Chapter04.Personal Claims

E2-E3/Finance Rev. Date: 01.04.
2011
E2-E3/FINANCE
CHAPTER-4
PERSONAL CLAIMS (I.Tax, Loans & Adv.,
TA, JT,LTC, CEA, TF, Perks, MRS)
(Date of Creation: 01.04.2011)
BSNL, India For Internal Circulation Only 1

E2-E3/Finance Rev. Date: 01.04.2011
Personal claims (I.Tax, Loans & Adv.,

TA, JT,LTC, CEA, TF, Perks, MRS)
Income Tax
1.1 Income tax is a composite tax on all incomes received by, or accruing or arising
to, a taxpayer during a year.
1.2 In the language of the Income Tax Act, the year during which the income is
received or is otherwise earned is called the “Previous year” and that income is assessed
to tax in the year commencing on 1st April next following the close of previous year. This
latter year is termed “Assessment year”.
1.3 Though income Tax is a single Tax on the aggregate of incomes from various
sources the taxable income is first computed under different heads of income.
1.4 If there are two or more sources of income falling under a head of income the
income is computed separately for each source of income. These are then aggregated.
From the aggregated amount, certain deductions are made before the taxable income is
reached. The various heads of income are:-
i) Salaries
ii) Income from House Property
iii) Profits and Gains of Business or Profession
iv) Capital Gains; and
v) Income from Other Sources
2. Income that is exempt from tax (only items related to salary)
2.1 Leave Travel concession in India (Only two journeys in a block of 4 years is
exempt) [(Sec.10 (5)]
2.2 Gratuity [Sec.10 (10]

Government Employee: - Fully exempt

Non Government Employee (Covered by Payment of Gratuities Act)

The least of the following is exempt
15 days salary Last drawn (includes DA) X Less than 6 months service ignored.
length of Service 6 months & above service is treated as full
Rs.3,50,000 year
Actually Received
Non Government Employee ( Not covered by Payment of Gratuities Act)

The least of the following is exempt
Half months‟ average salary(includes DA) Fraction of a year is ignored

(average of 10 months preceding the month
of retirement) X Completed years of Average of 10 months preceding the month
Service of retirement
Rs.3,50,000
Actually Received
However, the assessee can claim relief under Sec.89
2.3 Commuted Value of Pension [Sec.17(1)(iii)]
Employee of Central/State Fully Exempt

Govt., Local Authority &
Statutory Corporation
Non Government Employee If Gratuity is received If Gratuity is not received
1
/3rd of Pension Exempt ½ of Pension Exempt
However, the assessee can claim relief under Sec.89
Any payment received by way of commutation of pension by an individual out of annuity

plan of the LIC from a fund set up by that corporation shall be exempt under sec. 10
(10A).
2.4 Leave Encashment
During Service: - Chargeable to Tax. However, relief can be taken under section 89.

At the time of retirement/leaving job
Government Employee Fully Exempt
Non Government Employee: - Least of the following is exempt
(No. of months) EL at credit Average month salary = Last 10 months (Basic salary +
as per records X Average DA)/10
month salary EL at credit to be limited @ 30 days per year of service
10 X Average month salary ( fraction ignored) – leave availed/ encashed during
Rs.3,00,000 service
Actual Amount received
2.5 House Rent Allowance: [Sec.10(13A)] If an employee lives in rented house and
paying rent, the least of the following is exempt from tax 1. 50% of salary, where
residential house is at Bombay, Calcutta, Delhi or Madras and 40% of salary, where
residential house is at any other place
2. HRA received for the period during which rental accommodation is occupied
3. The excess of rent paid over 10 percent of salary
Salary includes Dearness Allowance, if the terms of employment so provide, but
exclude all other allowances and perquisites.
Salaried employees drawing HRA up to Rs.3000 p.m. will be exempted from
production of rent receipt.
2.6 Special allowances prescribed as exempt under section 10(14):
1. Traveling allowance/Transfer allowance

2. Conveyance allowance
3. Daily Allowance
4. Uniform allowance
5. Special Compensatory allowance (Hilly areas, High altitude, uncongenial climate,
snow bound area, avalanche) [Rs. 300 p.m. to Rs.7000 p.m.)
6. Border area allowance (remote locality, difficult area, disturbed area) [Rs.200
p.m. to Rs.1300 p.m.]
7. Tribal areas/scheduled areas allowance: Rs. 200 p.m.
8. Children Education allowance: Rs.100 p.m. per child up to a maximum of two
children
9. Hostel expenditure allowance: Rs.300 p.m. per child up to a maximum of two
10. Compensatory field area allowance: Rs.2600 p.m. in some cases.
11. Compensatory modified area allowance: Rs.1000 p.m. in some cases.

12. Counter insurgency allowance: Rs.3900 per month in some cases.
13. Transport allowance: up to Rs.800 p.m. (Rs.1600 per month in the case of an
employee who is blind or orthopaedically handicapped
14. Underground allowance: Rs.800 per month
15. High altitude allowance: Up to Rs.1060 per month (for altitude of 9000 to 15000
feet) or Rs.1600 per month (for altitude above 15000 feet)
16. High active field area allowance up to Rs.4200 per month
17. Island duty allowance: Up to Rs.3250 per month
3. Taxable Perquisites
3.1 Rent free unfurnished accommodation:
(a) Accommodation provided by Central Government /State Government: Licence

Fee chargeable
(a) (As per amended section 17 (2)(ii) of Income Tax Act 1961, vide Finance Act
2007)
In a case where an unfurnished accommodation is provided by any employer other than

the Central government or any State Government (AY 2006-07)
Accommodation owned by Accommodation is taken on
the Employer lease or rent by the
employer
City having population 15%
exceeding 25 lakhs as per
2001 census Lease rent or 15% of salary
City having population 10% whichever is lower
exceeding 10 lakhs but not
exceeding 25 lakhs as per
2001 census
Any other place 7.5%
Salary includes all monetary payments except exempted allowance & perquisites, DA if
not considered for retirement Benefits
3.2 Rent free furnished accommodation (not being in a Hotel)

The charges at para 3.1 above + [ 10% of cost of furniture (P.A.) or Actual hire charges
of furniture, if hired.]
3.2.1 Rent free furnished accommodation in a Hotel (includes Guest House)
24% of salary or Actual charges paid by Employer whichever is lower
3.3 Accommodation provided at concessional rent
In a case where an unfurnished accommodation is provided by any employer other than

the Central government or any State Government (AY 2006-07):
Difference between the amount arrived as per 3.1 above (A) and the rent recoverable
from, or payable by, the assessee (B) [If A is more than B only]
3.4 Interest free loan or loan at concessional rate of interest
It is taxable in the hands of all employees. The value of perquisite will be = Interest
charged @ SBI for the year Less Interest actually recovered for the year
The basis of calculation shall be the maximum outstanding balance on the last day of
each month.
SBI lending Rates (AY 2008-09)
Housing loanUp to 5 years 10.25 %

Above 5 years but up to 15 years 10.75 %
Above 15 years but up to 20 years 10.75 %
Car Loan Up to 3 years (Rs.7.5 Lakhs & 11.5 %
above)
Up to 3 years (below 7.5 Lakhs) 11.75 %
Above 3 years and up to 5 years 11.75 %
Above 5 years and up to 7 years 12 %
Two wheeler 14.25 %
loan
Education Loan amount up to Rs.4 Lakh 11.5 %
Loan Loan amount above Rs.4 Lakh 13.25%
Personal 15.25%
Loan

When perquisite is not chargeable to tax
1. If a loan is made available for medical treatment in respect of diseases specified in

rule 3A (the exemption is, however, not applicable to so much of the loan as has been
reimbursed to the employee under any medical insurance scheme).
2. Where the amount of original loan (loans) does not exceed in the aggregate
Rs.20000
3.5 Use of Movable assets
The value of benefit to the employee resulting from the use by the employee of any
movable asset belonging to the employer shall be = 10% per annum of the actual cost of
such asset (or amount of rent paid /payable by the employer, if hired) Less amount paid
or recovered from the employee for such use. It is taxable in the hands of all employees.
Nothing is taxable if laptop or computer is provided.
3.6 Movable assets sold by an employer to its employees at a nominal price:-
Perquisite in respect of sale of movable assets to employees
Electronic items/ Motor car Any other asset

computers
Cost of the asset Actual cost to the Actual cost to the Actual cost to the
Employer Employer Employer
Less normal wear 50% for each 20% for each 10% for each
and tear for completed year by completed year by completed year of
completed years reducing balance reducing balance actual cost
during which the method method
asset was used by
the employer for his
business
Less amount Consideration Consideration Consideration
recovered from the recovered from the recovered from the recovered from the
employee employee employee employee
Taxable value of the Balancing amount Balancing amount Balancing amount
perquisite

3.7 Medical facilities:
1. Fixed medical allowance is always chargeable to tax.
2. The perquisite in respect of medical facilities is generally taxable in the hands of

only specified employees. If, however, bills are issued in the name of an employee and
the employer makes payment, then it is taxable in the hands of all employees whether
specified or not.
Hospital Nature of medical Expenditure Is it chargeable to

( including clinic, facility made tax
dispensary or nursing available to
home) employees & their
family
Maintained by the Any Incurred by Not chargeable to
employer the employer tax (no monetary
ceiling)
Maintained by --Central/ Any Incurred or Not chargeable to
State Government reimbursed by tax (no monetary
-Local authority employer limit)
-Any other person but
approved by the
Government for the
treatment of its
employees
Approved by the Chief For prescribed Incurred or Not chargeable to
Commissioner diseases reimbursed by tax (no monetary
employer limit)
Health insurance policy Medical Not chargeable to
(i.e., group medical insurance tax (no monetary
insurance premium for premium paid ceiling)
employees or medical or reimbursed
insurance premium for by the
employees and family employer
members)
Maintained by any other Any Incurred or Not chargeable to
person (for example a reimbursed by tax up to Rs.15000
private clinic) employer in aggregate per

assessment year
Tiffin allowance & Servant allowance are taxable.
Tax is to be deducted at source by Employer / Payer
I. From Salary (Sec.192)
Rate of tax deduction at source Normal rates applicable to an individual
Income Tax Rates (A.Y. 2008-09) (F.Y.2007-08)

Individual/HUF/AOP/BOI/Artificial person
Net income range Income-tax rates Education Secondary

cess & Higher
education
cess
(1/4/2007)
Up to Rs.1,10,000 NIL NIL NIL
Up to Rs.1,45,000
(Resident Woman
below 65 years)
Up to Rs.1,95,000
(Senior citizen)
Above Rs.1,10,000 to 10% of the net income in excess of 2% of 1% of
Rs.1,50,000 Rs.1,00,000 income tax income tax
[10% of the net income in excess of

Rs.1,45,000
(Resident Woman below 65 years)]
Above Rs.1,50,000 to Rs.4000 plus 20% of the net income 2% of 1% of
Rs.2,50,000 in excess of Rs.1,50,000 income tax income tax
[Rs.500 plus 20% of the net income

in excess of Rs.1,50,000 (Resident
Woman below 65 years)]

[20% of the net income in excess of

Rs.1,95,000
(Senior Citizen)]
Above Rs.2,50,000 Rs.24,000 plus 30% the net income 2% of 1% of
in excess of Rs.2,50,000 income tax income tax
[Rs.20,500 plus 30% of the net

income in excess of Rs.2,50,000
(Resident Woman below 65 years)]
[Rs.11,000 plus 30% of the net

income in excess of Rs.2,50,000
(Senior Citizen)]
If the net income exceeds Rs.10,00.000 Surcharge shall be payable @10% of Income tax
plus Education Cess 2% and Secondary & Higher education Cess 1% on [Income tax &
Surcharge]
4. Permissible deductions from Salary Income (Sec16)
4.1 Standard Deduction [Sec.16 (i) ]: It is not available from Assessment year 2006-
07
4.2 Entertainment Allowance [Sec.16 (ii)]: In the case of Government employee, the
lease of the following is deductible:
a. Rs.5000;
b. 20% of basic salary or
c. Amount of entertainment allowance granted during the previous year
In the case of non-Government employee entertainment allowance is not deductible
4.3 Professional Tax or Tax on Employment [Sec.16 (iii)]: Actual amount paid during
the year
5. Computation of relief when salary has been received in arrears or in advance
(Sec. 89)

1. Calculate the tax payable on the total income, including the additional salary
(arrears/advance salary), of the relevant previous year in which the same is received.
2. Calculate the tax payable on the total income, excluding the additional salary, of
the relevant previous year in which the additional salary is received.
3. Find out the difference between the tax at (1) and (2)
4. Compute the tax on the total income after including the additional salary in the
previous year to which such salary relates.
5. Compute the tax on the total income after excluding the additional salary in
previous year to which such salary relates.
6. Find out the difference between tax at (4) and (5)
7. The excess of tax computed at (3) tax computed at (6) is the amount of relief
admissible under section 89. No relief is, however, admissible if tax computed at (3) is
less than tax computed at (6). In such a case, assessee-employee need not apply for relief.
Income from House Property
Let Out House Property
Gross annual value xxxx

(Municipal valuation or Fair rent whichever is higher subject to a
maximum of Standard Rent (Rent control Act)
If the actual rent received/receivable is higher than the above, then
that is gross annual value
Less Municipal Taxes xxxx
Net annual value xxxx

Less Deduction under Section 24
Standard deduction 30% of net annual value xxxx
Interest on borrowed capital xxxx
(Accrual basis) (no maximum limit)
Interest on pre-construction period in 5 equal installments from the
construction year.
Income from house property xxxx
Self Occupied House Property (one)

Gross annual value NIL

Less Municipal Taxes NIL

Net annual value NIL
Less Deduction under Section 24
Standard deduction 30% of net annual value NIL
Interest on borrowed capital xxxx
Capital is borrowed before 1-4-1999: (Max. ) Rs.30,000
Capital is borrowed on or after 1-4-1999 & the house is
acquired/constructed within 3 years from the end of F.Y in which the
capital is borrowed: (Max.) Rs.1,50,000
(Accrual basis)
(Interest on pre-construction period in 5 equal instalments from the
construction year)
Income from self occupied property xxxx
Where a house is self occupied for a part of the year and let out for remaining part of the
year, Income will be computed as if the property is let out.
If there if a loss under the head “Income from house property” it can be set-off against
any income under other heads of income during the current year (No loss can be set-off
against winnings from lotteries, races etc.) If it is not possible to set-off the loss (fully or
partly), it can be carried forward to the next year for being set-off against the income
under the head‟ Income from house property”.
Income from other sources
a. Dividends
b. Any winnings from lotteries, crossword puzzles, races including horse-races, card
games and other games of any sort or form, gambling or betting of any form or nature
whatsoever
c. Income by way of interest on securities if the income is not chargeable to tax
under the head “Profits and gains of business or profession”. [ Interest from P.O. Savings
Bank Account & Post Office CTD is exempt from Tax]
d. Where any sum of money exceeding Rs.50000 is received without consideration
by an individual from any person, the whole of such sum
e. Family Pension received by family members of deceased employee [Deduction
Rs.15000 or 331/3 % of such income, whichever is less]
f. Interest on bank deposits and loans
6. DEDUCTIONS FROM GROSS TOTAL INCOME

The aggregate amount of deductions under sections 80C to 80U cannot exceed gross total
income (i.e. gross total income after excluding long-term capital gains, short-term capital
gain taxable under section 111A, winning from lotteries, races, etc.)
These deductions are to be allowed only if the assessee claims these and establishes the
circumstances warranting such deductions.
6.1 [Sec.80C[: (Only Individual or HUF) (From AY 2006-2007) The investments

eligible for deduction include life insurance premia, contributions to provident fund or
schemes for deferred annuities, purchase of infrastructure bonds, payments of tuition
fees, repayment of principal amount of housing loans, etc. However, in order to minimise
distortions, there are no sectoral caps in the new section and the assessee is free to invest
in any one or more of the eligible instruments within the overall ceiling specified.
Amount deductible under section 80C is equal to (a) 100% of the investment eligible or
(b) Rs.1 Lakh, whichever is lower. From AY 2007-08 investments in fixed deposits in
scheduled banks for a term of not less than five years included in Sec. 80 C. The
maximum amount deductible under sections 80C, 80CCC and 80CCD cannot exceed
Rs.1 Lakh.
6.2 [Sec.80CCC] (only individual): Amount deposited under an annuity plan of the
LIC or any other insurer for receiving pension, is allowed as deduction (Maximum
Rs.100000)(AY 2007-08).
Other points:-
1. Where the assessee or his nominee surrenders the annuity before maturity date of
such annuity, the surrender value shall be taxable in the hands of the assessee or his
nominee, as the case may be, in the year of receipt.
2. The amount received by the assessee or his nominee as pension will be taxable in
the hands of the assessee or the nominee, as the case may be, in the year of receipt.
3. If deduction is claimed under section 80C, in respect of the same investment,
deduction will not be available under section 80CCC.
6.3 Medical Insurance Premia [Sec.80D]:
Conditions:-
1. The Tax payer is an individual

2. Insurance premium is paid by the taxpayer in accordance with scheme of GIC and
approved by Central Government or a similar scheme of any other insurer who is
approved by IRDA.
3. The premium is paid by cheque
4. The policy taken on the health of taxpayer, spouse, dependent parents or
dependent children.
Amount of deduction: - Insurance premium paid or Rs.15000 [AY 2008-09]whichever is
lower. [Rs.20000 (AY 2008-09) where the assessee or his wife or her husband or
dependant parents or any member of the family is a senior citizen. (65 year of age at any
time during the year)]
6.4 Maintenance including medical treatment of a dependent being a person with

disability [Sec.80DD]
The tax payer is an individual/HUF.

The tax payer has opted for any (or both) of the following options
Option 1 Option 2
The taxpayer has incurred an expenditure The tax payer has paid or deposited under
for the medical treatment, training and any scheme of LIC or any other insurer or
rehabilitation of a dependent with disability the administrator or specified company and
approved by the Board in this behalf, for
maintenance of dependent with disability
Amount of deduction: Rs.50000, irrespective of the amount incurred or deposited under

Option 1 and /or Option2. A higher deduction of Rs.75000 shall be allowed, where such
dependent is a person with severe disability having any disability over 80%
If Dependent predeceases the taxpayer: An amount equal to the amount paid or deposited
as stated above shall be deemed to be the income of the assessee of the previous year in
which such amount is received by the assessee and shall accordingly be chargeable to tax
as the income of that previous year.
6.5 Medical Treatment (Sec.80DDB)
Conditions
1. The tax payer is an individual./HUF

2. The tax payer has actually incurred expenditure for the medical treatment of a
specified disease or ailment as prescribed by the Board.
3. The expenditure actually incurred for medical treatment of the assesse himself or
wholly/ mainly dependent husband/wife, children, parents, brothers and sisters of the
taxpayer.
4. The assessee shall have to submit a certificate in the prescribed form (10-I) from a
specialist working in a Government Hospital.
Amount of deduction:- Rs.40000 or the expenditure actually incurred whichever is lower.
Where the expenditure incurred is in respect of the assessee or his dependant who is a
senior citizen, then Rs.60,000 or actual expenditure, whichever is lower.
Deduction under this section shall be reduced by the amount received, if any, under an
insurance from an insurer, or reimbursed by an employer, for the medical treatment of the
person referred to above.
6.6 Payment of interest on loan taken for higher Education (80E) (Individual)
(no ceiling on amount A.Y.2006-07)
The above deduction is allowed from the assessment year relevant to the previous year in
which the assessee starts paying the interest on the loan and 7 immediately succeeding
assessment years or until the above interest is paid in full, whichever is earlier.
From F.Y.2007-08, it is extended to also include interest on such loan taken for higher
education of his relative i.e. or her spouse and children.

6.7 Donations to certain Funds, Charitable Institutions, etc. (Sec.80G)
The taxpayer may be individual, company, firm or any other person.
Donee Amount Deduction

deductible can be
allowed
by DDO
a. National Defence Fund set up by the Central Government 100% Yes
b. Jawaharlal Nehru Memorial Fund 50% Yes
c. Prime Minister‟s Drought Relief Fund 50% Yes
d. Prime Minister‟s National Relief Fund 100% Yes
e. National Children‟s Fund 50% Yes
f. Indira Gandhi Memorial Trust 50% Yes
g. Rajiv Gandhi Foundation 50% Yes
h. National foundation for Communal Harmony 100% Yes
i. An approved University/ Educational Institution of national 100% yes
eminence
j. Zilla Saksharta Samiti 100%
k. National Blood Transfusion council and State council for 100% Yes
Blood Transfusion
l. Fund set up by a State government for the medical relief to 100%
the poor
m. Central Welfare Fund of the Army and Air Force and the 100% Yes
Indian Naval Benevolent Fund
n. National Illness Assistance Fund 100% Yes
o. Chief Minister‟s Relief fund or Lieutenant Governor‟s 100% Yes
Relief fund
p. National Sports fund or National Cultural fund or Fund for 100% Yes
Technology Development and Application
q. Any other fund or any institution which satisfied 50%
conditions mentioned in sec. 80G(5)
r. Government or any local authority to be utilized for any 50%
charitable purpose other than the purpose of promoting
family planning
s. Any authority constituted either for the purpose of dealing 50%
with and satisfying the need for housing accommodation or
for the purpose of planning, development or improvement of

cities, towns and villages, or for both

t. Any corporation specified in sec.[10(26BB)] for promoting 50%
interest of minority community
u. Government or any approved local authority, institution or 100%
association to be utilized for the purpose of promoting family
planning
v. Any notified temple, mosque, gurdwara, church or other 50%
place (for renovation or repair)
w. The Indian Olympic Association or to an institute notified 100%
by the Central govt. for the development of infrastructure for
sports and games in India (only donation by a company)
x. National trust for Welfare of Persons with Autism, cerebral 100% Yes
Palsy, Mental Retardation and Multiple disabilities
The amount of deduction mentioned under q. to v. above should not exceed the 10% of
gross total income of the assessee as reduced by the following:-
1. Amount deductible under sec. 80CCC to 80 U (except 80G)

2. Such incomes on which income-tax is not payable
3. Long-term capital gains
4. Short term capital gain which is taxable under sec.111A@ 10% (plus
surcharge plus education cess)
5. Incomes referred to in section 115A to 115D
6.8 Deduction in the case of a person with disability [Sec.80 U]

Amount of deduction: Rs.50000 [Rs.75000 in respect of a person with severe disability
i.e. having any disability over 80%]

Tax Liability-How to find out
Assessment Year 2008-09

Rs. Rs.
1. Find out gross total income ---
2. Less: Deductions
2.1 Under Section 80C ---
2.2 Under sections 80 CCC to 80 U ----
3. Find out net income [(1) - (2) ---------
4. Find out income-tax on net income --------
5. Add Surcharge -------
6. Find out the total [ (4) + (5)] -------
7. Add: Education cess [2% of (6)] -------
8. Add: Sec. & High Education Cess [1% of 6]
9. Find out the total [ (6) to (8)] -------
10. Deduct: Relief under Section 89 -------
11. Tax liability [(9) – (10)] --------
12. Add : Interest/penalty, etc. --------
13. Less: pre-paid taxes [i.e. advance tax, self- --------
assessment tax, TDS, TCS]
14. Tax payable [(11) + (12) – (13)] --------
Different payments Form No.

In case of salary payment to a resident individual where the income 16AA
from salary before deduction under section 16 does not exceed
Rs.1,50,000
In case of salary payment not covered by above 12 BA and 16
In case of payment other than salary 16A
De-materialisation of TDS and TCS certificates: The payer of income shall furnish a
quarterly statement of tax deducted at source (in digital format) to the prescribed income
tax authority in respect of tax deducted at source on or after April 1, 2005 (form 24Q for
salary and 26Q for others). Such statement should be submitted within 15 days from the
end of each quarter (30 days in the case of last quarter). The prescribed income-tax
authority will in turn furnish an annual statement (in digital format) in form No.26AS of
tax deducted to the recipient. The recipient will get tax credit in respect of tax deducted at
source without production of a certificate in respect of tax deducted on or after March 31,
2008.

Time limit for payment of tax deduction at source to the Government
Different situations Time limit for deposit of tax Time limit for issue of
certificate to the recipient
Within one week from the In case of salary within 30
last date of the month in days from the close of the
which tax deduction is financial year; Otherwise
made within one month from the
end of the month in which
tax is deducted at source
When amount under Sec. Within two month from the Within two months and
194 A, 194 C, 194 H, 194 I last date of the accounting seven days from the last
and 194 J is credited to the year date of the accounting year
account of the recipient as
on the last date of the
accounting year
Annual return to the Income-tax Department
Different payments In case of a company Time limit for submission of

return
Salary Form No.24 in electronic May 31 immediately after the
format and Form No.27A end of the financial year
Payment (other than Form No.26 in electronic June 30 immediately after the
salary) to a resident format and Form No.27A end of the financial year
The above return (in electronic format) is to be prepared on the data structure provided by
the NSDL and copied on a floppy. The floppy is to be affixed with a label indicating
name, permanent account number, tax deduction account number and address of the
person deducting tax, the period to which the return pertains, the form number of the
return and the volume number of the floppy in case there is more than one volume of one
return. Separate floppy is to be used for each form of TDS (i.e. Forms 24, 26 ) and each
form on floppy is to be submitted along with the statement in form 27A.

