesting learner on CMMi ;-) and at the same time thinking of the first team meeting with my new PM Jayakumar. As soon as I open the door and entered the room, Jayakumar smiled and turned to the board and wrote 2:36pm – 12. Above that I saw 2:30 – 0, 2:32 – 2, 2:34- 4. I thought late entrants were noted, oh my first meet itself become a flop. Jayakumar told, we can wait for another 10 mins for the rest of the team members to gether and start our meeting. Till 2:50 the list continued, so sad. He started the meeting with the question, how many of you were not aware of CMMi? Except Mahendran’s hand raise none raised. Oh, Jayakumar became too happy and starting saying in a high pitch tone “O my job become easy guys, I don’t have to waste time in explaining CMMi when you guys were aware of that” There was a huge laugh in the conference hall and people started looking each other and broke the silence which prevailed over there until and took some time to come back to normal.

Later he asked what do you think of this time and number that I wrote on the board. After a brief pause few responses came. They are,

  1. Communication didn’t reach properly.
  2. Next time, will reach at correct time.
  3. Process wasn’t followed.

and some more which I couldn’t remember :-)
He, for every response from our end, wrote all the points on the board and totally encouraged us by saying, the responses what I got from you were all related to CMMi and you guys have good knowledge in them but the problem is you need to learn how to match them or like fill up the blanks. Yes he was correct.

He started saying 3 examples that encountered in his life. When he was in Delhi, nearby the Delhi railway station there used to be a “Kaiyenthi Bhavan” style food centre where a guy used to prepare chola poori in same taste every day. In another example, Hotel Saravana bhavan, where the coffee taste across all the branches remained the same. In another example, Gillete razor. Gillete razor that lasted for one month for him now came for only 15 days. In above three cases who all followed process and who weren’t?. Few told the first two followed the process so the taste remained same but the latter didn’t so the Gillete razor instead of 30 days it came only for 15 days. After the debate we had among us, Jayakumar told all the above 3 followed the process. Even the Gillete razor company also followed the process. The reason for reduced day can be due to some mistake over any specific unit or due to roughness of the skin or improper usage of the razor. If a customer writes this as a complaint to the customer feed back department, they will check for root cause for the problem and even they replace for their faulty product, if applicable. Yes, we all agreed with this.
Also Jayakumar asked us to speak in CMMi language. That is nothing but speaking in numbers. Instead of saying, today I will go early to the office and fix as many bugs as I can and complete as many stories, we can say today I will reach office at 9am, fix 8 bugs which will take half an hour each, complete 2 stories which will take 2 hrs each. By saying in this manner it will be easy for us to track everything and if anything goes wrong then the root cause can be easily tracked and can be corrected and we temporarily stopped as clock ticked 3.30pm where we are supposed to stop the meeting. All eagerly waiting for the next week session.

The session was a total success and everybody was fully motived through out the meeting to learn CMMi. I studied CMMI from many PPT’s and websites but this session was something unique and happily achieved its objective hundred percent, thanks to Jayakumar for his approach on teaching this.

[At the start of the meeting itself Jayakumar asked for everybody’s interaction and said none of your questions will be counted for appraisal and asked us to raise any question even it can be a stupid question and then he continued by asking himself how can a question be stupid?. May be because of that all interacted? I don’t know :-)]


Now we can enjoy the freedom of ATM or Debit card usage.

Reserve Bank of India(RBI) after analysis have found usage of ATM machines increase day by day and that too it is mainly used for cash withdrawal and balance inquire in spite of many other services available. So RBI had cut the service charge for using the ATM cards in other banks ATM machine.

#. No service charge for using in same bank with immediate effect.
#. No service charge for balance inquiry in other banks with immediate effect.
#. Reduced the service charge for cash withdrawal from other bank ATMs, which are above Rs. 20 to a maximum of Rs. 20 with immediate effect.
#. No service charge for cash withdrawal in other banks from 01-Apr-2009 (still have to wait for an year).

RBI has directed the banks to fix their service charges for credit card cash withdrawal.

Is dividend option in NFO a smarter choice?

What's better -- the dividend option or the growth option? That's one question, which investors regularly pose to us. In the case of an equity fund, so long as both the options have the same portfolio, they are at par (on rare occasions, some funds have different portfolios for the growth and dividend options).
Hence, investors should make their choice based solely on their need for liquidity. Despite dividends not being assured, if liquidity is critical for the investor, he should opt for the dividend option; else, the growth option should be the preferred choice. While the growth option offers compounding benefits, the dividend option offers liquidity.
However, this seemingly simple concept is often lost on investors. And more often than not, it is the significant amount of misinformation which is to blame. For instance, in the past, a "forthcoming dividend" was used by fund houses and advisors alike as a marketing ploy to garner fresh monies. The dividend was declared well in advance and then heavily publicised to lure investors to get invested in the fund.
Of course, no one bothered to inform the investor that the fund's net asset value subsequently falls to the extent of the dividend declared. In effect, the investor is simply paid a dividend out of his investment corpus i.e. the dividend is not an additional benefit.
To stem this malpractice, the Securities and Exchange Board of India introduced norms for dividend declaration (in April 2006). Fund houses now have to declare dividends i.e. communicate the same to investors along with the record date in a particular format, a day after getting the go-ahead from the Trustees.
The record date for the dividend is five days from the date of notice. Most importantly, fund houses are required to clearly mention that the NAV will fall to the extent of the dividend.
This brings us to another popular misconception about dividends, especially in new fund offers (NFOs). It is widely believed that opting for the dividend option in an NFO makes a good investment proposition. The reason -- units in an NFO are issued at Rs 10. As a result, the investor in an NFO is likely to end up with more units as compared to a similar investment in an existing fund (that is likely to have an NAV higher than Rs 10).
And more units would typically translate into a higher dividend payout. As a result, often investors are advised to dump existing funds in favour of an "NFO-dividend option" combination. An example will help us better understand the same.
The NAV-dividend trade-off Existing Fund New Fund Offer
Amount invested (Rs) 10,000 10,000
Net Asset Value (Rs) 50 10
Entry load (%) Nil Nil
Number of units alloted 200 1,000