Tax deduction and collection account number (Sec.203A)
Every person deducting tax or collecting tax, who has not been allotted a tax deduction
account number or, as the case may be, a tax collection account number, shall, within one
month from the end of the month in which tax is deducted/collected, apply to the
Assessing Officer for the allotment of a “tax deduction and collection account number” in
form no.49B. Where a “tax deduction account number” or “tax collection account
number” or “tax deduction and collection account number”, has been allotted to a person,
such person shall quote such number:
a. In all challans for the payment of any sum in accordance with the provisions
of section 200 or section 206 C (3);
b. In all certificates furnished under section 203 or section 206 C (5);
c. In all other documents pertaining to such transactions as may be prescribed.
Compliance of TDS Provisions & consequences if the provisions are not followed From
A.Y.2005-2006
[TDS provisions for Interest (Sec.194 A), Commission (Sec.194 H), Fees
technical/Professional services (Sec.194 J) & Payment to contractors (Sec. 194 C)]
Different situations Expenditure deductible in which year

Tax has been deducted and paid to the Deductible in the year in which tax has
Government in a subsequent year but after been paid
the expiry of time limit
Tax has not been deducted or Not deductible
Tax has been deducted but not paid to the
Government

If the recipient is (a) an individual, If the recipient is (a) an individual,

HUF, BOI or AOP and payment HUF, BOI or AOP and payment
does not exceed Rs.10,00,000 or exceeds Rs.10,00,000 or
(b) a Co-Operative Society or (b) Domestic company or firm and
(c) a local authority or payment exceeds 1 crore
(d) Domestic company or firm and
payment does not exceed 1 crore
Secondary & Higher Education Cess on Income tax
Secondary & Higher Education Cess on Income tax

Education Cess on Income Tax and Surcharge 2%
Interest other than interest on securities to
resident (Sec. 194A) [Exceeds Rs.5000]
[Exceeds Ra.10000 Interest paid by Banks]
a. Payment to Domestic company 20% 20%
b. Payment to other than Domestic company 10% 10%
Education cess on Intcome tax2%

Payment to a resident contractor/ sub contractor
Surcharge on Income tax 10%

(sec.194C)[Exceeds Rs.20000 (aggregate
Rs.50000)]
a. Payment to a contractor (advertising) 1% 1%
b. Payment to a contractor (other than 2% 2%
& Surcharge 1%
advertising)
No Surcharge
c. Payment to sub contractor 1% 1%
Commission or brokerage to a resident 10% (1-6-2007) 10% (1-6-07)
(Sec.194 H) [Exceeds Rs.2500] 5% (up to 31-5-07) 5% (up to 31-5-07)
1%
[Except to (PCO) franchisees of BSNL/MTNL]

Rent to a resident (Sec.194-I)

[Exceeds Rs.1,20,000] [Other than P&M]
a. Rent to an Individual or a HUF 15% 15%
b. Rent to a person other than individual or a 20% 20%
HUF
Fees for professional or Technical services to a 10% (1-6-2007) 10% (1-6-07)
resident (Sec.194 J) [Exceeds Rs.20,000] 5% (up to 31-5-07) 5% (up to 31-5-07)
Payment to Non Resident (rent etc.) 30% 30%
* Non Domestic Company 40% 40% 2.5
%
INCOME TAX RATES FOR TAX DEDUCTION AT SOURCE AY 2008-09 (F.Y.2007-08)

Tax collection at source [Sec.206 C]
Who is responsible to collect tax at source: Every person, being a seller, shall collect
from the buyer of goods specified in section 206 C tax at source
„Seller‟ means the Central government, a State Government or any local authority or
corporation or authority established by or under a Central, State or Provincial Act, or any
accompany or firm or co-operative society. It also includes an individual or a HUF whose
books of account are required to be audited under Sec.44AB(a)(b) during the financial
year immediately preceding the financial year in which goods are sold.
„Buyer‟ means a person who obtains in any sale, by way of auction, tender or any other
mode, goods of the nature specified in the table section 206 C (1) or the right to receive
any such goods. It, however, does not include the following:-
a. A public sector company, the Central Government, a State Government, and an

embassy, a High Commission, Legation, commission, consulate and the trade
representation, of a foreign State and a club, or
b. A buyer in the retail sale of such goods purchased by him for personal
consumption
When tax has to be collected at source: Tax has to be collected by the seller at the time of
debiting of the amount payable by the buyer to the account of the buyer or at the time of
receipt of such amount from the buyer in cash or by issue of cheque/draft, or by an other
mode, whichever is earlier.
How to compute tax collected at source

Nature of goods/nature of contract or license or Percentage rate of tax
lease collection at source (TCS)
applicable
Alcoholic liquor for human consumption 1
Tendu leaves 5
Timber obtained under a forest lease 2.5
Timber obtained by any mode other than under a 2.5
forest lease
Any other forest produce (not being timber or tendu 2.5
leaves)
Scrap 1

Parking lot, toll plaza, mining and quarrying (to a 2

person other than PSU)
The above rates are subject to surcharge & Education Cess
Meaning of Scrap:- “waste and scrap from the manufacture or mechanical working of
materials which is definitely not usable as such because of breakage, cutting up, wear and
other reasons”
Buyer exempt from tax: If income of buyer is exempt from tax, tax cannot be collected at
source.
Percentage is applicable on purchase price
No tax will be collected at source from a buyer who purchases goods for the purposes of
manufacturing, processing or producing any article or thing and not for the purpose of
trading. If a buyer gives a declaration in Form No.27C to the seller that the goods to be
purchased are to be utilized in the carrying on of any of the activities referred to above,
no tax will be collected under section 206 C.
Deposit of tax: Tax collected under sec.206C shall be deposited within one week from
the last day of the month in which collection is made to the credit of Central government.
For non-payment or late payment, interest is payable at the rate of 1 percent per month or
part thereof.
Issue of certificate: Within a period of one month from the end of the month in which tax
is collected, the person collecting tax should issue a certificate of tax collected in form
no.27D.
Quarterly statement of tax collected: Every person collecting tax shall be required to
furnish quarterly statements in form no.27EQ to the prescribed income tax authority, for
the tax collected on or after April 1, 2005. Such statement should be given within 15 days
from the end of each quarter (30 days in the case of last quarter).
Return to the Government: Every person collecting tax at source under sec.206C is
required to send yearly return in form no.27E. W.E.F. 1-4-2005, the annual TCS return
will be in computer readable media along with form No.27B.
Return/Assessment of Income

When return is to be filed as statutory obligation
Taxpayer Minimum income to attract the provision

of filing return of income
Company Any income or loss
A person other than a company If the total income without giving effect to
the provisions of sections 10A, 10B, 10BA
and sections 80C to 80U exceeds the
maximum amount which is not chargeable
to income-tax
(Rs.1,00,00/Rs.1,35,000/Rs.1,85,000)
Time for filing return of income
Where the assessee is a company October 31

Other cases (Individual) July 31
Banking Cash Transaction Tax @ 0.1% w.e.f. 1-6-2005 and restriction on

withdrawal of Rs.1 lakh or more from bank from 1-6-2005
With reference to above, it is mentioned that Banking Cash Transaction Tax is introduced
by Chapter VII of the Finance Act, 2005. It shall apply to all taxable banking transactions
entered into on or after 1st day of June, 2005.
It provides that a banking cash transaction tax @ 0.1% shall be charged in respect of
every taxable banking transactions entered into on or after the 1st day of June, 2005 of the
value of every such taxable banking transaction.
The value of taxable banking transaction shall be, the amount of cash withdrawn or the
amount of cash received on encashment of term deposit or deposits as the case may be.
“Taxable banking transaction” means----
(a) a transaction, being withdrawal of cash (by whatever mode) on any single day
from an account (other than a savings bank account) maintained with any scheduled bank
exceeding,
(i) Rs.50,000/-
(ii) one lakh rupees, in case such withdrawal is from the account maintained by a person
other than any individual or Hindu Undivided Family

(b) a transaction, being receipt of cash from any scheduled bank on any single day
on encashment of one or more term deposits, whether on maturity or otherwise, from that
bank, exceeding,
(i) Rs.50,000/-
(ii) one lakh rupees, in case such term deposit or deposits are by any person
other than any individual or Hindu Undivided Family

Scope of the term ―FRINGE BENEFIT‖ [sub sec.(1) of Sec.115WB]
Any consideration for employment provided by way of:-
Value of fringe benefits

vide sub sec.(1) of
Sec.115
(a) any privilege, service, Does not include perquisites in
facility or amenity, respect of which tax is paid or
directly or indirectly, payable by the employee sub
provided by an employer, sec.(3) of Sec. 115WB
whether by way of
reimbursement or From AY 2007-08, any benefit or
otherwise, to his amenity in the nature of free or
employees (including subsidized transport or any such
former employee or allowance provided by the
employees); employer to his employees for
journeys by the employees from
their residence to the place of
work or such place of work to the
place of residence shall not form
part of FB.
© any contribution by the Aggregate of the actual The contribution to approved
employer to an approved amount of contribution gratuity or provident fund would
superannuation fund for made by the employer not attract levy of FBT.
employees. to an approved
superannuation fund The contribution by an employer
for the employees to an approved superannuation
fund to the extent that it does not
exceed Rs.1 Lakh per employee
in respect of whom contribution is
made, shall not be liable to FBT.

Scope of the term ―FRINGE BENEFIT DEEMED to have been provided‖ [sub sec. (2) of Sec.115WB]
If the employer has incurred any expense on, or made payment for, the purposes summarized below:
Value of Clarifications by MOF Heads of Accounts & Instructions for Fringe Benefit
fringe Tax in BSNL
benefits

(A) Entertainment It includes all expenditure 1712300 / 4712300 Entertainment

20% of in connection with (Liable to FBT)
expenses exhibition, performance, shall be utilized for incurring expenditure on
amusement, game or sport, furnishing accommodation, refreshment, good cheer or
for affording some sort of diversion; mental enjoyment, amusement, providing
amusement and gratification or diversion, receiving a host,
gratification. hospitable/public reception, hospitable provision for
the wants of a guest, a formal or elegant meal etc., a
hospitable resort, a banquet, receiving and
accommodating guest. (Expenditure on items shall be
other than those mentioned under Hospitality)
The expenditure incurred for non-festival occasions
(including annual day) shall be treated as expenditure
on entertainment.
The expenditure on entertainment is something, which
may be beneficial for the mental or physical well being
but is not essential or indispensable for human
existence.

(B) Provision of hospitality of 20% of If an employer owns an 1714101 / 4714101 Hospitality given to employees at
every kind to any person, whether expenses exclusive training center Admn./Operative Office premise of BSNL (Not
by way of food or beverage or in used to train its employees liable to FBT)
any other manner excluding food (construed as an „office or ashall be utilized for booking expenditure incurred by
or beverages provided to the factory‟), any expenditure BSNL for giving food or beverages to the employees
employees in the office or factory on food or beverages of BSNL at office (both Administrative & Operative)
or non transferable paid vouchers provided by the employer at premises of BSNL. Even expenditure on or payment
usable only at eating joints or such training center to the through paid vouchers for providing food and
outlets; employees is not liable to beverages to employees of BSNL shall be booked
FBT. under above mentioned accode provided such vouchers
are not transferable and can be used only at eating
If an employer reimburses joints or outlets.
to the employee,
expenditure on food or 1714102 / 4714102 Hospitality given to any person
beverages consumed by the anywhere and /or employees not at
employee in the office, such Admn./Operative Office premise of BSNL
reimbursement will be (Liable to FBT)
liable to FBT. shall be utilized for booking expenditure incurred by
BSNL on food and beverages provided to any person
anywhere and employees of BSNL at places other than
Admn./Operative office.

(C) Conference excluding fee for Expenditure incurred for 1714201 / 4714201 Fee for participation in
participation by the employees in 20% of attending training conference by employees
any conference; Expenses programmes organized by (Not liable to FBT)
trade bodies or institutions shall be utilized for booking expenditure on fee paid by
or any other agency falls BSNL for its employees for attending the
within the scope of this conference/seminars/training programs organized by
provision. trade bodies, institutions or any other agency
It is liable to FBT, 1714202 / 4714202 Conference Expense other than

irrespective of whether the fee for participation
conference is of agents or (Liable to FBT)
dealers or development shall be utilized for booking expenditure on items
advisors or any other other than fee for participation, such as travel expense,
persons charges towards hotel, boarding and lodging ( if
allowed as per rules & regulation of BSNL to the
employees for attending seminar/conference /training
program)
Expenditure incurred for conducting any conference
and seminars (including conference organized for
agents, dealers or development advisors) other than
those mentioned under “Exhibition, fair & Press
conference” shall also be booked.

(D) sales 20% of expenses FBT is not payable on brokerage and selling commission paid 1722811 /4712811 Sales
promotion for selling goods (selling expenses). promotion & Publicity
including Discounts or rebates or bonus points (credit card customers) Expenditure
publicity but allowed to customers or wholesale dealers are in the nature of (Liable to FBT)
excluding selling expenses & are not liable to FBT. will be utilized for classifying
specified Product-marketing research through a separate marketing any expenditure on sales
expenditure agency is not liable to FBT. promotion. Examples of sales
on Any expenditure in the nature of call center charges for promotion & publicity are
advertisement canvassing sales (cold calls) and carrying out post-sale expenditure (including
activities is in the nature of selling cost and is not liable to expenditure on artwork and
FBT. royalty charges) on free product,
Expenditure incurred for the purpose of providing incentives free offer (with product)
given to distributors for meeting sales targets (including free distributed to trade or consumers
goods for achieving certain sales target and cash incentives etc.
adjustable against future supplies) do not liable to FBT. Any expenditure on photography
Any samples of products distributed to trade or consumers & video (other than ad-film) for
would be liable to FBT. the purpose of sales promotion
Any expenditure on making an ad-film is not liable to FBT. shall be booked under this head.
Any expenditure (including on artwork and royalty charges) Any expenditure on photography
on free offers (with products) such as freebies like tattoos, & video other than for sales
cricket cards or similar products, to trade or consumers promotion & publicity (including
(excluding employees) is for the purposes of sales promotion ad-film) shall be treated as
and, publicity liable to FBT. general expense and booked
Any expenditure incurred for the purposes of lodging and under accodes for “General
boarding, or travel of customer/clients liable to FBT [(D) or Expenses” under difference
(G)] “Administrative Expense”
schedules.

1722801/1922801/4712801 –Advertisement & Publicity (Not liable to FBT)

shall be utilized for expenditure (including rental) on advertisement of any form in any print (including journals, catalogues or price
lists) or electronic media or transport system. The above mentioned code shall also be utilized for booking expenditure on
advertisement by way of signs, artwork, paintings, banners, awnings, direct mail, electric spectaculars, hoardings, bill boards or by
way of such other medium of advertisement. Any expenditure is by way of payment to any advertising agency for the purpose of
accomplishing the advertising works mentioned above shall also be booked to above accodes. The expenditure on Ad-film shall also
be booked under above-mentioned accodes.
1712802, 1722802, 1922802, 4712802 Exhibition, fair & Press Conference (Not liable to FBT)
shall be utilized for booking expenditure on press conference, business convention, fair, exhibition held or participated by BSNL.
1722810 /4712810 Sponsorship of sports event or any other event (Not liable to FBT)
For booking expenditure of any sports event or any other event organized by any Government agency or trade association or body.
Any expenditure is by way of payment to any agency for the purpose of accomplishing the works mentioned above shall also be
booked to above accodes.

(E) 20% of If the expenditure is incurred for treatment of injuries suffered in the course Sch 151 to 166
employee expense of performance of duties but the treatment is at a hospital/dispensary not xxx1000 Staff Welfare
welfare s maintained by the employer, such expenditure is liable to FBT. However, if (Liable to FBT)
excluding such expenditure is pursuant to a statutory obligation, it will not be liable to shall be utilized for booking
any FBT. expenditure on welfare of employee.
expenditure Any subsidy provided to a school not meant exclusively for employee‟s This may include any free product/
or payment children is liable to FBT. free offer (with product) given to the
made to Any expenditure incurred for the provision of facilities like garden, site employees by BSNL as per existing
fulfill any cleaning, light decoration school, library, mess, television, cable connection rules & regulation.
statutory etc. employees‟ colonies are liable to FBT. However, any expenditure incurred or
obligations Expenditure incurred on providing safety shoes or uniform or equipment to payment made to fulfill any statutory
or mitigate the employees or incurred for the purposes of reimbursement of washing obligation or mitigate occupational
occupation charges, is exempt from FBT to the extent such expenditure is incurred to hazards or provide first aid facilities
al hazards meet such statutory obligation. shall not be considered as expenditure
or provide Any reimbursement of expenditure on books and periodicals to employees for employees‟ welfare.
first aid is liable to FBT 1714901 Provision of facilities in
facilities in Any expenditure incurred on prizes/rewards to employees for achievements staff colonies
the hospital is liable to FBT. (Liable to FBT)
or Expenditure incurred for the purpose of providing transport facility to the Expenditure incurred by BSNL for
dispensary children of employees is liable to FBT. the provision of facilities like garden,
run by the The payment to any person of repute for promoting the sale of goods or site cleaning, light decoration, school,
employer; services i.e. brand endorsement, shall not be included as part of Sales library, mess, television, cable
promotion and publicity expenditure for levy of FBT (AY 2007-08). connection etc. in employees‟
colonies

This expenditure Sch.171 to 185, 192 & 471

paid by the client xxx0901 Inland Travel-expense on journey, personal effects & conveyance
to the lawyer or shall be utilized for booking the expenditure on fare, road mileage, cost of transportation of personal effects,
auditor is treated cost of transportation of conveyance in connection with TA on tour, TA for local journey, TA when deputed for
as professional training, TA on temporary transfer, TA on Transfer, TA on retirement etc. (Liable to FBT)
fee & not liable to 1710902 / 4710902 Foreign Travel-Expense on Journey (Liable to FBT)
FBT in the hands Sch.171 to 185, 192 & 471
of the client. xxx0903 Daily allowance for Inland travel (Not liable to FBT)
The daily allowance portion of traveling allowance (excluding the lodging charges in case of stay in hotel etc.
FBT would not be in connection with inland travel i.e. TA on tour, TA for local journey, TA when deputed for training, TA on
payable on temporary transfer shall be booked under this head
payment of 1710907 / 4710907 Daily Allowance for foreign travel (Not liable to FBT)
advance towards The expenditure on foreign travel shall be booked by all units under these heads [(Basic segment Sch.171)
expenses to be (CMTS sch.471)]
incurred in the [Sch.171, 175, 177, 179, 180, 182, 183, 471
future. xxx1907 Expense on journey-Branch Auditor
Sch.171, 175, 177, 179, 180, 182, 183, 471
Rent paid or xxx1908 Expense on journey-Internal Auditor
(Q) Tour and travel (including foreign travel);
payable for an Sch.171, 179, 180, 183, 471

operating lease of xxx1909 Expense on journey-Cost Auditor
a motor-car is Sch.171, 179, 180, 183, 471
expenditure for xxx1910 Expense on journey-Tax Auditor
5% of expenses (AY 2007-08)
the purposes of Sch.171, 175, 177, 179, 180, 182, 183

conveyance, tour xxx1912 Daily allowance, hotel charges of Branch/Internal/Tax/Cost Auditor
and travel. (not liable to FBT)]
1711911 / 4711911
Expenses on journey-Professional other than Branch /Internal/ Tax/ Cost Auditors (Liable to FBT)

Sch.171 to 185, 192 & 471

xxx0906 Composite Transfer Grant (Not Liable to FBT)
The composite transfer grants, which are given to the employees at the time of transfer and retirement, shall be booked under this
head.
(F) Conveyance 5% of Expenses Fixed conveyance allowance is not liable 171 to 185, 192, 471
(Telecommunication to FBT XXX1000 Conveyance charges
infrastructure treated as
Business construction)

(G) use of hotel, 20% of Sch.171 to 185, 192 & 471 (Liable to FBT)
boarding and expenses xxx0904 Hotel/Guest house-lodging charges for inland travel
lodging facilities; For stay in hotel/Guest house/lodges/rest house/other establishment etc. in connection with
inland travel, the eligible portion of lodging charges paid shall be booked under this head.
Sch.171 to 185, 192 & 471 (Liable to FBT)

xxx0905 Hotel/Guest house-other than lodging charges for inland travel
For stay in hotel/Guest house if any expenditure other than lodging charges & daily allowances
allowed, the same shall be booked under this head
1710908 / 4710908 Hotel / Guest House-lodging charges for foreign travel

1710909 / 4710909 Hotel/ Guest House-other than lodging charge for foreign travel
(Liable to FBT)
The expenditure on foreign travel shall be booked by all units under these heads [(Basic
segment Sch.171) (CMTS sch.471)]

(H) Repair, 20% For the purposes Sch.171 to 185, 192& 471
running of of payment of xxx0701 Vehicle-(Other than truck, Delivery van) hiring expense (liable to FBT)
(including fuel) expenses advance of tax xxx0703 Hiring of vehicle-Truck/lorry, Delivery van. Tractor, ambulance (not liable
and maintenance on fringe to FBT)
of motorcars and benefits tax, Sch.171 to 173, 175 to 185, 192& 471
the amount of depreciation xxx0804 Motor vehicles & Launches
depreciation should be taken shall be utilized for booking expenditure on repair & maintenance of
thereon; on a pro-rata departmental truck, lorry, delivery van, tractor, ambulance, omnibus, motor cycle,
basis. launches
Depreciation on (not liable to FBT)
motor-car or Sch.171 to 185, 192& 471
any other asset xxx0812 Motor car other than truck, lorry, delivery van, tractor (repair
shall be &maintenance)
computed under (liable to FBT)
the provisions 1714601 / 4714601 Salary of driver of departmental vehicle
of sec. 32 of IT shall be utilized for booking the salary of driver of departmental vehicle. Here
Act. departmental vehicle means the vehicle other than departmental truck, lorry, tractor,
Rent paid or ambulance, transport vehicle, omnibus, and delivery/display vans. The pay &
payable for a allowance, other benefits such as LTC, Pension contribution, medical allowances
financial lease etc. of such driver shall initially be booked under respective remuneration schedule,
of a motor-car is however the same shall be transferred to the above accode by crediting the
in the nature of respective accodes for pay, DA etc.
expenditure on (liable to FBT)
running or
maintaining of a
motor-car.
Delivery/display
vans,
trucks/lorries,
ambulance and
tractor are not
(I) Maintenance of 20% of Expenditure on items like refrigerators, televisions, 1714301 / 4714301 Maintenance expense
any expenses furniture and similar items in a guest house would of Guest House, Holiday Home
accommodation in not fall within the scope of this clause (acquisition of (Liable to FBT)
the nature of guest capital asset) shall be utilized for booking expenditure
house other than Expenditure incurred for the purposes of incurred on upkeep and running of guest
accommodation maintenance of all guest houses is liable to FBT house & holiday homes. The expenditure
used for training irrespective of whether they are used as holiday on salary of guest house and holiday home
purposes; homes or not. staff shall be treated as expenditure on
Expenditure on provision of food at the guest house upkeep and running of guest house,
maintained by the employer, contract charges paid to holiday home. Similarly if guesthouse,
guest house staff and rent paid or payable in respect holiday home building is taken on rent,
of the guest house building are liable to FBT. the said rent will be booked under this
accode. If food is provided to the guest
free of cost the cost of it shall also be
booked under this accode. However, the
expenditure on repair of guesthouse,
holiday home building and depreciation
on guesthouse & holiday home building
and other depreciable assets of guesthouse
& holiday home will not be booked under
this accode. The cost of capital items i.e.
fridges, TVs etc. provided in Guest house,
holiday home shall not be booked under
this accode.

(J) Use of 20% of

telephone expenses
(including mobile
phone) other than
expenditure on
leased telephone
lines;

(K) Festival 50% of Expenditure on meeting/ get-togethers of employees 1714501 / 4714501 Expenditure on
celebrations: expenses and their family members on the occasion of any celebration of Festival
festival (except Independence Day, Republic Day) is If any expenditure on lighting, decorating,
expenditure on festival celebrations. feast etc., is incurred for celebrating
festivals such as “New Year‟, „Navratri‟,
„Diwali‟, „Id‟, „Christmas‟, shall be
booked under this head.
(Liable to FBT)
1722806/1922806/4712806 Expenditure
on ceremonies
shall be utilized for booking expenditure
for celebrating Independence Day &
Republic Day. (Not liable to FBT)
(L) Use of health 50% of Entrance or membership fee of a club or health club 1714401 / 4714401 Expenditure on Health
club and similar expenses or similar facility are liable to FBT. club and similar facility
facilities; (Liable to FBT)

(M) Use of any 50% of 1714402 /4714402 Expenditure on club

other club expenses (other than health club)
facilities; (Liable to FBT)
If any expenditure on items such as
membership fee etc/ is incurred for
extending the facility of health club and
Club (other than health club) to the
eligible employees the same shall be
booked under this head.
(N) Gifts; and 50% of Expenditure on gifts under trade schemes or for 1722804 / 1922804 / 4712804 Gift
expenses promotion of company‟s products to will be utilized for booking expenditure
distributors/retailers is liable to FBT. on gift if given by BSNL to
A gift to a customer would fall within the scope of distributor/subscriber/employee under
the clause. proper sanction. Product/service given
Any expenditure incurred on gifts provided to free to trade /subscribers shall not be
employees, whether on the occasion of marriage or booked under this head.
otherwise is liable to FBT (including gift in kind) (Liable to FBT)

(O) scholarships 50% of Expenditure on the education of employees sent to an educational institution would fall within the
expenses scope of this clause.
FBT is payable on the expenditure incurred or payment for the purposes of scholarship
irrespective of whether the recipient is an employee or his relative or any other person

E2-E3/Finance Rev. Date: 01-04-2011
* Where the employer is engaged in the construction business, 5% of the expenses in

the nature of conveyance, tour and travel (including foreign travel) is treated as Fringe
Benefit (instead of 20%)(AY 2006-07)
What is the meaning of the term „business The term „business of construction‟ must
of construction‟ –whether only civil be understood by giving the ordinary
construction or even other construction English language meaning to the words.
work like construction of plants, Hence, all activities involving
telecommunication infrastructure, etc. are construction would be covered within the
also covered? scope of the term „business of
construction‟ referred to in section
115WC of the Income tax Act.
Important Clarifications:-
1. The amount of expense incurred or payment made, for the purposes listed in
clauses (b) and (c) of sub-section (1) and clauses (A) to (P) of sub-section (2) of
section 115WB, is to be determined according to the books of account.
2. If there is no provision for computing the value of any particular fringe benefit
(as per sec.115WC), such fringe benefit, even if it may fall within clause (a) of sub-
section (1) of section 115WB, is not liable to FBT.
3. FBT is payable in the year in which the expenditure is incurred irrespective of

whether the expenditure is capitalized or not. However, the same expenditure will not
be liable to FBT again in the year in which it is amortized and charged to profit.
4. There is no requirement to segregate the various expenses referred to in
sec.115WB, between those incurred for official purposes and personal purposes.
5. The value of fringe benefits shall be determined with reference to the net
expenditure i.e. Gross expenditure incurred by the employer less recovery from the
employees.
6. to the extent the expenses incurred by the employer are personal in nature and
have, therefore, been disallowed under section 37 of the Income-tax Act, such
disallowance would not be liable to FBT.
7. An employer is liable to FBT if it is engaged in business or profession or any
activity, whether or not such activity is carried on with the object of deriving income,
profits or gains.
8. If any sum is paid by the employer for expenditure actually incurred by the
employee for medical treatment in an unapproved hospital and it does not exceed
Rs.15000/- during the year, not liable to income- tax in the hands of the employee.
Such sum is liable to FBT. (Exceeding Rs.15000/- is taxable in the hands of the
employee as per IT Act)

9. Expenditure on ay capital asset in respect of which depreciation is allowable

u/s 32 of the Income-tax Act does not fall within the scope of sub-section (2) of
sec.115WB and such expenditure is not liable to FBT (except depreciation on motor
cars or aircrafts).
Taxable entities (who is liable to pay the tax?
The FBT is payable by an employer who is:-
(i) a company;
(ii) a firm;
(iii) an association of persons or a body of individuals, excluding any fund, trust
or institution eligible for exemption under clause (23C) of section 10 or registered
under section 12AA;
(iv) a local authority; or
(v) an artificial juridical person
The tax on fringe benefits is payable by the employer even if he is not liable to pay
income tax on his total income computed in accordance with the provisions of the
Income tax Act other than the provisions of Chapter-XIIH.
Tax Rate: - 30% of the value of fringe benefits
Payment of FBT: - The employer is required to pay advance tax at the rate of 30% of
the current fringe benefits paid or payable in each quarter. The advance tax is to be
paid on or before the 15th of the month following that quarter. However, in the case of
last quarter ending on 31st March of the financial year, the advance tax shall be
payable on or before the 15th day of March of that year. Any excess advance tax paid
for the preceding quarter can be adjusted against the advance tax for the subsequent
quarter(s). Failure to pay advance tax for any quarter, or payment less than 30% of the
value of fringe benefits in that quarter, will attract interest @ 1% on the shortfall, for
each month or part of the month for which such shortfall continues.
Return of Fringe Benefits:-In case of a company, the due date is 31st of October of
the assessment year (in the prescribed form). Failure to furnish a return of fringe
benefits or delayed filing of such return will result in the levy of interest @1% for
each month of delay or till the assessment is made, on the amount of tax on the value
of fringe benefits.
Treatment of FBT: The FBT shall not be allowed as a deduction in computing the
income chargeable under the head „profits and gains of business or profession‟.

However, FBT is an allowable deduction in the computation of „book profit‟ under

section 115JB of IT Act.
Loans & Advances:
The following are the various types of advances admissible for BSNL employees :
1. Festival advance.
2. House Building advance.
3. Motor Cycle advance.
4. Personal Computer advance.
5. House building advance.
6. Warm cloth advance.
7. Flood/draught advance.
8. Fan advance.
9. Bicycle advance.
Matters relating to eligibility, sanctioning authority, recovery etc. are discussed in

brief in the following paragraphs.
HOUSE BUILDING ADVANCE :-
Eligibility:
All Permanent officials or officials with 10 years continuous service are

eligible.
If both husband and wife are Govt. servants, advance can be paid to only one
of them.
Purpose for which admissible :
For purchase of a plot and construction thereon.
For construction of a house on the plot owned by the official or jointly with
the spouse.
For purchase of a plot under Co-operative schemes and construction there on
or acquiring a house through Co-operative Group Housing Schemes.
For purchase of / Construction of a house under various Self-Finance schemes.
Out right purchase of a new ready built house/ flat from Housing boards/
development authorities etc.
Enlarging living accommodation in the existing house owned by the official or
jointly with the spouse.
For repayment of loan or advance availed from Government or Hudco or
private source for construction of house. Subject to some conditions.
Construction of the residential portion only of the building on a plot
earmarked as a shop-cum-residential colony.

Cost Ceiling :- 200 times[*134 times of Basic Pay + DP] the basic pay subject to a
Max . of Rs. Rs. 18 lakhs and a minimum of Rs. 7.5 lakhs.
Pay for the purpose includes NPA, Stagnation increment and family pension. Pay
drawn at the time of issue of sanction shall be the criteria.
AMOUNT OF ADVANCE
Purpose Amount
For purchase of plot and construction 50 times of pay [*34 times of Basic Pay
+ DP] subject to a Max. of Rs. 7.5 lakhs.
Construction on an existing plot Same as above.
Purchase of a ready built house Same as above
Construction of a house in a rural area Same as above limited further to 80% of
cost.
Enlargement of a living accommodation 50% of pay[*34 times of Basic Pay +
DP] limited to Rs.1.8 lakhs.
Enlargement of existing living Same as above limited further to 80% of
accommodation in rural area cost.
*M.O.U.D.No.1-1711/2(2)/2004.II-III dt. 15-10-2004
Eligibility criteria for interest bearing advances on revised IDA pay w.e.f. 1-1-
2007:
Consequent to revision of pay of Board and below Board level executives vide this
office order no.1-50/2009-PAT(BSNL) dated 5-3-2009 and Non-executives vide this
office order no.1-16/2010-PAT(BSNL) dated 7-5-2010 w.e.f. 1-1-2007, the matter
relating to interest bearing advances granted BSNL employees has been considered by
this office.

2.The eligibility criteria and quantum of advances will be determined with reference
to revised pay as under:
Advance Pay Eligibility Amount of advance
Type Criteria (IDA)
House No pay limit 34 times of the revised pay or Rs.7.50 lacs or
Building cost of the house or repaying capacity,
Advance whichever is less
However, the cost of ceiling should not exceed
134 times of revised basic pay subject to a
minimum of Rs.7.5 lakh and maximum of Rs.30
lakh
3.The other existing terms and conditions in respect of these advances will remain
unchanged. The revised eligibility criteria will be effective from the date of issue of
this letter.
(BSNL HQ No.1-16/2010-PAT(BSNL) 30-6-2010)
REPAYING CAPACITY
The advance is further restricted to repaying capacity of the official determined as

under:
Service left for retirement Admissible % of pay

Officials retiring after 20 years 40% of pay + DP
Officials retiring after 10 years and 40% of Pay + DP; 65% of DCRG may
before 20 years also be adjusted.
Officials retiring within 10 years 50% of pay + DP; 75% of pay DCRG may
also be adjusted.
Disbursement of advance:
Purpose Ist instalment 2nd instalment 3 rd instalment

For purchase of single storeyed house40% 35% 35%
For purchase of double storeyed house30% 35% 35%
For enlargement/construction 50% 50% -------
(Single or double storeyed) on execution on the constn.
of the Reaching
mortgage plinth level
deed
For purchase/construction of flat or In one lump -------- ---------
purchase of a ready built house. sum.


For purchase of house/flat from Co- 30% on Suitable

operative Group Housing Scheme. execution of instalments on
personal bond receipt of
and surety demand
bond
Time limit for compliance :
PURPOSE TIME LIMIT

for completion of formalities.
Purchase of land With in 2 months.
Purchase of house With in 3 months.
Purchase/Construction of new flat With in one month.
Interest : Simple interest at the rates prescribed periodically is chargeable from the
date of payment of the first installment of advance calculated on the monthly interest
balance on the last day of each month. The rate of interest shown above, will apply to
the total amount of advance sanctioned. In the process of recovery, the portion of
advance carrying higher rate of interest will be treated as having been refunded first.
A model calculation of interest is given at the end of this notes.
No interest will be charged after the date of death/retirement if the outstanding

advance is adjusted the DCRG later. Interest however is payable on the balance if any
after adjusting from DCRG.
Concession in interest by half a percent is allowed for adopting small family norms if
the employee or spouse has undergone sterilization operation in an approved hospital
or clinic on or after 1.9.79.
REPAYMENT OF ADVANCE :
The amount of advance is recoverable in 180 installments and the interest in 60
installments. Can be repaid in less number of installments, if desired.

COMMENCEMENT OF RECOVERY :
Purpose of sanction Commencement of recovery
Construction of new house or enlarging Pay for the month following the
living accommodation completion of construction or pay for the
18 month after drawl of first installment
which ever is earlier
Purchase of land and construction Pay for the month following the
thereon. completion of construction or pay for the
24 month after drawl of first installment
which ever is earlier
Purchase of a ready built house/flat. Pay for the month following the month of
drawl of advance.
MOTOR CAR ADVANCE :

Entitlement: Officials drawing pay of not less than Rs.10,500/-p.m. in the DOT
scales of pay. [*Basic pay + DP =Ra.15750]
Maximum Amount: Rs.1,80,000 limited to 11 months pay [*8 months‟ Basic Pay
+DP] or the anticipated cost of the car.
Pay : for the purpose includes basic pay + NPA+ Stagnation increment + DP
Actual price includes sales tax and actual cost of spare wheel, tyre and tube , cost of
transportation and Octroi chages actually paid.
Second advance: Rs. 1,60,000 0r 11 months pay [*8 months‟ Basic Pay +DP] after 4
years of drawl of first advance.
2007
this office.
2.The eligibility criteria and quantum of advances will be determined with reference
Advance Type Pay Eligibility Amount of advance

Criteria (IDA)
Motor Car Basic Pay of On the 1st occasion-Rs.180000 or 11 months
Advance Rs.34570 & basic pay + DP or the price of the car whichever
above is less
On the 2nd occasion-Rs.160000 or 11 months

basic pay + DP or the price of the car whichever

is less
3.The other existing terms and conditions in respect of these advances will remain
unchanged. The revised eligibility criteria will be effective from the date of issue of
this letter.
Installments for recovery : 200 monthly installments.

Commencement of recovery: From the pay for the first month after the drawl of
advance.
Rate of interest: Simple interest at rate prevailing on the date of sanction.
Time limit : Purchase should be completed with one month of the drawal of advance.
Documents to be submitted : Cash receipt, registration certificate, mortgage deed,
Insurance certificate etc,
Sanctioning authority : Head of the department
Note : Not admissible for a Govt. servant under suspension.
MOTOR CYCLE ADVANCE :

Entitlement: Officials drawing pay of not less than Rs.4600-p.m. [*Basic pay
+DP=Rs.6900] in the DOT scales of pay.
Maximum Amount: Rs.30,000 limited to 6 months pay [*4 months Basic pay +DP]
or the anticipated cost of the motor cycle..
Pay : for the purpose includes basic pay + NPA+ Stagnation increment+ DP
Actual price includes sales tax and actual cost of spare wheel, tyre and tube , Octroi
chages actually paid.
Second advance: Rs. 24000/-or 5 months pay [*3 months Basic pay +DP] after 3
years of drawl of first advance.
advance.
Documents to be submitted : Cash receipt, registration certificate, Insurance
certificate etc.
Note: Not admissible for a Govt. servant under suspension.
[“Rule 17 (iv) [compendium of Rules on advances to Government Servants]
Notwithstanding the condition stated at (iii) above, an advance up to Rs.20000/- or the
anticipated price, whichever is less may be sanctioned by the competent Authority for

purchase of Moped to Government servants having Basic Pay plus Dearness Pay
below Rs.6900 per month”.
(M. F. No.12(1)/E.II(A)/04, dated 13-10-2006)]
2007
this office.
2. The eligibility criteria and quantum of advances will be determined with reference
Advance Pay Eligibility Amount of advance
Type Criteria (IDA)
Motor Cyle Basic pay of On the 1st occasion-Rs.30000 or 6 months pay
Advance Rs.15150 & or anticipated price of the vehicle whichever is
above less
On the Second/subsequent occasion-Rs.24000 or

5 months pay or anticipated price whichever is
less
3. The other existing terms and conditions in respect of these advances will
remain unchanged. The revised eligibility criteria will be effective from the date of
issue of this letter.
COMPUTER ADVANCE :
Entitlement: Officials drawing pay of not less than Rs.10500/-p.m. [*Basic pay
+DP=Rs.15750] in the DOT scales of pay.
Maximum Amount : Rs.80,000 or the actual cost.
Pay : for the purpose includes basic pay + NPA+ Stagnation increment.
Actual price : excludes customs duty.
Second advance : Rs. 75000/-.after 3 years of earlier advance.
advance.

Documents to be submitted : Cash receipt, registration certificate, Insurance

certificate etc,

[“Rule 21(5) [compendium of Rules on advances to Government Servants] However,
an advance not exceeding Rs.30,000 or the anticipated price (excluding customs duty,
if any) whichever is less, may be sanctioned to Government servants for purchase of
personal computer whose Basic Pay plus Dearness Pay is not less than Rs.6900 and
who are not eligible for grant of motor car advance in terms of Rule 17(ii) of the
compendium”.
(M. F. No.12(1)/E.II(A)/04, dated 13-10-2006)]
2007
this office.
2. The eligibility criteria and quantum of advances will be determined with

reference to revised pay as under:
Advance Type Pay Eligibility Amount of advance

Criteria (IDA)
Personal Basic pay of Rs.80000 on the 1st occasion and Rs.75000 on
Computer Rs.34570 & second subsequent occasions or the anticipated
Advance above price of the computer (excluding custom duty, if
any) whichever is less
Basic pay of Rs.30,000 or actual price whichever is less
Rs.15150 &
above
3. The other existing terms and conditions in respect of these advances will
remain unchanged. The revised eligibility criteria will be effective from the date of
issue of this letter.

OTHER ADVANCES :
Festival Fan Bicycle Flood/draught/ Warm
cyclone clothing
Eligibility Non Gaz. Group D Gr C & D Non- Gazetted Gr. C & D
Government officials officials posted at
servants hill
stations
Pay Non Pay not
Executives exceeding
(without any Rs.7500/-
pay limit) (B.PAY+DP)
Periodicity Once in a Not with in Not within 3 Once in 3
financial 10 years of years of years
Year previous previous
advance advance
Maximum Rs. 5000 Rs.1000/- or Rs.1500/- or Rs.2500/- Rs.1500/-
amount actual cost. price of the
bicycle
which ever is
less
Installments 10 10 30 25 10
Other Official Vehicle to beBase on state Official is
conditions should be purchased Govt. likely to
residing in with in one declaration & stay at the
the house month ofthe officials hill station
where fan is drawl ofproperty for 12
to be fitted advance. should have months or
been more
destroyed.
Sanctioning Head of Head of Head of Head of Office Head of
authority office office. office office.
Rule no. FHB 421 C GFR 221 FHB 421 FHB 417 FHB 417
GFR 236 GFR 249 GFR 249

Travelling Allowance - Salient features

Pay for determining the entitlements of TA/DA means the basic pay, Non practicing
Allowance and Stagnation Increment.
Determination of Grade: The Government Servant‟s Grade is determined by his basic
pay of the post actually held by him, whether permanent, temporary or officiating.
When officers are promoted or reverted or granted increased rates of pay
retrospectively, T.A claims settled in the meantime will not be revised, unless there is
actual change of duties. Retrospective effects of promotion may, however, be
recognised in case of bills not already presented or audited. Increment accruing while
on tour can be taken into account for determining grade and entitlement of daily
allowance from the date of increment.
In transit between two Posts: An employee in transit from one post to another rank
in the lower of the two. SR.19.
Gradation of re employed pensioners:
i) If he ceased to draw pension, the grade depends on the actual pay received
from time to time.
ii) If pension is drawn in addition to pay in the re employed post and if the pay in
the re employed post is reduced by full pension, the grade will be on the basis of the
total pension and pay. If such total exceeds the maximum of the time scale of the re
employed post, the grade will be on the basis of the maximum of the scale. The
amount of pension taken into account will be the amount sanctioned before
commutation, if any.
iii) The grade will be decided on the basis of pay alone in the case of re employed
civil and military pensioners whose previous pension was ignored while fixing pay on
re employment.
Mileage Allowance for Journey by Rail
Pay Range Entitlement
CDA IDA Ordinary train Rajadhani Shatabdi
Rs. 16400 and Rs. 19900 and AC First Class AC First Executive Class
above above Class
Rs. 8000 and Rs. 10530 and AC II Tier AC II Tier AC Chair Car
above but less above but less Sleeper Sleeper
than Rs. than Rs.
16400 19900
Rs. 6500 and Rs. 8570 and First Class/ AC AC Chair AC Chair Car
above but less above but less III Tier / AC Car*
than Rs. 8000 than Rs. Chair Car
10530
Rs. 4100 and Rs. 5860 and First Class/ AC AC Chair AC Chair Car
above but less above but less III Tier / AC Car*

than Rs. 6500 than Rs. 8570 Chair Car
Below Rs. Below Second Sleeper. AC Chair AC Chair Car

4100 Rs.5860 Car*
All Government Servants who are entitled to travel on tour/ transfer by first class/ AC
III Tier/ AC Chair Car may at their discretion, travel by AC II tier sleeper where any
of the trains connecting the originating and destination stations concerned by the
direct shortest route do not provide these three classes of accommodation.
For Rajadhani Train: Travel by AC II Tier Sleeper will be permissible in trains in
which AC Chair Car accommodation is not provided.
Mileage Allowance for journeys by Sea or by River Steamer.
The General entitlements for journeys by sea or by river under S.R 40 are revised as
indicated below:
Pay Range Pay Range Entitlement
CDA IDA
Officers drawing pay Rs. 10530 and above Highest Class
of Rs. 8000 and
above
Rs. 6500 and above Rs. 8570 and above but If there be two classes only on the
but less than Rs. 8000 less than Rs. 10530 steamer, the lower class.
Rs. 4100 and above Rs. 5860 and above but If there be two classes only on the
but less than Rs. 6500 less than Rs. 8570 steamer, the lower class.
If there be three classes, the Middle
or the second class.
If there be four classes, the Third
class
Below Rs. 4100 Below Rs.5860 The lowest Class.
Accommodation entitlements to travel between the mainland and Andaman &

Nicobar Group Islands and Lakshadweep Group of Islands by ships operated by the
Shipping Corporation of India Limited will be as follows:
Pay Range (CDA) Pay Range (IDA) Entitlement
Rs. 8000 and above Rs. 10530 and above Deluxe Class
Rs. 6500 and above but Rs. 8570 and above but less First/ „A‟ Cabin Class
less than Rs. 8000 than Rs. 10530
Rs. 4100 and above but Rs. 5860 and above but less Second/ „B‟ Cabin Class
less than Rs. 6500 than Rs. 8570
Less than Rs. 4100 Below Rs.5860 Bunk Class.
Mileage Allowance for Journeys by Air.

Travel by Air within the country will be permissible on tour in the case of officers in
receipts of pay of Rs. 16,400 (IDA 19900) and above at their discretion, provided that
officers drawing pay between Rs. 12,300 (IDA 17200) and Rs. 16,400 (IDA 19900)
may also be permitted to travel by Air at their discretion, if the distance involved is
more than 500 KMs and the journey cannot be performed overnight (Ordinarily,
journeys covered between 6 P.M and 8 A.M are deemed to be accessible overnight by
rail)by direct train service / direct slip coach service.
In the case of International travel officers of and above the level of Secretaries to the
Government of India and of equivalent status shall be entitled to travel by first class.
Officers of the level of Additional Secretaries and Joint Secretaries and of equivalent
status by Business/ Club Class and all other officers by Economy class.

Air Travel on Tour/Transfer to Non-Entitled officers by private airlines with

fare restriction of entitled fare by rail/road/steamer etc.
A proposal was under consideration for permitting non-entitled officers to travel by
private airlines with fare restriction on tour/Transfer. Now the Management
committee of BSNL in its meeting held on 30-8-2007 has considered and approved
the proposal.
Accordingly the non-entitled officers will be permitted to perform air journeys on

tour/transfer by private airlines also and the claims will be settled as per provisions of
SR –48-D by restricting to actual air fare paid or the fare to which they would have
been entitled, if they had traveled by rail (other than Rajdhani /Shatabdi express),
road/steamer whichever is less. They have to produce the air-ticket/boarding pass and
a receipt from the concerned airlines showing the fare paid, if the ticket does not
indicate the air fare, along with TA bills.
This takes effect from 30-8-2007.