As can be seen in the table above, despite investing the same amount, the investor acquires more units by investing in an NFO as compared to the existing fund. And since the dividend payout is linked to the number of units held, the former becomes a more lucrative option. Correct? Not quite! In fact, this argument is fundamentally flawed on several counts.
1. First, let's not forget that dividends are distributed by funds subject to availability of a distributable surplus. Simply put, a fund needs to collect and invest monies, clock a healthy return and then make provisions for redemptions and future investments.
Only subsequently if the finances permit, will the fund be equipped to distribute a dividend. It can be safely assumed that an existing fund with a proven track record has already passed through this learning curve; conversely, an NFO is yet to begin. This in turn has two implications. One, the NFO is unlikely to be equipped to declare a dividend in the near term. Two, if and when it does, it will take a while before the NFO can match the dividend declared by an existing fund. Clearly the lower NAV-higher dividend theory doesn't necessarily hold good.
2. Second, the NFO is an untested entity. Unlike an existing fund wherein investors can fall back on a proven track record, investors have no means to evaluate an NFO's worthiness. Critics might point out that even in an existing fund, the proven track record need not translate into a good showing in the future, and rightly so. But then it can certainly provide an insight into the fund's investment style and aspects like its propensity for declaring dividends. The higher risk while investing in an NFO is indisputable.
3. When an investor starts considering an investment proposition like "dividend option in an NFO", he runs the risk of making an investment from the wrong perspective. While investing, the first step should be selecting the right fund, followed by choosing the right option. So ideally, there is a need to assess if the NFO fits into the investor's investment portfolio and then the rest should follow. Starting off with a preconceived notion like "dividend option in an NFO" may lead to getting invested in the wrong fund and the wrong option as well.
What should investors do?
For starters, keeping things simple would be a good idea. Don't fall for gimmicks. Instead, evaluate the investment proposition offered by a fund and find out if it fits into your portfolio. And if it does, then select the option i.e. growth or dividend based solely on your need for liquidity.
On a closing note, some unscrupulous relationship managers from fund houses are known to leak information about forthcoming dividends, in contravention of the SEBI guideline. Advisors in turn use this information to entice investors. Perhaps it's the clandestine nature of the event that impresses investors and convinces them to get invested. At the risk of sounding repetitive, if you find yourself in such a situation, do not forget that the dividend on offer will only be paid out of your investment corpus.

All about the 6th Pay Commission report

March 24, 2008
The following are the highlights of the 6th Pay Commission Panel report that was submitted to the government on Monday: The 18-month tenure of the Commission was till April 4, 2008.

1. Implementation of the revised pay scales from January 1, 2006. Recommendations relating to allowances to be implemented prospectively.

2. To remove stagnation, introduction of running pay bands for all posts in the Government presently existing in scales below that of Rs 26,000 (fixed).

3. Four distinct running pay bands being recommended � one running band each for all categories of employees in groups 'B' and 'C' with 2 running pay bands for Group A posts.

4. The posts of Secretary to Government of India/equivalent and Cabinet Secretary/equivalent to be kept in distinct pay scales.

5. A separate running pay band, designated as -1S scale, is not to be counted for any purpose as no future recruitment is to be made in this grade and all the present Group D employees not possessing the prescribed qualifications are to be upgraded and placed in the Group 'C' running pay band PB-1 after they are suitably retrained. Group D employees possessing the minimum prescribed qualifications to be placed in PB-1 pay band straightaway.

6. Minimum salary at the entry level of PB-1 pay band to be Rs 6660 (Rs 4860 as pay in the pay band plus Rs 1800 as grade pay). Maximum salary at the level of Secretary/equivalent to be Rs 80000. The minimum: maximum ratio 1:12.

7. Every post, barring that of Secretary/equivalent and Cabinet Secretary/equivalent to have a distinct grade pay attached to it. Grade pay (being a fixed amount attached to each post in the hierarchy) to determine the status of a post with a senior post being given higher grade pay.

8. The total number of grades reduced to 20 spread across four distinct running pay bands; one Apex Scale and another grade for the post of Cabinet Secretary/equivalent as against 35 standard pay scales existing earlier.

9. At the time of promotion from one post to another, the grade pay attached to posts in different levels within the same running pay band to change. Additionally, increase in form of one increment to be given at the time of promotion. A person stagnating at the maximum of any pay band for more than one year continuously to be placed in the immediate next higher pay band without any change in the grade pay.

10. Annual increments to be paid in form of two and half percent of the total of pay in the Pay Band and the corresponding grade pay. The date of annual increments, in all cases, to be first of July. Employees completing six months and above in the scale as on July 1 to be eligible.


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