(BSNL HQ No.7-6/2004-EF(Part) dt. 22-10-2007)
Regulation of journeys by air while on official tours by non-entitled Government

officers
The undersigned is directed to state that existing instructions, as per SR 48-D provides
that a Government servant who is not authorized to travel by air but who performs a
journey by air on tour can draw only mileage allowance to which he would have been
entitled, if he had traveled by rail, road or steamer or the mileage allowance as
calculated under SR 48-C, whichever is less.
2. A number of representations from different Ministries have been received in
this Ministry requesting to allow non-entitled Government servant the reimbursement
at the rates for Rajdhani/Shatabdi train in respect of journey under taken by air while
on official tour.
3. The matter has been considered in this department and it has been decided that
the reimbursement may be allowed at the rates applicable for Rajdhani/Shatabdi trains
if operates on the route, provided the Government servant is entitled to it subject to
the condition that two stations between which an journey has been performed are
connected by Rajdhani/Shatabdi trains. In case the fare paid for air ticket on official
tour is less than the fare being charged for Rajdhani/Shatabdi type trains, the
reimbursement would be limited to the actual expenditure.
1. Conditions laid down in the Department of Expenditure O.M. No.19024 /I /E.IV /
2005, dated 24-3-2006, regarding air travel by Government servant within India
during official visits would be applicable in case of TA on tour mutatis mutandis.
2. The above orders will be applicable with effect from date of issue of this office
memorandum.
(G.I., M.F., O.M.No.F.No.19024/1/2007-E.IV dated 17-9-2007)

Reimbursement of Service Tax and Education Cess on air travel while on

tour/transfer or LTC
The under signed is directed to state that a number of representations from difference
Mnistries have been received in this Ministry seeking clarification whether the
element of Service Tax, Education Cess and other similar levies.
The matter has been considered in this Ministry and it has been decided that the
element of Service Tax, education Cess and other similar levies being charged by
Government on travel by Air/Road/RailSteamer on tour / transfer or LTC are
reimbursable to the individual officer.
(G.I., M.F., O.M.No.F.No.19023/1/2006-E.IV dated 18-7-2007)
Fixation of IDA pay equivalent to CDA pay for TA
1. BSNL is following the provisions of FR/SR & BSNL TA rules for regulating the
TA entitlement of its employees performing the journey on tour, transfer and
LTC. FR/SR has laid down the minimum basic pay in CDA for determining the
eligible class of accommodation by rail/steamer/air admissible to an employee.
While BSNL has already fixed the minimum IDA pay for determining the eligible
class of travel by train (AC II& III tier/AC Chair Car etc.) vide order No.7-
6/2004/EF dated 24-5-2006, no minimum IDA pay has been fixed to arrive at the
air travel eligibility.
2. Since BSNL is following the IDA pay scales for the absorbed and directly
recruited employees and minimum IDA pay for air travel eligibility has not been
fixed yet, difficulty is being experienced for determining the eligibility for Air
travel.
3. In order to obviate these difficulties, fixation of IDA pay equivalent to CDA pay
for determining the mode and class of travel entitlement has been under the
consideration of the management for some time. Competent authority has now
approved the proposal and accordingly the following IDA pay equivalent to the
CDA pay given against each has been arrived at for deciding the entitled class of
travel while on tour/transfer/LTC etc.
S.No. CDA pay IDA pay Remarks

Rs. Rs.
1 4100 5860 Approval communicated earlier vide no.7-
6/2004-EF dated 24-5-2006
2 6500 8570 Approved now
3 8000 10530 Approval communicated earlier vide no.7-
6/2004-EF dated 24-5-2006

4. This approval only fixes the IDA pay equivalent to CDA pay for TA on
tour/transfer and entitled travel class for LTC. All other terms and conditions for tour,
transfer and LTC will be as per the relevant provisions of BSNL TA rules & FR/SR.
This is issued with the approval of competent authority

(BSNL HQ No.7-6/2006-EF (Vol.II) dt. 26-5-2008)
Mileage Allowance for journeys by Road

Pay Range Entitlement.
Rs. 16,400 and above Actual fare by any type of Public bus, including air
[IDA RS.19900 and above] conditioned bus
Or
at prescribed rates for AC Taxi when the journey is
actually performed by AC Taxi
Or
at prescribed rates for Ordinary Taxi when the journey is
actually performed by Ordinary Taxi/ Own Car
Or
at prescribed rates for autorickshaw for journeys by
autorickshaw, own scooter / Motor Cycle, moped etc.
Rs. 8,000 & above but less Same as (1) above with the exception that journeys by A.C
than Rs. 16,400 taxi will not be permissible.
[IDA Rs. 10530 and above but
less than Rs. 19900]
Rs. 6,500 & above but less Same as (2) above with the exception that journeys by A.C
than Rs. 8,000 Bus will not be permissible.
[IDA Rs. 8570 and above but
less than Rs. 10530]
Rs. 4,100 & above but less Actual bus fare by any type of public bus other than A.C
than Rs. 6,500 bus. Or
[IDA Rs. 5860 and above but At prescribed rates for autorickshaw for journey by
less than Rs. 8570] autorickshaw/ own scooter/ Motor Cycle, Moped etc.
Below Actual fare by ordinary public bus only. Or
Rs. 4,100 At prescribed rates for auto-rickshaw / own scooter/
Motor Cycle, Moped etc.
[IDA below rs.5860]
Where no rates (specific) have been prescribed either by the Director of Transport of
the concerned State or of the neighbouring states:
For journeys performed in own car/ taxi – Rs. 8 per K.M.
For journeys performed by auto rickshaw /Scooter – Rs.4 per K.M.

Mileage Allowance for journeys on foot and bicycle: 60 paise per K.M
Service Charges for booking tickets through recognized Traveller‟s Service Agents
reimbursable, for journey on tour and transfer.
Reimbursement of service charges levied by the Traveller‟s Service Agents
recognized by the Zonal Railways is allowed to be reimbursed to the Government
Servants performing journeys in public interest on tour or transfer.
Reimbursement of service charges paid to the recognized Traveller Service Agents for
booking of tickets on Leave Travel Concession shall not, however, be allowed.
Conveyance Charges for collection of tickets etc.
Reimbursement of conveyance charges to those Government Servants who either to
themselves or are deputed for collecting air/ rail tickets, passports, visas, etc., from
railway stations, booking offices, passport offices, embassies, etc., in connection with
official journeys within in India as well as abroad may be allowed under item 3 of
Annexure to Schedule V of the Delegation of Financial Powers Rules, 1978, subject
to the condition that the facility will be allowed only by Public Transport and will also
be subject to control by the Controlling Officer.
(G.I., M.F., O.M. No. F.1(29)-E.II(A) dtd. 7th July , 1987)
T.A on Tour
Entitlement
T.A on tour is from duty point/ resident at headquarters to duty point at the distant
station and vice versa. It comprises of -
1. Fare for journeys by rail/ road/ air/ sea;
2. Road mileage for road journey otherwise than by bus;
3. D.A for the entire period of absence from headquarters including journey
period.

Rate of Road Mileage

Actual fare will be paid for travel by public bus. For journeys by autorickshaw/ taxi /
own car, entitlement will be at the rates notified by the concerned Director of
Transport.
Special Entitlements for Taxi fare in Metropolitan Cities
For official journeys on tour Taxi fare as prescribed by the respective Director of
from Office/ Residence to Transport plus 25% thereon or actual taxi fare
Airport/ Railway Station/ Bus whichever is less or charges paid under pre paid taxi
Station and vice versa in charges system managed by the Police/ Airport
Delhi, Bombay, Calcutta & authority, if availed. If own car is used, Mileage will be
Madras. limited to one trip each only at the time of arrival and
departure, at the rate approved for taxis.
(G.I.O (1) to (3) and (5) SR-34 and GIOs (1) and (2) SR-46)
Journeys by Tongas etc.
Tonga, Auto rickshaw, cycle rickshaw and man driven rickshaw are equated to
journey by scooter/ motor cycle. For travel by a friend‟s scooter as a pillion rider, the
amount will be half of the prescribed rate or the actual cost of propulsion, whichever
is less. ( G.I.O (1), SR- 46)
Journeys between places connected by Rail
Whenever a journey on tour/ transfer is performed by road between places connected
by rail, rail being the ordinary mode of conveyance, the road mileage will be
regulated as follows:
When journey is performed in a public bus
the actual fare paid; or
the rail fare by the entitled class whichever is less.
When the journey is performed otherwise

a) the actual expenses; or
b) the road mileage as per G.I.O (1), S.R. 46, whichever is less and limited to
the fare of the entitled class by rail.
A competent authority may relax the above limitation under SR.31 and pay the full
rate of road mileage, if the journey is made in the public interest.
Road Mileage on tour for journeys in own Scooter/ Car/ Motor Cycle etc.
The matter has been examined in consultation with the Ministry of Finance. The rules
on the subject are quite clear. However the same reiterated here. In the case of
journeys performed by own car/ scooters etc., between places connected by rail, the
principle of restricting the road mileage to rail fare admissible should be kept in view
(G.O.I decision No.1, Note 8, under S.R.46). The question of granting full allowance

for such journeys under S.R.31 is however, to be decided by the Head of the
Department. As regards the journeys by own car/ scooter/ motor cycle, etc., between
places not connected by rail, the road mileage is to be regulated as provided under
G.O.I No.1, Note 9 under S.R.46, viz., that between places connected by public
transport system, permission of superior authority will not be necessary to travel by
own car/ scooter/ motor cycle.
However in view of the extent need for utmost economy in expenditure, tours, etc.,
may be undertaken with due circumspection and care and as far as possible with prior
approval of the controlling officers.
(G.I. Dept. of Posts, New Delhi, Letter No. 16-9/88-PAP dtd. 17.7.89)
Restriction of road mileage on tour from duty point to Railway station/ Airport/
Bus Stand, where the residence is outside the municipal limits.
The undersigned is directed to refer to Government of India‟s Decision No. 2 below

SR 46 under which taxi/ scooter charges can be allowed to an officer for journey from
Residence/ Headquarters to Railway Station/ Airport/ Bus stand while on tour.
A doubt has arisen as to whether reimbursement of admissible taxi or scooter charges
can be allowed to a person residing outside the headquarters of the employee, i.e.,
Meerut, Sonepat, Ghazibad, Noida etc. It is clarified that taxi charges can be allowed
for a journey between the residence/ duty point and Railway station/ Airport only, if
the official is residing within the municipal limits of the headquarters. In case of
official residing outside the municipal limits of headquarters, reimbursement of taxi/
scooter charges has to be restricted to the expenditure which would have been
incurred had the journey been undertaken from the duty point to the nearest Railway
Station/ Airport. ( G.I., M.F., O.M. No. 19031/1/E.IV/98 dated. 9.9.1998)
In this connection, a doubt was raised by Accountant-General (Audit)-I, Tamil Nadu,
Chennai-600035 as to whether residences of staff working in Chennai situated within
UA(Urban Agglomeration) shall be considered within duty point. The matter was
referred to Government of India and it was clarified by them as follows:
“It may be mentioned here that cities/towns are classified based on population within
municipal limits for the purpose of HRA. However, the rates of HRA based on such a
classification are admissible to all the central Government employees working in
offices located within municipal limits as well as UA limits of the city. If the city is
not UA, in that case HRA with reference to the classification is admissible to
government employees working in offices within municipal limits of that city.
Further, for the purpose of CCA, the cities/towns are classified with reference to
population within UA limits of a city and where the city is not a UA, the population
within municipal limits of the city is taken into account.
In terms of SR-51(2) daily allowance is related to classification adopted for CCA. On
that basis, the limits of Headquarters should relate to UA limits in case of cities with
UA and municipal limits where the city is not UA. The population of Urban

Agglomeration, which is made up of a major city or town, together with the adjoining
areas of urban growth is treated as one urban spread.
(C & A G Lr.No.189-Audit (rules)24-98(KW)/(56), dtd. 9-8-2000)
Admissibility of road mileage for journeys performed at an intermediate station

while proceeding on or returning from tours:
Travelling Allowance Rules do not prohibit payment of road mileage allowance, bus
fares etc., for journeys performed between Railway Station and Bus Stand/Airport and
vice versa at an intermediate station, while proceeding on or returning from official
tour, etc. As such, there is no objection to the payment of bus fare/ road mileage
allowance by the shortest route at the intermediate station.
( G.I. Min. of Finance (Dept. of Expenditure) Letter No. 19022/ 1/81 – E.IV dtd. the
3rd September, 1983 addressed to the Director of Accounts and Treasuries,
Government of Pondicherry.)
Fixed Conveyance Allowance, under SR. 25, enhanced from 1.8.1997.

The undersigned is directed to refer to this Department‟s O.M. No. 19039/2/91-E.IV
dated 18th December 1991 on the subject mentioned above and to say that the question
referring enhancement of the Fixed Conveyance Allowance admissible under SR 25
has been considered and the President is pleased to revise the rates of this allowance
as indicated below:
Fixed Conveyance Allowance per month.
Average monthly travel on For journeys by own Motor For journeys by other modes
official duty Car of conveyance
Rs Rs
201 – 300 Km 560 185
301 – 450 Km 840 240
451 – 600 Km 1035 320
601 – 800 Km 1215 375
Above 800 Km 1500 425
Admissibility of Conveyance Charges, in the context of Transport Allowance

The undersigned is directed to refer to the instructions regarding reimbursement of
conveyance charges contained in Sl.No. 3 (Column 4) of Annexure to Schedule V of
DFPRs and to state that in the context of this Ministry‟s O.M.No.21 (1)-E.II (B)/ 97
dtd. 3.10.97., relating to grant of transport allowance to Central Government
employees, clarifications have been sought by the some Departments/ Offices as to
whether the above provisions of the DFPRs would undergo any change/ become
redundant.

The matter has been considered in this Department and it is clarified that transport
allowance has been given to Government Employees for meeting expenses incurred
on commuting between the place of duty and the place of residence, whereas
conveyance charges are reimbursed, subject to the conditions specified in Column (4)
Item 3 of Annexure to Schedule V of DFPRs, mainly for the following reasons:
a) When a non gazetted employee is deputed on duty to a place at some distance
from his office within the municipal limits of the city in which his office is situated or
when a gazetted employee performs a journey in the public interest, within the
municipal limits of the city in which his headquarters is situated, in a conveyance
when a staff car is not available.
b) For attending office on Saturdays, Sundays and closed holidays.
c) When an employee is summoned to office outside the ordinary hours of duty
or is detained in office beyond 2000 hrs and has return home between 2000 hrs and
0600 hrs.
With the issue of orders for transport allowance, while (a) and (b) would continue to
hold good, (c) above would require to be deleted since the commutation of the
employees to and from office is taken care of by the payment of transport allowance.
Accordingly , an amendment deleting paragarph 6(vi) in Column(4) against item 3 of
Annexure to Schedule V of DFPRs is being issued.
Daily Allowance
Daily Allowance is a uniform allowance for each day of absence from headquarters
on duty at a place beyond a radius of 8 kilometers which is intended to cover the
ordinary daily charges incurred by a Government Servant in consequence of such
absence while on tour.
D.A is admissible for halts during tour and for holidays occuring during tour if such
holidays are spent in camp actually and not merely constructively.
D.A is not admissible for days of casual leave, if any, taken during tour. Where half
day‟s casual leave is availed of, half D.A for that calendar day will be deducted. No
D.A is admissible for restricted holiday availed of while on tour.
If on account of holidays at either end of the tour, a Government Servant starts from
the headquarters earlier than it is otherwise necessary or returns to headquarters later
than otherwise necessary, the controlling officer can make such deductions from the
total number of daily allowance as are excessive in his opinion.
If the second tour commence on the same day on which a Government Servant returns
from the first tour, the two tours may be treated separately for the purpose of
calculation of daily allowance subject to the condition that daily allowance so
calculated should not exceed one (1/2 for local journeys) for any calendar day.
D.A with reference to place of Duty
D.A is admissible with reference to place of duty. For example, if an official is on tour
to an expensive locality but stays in an ordinary locality and proceeds to duty point
daily, D.A at the higher rate admissible for the locality will be paid. For holidays or

Sundays when the official does not attend duties at the tour station, no daily allowance
will be allowed as the period will be treated as not spent in camp.
The admissibility of Daily Allowance for continuous halt at places outside the
Government Servant headquarters during tour/ training, temporary transfer will be as
follows:
a. First 180 days Full DA
b. Beyond 180 days No DA
Any period of leave including casual leave for which no DA is admissible, availed
bya Govt. Servant does not constitute a break in continuity of a halt. If a Government
Servant returns to headquarters on the same day from tour to an expensive locality he
will draw daily allowance at the ordinary rates only.
Daily Allowance is related to the classification of the cities/ towns on population basis
for the purpose of CCA:
The rates of daily allowance for different cities/ towns shall be related to the
classification of the cities/ towns for purpose of grant of Compensatory (City)
Allowance. For the purpose of Compensatory (City) Allowance, the limits of the
locality shall be those of the Urban Agglomeration adopted for the population census
or, if the named place is not an Urban Agglomeration, the named Corporation/
Municipality.
For halts at places where drawal of Compensatory(City) Allowance is sanctioned for
special reasons at the rates applicable to higher class cities, the daily allowance is to
be regulated with reference to the original classification of such cities/ towns.
( G.I. M.F., O.M No. 19030/1/76-E.IV(B) dated the 30th January 1978 and Note 2 in
paragraph 1 of G.I. M.F, O.M No. F.2(37)-E.II(B)/64 dated the 27th November 1965,
as amended from time to time and O.M. No. F.19043/2/82-E.IV dated the 25th
November 1983)
Definition of Day
For the purpose of T.A Rules, day means a full calendar day of 24 hours reckoned
from midnight to midnight. For absence from headquarters for broken periods, daily
allowance is regulated as follows:
i) Absence not exceeding 6 hours Nil.
ii) Absence exceeding 6 hours but not exceeding 12 hours. 70 %
iii) Absence exceeding 12 hours Full.
In case one period of absence from headquarters falls on two calendar days, it is
reckoned as two separate days and daily allowance is calculated for each broken
periods as above. Similarly daily allowance for days of departure from and arrival at
headquarters will also be regulated accordingly.
How to reckon period of absence from headquarters
a) Journeys by rail : The entire absence from headquarters will be
reckoned with reference to the scheduled departure/ arrival time of the train from/
to the Railway station. If the train is late by more than 15 minutes, actual arrival
time will be taken into account.

b) Journeys by Bus : The entire absence will be reckoned with reference to the
actual departure/ arrival time from / at the bus station.
c) Journeys by Air.: The entire absence from headquarters will be reckoned with
reference to scheduled reporting / arrival time from/ at the airport. If the plane is
late by more than 15 minutes, the actual time will be taken into account.
Tour to ordinary and expensive locality:
If tour involves halt at an expensive locality as well as ordinary locality, the period of
halt at the expensive locality should be calculated and deducted from the total period
of absence. Higher rate of D.A will be allowed for the period of halt at the expensive
station while ordinary D.A is admissible for the remaining period, which includes
period of stay in ordinary locality and journey period.
However, if calculation of D.A in the above manner result in hardship to the
employee in any case, D.A may be drawn either with reference to the period spent on
journey first and thereafter for the period spent in expensive locality or the other way
round, whichever is more beneficial to the touring official.
Luxury Tax: Luxury Tax if charged and shown separately by hotels will be
reimbursed in full subject to the overall limits of entitlements of D.A included in the
claim for hotel stay.
Local Journeys
Local journeys mean journeys on duty on any day beyond 8 km from the duty point at
Headquarters and with in the limits of suburban or other Municipalities, Notified
Areas or Cantonments contiguous to the Municipality/corporation of the town or City
in which the duty point is located. Journeys performed within the limits of an Urban
Agglomeration within which the employee's headquarter is located will also be treated
as 'local journeys'.
Entitlement: For local journeys mileage allowance for the journey involved plus 50%
of the D.A admissible at ordinary rate for ordinary locality will be allowed. ( For
absence not exceeding 6 hours no D.A is admissible; for absence exceeding 6 hours
and below 12 hours 35% of D.A and for absence exceeding 12 hours 50% of D.A will
be allowed)
Free Conveyance: If free conveyance is provided for the local journey, only D.A as
above will be allowed and no mileage allowance.
Restrictions : Local journeys are to be performed only by public conveyances, viz.,
bus, train, etc., or by own conveyance. Journeys by taxi, auto rickshaw etc., requires
previous permission of the superior authority. If more than one official are deputed,
they should share such conveyance. The mileage in all cases will be restricted to the
actual distance travelled.
Admissible for all days: If such local journeys are performed for a number of days
mileage allowances as above will be allowed for all days.
Maximum limit for D.A: The maximum limit of 180 days will be applicable for local
journeys also. If one assignment at a temporary duty point is performed in two or
more spells, total of such periods should be taken into account for this purpose.

Option to claim conveyance charges: A Government Servant can choose to claim

conveyance charges even for local journeys beyond 8 Kms as in the case of journeys
within 8 Kms.
TRAVELLING ALLOWANCE ON TRANSFER.
„Transfer‟ means the movement of a Government Servant from one headquarters
station to another such station to take up the duty of a new post or due to change of
headquarters. T.A is admissible only if the transfer is in public interest. It is not
allowed if transfer is made on own request.
In the absence of a clear indication in the transfer order that the transfer is on the
request of the official, it should be taken as in public interest and T.A allowed.
Definition of Family: Family includes
(1) Husband – residing with Government Servant (need not be dependent)
(2) Wife
and the following members provided they are residing with and dependent on the
Government Servant ( income not exceeding Rs.1,500 excluding dearness relief on
Pension);
(3) legitimate children, step children/ adopted children/ wards, including (a) major
sons, (b) unmarried daughters and (c) married daughters if wholly dependent on the
official due to divorce, abandonment or separation from husband;
(4) unmarried sisters;
(5) widowed sisters if their father is either not alive or himself dependent on the
Government Servant;
(6) minor brothers; and
(7) parents including step mother.
Children studying away at the time of transfer who come later to spend the vacation
may be considered as members of family.
Transfer T.A., is allowed to family members existing on the date of transfer and not
for any member added to the family thereafter. The number of fares admissible will be
as on the date of journey.

Entitlements:
The following are the entitlements:
1) Composite Transfer Grant.
2) Actual fare for journey by rail/ steamer/ air/ road for self and family;
3) Cost of transport of personal effects;
4) Cost of transport of conveyance; and
5) One additional fare to and fro for the Govt. Servant if he has to leave the
family behind, due to non availability of Govt. accommodation at the new station.
Additional fare by the entitled class to Government employee on transfer
As per the existing orders as contained in para. 7 to the annexure of
O.M.No.19030/5/86-E.IV, dated the 24th November, 1986, an employee on transfer is
entitled to an additional fare by the entitled class for both onward and return journeys,
in addition to the normal transfer T.A. entitlement, if he has to leave his family behind
because of non-availability of government residential accommodation at the new
place of posting.
2. It has come to notice that some officers are at a disadvantage who do not have
a family or they have a family but their family members are not in a position to
accompany the officer on transfer due to certain pre-occupations such as studies, etc.,
as per the existing orders, such officers are not entitled to an additional to and fro fare
for self though these officers require to visit their last station for bringing their
household luggage, etc.
3. To avoid hardship to such employees, the existing provision contained in para. 7
to the Annexure of O.M.No.19039/5/86-E.IV, dated the 24th November, 1996 may be
read as under:-
“7. Additional fare by the entitled class to Government employee on transfer:- An

employee will be entitled to an additional fare by the entitled class for both onward
and return journeys, in addition to the normal transfer T.A. entitlement, if he has to
leave his family/household effects behind because of non-availability of Government
residential accommodation at the new place of posting. Government officials who
could not take family members along with him/her on their second trip due to genuine
reasons may also be entitled to an additional to and fro fare by the entitled class.”
(G.I.M.F.O.M.No.19030/1/2006-E.IV, dated 6-2-2006)
For journeys by rail/ steamer: The Govt. Servant and the family members will be
allowed a single fare each and half fare for the child below 12 years actually paid,
limited to the fares of entitled class. Steamer fare will be excluding dies charges if
any.
For journeys by air: Officers authorized to travel by Air are entitled to the air fares
actually paid. For officers not authorized for air travel, the air fares paid will be
limited to (i) the fares admissible for the highest entitled class by rail/ steamer and (ii)
road mileage admissible for journeys between places connected by road.
Mileage Allowance for journeys by road

Between places connected by road only: Actual bus fare paid for each member of
the family will be reimbursed.
Between places connected by rail: Bus fares actually paid or road mileage as above,
as the case may be, will be limited to the rail fares of entitled class for self and each
member of family.
T.A for the family:
Travelling allowance for family members will be admissible if they accompany him,
or follow him within six months from the date of relief, or precede him by not
more than one month before the date of taking over at the new station. Extension
of these time limits may be sanctioned by the Head of Departments in exceptional
cases. The Govt. Servant has to apply before the expiry of six months/ immediately on
transfer, as the case may be, for sanction for extension of time limit.
Travel by family members from / to other stations: T.A is admissible if family
members travel to the new station from a place other than the old headquarters, or
from the old headquarters to a place other than the new station; but the claim will be
limited to the entitlement as for journey from old to the new headquarters and by the
class actually travelled.
Transport of Conveyance
i) Transport by rail: Actual amount charged for transport by passenger is
admissible. If it is transported by goods train, the cost of packing, transporting the
packed vehicle to an from the goods shed, cost of crating the car, loading/ unloading
charges etc., are allowed subject to the overall limit of transport charges by passenger
train.
ii) Rate of allowance for transportation of motor car/ motor cycle/ scooter on
transfer by road.
Between places connected by rail Between places not connected by

rail
i) When the conveyance is sent under its own propulsion.
Prescribed rate at the starting point limited to Prescribed rate at the starting
the charges by passenger train. point.
Note: Where the conveyance is sent under its own propulsion, the Government
Servant
and the family members will not be entitled for mileage allowance if they
travel by
the conveyance under its own propulsion.
ii) When the conveyance is sent loaded on a truck:

Actual expenses limited to the prescribed rate Actual expenses limited to the
or transportation charges by passenger train, prescribed rate.
whichever is less.
Note: „Prescribed Rate‟ means, the rate prescribed by the Director of Transport for
taxi or autorickshaw as the case may be.
Transport of Personal Effects

i) By rail/ steamer : the entitlement will be the cost of carriage by goods train/
steamer.
ii) By road between places connected by rail: Actual expenditure limited to
125% of the admissible amount on transport of the maximum quantity by rail is
admissible.
Transport by different modes: A Govt. Servant may transport personal effects by
different modes either in full or in part, viz., by passenger train, or by air, but the total
claim will be limited to the maximum entitlement by goods train.
Transportation of Personal Effects by Rail
Pay Range. Personal Effects that can be carried.
Rs. 16,400 and above. Full four wheeler wagon or 6000 Kgs by goods train or
one double container.
Rs, 8,000 and above but less Full four wheeler wagon or 6000 Kgs by goods train or
than Rs.16,400 one single container.
Rs. 6,500 and above but less 3000 Kgs by goods train
than Rs.8,000
Rs. 4,100 and above but less 1500 Kgs by goods train
than Rs. 6,500
Below Rs.4,100 1000 Kgs by goods train
Transportation of Personal Effects by Road

Pay Range A1/A/B1 Cities Other Cities
Rs Rs
Rs. 8,000 and above 30 18
Rs.6,500 and above but less than 15 9
Rs.8,000
Rs.4,100 and above but less than 7.60 4.60
Rs.6,500
Below Rs.4,100 6 4
Note: Such of those employees as are in receipt of a revised pay of Rs. 3,350 &
above will, however, be entitled to the rates of allowance prescribed for employees in
the next higher pay range of Rs. 4,100 and above but less than Rs.6,500.
Transportation Conveyance
Pay Range Scale.

Rs. 6,500 and abvoe One Motor Car or one Motor Cycle/ Scooter or one horse
Less than Rs. 6,500 One Motor Cycle/ Scooter/ Moped or one bicyle.
Transfer Grant and Packing Allowance
The lump sum transfer grant and packing allowance presently admissible on transfer
will be replaced by a composite transfer grant w.e.f 1.10.97. The composite Transfer
Grant shall be equal to one month‟s basic pay + DP (CDA) in case of transfer
involving a change of station located at a distance of or more than 20 KM from each
other. In case of transfer to station which are at a distance of less than 20 KMs from
the old station and of transfer within the same city, the composite transfer grant will
be restricted to one third of the basic pay + DP(CDA) provided a change of residence
actually involved. Further the transfer incidentals for the Government Servants and
the members of his family as well as the road mileage for the journeys between the
residence and the railway station/ bus station/ air port at the old and new stations
which are presently admissible shall no longer be admissible. These will instead be
subsumed in the composite transfer grant.
With a view to encouraging the adoption of small family norms by Central
Government employees, it has also been decided that travelling allowance on transfer
will be restricted to only two dependent children of an employee. This restriction,
which will come into effect from 1st January 1999, shall not, however, be applicable
in respect of those employees who already have more than two children prior to the
issue of these orders. Further, children of employees born between the date of issue of
these orders and 31st December 1998 will also be entitled to such benefits as are
admissible under the Travelling Allowance Rules to employees and their families on
transfer irrespective of the number of children that they may already have. This
restriction shall not also be applicable in respect of those employees who are presently
issueless or have only one child and the subsequent pregnancy results in multiple
births as consequence of which the number of children exceeds two.
Where the distance between the two stations is more than 20 kms, but there is no
change of residence involved, No transfer Grant is to be allowed.
(M.O.F.O.M.No.19018/1/E-IV/2001 dt. 26-2-2001)
Transfer Within he Same Station/ Short Distance
1) Same Station: A Government Servant transferred to another office within the
same station i.e., within the city including sub urban Municipalities, Cantonments,
etc., contiguous to the city, will be entitled to T.A as under.
a) If no change of residence is involved, no T.A is allowed.
b) If change of residence is involved, the composite transfer grant will be
restricted to one third of the basic pay. Transport of Personal Effects will be allowed
at the rates applicable for regular transfer.( Change of Residence is obligatory and
necessitated solely on account of transfer).

2) Nearby Station: If the new place of posting is outside the city but within 20
Kms by road as also by rail , no TA is allowed if there is no change of residence. If
there is change of residence, the entitlement will be as per para (I) (b) stated above.
Payment of Composite Transfer Grant on revised pay in respect of all employees
working in BSNL
The issue of payment of Composite Transfer Grant on revised pay has been under
consideration in this office, subsequent to revision of pay of the Executive and Non-
executive employees in IDA pay scales w.e.f. 1-1-2007 and un-absorbed officers
(deputationists/deemed deputationists) in CDA pay scales w.e.f.1-1-2006
2. The approval of the Board of Directors of BSNL is, herby, conveyed for
payment of Composite Transfer Grant subject to other regulatory conditions
applicable in this case in respect of following categories of employees on their revised
basic pay w.e.f. dates mentioned below:-
(a) From 1-9-2008 in respect of un-absorbed employees working on
deputation/deemed deputation basis in BSNL.
(b) From 27-2-2009 in respect of absorbed or directly recruited executive employees
of BSNL.
(c) From 7-5-2010 in respect of absorbed or directly recruited non-executive
employees of BSNL.
3. The payment of composite transfer grant will be admissible subject to

following:_
(i) The composite transfer grant may be equal to one month‟s revised basic pay in the
case of transfer involving a change of station located at a distance of more than 20 km
from each other.
(ii)In cases of transfer to stations which are located at a distance of less than 20 kms
from the old station and of transfers within the same city, one third of the above
composite transfer grant will be admissible, provided a change of residence is actually
involved.
(iii)Where husband and wife both are working in BSNL and the transfer of both of
them takes place within six months, but the transfer of husband/wife takes place after
60 days of the transfer of the spouse, fifty percent of the transfer grant on transfer
shall be allowed to the spouse transferred later. No transfer grant shall be admissible
to the spouse transferred later, in case both the transfers are ordered within 60 days.
The existing provisions shall continue to be applicable in case of transfers after a
period of six months or more. Other rules precluding transfer grant in case of transfer

at own request or transfer other than in public interest, shall continue to apply,
unchanged in their case.
4. Error and Omissions occurred while calculating the arrears therein are subject to
rectification and correction. Over payments made, if any, shall be recovered as per
rules.
(BSNL HQ No.1-10/2010-PAT(BSNL)/Comp.Trans.Grant dt. 1-7-2010 &
20-8-2010)

T.A on Retirement
Travelling Allowance as per entitlement for regular transfer including Composite
Transfer Grant, transport of personal effects, transport of conveyance etc., is
admissible to a Government Servant on retirement, for proceeding to the place where
he proposes to settle, either during LPR or within one year of retirement.
The journey by the family members as also the transport of personal effects can taken
place within one month before or within six months after the date of journey by the
Government Servant. Extension of time limits may be sanctioned in exception cases
by the Head of the Department.
The concession is admissible to the permanent Government Servants retiring on
superannuation / retiring / invalid / compensation pension but not those who resign or
are retired compulsorily, or who are dismissed/ removed from service. Temporary
employees retiring on superannuation after a minimum of 10 years service are also
entitled to the concession.
Controlling Officers have to satisfy themselves that the journey was actually
performed to the place of settlement as per claim and may insist on the production of
proof viz., original vouchers for transport of personal effects, etc. The claims of
officers will be countersigned by their superior officers.
Advance of T.A: Advance of T.A for journeys after retirement will not be
admissible. The claim has to be preferred after completion of the journey. The
advance will, however, be given for journey during LPR.
T.A for the Family of the Deceased Government Servant
T.A as per entitlements for retirement will be admissible to the family members of the
deceased Government Servant for journeys to the place of settlement within one year
of death of the official. If any family member perform journey from or to a place other
than the last headquarters or the place of settlement, the T.A is allowed subject to the
overall limit as for journey from last headquarters to the place of settlement. The
concession is not admissible to the families of temporary Employees who have not
rendered 3 years of service.
Payment: The amount of T.A will be paid in the orders of precedence to the eldest
surviving widow, husband, eldest surviving dependent major child, a legal guardian,
or to any other person fit to receive the payment subject to the production of a bond
duly signed by two sureties.
Advance : T.A advance for the journeys may be paid up to 3/4th of the probable
amount of reimbursement admissible and adjustment watched. Only one advance is
allowed even if the family members perform journeys separately.
Claim : The final T.A claim should be submitted within one month of the completion
of the journeys or within one month of the completion of the journey by the last
member. In any case, the journeys should be completed within one year of death of
the official.

For local or nearby place of settlement : As in the case of T.A on retirement, if the
family wishes to settle at the same place or nearby place at relatively short distance,
the admissibility of T.A will be as for T.A on transfer.
T.A for Journey to attend A Training Course
Regulation of D.A
i) Government Servants deputed for training will draw T.A as on tour but the
daily allowance will be regulated as under:
a) When boarding and lodging are not provided:
First 180 days Full D.A
Beyond 180 days Nil.
b) Training institutes where boarding and lodging facilities exist:
First 30 days Full D.A
Next 150 days Half D.A
Beyond 180 days Nil.
c) When Boarding and lodging are provided at fixed rates:
Outstation participants Actual Expenditure on
Irrespective
Boarding and Lodging
of the period
+ 1/4th D.A. of training
Local participants. Actual expenditure only. No D.A
(Participants permitted to stay outside such residential Training Institutes will,
however, draw full D.A as in (a) above.)
ii) For periods of training beyond 180 days, Government Servants may choose to
draw T.A as above or as for Transfer T.A.
iii) Halt at training centres will be treated as continuous even if a trainee is
required to proceed on tour to other stations during training. However, if theoretical
and practical training are given at different places, the limit of 180 days will be
applied to each training period separately.
iv) No T.A/ D.A is admissible for training at the headquarters irrespective of the
distance between normal duty point and the training centre.
Advance on Tour
In all cases of journeys in respect of which travelling allowance as for a journey on
tour is admissible, an advance may be granted:-
To a Govt. Servant, proceeding on tour, of an amount sufficient to cover his personal
travelling expenses for a month. ( Rule. 410)
If the Government Servant, who has drawn T.A advance, does not submit the T.A
claim immediately after completion of tour ( i.e. within a reasonable period of 15
days), the T.A advance should be recovered in one installment from the next payment
of salary, irrespective of the fact whether the T.A bill has been submitted or not.
However, if he submits his T.A claim within one year but after recovery of T.A
advance as stated above, there would be no bar for entertaining the claim.
In cases where a Government Servant is required to proceed on tour frequently at
short notice and under emergent circumstances, necessitating the undertaking of

journey soon after completion of earlier one, thus leaving little time for the official to
prefer his T.A bill, a second T.A advance may be sanctioned by the competent
authority subject to the following conditions being fulfilled.
i) the second journey is required to be undertaken soon after the first one i.e
within a week after completion of the first tour.
ii) the bills for the advances drawn should be submitted latest within a week after
completion of the second journey.
iii) in any case, not more than two advances should be allowed to remain
outstanding at a time.
Advance of Pay and T.A. on Transfer
Amount
One month‟s pay in case of normal transfer.
Two month‟s pay if the transfer is due to shift of headquarters as a result of Govt.
policy. Advance of pay can be taken at the new station, if so desired.
In addition to 1 or 2 above, advance of T.A as admissible under the rules, for self and
family. This can be drawn either in one installment or separately for self and family in
two installments.

Eligibility
Employees under orders of transfer, including those on leave.
Employees proceeding on foreign service in India or on reversion from such
service.
Not admissible when the transfer is at official‟s request and not in public
interest.
Not admissible when the transfer is within the same station.
Recovery:
Advance of pay of one month – In not more than 3 installments.
Advance of pay of two months – In not more than 24 installments.
Monthly rate of recovery should be in whole rupees, the balance being
recovered in the last installment.
Should commence from the month in which the official draws a full month‟s
pay and / or leave salary after joining the new appointment.
Advance of T.A should be recovered in full from the T.A bill.
Advance to meet the travelling expenses of the families and conveyance of the
personal effects of Government Servants who die while in service, may be granted,
provided the security of a permanent Central Government Servant is obtained in the
form (prescribed under Rule 394) in each case before the advance is allowed.
(Note. 2 below Rule 394 of FHB Vol.I)
A Govt. Servant without a substantive appointment or a quasi permanent employee,
may be granted by the competent authority, short term advances, viz., advances of pay
recoverable in not more than three installments and advances of Travelling
Allowances, Festival Advances, Advances in lieu of leave salary and advance for the
purchase of bicycles, warm clothing and table fan without the production of surety,
provided that such authority is satisfied that the same could be fully recovered or
adjusted during the period of temporary employment of the Government Servant
concerned.( G.I.O(3) below Rule 394)
TA/DA Rules for foreign travel
The BSNL has been formed w.e.f. 1-10-2000. BSNL, the following TA/DA rules as
per the existing govt. of India regulations on the subject has been considered and
decided by competent authority.
(i) The maximum daily entitlement in respect of each category of officers would
be as follows:
Category DA Total
US $ US $
CMD MEA Rates * 500
Directors(Board) MEA Rates * 450
CGMs/PGMs MEA Rates * 375
GMs & below MEA Rates * 350
(Note: * subject to economy instructions of MOF)

(ii) The consolidated amount of Daily allowance includes per diem as per MEA
Rates, Hotel accommodation and other incidentals like telephone bills, local journey,
etc.
(iii) For all the officers, the incidentals would by payable as per MEA rules. In
addition, taxi charges to and fro from the airport to hotel would be reimbursed.
(iv) In addition to the above, CMD would also be entitled to entertainment
allowance and Directors could also be permitted entertainment allowance as approved
by the CMD. Vouchers/Bills would have to be produced for the entertainment
expenditure.
The officers after return shall submit accounts within 30 days as prescribed below:
(a) Bill/vouchers should be submitted for hotel accommodation. In case of not
staying in the hotel and making own arrangement, only per diem as admissible under
MEA rules would be paid. No additions/extra amount would be admissible over and
above per diem as per the MEA rates.
(b) No receipts will be required for daily allowance for boarding as prescribed
by MEA for the relevant country.
(c) Telephone, Conveyance, incidental and misc. expenses as actual, will be
accepted on the basis of the bills/vouchers/certification regarding the amount of
expenditure incurred.
(d) The balance exchange after meeting the expenditure as indicated above shall
be surrendered to the company.
Officers of the rank of GM and above may travel by the Executive class during
foreign travel.
(BSNL HQ no.100-52/2000-STG-I(BSNL) dt. 23.11.2000 & 18-12-2001)
Traveling/Daily Allowances rules for BSNL
It has been decided by the Board of Directors of BSNL that the committee has
considered the proposal regarding payment of TA/DA rules for BSNL and agreed that
BSNL will reimburse the actual expenses for lodging in Central/State/PSU/Local Self
Government‟s Guest Houses until further orders.
This will be effective from the date of issue of this letter.
(BSNL HQ No.400-3/2002-Pers-I dt. 18-6-2001)
TA/DA Rules, 2002 for BSNL
1. Short title and commencement:

i) In pursuance of the approval of the Board of Directors of BSNL in their 41 st
meeting held on 25-9-2002, the following rules regulating the TA/DA in BSNL are
hereby made namely:
ii) These rules may be called the TA/DA rules, 2002 for BSNL
iii) These rules shall come in to effect from 25-9-2002
iv)These rules shall apply to BSNL employees

2. Definitions:- In these rules, unless the context otherwise requires
i) Company: means Bharat Sanchar Nigam Ltd. (A Govt. of India enterprise) having
its registered office at B-148, Statesman House, Barakhamba road, New Delhi-
110001.
ii) Board: means the Board of Directors of the company and includes in relation to
the exercise of powers any committee of the Board/management or any officer of the
undertaking to whom the Board delegates any of its power.
iii) Competent authority: in relation of the exercising of any power means, the
Chairman-cum-Managing Director of BSNL or any authority to which the power is
delegated by or under these rules.
iv) Employee: means an employee of the company executive as well non-executive
or/and a Government Servant of Government of India working in the company on
deemed deputation or any other employee working in the company on deputation
basis or otherwise.
v) Normal DA: the rates of daily allowance mentioned in these rules shall be treated
as normal DA rates on CDA pay scales. On implementation of IDA pay scales the
equivalent of pay scales in IDA will be the limit.
3. Classification of employees indicates the IDA Pay scales of absorbed
employees corresponding to CDA Pay scales (w.e.f. 6-9-2004)
CDA Pay scale IDA pay scale

CMD Schedule “A” Scale of Pay of Rs.27750-31500/-
Director of Board Schedule “B” Scale of Pay of Rs.25750-30950/-
Rs.18400/- and above NIL
Rs.16400/- to Rs.18399/- Nil
Rs.8000-16399/- Rs.13000-20400/-
Rs.6500-7999/- Rs.8570-12999/-
Rs.4100-6499/- Rs.5860-8569/-
Below Rs.4100/- Below Rs.5860/-
4. The classification of cities is now as under : (As per SR-51) (w.e.f. 6-7-2005)
1. A-I, A class and its expensive localities

2. B-I class cities and its expensive localities
3. State/UT Capital cities which are not categorized under A1, A, B1 & its
Expensive localities, and
4. Localities other than mentioned in (1), (2) and (3) above
5. Circles may spend an additional 10% of the basic rates for SAG and above
officers in tourist spots where special meetings of Corporate Office are organized at
times.
5. Rate of daily allowance:

These shall be treated as normal DA rates on CDA pay pattern. On implementation of
IDA pattern, the equivalent of pay scales in IDA will be the limit. Admissibility of
DA rates shall be determined on the basis of employee‟s stay arrangement while on
tour viz.
a) Employee making his/her own stay arrangement; or
b) Staying in a Hotel; or
c) Staying in a CPSU/State PSU/Local Self govt. Guest House
5.1 The DA Rates when an employee makes his/her own arrangements while on tour
on the basis of classification of cities in three categories are: (w.e.f. 6-9-2004)
A-I, A cities B-I cities State/UT Capital

and and cities which are not
expensive expensive categorized under
localities localities A1, A, B1 & its
Rs. Rs. expensive localities
and other localities
(w.e.f. 6-7-2005)
Rs.
CMD & Director of Board 500 300 275
Rs.18400/- and above (CDA 450 270 250
Pay)
Rs.16400/- to Rs.18399 (CDA 400 250 225
Pay)
IDA Rs.13000-20400/- 350 200 180
(CDA Pay Rs.8000 to 16399)
IDA Rs.8570-12999/- 300 175 150
IDA Rs.5860-8569/- 275 150 125
IDA Below Rs.5860/- 200 100 80
5.2 For entitlement of hotels/ for stay of BSNL officers the limit of amount to be
reimbursed to various categories of officers is as under: (w.e.f. 6-7-2005)
(As per BSNL HQ No.19-27/2002-L&A dt. 22-10-2002, DA shall be paid as per the
normal DA rates as per para 5.1 of these rules in addition to reimbursement of actual
hotel expenses, on production of receipt. Similarly DA shall be paid as per the normal
DA rates as in para 5.1 of these rules in addition to full reimbursement of the actual
expenses for lodging in Central/State/PSU/Local Self Govt. Guest House on
production of receipts)
Pay Range Entilement A-I, A cities B-I cities State /UT Other
and and Capital localities
expensive expensive cities which Rs.
localities localities are not
Rs. Rs. categorized
under A1,
A, B1 &
Expensive
localities
CMD/Direc Five Star Five Star Five Star Five Star if no five
tor of (Executive Hotel Hotel Hotel star (Ex.
Board suite) (Executive (Executive (Executive Suite)
suite/ if no suite/ if no suite/ if no then
five star (Ex. five star five star actual
Suite) then (Ex. Suite) (Ex. Suite)
actual then actual then actual
Officers in Four Star 3500 1750 1500 1000
HAG
Officers in Four Star 3000 1500 1350 950
SAG
Officers in Three star 2200 1100 825 550
JAG
Officers in 75% of Three 1650 825 615 410
STS star
Sr.SDE/SDE/Sr.AO/AO and 550 400 375 300
equivalents
JTO and equivalents having 400 300 275 250
starting Rs.8570/- in IDA
Pay Scale
Rs.5860/- to Rs.8569/- in 300 250 225 200
IDA Pay Scale
Below Rs.5860/- in IDA 175 125 120 100
Pay Scale
Notes:-

(a) All service charges and taxes charged by the Hotels/Guest Houses etc. shall be
fully reimbursable.
(b) Improvised accommodation provided free of charge will not be treated as free
lodging and casual hospitality such as occasional meals as an invited guest or free
luncheon or tea during working hours shall not be treated as free boarding for the
purpose of granting of daily allowance.
(c) Reimbursement of hotel/lodging charges will be made only on production of
receipts.
6. Mileage allowances for Journeys By roads
Group Entitled mode of conveyance

CMD and functional directors of the Full taxi including Air-conditioned Taxi
Board (subject to production of receipt)
Basic pay of Rs.16400/- (IDA 19900) Full taxi (subject to production of receipt)
and above
Basic pay of Rs.8000/- (IDA 10530) Full taxi (subject to production of receipt)
and above but less than Rs.16400/-
(IDA 19900)
Basic pay of Rs.6500/- (IDA 8570) Rs.8/- per km (subject to production of receipt)
and above but less than Rs.8000/-
(IDA 10530)
Basic pay of Rs.4100/- (IDA 5860) Mileage allowance is restricted to Rs.6/- per km
and above but less than Rs.6500 irrespective of mode of conveyance
(IDA 8570)
Basic pay below Rs.4100/- Mileage allowance is restricted to Rs.5/- per km
(IDA 5860) irrespective of mode of conveyance
(BSNL HQ NO.7-6/2006-EF(Vol.II) dt. 26-5-2008)
7. General Instructions:
(i) Local TA /DA is applicable beyond eight kms. (w.e.f. 6-9-2004)

(ii) CMD, functional Directors and CGMs/PGMs may at their discretion hire
taxies on point to point basis.
(iii) The employees should furnish in their TA claims details like dates of
journey, distance travelled by taxi/autorikshw/bus/public transport etc. in the relevant
columns.
(iv) Employees eligible for travel by air or those permitted to travel by air may
use full taxi from office/residence/duty point to airport and vice-versa
(v) All other entitlements and procedures not covered under these rules shall
be regulated in accordance with provisions of FR/SR, Part-II Traveling allowances of
Govt. of India rules.
(vi) The Heads of Circles/Districts etc. may through quotations and in

observance of the existing rules and regulations on hiring accommodation, may
recognize hotels in various „Principal‟ as well as „Other cities‟ within their territorial
jurisdiction for the purpose of para 5.2 of these rules. The employees of the concerned
circle shall stay in these hotels on tour as per their entitlements at the negotiated
package rates. Panel of hotels in the territorial jurisdiction of the circle shall be valid
for the employees of the other circles as well as for corporate Office of BSNL (w.e.f.
6-9-2004)
(vii) Hotel rates limits are exclusive of all taxes and surcharge, if any, but shall
include breakfast/morning tea.
(viii) If an employee is provided free lodging and free boarding, 25% of DA will
be admissible in case of Training Centres, which issue certificates to this effect.
(ix) Stay in hotel is permitted in exceptional cases i.e. if Inspection Qtr. is
occupied or not available. The officer has to give a declaration to this effect. The
CMD/Directors of the Board will be out of purview of this clause.
(x) The circles with the respective hotels may explore corporate concession,
off peak days /season rates at the time of fixation of rates.
8. Power to relax:
Power to relax any provision of these rules vests with CMD, BSNL. CMD may
further delegate these powers to designated Head of the Organization in corporate
Office i.e. Sr.DDG(Pers) as well s field formations.
(BSNL HQ No.19-27/2002-L&A , dt. 22-10-2002 & 7-6/2004-EF dt. 6-9-2004 &
6-7-2005)

Clarification on mileage allowance
Points raised Clarification

i) There is no decision on the
1)For journeys by Autorikshaw/Taxi, TA claims are
request to allow taxi charges as
to be settled on the basis of rates prescribed by
per the rates fixed by the concerned State Transport authorities. In case,
Transport Department of the where rates are not notified/prescribed by Transport
Govt. from time to time authorities, TA will be settled as per OM dated 22nd
Oct 2002.
2)In Metropolitan cities of Delhi, Mumbai, Kolkata
and Chennai mileage allowance on tour will be at
the rate approved by competent local authority of
such Metropolitan cities.
3)If own car is used, mileage allowance will be
limited to one trip each only at the time of
arrival/departure but at the rate approved for taxies
prescribed by the competent Local authority. For
allowing reimbursement for such journeys, a
certificate by the officer concerned should be
deemed to be sufficient.
ii)Entitlement to mileage Mileage allowance may be granted at the rate of
allowance when the Rs.6/- per KM if the executive officer does not
Executive/officer does not produce the receipt for entitlement at higher rate as
produce the receipt mentioned in OM dated 22nd Oct 2002.
(BSNL HQ NO.7-6/2004-EF dt. 20-7-2005)
Sub: Payment of daily allowance in the cities downgraded for the purpose of
CCA-clarification reg
The undersigned is directed to refer to the subject mentioned above and to say
that some representations have been received for seeking clarification for the payment
of daily allowance in respect of such cities which have been downgraded on the
population basis for the purpose of CCA consequent upon implementation of V
CPC‟s recommendations.
The matter has been considered in this department and it is clarified that in respect of
cities which have been downgraded on the basis of population, daily allowance would
be paid at the rates applicable to their revised classification notwithstanding the fact
that payment of CCA in such places has been allowed to be made on the basis of the
old classification.
(M.O.F. Dept. of Revenue F.No.18042/1/2002-E-IV dt. 6/6/2002)

Subject:- Grant of TA/DA to the representatives of the NFTE BSNL for

attending the meetings of the National Council, Circle Council and Local
Council- regarding
It has been decided by the competent authority that the representatives of NFTE
BSNL may be paid TA/DA as per the following rates for attending the format
meetings at the National council, Circle Council and Local Council:
DA
Principal Cities: Rs.300/- per day for self staying arrangement and Rs.550/- per day
for staying in hotel.
Other Cities: Rs.175/- per day for self staying arrangement of Rs.400/- per day for
staying in hotel.
T.A.
AC Chair Car: for travel by Shatabadi Express
AC 2 –tier: for travel by other trains including Rajdhani Express
The classification of cities for daily allowance purpose shall be as per leter no.19-
27/2002-L&A dated 22.10.2002 of Personal Branch, BSNL HQs on TA/DA Rules,
2003 of BSNL.
(BSNL HQ No.BSNL/22-3/SR/2001, dt. 5-2-2003)
Payment of TA/DA to union/association office bearers in connection with their

visits to the Corporate Office-regarding
In the recent past, instances have come to notice that office bearers of
unions/associations from some circles faced difficulties in the matter of settlement of
their TA/DA claims, whenever they are invited to the corporate Office in connection
with some official meetings.
2. In order to avoid recurrence of such problems, it is hereby clarified that
whenever office bearer(s) of any union/association is/are invited for official meetings
in the Corporate Office, that office bearer of the union/association will be treated as
on official duty for the meeting period along with journey period and also entitled for
TA/DA as per his entitlement as on tour, on production necessary documents
including attendance certificate from the Corporate office. The field units are
requested to settle the TA/DA bills of the union/association office bearers
accordingly.
(BSNL HQ No.BSNL/31-4/SR/2009, dt. 6-5-2009)
Enhancement of Daily Allowance and Hotel entitlement in respect of Executive

Directors and Officers in HAG Scale

A proposal was under consideration for revision of Daily allowance and Hotel
entitlement in respect of Executive Directors and Officers in HAG Scale while on
tour. Now the Management committee of BSNL in its meeting held on 19-8-2009 has
considered and approved the proposal as detailed below:-
Daily Allowance on tour:
Sl. Officers Existing rates Revised rates

No.
1. Executive Nil (1)Rs.1000 (A-1 and A cities)
Directors in (2)Rs.800 (B-1 cities)
BSNL (3)Rs.600 (other localities)
2. Officers in the (1)Rs.450 (A-1 and A (1)Rs.700 (A-1 and A cities)
HAG Scale and expensive localities) (2)Rs.500 (B-1 cities)
(2)Rs.270 (B-1 and (3)Rs.400 (other localities)
expensive localities)
(3)Rs.250 (other
localities)

Entitlement of Hotel rates while on tour:
Sl. Officers Existing rates Revised rates

No.
1. Executive Nil Entitlement Five Star
Directors in (1)Rs.7000 (A-1 and A cities)
BSNL (2)Rs.5000 (B-1 cities)
(3)Rs.3500 (State/UT Capital cities
which are not categorized under A-
1, A, B-1)
(4)Rs.2500 (other localities)
2. Officers in Entitlement Four Star Entitlement Four Star
the HAG (1)Rs.3500 (A-1 and A (1)Rs.5000 (A-1 and A cities)
Scale cities) (2)Rs.3000 (B-1 cities)
(2)Rs.1750 (B-1 cities) (3)Rs.2500 (State/UT Capital cities
(3)Rs.1500 (State/UT which are not categorized under A-
Capital cities which are 1, A, B-1)
not categorized under (4)Rs.2000 (other localities)
A-1, A, B-1)
(4)Rs.1000 (other
localities)
The mileage allowance by road and other entitlements of rail and air etc., to the
Executive Directors will be at par with the entitlements of Board of Directors
This takes effect from 19-8-2009 i.e. from the date of approval of MC.
(BSNL HQ No.7-6/2006-EF/Vol-II(Part-3) dt. 7-9-2009)
Subject: Corporate House Scheme of Indian Airlines-Participation of BSNL

BSNL has signed a cooperate Deal with Indian Airlines valid for a period of one year
valid up to October, 2004, extendable on mutually agreed terms and conditions. Under
this scheme the following incentives will be available to BSNL:
i) Incentives in the form of free tickets, on achieving the Minimum Net
Billing
ii) Offer of free frequent flyer programme (FFP) Membership to Senior
Officers.
iii) Out of turn confirmation of waitlisted tickets, subject to availability of
seats.
iv) Special discounts of holding conferences/Events etc. (This is at the
discretion of IA)
v) Up gradation of class of travel of CEO and No.2 of the company subject to
availability of seats.
vi) Airport facilitation by special corporate House Help Desk at all Metros.

BSNL has been allotted IA Deal code D-151. It is requested that this Deal code may
be got mentioned in all air tickets booked by BSNL officers through out India with
immediate effect. Any clarification required may be obtained from the Protocol In
charge, BSNL corporate office
(Tele no.2373-4053/2303-7126; FaxNo.2373-4049)
(BSNL HQ No.5-5/2002-Protocol, dt. 28-1-2003)
Sub:- Clarification on TA/DA for Auditors (All categories of Auditors)

In supercession of all previous orders, it has been decided that the TA/DA
entitlements for all categories of Auditors will be applicable uniformly.
It is hereby clarified that Travel Expenses for Qualified Professionals (those have
passed the final examination of CA/ICWA) will be equivalent to STS level officers
and for other members of the Audit staff will be that of JAO level officers of BSNL as
per TA/DA rules circulated by BSNL Headquarter vide letter No.19-27/2002-L&A
dated 27-12-2002. For use of personal car by the Auditors the rate will remain
@Rs.3/- per K.M. IFA‟s will be competent to hire vehicles for any type of audit job or
use by the auditors.
No Air journey will be permissible except North Eastern Region.
This order will take effect from 1-1-2004.
( BSNL HQ No.500-10/2003-CA-I/BSNL, dt. 31-12-2003)
Clarification on TA/DA for Statutory and Branch Auditors
It has been decided by the competent authority of BSNL that the revised TA/DA
entitlement for Statutory and Branch Auditors would be applicable as per the table
below:
Mode of Group Remark
conveyance/Stay Partner Qualified Other than
Assistants Qualified
(CA, ICWA, Assistants
CS)
Taxi (for Rs.8/- per Km Rs.8/- per Km. Rs.8/- per Subject to
distances Km. production of
beyond 8 Kms) receipt
Own car (for Rs.6/- per Km. Rs.6/- per Km. Rs.6/- per In case one or
distances Km. more audit staff is
beyond 8 Kms) going to same
destination on
same day only one
Taxi/Own care fare
will be admissible

Train Equivalent to Equivalent to Equivalent On production of

JAG Officers STS Officers to Sr. railway
A.O. tickets/PNR No.
Travel by Air If the distance Not entitled Not On production of
involved is entitled Air Tickets
more than 500
Kms and the
journey can
not be
performed by
overnight train
journey
DA, if stay in Equivalent to Equivalent to Equivalent Subject to
Hotel JAG officers STS Officers to Sr.A.O. production of
receipt
DA making own Equivalent to Equivalent to Equivalent
arrangements JAG officers STS Officers to Sr.A.O.
All other terms and conditions will remain the same as applicable to BSNL staff as
per TA/DA rules. These orders shall be applicable only Statutory and Branch auditors
for auditing of BSNL accounts from the date of issue.
(BSNL HQ No.700-55/2005/CA-III/BSNL dt. 9-5-2006)
Clarification regarding Travel by train in AC II & III tier on tour/transfer/LTC-

Minimum eligibility in IDA pay scales-reg. has been issued vide BSNL Corporate
Office letter No.7-6/2004-EF dated 24.05.2006 w.e.f 19.04.2006 as follows.
i) The minimum pay elegibility for travel by AC II Tier in train is fixed at
Rs.10,530 in IDA pay scales on tour/transfer/LTC.
ii) As regards AC III Tier/First class/AC Chair car, the minimum pay
eligibility is Rs.5860 in IDA Pay scales.
iii) For travel in Shatabdi, Rajdhani & Jan Shatabdi, the above IDA
equivalents may be adopted. (i.e) CDA Pay Rs.8000= IDA Rs.10530; CDA Pay
Rs.4100=IDA Pay Rs.5860. This equivalents are meant for the purpose of
determination eligibility fro travel in train only and not for any other purpose.
JOINING TIME
(A) ON TRANSFER
1. Application: The Central Civil services (Joining Time) rules,1979, are

applicable to all Government servants appointed to Civil Services and posts under the

Central Government including work charged staff, except Railway employees, Armed
Forced personnel and those paid from the Defense Services Estimates, Contract
Officers, part-time employees and contingent- paid staff. Government servants
transferred to the control of another Government or organization having separate rules
will be governed by those Rules.
2. Admissibility: Joining time is admissible on transfer in public interest to
enable Government servant to join the new post at the same or a new station. Joining
time is not admissible for temporary transfers not exceeding 180 days. Surplus staff
transferred from one post to another are entitled to the Joining time. Persons who are
discharged due to reduction of establishment and subsequently reappointed in another
office will be entitled to Joining time if the orders of reappointment are issued while
in service. If there is a break not exceeding 30 days after the discharge, the period
may be treated as Joining time without pay under the orders of the Head of
Department.
3. Appointment on selection by open competition: Permanent Government

servants and temporary employees with more than 3 years of service are entitled to
Joining time with pay on their appointment to posts under the Central Government on
the results of a competitive examination and/ or interview open to Government
servants and others. Temporary employees with less than 3 years of service will be
allowed joining time but not joining time pay.
4. Period of Joining time allowed: In cases involving transfer from one station
to another and also involving change of residence, Joining time is allowed with
reference to the distance between the old headquarters and the new headquarters by
direct route and ordinary mode(s) of travel as indicated in the following table.
Distance between the Joining time admissible Joining time admissible where
old headquarters and transfer necessarily involves
the new headquarters continuous travel by road for
more than 200 km
1,000 km or less 10 days 12 days
More than 1,000 km 12 days 15 days
More than 2,000 km 15 days except in cases 15 days

of travel by air for
which the maximum
will be 12 days.

Note: Distance means actual distance and not weighted mileage for which fare
is charged by the Railways in certain ghat/ hill stations.
5. Calculation of joining time: If the official is relieved on the forenoon, the

Joining time counts from the date of relief. If he is relieved on the afternoon, the
Joining time is counted from the next day. Holiday(s) following the date of relief and
during the period of admissible joining time will be included Joining time. When
holiday(s) follow(s) Joining time, the normal Joining time will be deemed to have
been extended to cover such holiday(s). For example, if the permissible period of
joining time expires on 15th, and if 16th and 17th are holidays, the Government servant
can join the new post on the 18th. The Joining time is calculated from old headquarters
in all cases including where the Government servant receives his transfer orders or
makes over charge of the old post in a place other than his old headquarters, or where
the headquarter is changed to tour station, while on tour or where his temporary
transfer is converted into a permanent transfer.
6. When transfer orders are revised during Joining time: If a Government
servant in transit on transfer is directed to proceed to a place different from that
indicated in the initial transfer orders, he will be entitled to a fresh spell of Joining
time as admissible from the date of receipt of the revised orders, in addition to the
period of Joining time already availed. The fresh spell will be calculated from the
place at which he receives the transfer order.
7. Local transfers: One day's Joining time is allowed to join a new post at the
same station or which does not involve change of residence from one station to
another. For this purpose, ' same station' will mean the area falling within the
jurisdiction of the municipality or corporation including such of suburban
municipalities, notified areas or cantonments as are contiguous to the named
municipality, etc.
8. Combination with vacation / leave. Joining time can be combined with a
period of vacation and/or regular leave of any kind or duration. Combination with
casual leave is not permissible.
9. Extension of joining time. Heads of Departments are empowered to allow
joining time in excess of the prescribed limit and up to 30 days. The
Ministry/Department is empowered to extend the joining time beyond 30 days. The
guiding principle to be followed in granting such extension should be that the total
period of joining time will be approximately 8 days for preparation plus reasonable
transit time plus holidays, if any, following the extended joining time. Time
unavoidably spent due to disruption of transport caused by strike, natural calamities,
or the period spent awaiting the departure of the steamer will be taken into account
while computing the extended joining time.
10. Unavailed Joining time credited to EL account. If the entire joining time
admissible is not availed by a Government servant,-

(a) when he is ordered to join the new post at a new place of posting without
availing of full Joining time admissible; or
(b) when he proceeds alone to the new place of posting and joins the post
without availing full joining time and takes his family later within the permissible
period of time for claiming travelling allowance for the family; the period of
unavailed Joining time (i.e. number of days admissible less number of days actually
availed and subject to a maximum of 15 days) will be credited to EL account, subject
to the condition that the total of EL already at credit plus the credit for unavailed
Joining time does not exceed 300 days. Unavailed Joining time admissible for local
transfers, i.e., one day, will not, however, be credited to EL account.
The benefit of crediting the period of unavailed Joining time to EL account will be
available to those who proceed to the new station alone and take their family within
the permissible period. If they do not take their family subsequently, the benefit is not
allowed. 'Permissible period' will include extension of time, if any, allowed for the
journey by the family under T.A. Rules.
11. Joining Time Pay: A Govt. servant is entitled to joining time pay at the rate
of pay drawn by him immediately before transfer. DA appropriate to the pay as also
CCA/HRA as admissible at the old station will be allowed. Conveyance Allowance or
permanent Travelling Allowance will not be admissible during joining time.
12. In the case of transfer on own request: Joining Time is not admissible for
transfer on own request. The intervening period between the handing over the charge
at the old station and taking over of charge at the new station will be regularised by
grant of leave due. If, however, the intervening period happens to be holidays, the
official will be deemed to have availed the holidays and he will not be asked to apply
for leave. In such cases also, pay for holidays intervening the date of relief and the
date of joining will be borne by the new department/ office.
13. When transfer is cancelled after relief at the old station: If transfer orders
are cancelled subsequent to the relief of the official at the old station, the period
between the date of relief and the date of receipt of revised orders will be treated as
joining time.

Leave Travel Concession

L.T.C is admissible only on completion of one year‟s service. L.T.C to visit Home
Town is allowed once in a two-year blocks.
L.T.C to visit any place in India once in four year is in lieu of one of the two Home
Town LTCs available in that block. (e.g) Four years block 1994-97. Against the
particular 4 year block, one can avail the concession to visit (a) Home Town during
each of the two year blocks or (b) Home Town during one block and All India LTC
during the other block.
Grace Period
L.T.C of either type of not availed till the end of the particular 2 year block can be
availed during the succeeding year. The date of commencement of outward journey
only is taken into account for this purpose.
Declaration of Home Town.

The Government Servant should declare his Home Town to the Controlling Officer in
the prescribed form as soon as he joins service. Such declaration duly accepted by the
controlling officer should be kept in Part-II of the Service Book and the receipt of the
declaration entered in Part-I ., under the relevant column.
Change of Home Town
The “Home Town” once declared can be changed once during the service and
accepted by the Head of the Department. The following criteria, one after another,
may be applied before the change is accepted:-
1) Whether the place declared is the one which requires his/her physical presence
at intervals and whether he/she had been visiting that place frequently.
2) Whether the official owns residential property in that place or whether he/she
is a member of a joint family having property there.
3) Whether his/her near relations are residents in the place.
4) Whether prior to his/her service he/she was residing there.
Prior Intimation
Before availing the LTC for Home Town or All India Visit, prior intimation to the
controlling officer is necessary.
Commencement of the Journey.
Journeys for both the types of LTCs can commence from a place other than Head
Quarters and also terminate at that place but the concession will be limited to the
journey from Head Quarters to the place of visit.
Visit to the declared place

Visit to the declared Home Town or to the declared place of visit for All India LTC is
an essential condition. LTC claim will not be allowed if the place declared is not
visited.
Change in the declared place of visit for All India L.T.C
In the case of All India L.T.C, the change in the declared place which could not be
intimated before the commencement of the journey and which is beyond the control of
the Govt.Servant (e.g., due to dislocation of traffic, illness of family members etc.)
can be permitted by the Head of the Department in exceptional cases.
Admissibility
The concession is admissible for the journey during any leave including Casual Leave
or Special Casual Leave. But it is not admissible if the journey is performed during
holidays only. LTC during LPR is permissible if the journey is completed before
retirement.
LTC to a person resigning from service without returning from leave is not
admissible. For persons under suspension, LTC is allowed for the family members
only.
LTC for one way only
1) Member(s) of family after performing the outward journey does not propose to
return to Headquarters.
2) Member(s) of family staying at Home Town coming to Head Quarters.
3) The Government Servant getting married during leave for bringing his/her
spouse.
4) A child legally adopted during leave for the journey to Headquarters.
5) If the LTC is combined with tour/transfer from Home Town. In such cases,
LTC for visit to Home Town is admissible and tour/transfer T.A allowed for the
journey from Home Town as admissible under T.A rules. Similarly, if the official is
permitted to proceed on leave to Home Town from a tour station, tour TA is
admissible from headquarters to the tour station and LTC for the journeys from tour
station to Home Town and back to Headquarters (subject to the limit allowed as from
Headquarters to Hometown and back).
Every Year LTC

A Government Servant leaving his/hr family at his/her previous Headquarters or
Home Town can avail LTC every year to visit his/her Home Town by foregoing All
India LTC for self and Home Town/All India LTC for family.
Family Members may travel separately

Journey by the family members separately in different groups to Home Town is
permissible. Similarly family members may travel to different places for All India

LTC. During one block, some members may travel to Home Town, while some may
avail All India LTC.
Children Studying away

A child studying away from the Government Servant is entitled to the concession for
travel to Home Town or to any place in India subject to the limit as for journey from
Headquarters to Home Town/ any place in India.
When both the Husband and Wife are Central Government Employees
If both the husband and wife are Central Government Employees even when they are
staying together, they can choose to declare separate Home Towns. They can avail
LTC independently as per their separate declarations or together as one family. The
advantage in this concession is (I) each of them can avail the concession for their
respective dependants viz., parents, brothers, sisters etc., and (II) some of the children
can visit the Home Town of the mother while some can visit the Home Town of
father. However, the concession can be availed only once in a block either by the
spouse or by the children. For example, if the husband avails LTC for the wife and
children to visit Home Town, the wife and children cannot avail the concession again
in that block to visit her Home Town.
When the Spouse is employed in PSU/Corporation/Autonomous Body
If the spouse is employed in Public Sector Undertaking/Corporation/ Autonomous
Body where LTC facilities are available, the claimant should certify that the
concession has not been availed by the Spouse.
(DOT Lr. No. 1-1(7)/97-PAT dtd. 19.11.97)
The employees and spouses of the employees of Indian Railways and National
Airlines shall continue to be debarred for LTC facility as they are entitled for “free
Pass”. (Dept.of Per.Trg.O.M.No.31011/7/97-Estt(A) dt. 20-10-97)
Family means -
i) the Government servant‟s wife or husband, as the case may be, and two
surviving unmarried children or step children wholly dependent on the Government
Servant, irrespective of whether they are residing with the Government Servant or not;
ii) married daughter who have been divorced, abandoned or separated from their
husbands (and widowed daughters vide DOPT No.No.31011/10/2000-Estt,(A) dt. 11-
1-2002)and are residing with the Government servant and are wholly dependent on
the Government Servant;
iii) parents and/or step mother residing with and wholly dependent on the
Government servant;
iv) unmarried minor brothers as well as unmarried, divorced, abandoned,
separated from their husbands or widowed sisters residing with and wholly dependent

on the Govt.Servant, provided their parents are either not alive or are themselves
wholly dependent on the Government Servant.
Explanations
1. The restriction of the concession to only two surviving children or step
children shall not be applicable in respect of (i) those employees who already have
more than two children prior to the coming into force of this restriction, i.e.,
20.10.1997; (ii) children born within one year of the coming into force of this
restriction; (iii) where the number of children exceeds two as a result of second child
birth resulting in multiple births.
2. Not more than one wife is included in the term “Family” for the purpose of
these Rules. However, if a Government servant has two legally wedded wives and the
second marriage is with the specific permission of the Government, the second wife
shall also be included in the definition of “Family”.
3. Though it is not necessary for the spouse and children to reside with the
Government Servant so as to be eligible for the Leave Travel Concession, the
concession in their cases shall, however, be restricted to the actual distance travelled
or the distance between the headquarters/place of posting of the Government Servant
and the home town/place of visit, whichever is less.
4. Children of divorced, abandoned, separated from their husbands or widowed
sisters are not included in the term “Family”.
5. A member of the family whose income from all sources, including pension,
temporary increase in pension excluding dearness relief on pension or stipend, etc.,
does not exceed Rs.1,500 p.m. is deemed to be wholly dependent on the Government
Servant.

Entitlements
(A) Journey by Air/Rail
Range Entitlement
Rs.18,400 ( IDA 22300) and Air Economy (Y) Class by National Carriers or AC
above First Class by train, at their option.
Rs. 16,400 (IDA 19900) and AC First Class
above but less than
Rs.18,400. (IDA 22300)
Rs.8,000 (IDA 10530) and II AC II tier Sleeper.
above but less than
Rs.16,400 (IDA 19900)
Rs.4,100 (IDA 5860) and First Class/AC III tier sleeper/ AC Chair Car.*
above but less than
Rs.8,000. (IDA 10530)
Below Rs.4,100 (IDA 5860) Second Sleeper.
* All Government Servants who are entitled to travel on LTC by First Class/AC III
tier Sleeper/AC Chair Car may, at their discretion, travel by AC II-tier Sleeper in
cases where any of the trains connecting the originating and destination stations
concerned by the direct shortest route do not provide these three classes of
accommodation.
Travel by Rajadhani Express/ Shatabdi Express Trains
Range Rajadhani Shatabdi

Rs.16,400 (IDA 19900) and above. AC First Class. Executive Class
Rs.8,000 (IDA 10530) and above II AC-2 tier AC Chair Car.
but less than Rs.16,400 (IDA Sleeper
22300)
Rs.4,100 (IDA 5860) and above but Chair Car. AC Chair Car.
less than Rs.8,000 (IDA 10530)
References were received from various quarters seeking clarifications whether Govt.
servants in receipt of pay between Rs.4100 (IDA 5860) to Rs.8000 (IDA 10530) who
were entitled to travel by chair car in Rajdhani Express trains could travel by AC-3
Tier in Rajdhani Express. It has been brought to the notice of this department that
chair car accommodation has been replaced with AC-3Tier in all long distance

Rajdhani trains. The Ministry of Railways(Railway Board) has also clarified that
Indian Railways do not provide AC chair car service in Rajdhani Express Trains. The
fares are, therefore, not notified for AC chair car and AC-3 Tier sleeper is the lowest
class in Rajdhani trains. It has therefore been decided, in consultation with
Department of Expenditure, that in Rajdhani trains Govt. servants in the pay range of
Rs.4100 and above but less than Rs.8000 would be entitled to travel by AC-3
Tier.(Dept.Per.&Trg. O.M.No.31011/7/98-Estt(A) dt. 21-7-99)
Note:- Entitlement by Rajdhani/Shatabdi Trains would be applicable in cases where

journey is actually undertaken by these trains and not for determining entitlement on
notional basis. Both ends of the journey, i.e., place of start of the journey and the
destination should be directly connected by Rajdhani/Shatabdi Express.
(B) Journey by Sea or by River Steamer
Range Entitlement
Rs.8,000 (IDA 10530) and Highest Class
above
Rs.6,500 (IDA 8570) and If there are two classes only on the steamer, the
above but less than Rs.8,000 lower class.
(IDA 10530)
Rs.4,100 (IDA 5860) and If there are three classes, the middle or the second
above but less than Rs.6,500 class. If there be four classes, the third class.
(IDA 8570)
Below Rs.4,100 (IDA 5860) The lowest class.
Accommodation entitlements for travel between the mainland and the Andaman &
Nicobar Group of Islands and the Lakshadweep Group of Islands by ships operated by
the Shipping Corporation of India Limited will be as follows:
Range Entitlement
Rs.8,000 ( IDA 10530) and above Deluxe Class
Rs.6,500 (IDA 8570) and above but less First/‟A‟ Cabin Class.
than Rs.8,000 (IDA 10530)
Rs.4,100 (IDA 5860) and above but less Second/‟B‟ Cabin Class.
than Rs.6,500 (IDA 8570)
Less than Rs.4,100 (IDA 5860) Bunk Class.
C. Journey by Road:

Entitlement
Pay Range.
i) Rs.18,400 and Actual fare by any type of public bus, including air-
above conditioned bus; or At prescribed rates for AC taxi/ Taxi
(IDA 22300) (AC taxi when the journey is actually performed by AC taxi)
for journey to the places not connected by rail subject to
condition that the claim shall be restricted to the bus fare by
entitled class or the fare actually paid, whichever is less.
ii) Rs.8,000 (IDA Same as at (i) above with the exception that journeys by AC
10530) and above taxi will not be permissible.
but less than
Rs.18,400 (IDA
22300)
iii) Rs.6,500 (IDA Same as at (ii) above with the exception that journeys by air-
8570) and above conditioned bus will not be permissible.
but less than
Rs.8,000 (IDA
10530)
iv) Rs.4,100 (IDA Actual fare by any type of public bus other than air-
5860) and above conditioned bus or At prescribed rate for autorickshaw for
but less than journey to places not connected by rail subject to condition
Rs.6,500 (IDA that the claim shall be restricted to bus fare by entitled class
8570) or the fare actually paid, whichever is less.
v) Below Rs.4,100 As at (iv) above with the condition that the claim shall be
(IDA 5860) restricted to the bus fare by ordinary bus.
Note: In all cases of travel by AC Taxi, Taxi or Autoricksahw production of fare

receipt will be necessary.
Regulation of LTC claim when journeys performed by a longer route in different

classes / modes of transport.
The cases where a Government Servant performs journey by a longer route in
different modes of transport, the reimbursement may be made proportionately in
respect of the journey performed by the railways and he may be allowed the
reimbursement for the remaining shortest distance, as per his entitlement by railway
or the actual fare paid by the individual for journeys by road, whichever is less. While
settling, the claim has to be worked out on proportional basis for each/actual mode of
journey/distance covered with reference to distance by the shortest route.
( C.&A.G of India, No.188-Audit.I/78-90/III-92(34), dated. 20.5.1992)
Rail Journeys - Journey by different classes

If the journey is performed partly by the entitled class and partly by the lower class by
the shortest direct route, actual expenses will be reimbursed. If the journey is by
longer route, the reimbursement will be of the proportionate distance by the shortest
direct route. For example, if the shortest distance by direct route is 1200 Kms and the
route trvelled by an official entitled to I class is 1500 Kms (800 Kms by I class and
700 Kms by II class) the reimbursement will be:
I class fare for 800/1500 X 1200 == 640 KMs and
II class fare for the remaining distance = 560 KMs
Journey by Circular Tour Tickets

If the journey on All India LTC is performed by circular tour ticket offered by
Railways, the reimbursement will be restricted to the fare of the entitled class or class
actually travelled by shortest route between Head Quarters and the declared place of
visit. Such journeys if operated by private travelling agencies are not allowed for
LTC.
Special Concession
Government Servants posted at places in N.E Region, Lakshsdweep and Andaman
and Nicobar Islands, are entitled to the following concessions if they leave their
family at their old stations or other places and have not availed Transfer TA for them.
1) They can avail the normal LTC facilities available i.e., Home Town/All India
LTC for self & families or for self only for visit every year to the place where family
resides, in lieu of other LTC facilities and in addition,
2) LTC may be availed for the family members to visit, the Govt. Servants
headquarters once in a year from the place where they reside.
Sub:- Allowances and Special facilities for Civilian Employees of the Central
Government serving in the States and UTs of the NE region and in the Andaman
and Nicobar and Lakshadweep Groups of Islands
The undersigned is directed to refer to this Ministry‟s O.M. of even number, dated 22-
7-1998 on the subject above.
2. As per para. 2(vii) of the above mentioned order, Central Government

employees and their families posted in the NE region, A&N and Lakshadweep Islands
are entitled to avail of the Leave Travel Concession, in emergencies, on two
additional occasions during their entire service career. This facility is termed as
„Emergency Passage concession‟ and is intended to enable the Central Government
employees and / or their families (spouse and two dependent children) to travel either
to the home town or the station of posting in an emergency. On a reference received
from MHA, it has now been decided that the Central Government employees posted
in these areas may avail the „Emergency Passage Concession‟ to travel either to the

home town or to the last place of duty from the station of posting or vice versa subject
to all other existing conditions.
3. This will take effect from date of issue of order.

(M.O.F.No.F.11(2)/97-E.II(B), dt. 1-12-2004)
LTC Advance
The amount of LTC advance to be sanctioned is limited to 90% of the estimated

amount of reimbursement for journeys both ways. In case where the period of leave
exceeds 90 days or the return journey is not proposed to be performed within 90 days,
advance will be sanctioned for one way only. If the advance has been drawn for both
ways and the return journey is not likely to be performed within 90 days, one-half of
the advance is to be refunded. Where the initial journey is proposed to be performed
by rail, the advance may be paid 65 days in advance to facilitate booking of rail
tickets. The Govt. Servant is required to submit proof of booking the tickets within 10
days of payment of advance. If the outward journey is not commenced within 65 days,
the advance is to be refunded.
Time Limit
In cases where advance has been drawn, the final bill should be submitted within one
month of the date of completion of journey, failing which the entire advance will be
recovered in one instalment with interest. In cases where advance has not been drawn
or where advance paid has been, recovered in full due to Govt. Servants failure to
submit adjustment bill within one month, the final LTC claim should be submitted
within 3 months of completion of journey as otherwise the claim will be treated as
forfeited.
Sub:- All the G.S. should indicate the PNR No. in their LTC claims in addition
to ticket No. (M.O.Per.&Trg.O.M.No.31011/11/2000-Estt.(A), dt. 23-4-2001)
With effect from 7.10.97, all employees may be permitted to encash 10 days earned
leave at the time of availing of LTC subject to the condition that:
a) the total leave so encashed during the entire career does not exceed 60 days in
the aggregate;
b) earned leave of at least equivalent duration is also availed of simultaneously
by the employee,
c) a balance of at least 30 days of earned leave is still available to the credit of
the employee after taking into account the period of encashment as well as leave.
d) the total encashment of EL allowed to a Govt. Servant along with LTC while
in service and as per the provisions of the CCS(Leave) Rules (on death/ retirement or
resignation) should not exceed the maximum limit/ ceiling of 300 days or 150 days as
the case may be.

( Dept. of Per & Trg O.M. No. 14028/7/97-Estt (L) dtd. 7.10.97)
Sub: Central Civil Services (LTC) Rules, 1988—Clarifications – regarding.

DO P&T OM NO. 31011/8/98 Estt (A) dated. 31.3.99.
Consequent upon implementation of the recommendations of the Fifth Central Pay

Commission, CCS(LTC) Rules were amended vide this Department‟s Notifications
No. 31011/7/97- Estt(A) dated 28.10.97 (GSR No. 602.E) and 28.7.1998 ( GSR No.
412-E). Certain clarifications have been sought by various Ministries/ Departments
from time to time. The doubts raised by various authorities are clarified as under:
Points Raised Clarifications
1. Can an employee be entitled An employee entitled to travel by air can

to travel by air travel via a station travel by the national carriers ( and not by
connected by air service even if private airlines) to airport nearest to the Home
the Home Town/ declared place of Town or the declared place of visit in case
visit is not directly connected by where these are not directly connected by air
air service ? services. The air journey in such cases shall
however, be performed by the shortest direct
route.
2. Entitlement for journey by The entitlement of an officer is to be
train has been modified through determined strictly in terms of the orders in
the notification dated 28.7.98, force and applicable on the date of
which came into force w.e.f commencement of the journey.
1.10.98. How the entitlement will
be determined for a journey
performed prior to 1st October,
1998.
3. If an employee commenced his The claim shall be regulated strictly in terms
outward journey before 1.10.98 of the orders in force on the date of
but returned after 1.10.98, how his commencement of the outward journey.
claim shall be regulated.
4. LTC orders provide for journey Travel by Rajadhani Express is a special
by AC Chair Car in Rajadhani concession provided in the LTC Rules. In the
Express Trains by employees in circumstances, reimbursement of AC 3-Tier
the Pay range of Rs.4,100 and sleeper fare on trains in which Chair Car
above but less than Rs.8000. In 105ccommodation is not provided will not be
cases where Chair Car is not permissible and the claim shall be restricted
provided, can an employee travel only to the applicable Chair Car fare.
by AC 3-Tier Sleeper on such

trains and claim reimbursement

accordingly.?
5. LTC orders permit journeys by No. In order to be entitled to reimbursement

Rajadhani / Shatabdi Express of fares applicable on Rajadhani or Shatabdi
Trains. Can the entitlement be Express, the journeys in question have to be
determined on notional basis? actually performed by these trains. In cases
where LTC journeys are undertaken in trains
other than Rajadhani or Shatabdi Express by a
class of accommodation higher than the one
to which the employee is entitled to or by an
alternative mode of travel ( e.g by air) to
which he/she is not entitled, reimbursement of
fares cannot be determined on a notional
basis with reference to the fares applicable by
the entitled class on the Rajadhani/ Shatabdi
Express.
6. LTC orders provide for This will be permissible provided the

journey by Rajdhani/ Shatabdi employee concerned is entitled to travel by
Express trains where both the Rajdhani/ Shatabdi Express on LTC.
originating and destination stations
are directly connected by these
trains. Can an employee travel by
these trains if the Home Town/
declared place of visit is not
directly connected by rail but the
nearest Railway Station is directly
connected by Rajdhani/ Shatabdi
Trains?
7. If the Home town of an If the journey is actually performed by

employee is connected by train but Rajdhani/ Shatabdi Trains upto an enroute
is not directly connected by railway station by direct shortest route and
Radjhani/ Shatabdi Express trains. thereafter the journey is completed in a train
In such case can the employee be other than Rajdhani/ Shatabdi trains, fare for

entitled to travel partly by both the types of trains by the entitled class
Radhani/ Shatabdi Express trains would be admissible for the respective portion
and partly by other train(s). of journey.
8. Whether reimbursement is Reimbursement of fares by the entitled class

permissible in cases where an of accommodation applicable on Rajdhani/
employee travels by a longer route Shatabdi Express by the shortest direct route,
or breaks journey when he/she is shall be permissible provided all the legs of
travelling only by Rajdhani the journey are actually performed
Express trains. Can the exclusively by these trains and both the
reimbursement in such cases be originating and destination stations are
restricted to the fare applicable on directly connected by these trains.
Rajdhani Express trains by the
shortest direct route or will only
the ordinary train fare be
admissible?
9. If an employee travels partly by As already clarified at Sl.No.7 above, in cases
Rajdhani/ Shatabdi Express trains where travel on LTC is performed partly by
and partly by other train(s) or by Rajdhani/ Shatabdi Express and partly by
any other mode of transport, such other trains/ modes of transport the claim
as ship, bus, etc., how is the LTC shall be reimbursable subject to the condition
claim to be regulated? that the journey is performed by the shortest
route.
10. Certain places are not Clarification in respect of Sl.No.9 may be

directly connected by trains and seen in this connection.
one has to change train at nearest
rail head which is connected by
Rajdhani/ Shatabdi Express?
12. If the originating and The employee can travel by Rajdhani/

terminating points fall on the Shatabdi Express upto the nearest enroute
routes of Rajdhani/ Shatabdi station which should not be beyond the
Express Trains but these trains doe destination i.e., Home Town or the declared
not halt at these stations, can an place of visit.
employee travel by Rajdhani/
Shatabdi Express and claim
reimbursement?

13. If two stations are connected Yes, provided travel by the longer route
by direct trains but the route onLTC has been specifically recognised and
travelled by such trains is not the approved by the Government in terms of the
shortest, can the fare applicable for separate orders issued in this regard from time
travel by the direct longer route be to time.
reimbursed in full?
14. Revised LTC orders permit Journeys on LTC by taxi, autorickshaw, etc
travel by private vehicles i.e., are permissible only between places which
Taxi, Autorickshaw, etc., it may be are not connected by rail. This is further
clarified whether the orders subject to the condition that these modes of
prohibiting LTC journeys by road transports operate on a regular basis from
in a private, hired vehicle or by point to point with the specific approval of the
own vehicles have been State Governemnts/ Transport Authorities
withdrawn. If so, in such cases, concerned and are authorised to ply as public
can the claim be restricted to the carriers. The existing restrictions on travel by
bus fare or the fare actually paid? private chartered vehicles, own vehicles etc.,
shall, therefore, continue to be in force and
applicable. No reimbursement shall be
permissible in such cases.
15. If journeys on LTC are Journeys by taxi, autorickshaw, etc., are

performed by taxi or auto- permissible only between places not
rickshaw between stations connected by rail and subject to the further
connected by rail and / or bus, can condition that these operate on a regular basis
the LTC claim be restricted to the from point to point with the specific approval
bus fare? If not, what amount be of the State Governments/ Transport
admissible? Authorities concerned. Journeys by these
modes on LTC are not permissible between
places connected by rail.
16. Can claims in respect of local Incidental expenditure incurred on local
journeys performed by taxi, journeys between the residence/place or stay
autorickshaw, etc., from the and the airport/ Railway Station/ Bus terminal
residence to the Railway Station, are not reimbursable.
airport etc., and vice-versa be
restricted to the applicable bus fare
?
17. LTC Rules provide that when a When journey on LTC is actually undertaken
journey is performed by taxi, by buses operated by a State Roadways
autorickshaw, etc., the claim shall Corporation, the actual fare paid by the
be restricted to the entitled bus entitled type of bus shall be reimbursable. As

fare. However, various State clarified against Sl.No. 13, journeys on LTC
Roadways Corporations operate on by taxi, autorickshaw, etc., are permissible
the same route but have different only between places not connected by rail and
fare structures. How will the claim subject to the conditions specified. When
be regulated in such a situation ? journeys are performed by these modes, and
more than one State Roadways Corporation
Operate on the route, the lowest fare
applicable on the route is reimbursable.
It has been decided that tours conducted by ITDC/State Tourism Development

corporation either in their own buses or buses hired or chartered by them from outside
will qualify for the purpose of availing Leave Travel concession facilities, provided
the ITDC/State tourism development corporations certify that the journey has actually
been performed by the government servant and his family members for which he is
claiming the leave Travel concession.
(D O P&T No.31011/6/2002-Estt.(A) dt. 30-7-2002)
Sub:- Computation of admissible amount for grant of interest bearing Loans to

BSNL Staff –Clarification-reg
Some circles have requested this office to issue necessary guidelines on the
above referred subject consequent to grant of IDA Pay Scales for Group C & D staff
with effect from 1-0-2000. In this respect the clarification received from „SR‟ branch
of BSNL (HQ) reiterating para 9(b) of their order No.BSNL/26/2002 dated 7-8-02
(wherein IDA Pay scales were notified) is reproduced hereunder which is self
explanatory.
“All entitlements for admissibility of TA/DA/LTC Advances etc. will continue to be

regulated at the existing rates of admissibility till they are amended suitably in the
IDA pattern. Therefore all entitlements for advances, HBA/conveyance/Computer etc.
will continue to be regulated as per the pay in the CDA pay scales till these are
amended suitably in the IDA pay scales”.
(BSNL HQ No.2-3/2002-L&A/Misc , dt. 5-12-2002)
It has been decided that reimbursement of charges for booking of rail tickets through
Internet / e-ticketing, booked through the website of Indian railways, may be allowed
only for Railway journeys undertaken for official tours and LTC
(M.F.No.19023/1/2006-E.IV, dated 25-10-2006)
Relaxation in LTC Rules- Delegation of powers to Ministries/Departments

regarding time-limit for the submission of the claim
Rules 14& 15 of LTC rules provide that a claim for reimbursement of expenditure
incurred is to be submitted within three months after the completion of the return

journey, if no advance had been drawn and within one month after the completion of
the return journey if advance had been drawn. It has now been decided to delegate the
powers to relax these provisions to the Ministries/Departments, where a Government
servant is not in position to submit the claim within the prescribed time-limit and the
Ministry/Department is satisfied that he was not able to do so due to compelling
circumstances beyond his control. The ministry/Department concerned with the
concurrence of Financial Advisor can admit the claims in such cases in relaxation of
the provisions subject to the following time-limits without reference to DOP&T:-
(a) Where no LTC advance is taken, LTC bill submitted within a period not
exceeding six months
(b) Where LTC advance has been drawn, the LTC claim for reimbursement
submitted within a period of three months after the completion of return journey
(provided the Government servant refunds the entire advance within 45 days after the
completion of the return journey)
2. Ministries/Departments are requested to keep these instructions in view while
processing belated LTC claims.
3. These instructions will be effective from the date of issue of his OM.
(Dept. of Per. & Trg. OM No.31011/5/2007-Estt.(A) dated 27-9-2007)
LTC (All India in block of 4 years) in combination with transfer/tour TA-Mode

of Regularization
The undersigned is directed to say that as per instructions contained in Ministry of
Home affairs O.M.No.43/15/59-Estt.(A) dated 19-7-60, LTC (Home Town) may be
availed I combination with transfer/tour. The question of extending this facility to All
India LTC (anywhere in the country in a block of 4 years) has been considered and it
has been decided that the provisions of the aforesaid OM dated 19-7-60 will also be
applicable for All India LTC availed in combination with transfer/tour.
2.Tour TA and transfer TA shall be regulated in terms of relevant instructions of
Ministry of Finance.
3.These orders will take effect from the date of issue but claims which were pending
on the date of issue may be regulated under these orders. Past cases in which
decisions have already been taken will not be re-opened.
(Dept. of P&T OM No.31011/3/2006-Estt.(A) dt. 7-2-2007)
Regulation of journeys by private airlines while availing Leave Travel
Concession
The undersigned is directed to refer to this Department‟s O.M. No.31011/2/2006-
Estt.(A) dated 24th April, 2006 regarding regularization of journey by private airlines
while availing Leave Travel concession (LTC), where it has been inter alia stated that
air journeys by non-entitled officers between places connected by train may be
allowed, provided the reimbursement of the fare would be restricted to the entitled
class by rail other than Rajadhani/Shatabdi Express

5. In partial modification of the above provision, it has now been decided that the
reimbursement may also be given at the rates applicable for Rajdhani/Shatabdi
Express trains, provided the government servant is entitled to it and the headquarter of
the government servant/permissible place of commencement of journey and the home
town/destination under all India LTC is directly connected by the above mentioned
trains and two stations between which the air travel has been performed are connected
by Rajdhani/Shatabdi trains. In case the fae paid for the air ticket on LTC is less than
the fare being charged for Rajdhani/Shatabdi type trains, the reimbursement would be
limited to the actual expenditure. All pending cases may be settled accordingly in
terms of this order. However, past cases already settled will not be re-opened.
6. The above orders will be applicable with effect from the date of issue of this office
memorandum
(DOP&T No.31011/2/2006-Estt.(A) dt. 21-5-2007, Endorsed by BSNL HQ No.13-
1/2007-PAT(BSNL) dt. 1-8-2007)
Central Civil Services (LTC) Rules, 1988-Clarification regarding reimbursement

of fare in respect of air travel by non-entitled officers
After issue of DOP&T OM No.31011/2/2006-Esttt.(A), dated the 24th April, 2006 and
dated 21st May, 2007 regarding regulation of journeys by private airlines while
availing Leave Travel concession. Certain clarifications have been sought by
Government servants/various Ministries/Departments from time to time. The doubts
raised by various authorities are clarified as under:-
Points Clarification
1. As per DOP&T OM Yes. As per DOP&T OM
st
No.31011/2/2006-Estt.(A) dated No.31011/2/2007-Estt.(A), dated 21 May,
24th April, 2006, journey by 2007 reimbursement at the rates applicable
private airlines is permissible to for Rajdhani /Shatabdi Express trains is
non-entitled officers for LTC permissible, provided the government
subject to condition that servant is entitled to travel by such trains in
reimbursement of fare would be such class and the places visited or the
restricted to the entitled class by portion traveled by air is directly connected
rail. Whether train fare up to by Rajdhani/ Shatbdi. Thus, the DOP&T
Rajdhani/ Shatabdi Express is OM No. 31011/8/1998-Estt.(A), dated 31-
reimbursable? 3-1999 stands modified to this extent in
respect of item 5 therein.
2. If the Home Town /place of visit All the other clarifications regarding
under All India LTC of an reimbursement of fare by Rajdhani/
employee is connected by Shatabdi trains contained in this
Train/Road but is not directly Department/s OM No.31011/8/1998-
connected by Air/ Rajdhani/ Estt.(A), dated 31-3-1999 will continue to
Shatabdi Express trains. In such a apply while regulating the admissible fare

case, can the employee be entitled in the case of such air journeys on LTC.
to reimbursement of fare by
Rajdhani/ Shatabdi Express trains
and partly by rail/road?
3.If a government employee/his If full air fare has been charged by the
family member is entitled to airlines and paid by the Government
concessional train fare such a servant, the reimbursement would be
Senior Citizen, Student restricted to the full train fare in entitled
concession, children, etc., whether class including Rajdhani/Shatabdi
in case of air travel, the
reimbursement would be restricted
to such concessional fare by train
in entitled class.
(M. O. Per. & Trg. OM No.31011/2/2006-Estt.(A) dated 3-12-2007
LTC to Central Government Employees-Travel by tour package operated by
IRCTC
The undersigned is directed to say that under the existing instructions contained in this
Department‟s O.M. No.31011/6/2002-Estt.(A), dated the 30th July, 2002, Leave
Travel Concession is qualify for the purpose of availing if the tour is conducted by
ITDC /STDC either in their own buses or buses hired or chartered by them from
outside, provided the ITDC/STDCs certify that the journey has actually been
performed by the Government servant and his family members for which he is
claiming the LTC. The Indian Railway Catering and tourism Corporation Ltd.
(IRCTC), a Government of India enterprise under Ministry of Railways is also
offering packages to LTC facility availers across India. It has been decided that the
tours conducted by IRCTC will also qualify for the purpose of availing LTC on the
lines of ITDC/STDCs subject to the following conditions:-
(1) A certificate will be issued by the IRCTC Ltd. that the journey has actually
been performed by the government servant and his family members for which he is
claiming the Leave Travel Concession.
(2) IRCTC Ltd. will indicate separately the rail fare and bus fare component
(Dept. of Per. & Trg. No.31011/6/2002-Est.(A) dated 26-3-2008)
CCS (LTC) Rules, 1988-Relaxation for travel by air to visit NER

The undersigned is directed to say that in relaxation of CCS (LTC) Rules, 1988, the
Government have decided to permit government servants to travel by air to North-
Eastern Region on LTC as follows:-
(i) Group „A‟ and Group „B‟ Central Government employees will be entitled
to travel by Air from their place of posting or nearest airport to a city in the NER or
nearest airport.
(ii) Other categories of employees will be entitled to travel by air to a city in
the NER from Guwahati or Kolkata.

(iii) All Central Government employees will be allowed conversion of one

block of Home Town LTC into LTC for destinations in NER
These orders shall be in operation for a period two years from the date of issue of this
O.M.
Data regarding number of Government employees availing LTC to NER may
be maintained.
In their application to the staff serving in the Indian Audit and Accounts
Department, these orders issue after consultation with the Comptroller and Auditor
General of India.
(Dept. of Per. & Trg. No.31011/4/2007-Estt.(A) dated 2-5-2008)
The undersigned is directed to refer to this Department OM of even no. dated 2-5-
2008 on the subject mentioned above and to say that the relaxation for travel by air to
visit North Eastern Region under CCS(LTC) Rules, 1988 is extended for further two
years beyond 1st may, 2010.
Central Civil Services (LTC) Rules, 1988- clarification regarding reimbursement of

fare in respect of travel by air to visit NER
Point 1:- Whether Sikkim is included in NER?
Clarification: Yes, NER includes Arunachal Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim and Tripura.
Point 2: Whether Government employees can travel by Helicopter?

Clarification: No. On LTC Government employees can travel only in economy(Y)
class in a passenger plane of airlines
Point 3: Whether a Government can travel by private airlines?

Clarification: Yes. DOP&T vide O.M. 31011/2/2006-Estt.(A), dated 24-4-2006 has
allowed LTC journey by private airlines subject the conditions laid down in the
Department of Expenditure O.M. No.19024/1/E.IV/2005, dated the 24th March, 2006
regarding air travel by Government servants within India during official visits.
However, in the case of visit to NER in terms of O.M., dated 2-5-2008, full fare will
be admissible to the categories of employees indicated therein.
Point 4: Whether a Government servant visiting Sikkim can travel by air up to

Bagdora which is not situated in NER?
Clarification: Yes. A Government employee is entitled to travel by air from their
place of posting (or nearest airport) to a city in the NER (or nearest airport).
Point 5: Whether a Government employee who has already availed All India LTC is
entitled for LTC is entitled for LTC to visit NER in terms of O.M., dated 2-5-2008?

Clarification: A Government employee can avail LTC to visit NER by conversion of

one block of home town LTC, if the same is available. However, the Government
employees whose headquarters and home town being same are not entitled for home
town LTC and the question of conversion of home town LTC into LTC for NER in
such cases does not arise.
Point 6: Whether air fare of children whose full fare is charged by the airlines is
reimbursed?
Clarification: If full air fare has been charged by the airlines and paid by the
Government servant, the same will be reimbursed.
Point 7: Whether Non-Gazetted Group „B‟ officers are entitled to travel by air to
NER?
Clarification: Yes. Group „A‟/ Group „B‟ Central Government employees (Gazetted
and Non-Gazetted ) will be entitled to travel by Air from their place of posting ( or
nearest airport) to a city in the NER (or nearest air port).
Point 8: Whether Government employee who has already availed one home town
LTC in the current block can avail LTC to visit NER?
Clarification: Yes. He can avail it against all India LTC.
Point 9: Indian airlines, etc. are offering Package tours. Whether total package is
reimbursable?
Clarification: In LTC, fare at the normal rate for the entitled class between
headquarters and place of visit by shortest route or cost actually paid, whichever is
less is reimbursable.
Clarification regarding relaxation for travel by Air to visit to NER-CCS(LTC)
Rules,1988
DOT circular no.209 dated 23-5-2008 forwarding the DOP&T O.M.no.31011/4/2007-
Estt(A) dated 2-5-2008 was endorsed by BSNL vide this office circular no.93 dated
27-5-2008 to all field units wherein BSNL employees are allowed to travel by air to
North Eastern Region on LTC. Subsequently some field units have raised certain
queries/doubts for clarifications which have been examined and clarified as under
No Query/doubt raised Clarification

1 Whether employees posted in NE Travel by Air within NE region is not
Region can travel by air while permissible
availing All India LTC /Home
town LTC from one station to
another station within NE region
2 Whether the employee whose No

headquarters and home-town are

same, are entitled for home-town
LTC on conversion of home-town
LTC into LTC for NER
3 Whether the officers who are No
posted to NE region from out side
the region and their families are
residing at the last station of
posting are eligible for yearly
Home Town LTC as part of
concession admissible to personnel
posted in NE region and to convert
one Home town LTC into LTC for
destination to NER once in two
yeas in respect of self/family
4 Whether the city of Guwahati may No
be considered as out side of
jurisdiction of NE Region for
granting of LTC by Air
5 Whether Sikkim is included in Yes, NER includes Arunanchal

NER? Pradesh, Assam, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim and
Tripura
6 Whether Government employees No
can travel by Helicopter?
7 Whether a Government servant Yes, BSNL employee is entitled to
visiting Sikkim can travel by air up travel by air from their place of posting
to Bagdogra which is not situated (or nearest airport) to a city in the NER
in NER? (or nearest airport).
8 Whether Non Gazetted Group „B‟ Yes. Group „A‟ & „B‟ employees
officers are entitled to travel by air working on deputation/deemed
to NER deputation in BSNL will be entitled to
travel by air from their place of posting
(or nearest airport) to a city in the NER
(or nearest airport).
9 The extent to which these rules Yes. This is applicable to all employees
would be applicable to BSNL who are working in BSNL
employees
10 Which categories of employees All Group „A‟ & „B‟ officers on
working in BSNL (either on deemed deputation and Executives of

absorbed basis or deemed BSNL (absorbed in BSNL or appointed

deputation basis) would be eligible by BSNL) will be entitled to travel by
as per clause (i) of the DOP&T air from their place of posting or nearest
OM dated 5-5-2008 being air port to a city in the NER or nearest
classified as “Group „A‟ and airport as per DOP & T O.M.
Group „B‟ Central Government No.31011/4/2007-Estt.(A) dated 2-5-
employees 2008
11 Which would be „other categories‟ „Other categories‟ of the employees
of employees as falling under means Group „C‟ & „D employees on
other categories referred in clause deemed deputation and non-executives
(ii) of the DOP & T O.M. dated 5- of BSNL (absorbed in or appointed by
5-2008 being classified as “Group BSNL)
„A‟ and Group „B‟ Central
Government employees
(BSNL HQ No.13-2/2008 PAT(BSNL)dt. 10-11-2008)
In continuation of this office letter of even no. dated 10-11-2008 on the above
mentioned subject, following queries /doubts have been examined in this office and
clarified as under
No Query/doubt raised Clarification

1 Since Indian Airlines etc. are (1) & (2):- Air fare at the cheapest
offering package tours, whether economy class is to be allowed between
package tours in economy class „Y‟ headquarters and place of visit by
inclusive of all Boarding/Lodging shortest route. Boarding and lodging
charged by Airlines which has been charges are not to be reimbursed.
included and shown as fare in the
ticket can be reimbursed or
whether the lowest normal fare
prevailing on the date of journey is
to be reimbursed
2 Whether air fare of children whose
full fare is charged by the airlines
is reimbursed?
This is applicable from the date of issue of this clarification

(BSNL HQ No.13-2/2008 PAT(BSNL)dt. 20-11-2008)
Encashment of Earned Leave while availing Leave Travel Concession without

any linkage to the number and nature of leave availed while proceeding on LTC
The issue of encashment of learned leave while availing LTC without any linkage to
the number and nature of leave availed while proceeding on LTC in respect of BSNL

employees (both absorbed/directly recruited and unabsorbed who are working on

deemed deputation/deputation basis) has been under consideration in BSNL.
2. As the facility of LTC is also admissible while availing casual leave, now, it has
been decided by the competent authority to permit BSNL employees (both
absorbed/directly recruited and unabsorbed who are working on deemed
deputation/deputation basis) to avail encashment of earned leave upto 10 days at the
time of availing LTC without any linkage to the number and nature of leave availed
while proceeding on LTC.
3. However, such encashment will continue to be deducted from the maximum

number of EL encashable at the time of superannuation/ or cessation of service due to
retirement
4.These orders shall take effect from the date of issue.

(BSNL HQ No.13-2/2010-PAT(BSNL) dt. 18-3-2010)
BSNL MRS
1.0 Commencement and scope:
This scheme shall come into force from 24th February, 2003
1.1 Interpretation:
Management shall be the sole authority for the interpretation of all or any of the
provisions of this scheme and its decision thereon shall be final and binding on all.
1.2 Alteration/relaxation of the provisions under this scheme:
The management shall at any time be entitled to replace, alter, amend or/and add to
this scheme. The management shall have full authority to consider relaxation of the
scheme on case to case basis on merits.
1.3 Definitions:
i) Board means Board of Directors of the Company.
ii) “The company” means Bharat Sanchar Nigam Limited, (BSNL) having its
registered office at Sanchar Bhawan, New Delhi.
iii) “Dependent” means and includes members of family as defined under
Civil Service (Medical Attendance) Rules as amended by the Central Government
from time to time.
iv) “Employee” means any person employed by the company.
v) “Management” means the Board of Directors of the Company, Managing
Director or any other officer of the company nominated by the Board for this purpose.
vi) “Scheme” means BSNL employees “Medical Reimbursement Scheme”.
vii) “Salary” means Basic Pay and Dearness Allowance.
viii) “Pension” means basic pension and dearness allowance.

ix) “Retired Employee” means an employee who has retired on

superannuation while serving in BSNL, who was either directly recruited by BSNL,
or absorbed from DOT/DTS in BSNL, or served on deemed deputation to BSNL.
1.4 Eligibility:
All serving and retired employees of BSNL including deputationists will be eligible
for this scheme. However, the employees in order to avail of this scheme have to opt
for this scheme whereby they will not be allowed the facility under CGHS Scheme.
The employees opting for this scheme, can avail of domiciliary treatment either from
P&T dispensaries or from any Registered Medical Practitioners (RMPs) depending on
their option to be exercised while registering for this scheme. The employees opting
for this scheme will be eligible for Indoor treatment as per this scheme.
1.5 Taxability:111111111111111111111111
All medical benefits will be subject to Income Tax rules as applicable from time to
time.
2.0 Benefits under BSMRS scheme:
2.1.0 Outdoor/domicillary treatment from RMPs: Reimbursement against vouchers:
The employee and his dependants shall be entitled to the reimbursement of
actual expenses not exceeding the limits prescribed under this scheme incurred for
domicillary treatment and medical attendance by any Registered Medical Practitioner,
including cost of medicines, appliance, diagnostic & pathological tests. The treatment
would include treatment for immunizing and prophylactic purposes also. The
registered medical practitioner can be of any branch of health care e.g. Allopathic,
Homeopathic, Ayurvedic, Naturopathy, Yogic etc. The total annual limit for
reimbursement of expenses for such treatment (including that under 2.2.0 excepting
hospitalization) for self and dependant family members would be one month salary
(i.e. Basic + DA). The annual limit will be fixed for a financial year and salary for the
first month of the financial year will be considered. For the retired employee this will
be limited to last month‟s salary drawn before retirement (Basic + DA) per annum.
2.1.1 Outdoor/Domicillary treatment: Entitlement without voucher:

Alternatively, 50% of the admissible amount (as mentioned in para 2.1.0 above, i.e.
one month‟s basic + DA) will be paid to the working employees without production
of any vouchers. Such payment limited to 50% of one month‟s salary will be paid in
four equal installments at the end of each quarter. This amount would be taxable.
Similar facility for payment without voucher will be available to the retired
employees also.
2.1.2 Outdoor/domicillary treatment from P&T dispensaries:

The employees (including retired employees) and their dependants shall have the
option to get their outdoor/domicillary treatment from P&T dispensaries. The option,
once exercised, cannot be changed in favour of domicillary treatment from any RMP.
The beneficiaries shall be entitled to get the reimbursement of cost of such medicines

as prescribed by P&T dispensaries and not available there. Similarly, cost of

diagnostic and pathological tests as prescribed by the P&T dispensaries shall also be
reimbursed to the beneficiaries. Unlike the case of outdoor/domicillary treatment from
RMPs ( as per 2.1.0), there shall be no upper limit on the amount of reimbursement on
such accounts.
2.2.0 Treatment in recognized hospitals/nursing homes etc.:

An employee (including retired employee) and his/her dependants shall be entitled to
the reimbursement of expenses at the approved rates at all hospitals recognized from
time to time by the management. Till such time as approved rates in recognized
hospitals are not notified by BSNL management, the reimbursement will be as per
actual expenses basis. Entitlement under this clause will be separate and distinct from
the ceiling amount prescribed in para 2.1.0 and 2.1.1 under domicillary/ out door
treatment. All expenditure incurred in connection with the treatment will be
reimbursable subject to a limit on the room rent which will be as per Annexure-I.
2.2.1 List of recognized hospitals nursing homes etc.:

List of recognized hospitals/nursing homes will be notified by the management from
time to time. For Delhi this will be done by BSNL C.O. the CGMs of territorial
circles in consultation with BSNL C.O. will notify list of recognized hospitals/nursing
homes in places under their jurisdiction. Employees of Project/Maintenance/T&D/QA
circles etc. will follow lists so prepared by the territorial circles. Until such lists are
prepared and notified, all hospitals recognized under CGHS and CS(MA) rules or by
state governments will be deemed to have been recognized for the urpose of this
scheme. List of such hospitals etc. will be notified by BSNL C.O./all CGMs of
territorial circles immediately on commencement of this scheme by suitable
administrative order.
2.2.2 Treatment in non-recognised hospitals:

In emergency cases, the reimbursement will be allowed for treatment in non-
recognised hospitals with the approval of CGM for field office employees and
concerned Director of BSNL Board for C.O. employees. The amount will be restricted
to rates applicable for a particular recognized hospital to be notified by CGM/BSNL
CO.
2.2.3 Advance for medical treatment in hospital:

Working Employees may be allowed advance towards expenses on hospitalization
where long duration treatment or major operation becomes necessary. Advance shall
be paid to the employees, based on estimates to be obtained from the hospitals as per
CGHS scheme of Central Government.
3.0 Procedure for reimbursement of claim:

All claims for reimbursement of medical expenses shall be made in prescribed

proforma supported by necessary bills, vouchers, certificates and prescriptions etc.
and shall be subject to the procedure laid down by the management from time to time.
4.0 Direct payment to the Hospitals:
Arrangement, will be made with the recognized Hospitals so that individual
employees (including retired employees) does not require to make any payment to the
hospitals for their treatment. Instead, on proper establishment of their identify, they
will be provided all necessary indoor treatment by the recognized Hospitals at
approved rates and Bill will be forwarded to BSNL for releasing the payment. Till
such arrangement is made, payment will be made as per pare 2.2.0

ANNEXURE-I
Entitlement of Room/Bed for Indoor Treatment
S. No. EMPLOYEES GROUP ELIGIBILITY
1 Group D General Ward
2 Group C Semi-Pvt. Ward
3 Grp B & Grp A (upto STS) Pvt. Ward (Non A.C.)
4 Grp. A JAG and above Pvt. Ward with A.C.
5 CMD & Board Directors (Full Delux room with A.C.
Time)
# Further classification of Employees group in PSU will be added as and when the
same are notified.
Note: ICU/ICCU as per the empanelled hospitals‟ rates.
Ref: No.BSNL/Admn/1 dated 28th February 2003
The BSNL Board has revised the perks and allowances to all executives (absorbed, or
directly recruited including un-absorbed officers who are working in BSNL on
deputation/deemed deputation basis) subsequent to the revision of Pay Scales of the
executives. Accordingly, the limit for reimbursement of expenditure on outdoor
treatment is revised as under:
i) Limit of reimbursement of expenditure on outdoor treatment from one month‟s
basic + DP + DA of unrevised basic pay to 25 days of revised pay + DA
ii) Medical allowance from half month‟s basic+DP+DA of unrevised basic pay to
121/2 days of revised basic pay+DA
The provisions under clause 2.1.0 and 2.1.1 of the above referred order may be
suitably replaced and the limits revised accordingly for all the executives
(absorbed, or directly recruited including un-absorbed officers who are working
in BSNL on deputation/deemed deputation basis.) The orders are effective from
27-2-09
(BSNL HQ No.BSNL/Admn.I/14-15/09 dt. 20/24 Aug-09 & dt 16/30
September, 2009)
Ref: No.BSNL/Admn/1 dated 28th February 2003
The BSNL Board has revised the perks and allowances to all executives (absorbed, or
directly recruited including un-absorbed officers who are working in BSNL on
deputation/deemed deputation basis) subsequent to the revision of Pay Scales of the
executives. Accordingly, the limit for reimbursement of expenditure on outdoor
treatment for the retired BSNL employees are revised as under:

1. For the employees retired prior to 1-1-2007 (i.e. in the pre-revised scales) status
quo is to be maintained the annual ceiling i.e. one month salary last drawn for
reimbursement with voucher and in case of payment without voucher it will be 50%
of one month‟s salary last drawn (i.e. 15 days of last drawn salary)
2. For employees retired after 1-1-2007 and whose pay has been revised as per the
recommendations of 2nd CPSU the annual ceiling is revised as under:
i) Limit of reimbursement of expenditure on outdoor treatment shall be equivalent to
25 days of last drawn salary before retirement (revised basic pay + DA)
ii) Medical allowance shall be equivalent to 121/2 days of last drawn salary before
retirement (revised basic pay + DA)
The provisions under clause 2.1.0 and 2.1.1 of the above referred order may be
suitably replaced and the limits revised accordingly. The revised orders will be
effective from 27-2-09
(BSNL HQ No.BSNL/Admn.I/14-15/09 dt. October 22, 2009)
The Management Committee has approved the introduction of reimbursement
of medical expenses from two sources for BSNLMRS beneficiaries i.e. from
insurance agencies and BSNL under BSNLMRS Scheme as allowed to CGHS
beneficiaries.
Under this scheme,
i. The BSNL MRS beneficiaries can subscribe to mediclaim policy and prefer
his claims from both the sources i.e. insurance agency and the BSNL.
ii. Under this arrangement the beneficiary shall prefer claim against the original
vouchers/bills first on the insurance company, which would issue a certificate
indicating the amount reimbursed to the BSNL employee. The insurance company
concerned will retain the original vouchers/bills in such cases.
iii. The beneficiary then prefer his/her medical claim along with photocopies of
the vouchers/bills duly certified in ink, along with stamp of the insurance company on
reverse of the vouchers/bills to BSNL
iv. Reimbursement from BSNL will be restricted only to the admissible amount
as per approved package rates subject to the condition that the total amount
reimbursed by the two organizations does not exceed the total expenditure incurred by
the beneficiary
It is a voluntary scheme and employees who are interested can avail the benefit of the
scheme.
The OM should be widely circulated for information of all the employees.
(BSNL HQ No.BSNL/Admn.I/14-14/09, dt. September 2, 2009)
Sub:- Executive Health check up scheme for Sr. Executives of BSNL

Executive Health Check up scheme for Sr. Executives of BSNL was under
consideration for some time. The scheme has now been approved by the Competent
Authority of BSNL Board. Details of the scheme are as follows:-
1. Executive health check up would be admissible to officers of SAG level and
above.
2. The officers in 50-55 age group would be entitled for this facility once in a
year while the officers above 55 years of age could avail this facility twice a year.
3. The list of Hospitals for this check-up would be notified by respective CGMs
of the recruiting circles for the field units and DDG(Admn) for the Corporate Office.
4. The approved list of Tests and associated consultations is given in Annexure-I.
The cost for this check-up for each occasion should not exceed Rs.3500/-. The rate
shall remain valid up to 31st December, 2003.

ANNEXURE-I
List of Tests for Executives Health Check up Scheme
HAEMOGRAM
Haemoglobin
MCHC, MCV, MCH
Differential count (DLC)
Platelet Count
ESR, PCV
Total WBC (TLC)
Peripheral smear
BIOCHEMICAL PARAMETERS
Blood Sugar (Fasting & Post Prandial)
Uric Acid
Lipid Profile
Total Cholesterol, HDL, LDL
Triglycerides screening, Ratio of Cholesterol/HDL
KIDNEY ASSESSMENT
S.Urea, S. Creatinine
Complete Urine Analysis
LEVER FUNCTION TEST

Total Protein
Globulln
SGOT & SGPT
SGGTP
Albumin
A/G Ratio
Alkaline Phosphate
S.Bilirubin (Total & Direct)
GENERAL TESTS
Blood Grouping & RH Typing
ECG (resting)
Pulmonary Function Test (PFT)
Echocardiography
(Stool) Faces Examination
X-ray Chest

Pap smear (for women)

Tread Mill Test (TMT)
Ultrasound screening of the whole abdomen
Clinical examination, Medical Summary and advice by Senior consultant,
Internet Medicine.
Genital/Rectal examination by a General surgeon (for men)
Diet counseling
Consultation with Senior Cardiologist
Post Check up consultation by Senior consultant, Internet Medicine
(BSNL HQ No.BSNL/ADMN/7/5(Pt.)-1 dt. 30-10-2002)
Executive Health Check up Scheme for Sr. Executives of BSNL

The Executive Health Check up Scheme for the Sr. Executives of BSNL introduced
vide orders of even no. dated 30-10-2002 was extended for the period up to 31-12-
2004. It has been decided to extend this scheme further up to 31-12-2005.
1. Many Circles/Units/Corporate Office have already empanelled some hospitals
for the Executive Health Check up Scheme. It has been decided that Sr. Executives
may get necessary checks (as per the list of tests approved under the scheme) done
from these empanelled hospitals or from any other reputed hospital recognized under
BSNLMRS or CGHS, as per their convenience, subject to a cap of Rs.3500/- for each
occasion.
2. Thus, with the issue of these orders, the Sr. Executives availing of this facility
can get their checks done from one of the following three categories of hospitals.
(i) Hospitals already empanelled for the Executive Health Check-up Scheme
(ii) Hospitals already recognized under BSNLMRS
(iii) Reputed hospitals recognized under CGHS.
(BSNL HQ No.BSNL/Admn.I/7/5(Pt.I), dt. 18-3-2005)
Sub: Executive Health Check up Scheme for Sr. Executives of BSNL
In continuation to the letter of even no. dated 18th March 2005 on the subject
mentioned above, it is to intimate that the same rates as specified in earlier letters viz.,
Rs.3500/- for each occasion of check-up shall remain valid till 31st December 2006
(BSNL HQ No.BSNL/Admn.I/7/5(Pt.I), dt. 27-3-2006)

The Executive Health Check up Scheme introduced vide order
No.BSNL/Admn/7/5(Pt.) dated 30th October 2002 extended from time to time on
yearly basis is now further extended for a period up to 31-12-2007.The other
conditions and the cost shall remain same i.e., not exceeding the limit of Rs.3500/- for
each occasion as specified earlier.
(BSNL HQ No.BSNL/Admn.I/15-1/07, dt. 6-3-2007)


The Executive Health Check up Scheme introduced vide order no.
BSNL/Admn/7/5(Pt.) dated 30th October 2002 extended from time to time on yearly
basis is now further extended for a period up to 31-12-2008. The other conditions and
the cost shall remain same i.e., not exceeding the limit of Rs.3500/- for each occasion
as specified earlier.
(BSNL HQ No. BSNL/Admn.I/15-1/07, dt. 5-3-2008)
The Executive Health Check up Scheme for SAG level and above officers introduced
vide order no.BSNL/admn/7/5(Pt.) dated 39th October 2002, extended up to 31-12-
2008 vide this office OM of even no. dated 5th March 2008, the management
committee is pleased to extend the same facility to the spouses of these officers.
(BSNL HQ No. BSNL/Admn.I/15-1/07 dt. 16-7-2008)
Executive Health Check up Scheme for Sr. Executives working in BSNL

The Executive Health Check up Scheme for Sr. Executives working in BSNL has
been renewed. The Management committee of BSNL Board has approved Executive
cardiac & Health Screening plus to CMD, Board of Directors and their spouses. This
scheme shall also be applicable to CGM/PGM level executives of 55 years and above
age. The list of tests under this scheme is enclosed. The total cost for undertaking
these tests is Rs.10000/- The executive health check-up scheme shall be extended to
the eligible officers once in year in lieu of one of the existing normal two health check
up schemes applicable to Sr. Executives (of 55 years and above age). Second health
check up scheme shall be as per normal rates.
The tests prescribed under this scheme by the Escorts Heart institute and research
Centre
Ltd. may be taken as standard tests and can be under taken in any BSNL approved
hospital at the same or actual rates whichever is lower.
Executive Cardiac & Health Screening Plus

Doctor‟s Consultation and Full Medical Examination
Blood Tests:
o Complete Haemogram
o (Hb, TLC, ESR, Haematocrit, Peripheral Smear)
o Blood Group (ABO, RH)
o Blood Sugar (Fasting and Post Prandial)
o Blood Urea
o Serum Uric Acid
o Serum Creatinine
o Lipid Profile
o VDRL
o Lpa

o Hbs Ag
o G6PD
o Serum electrolytes
o Liver function Test
Urine Examination
Stool Examination
X-Ray Chest PA
ECG
PSA Test*
Gynae Consultation & Pap Smear**
Eye Examination
ENT consultation
Dental consultation
TMT
PFT
Ultrasound-Whole abdomen
ECHO
Calcium CT Scoring
Post Check-up consultation
Rate for undertaking all these tests-Rs.10000/-

*For men
**For women
(BSNL HQ No.BSNL/Admn.I/15-1/07 dt. 1-12-2008)
The executive Health Check up Scheme introduced vide order

no.BSNL/Admn./7/5(Pt.)
dated 30th October 2002 extended from time to time on yearly basis. The Executive
Health Check up was later extended to the spouses of the eligible officers vide OM of
even no. dated 16th July, 2008. Executive Cardiac & Health Screening Plus was
introduced to CMD, Board of Directors and their spouses vide OM of even no. dated
1st
December 2008. The Executive Health Check up schemes now available are as under:
1. Executive Health Check up:
The details of the schemes are:
(a) Executive Health Check up would be admissible to officers of SAG level and
above and their spouses
(b) The officers in 50-55 age group would be entitled for this facility once in a year,
while the officers above 55 years of age could avail this facility twice a year.
(c) The approved list of tests and associated consultation under this scheme is given in
Annexure-I

d) The cost of this check up for each occasion should not exceed Rs.3500/-.
2. Executive Cardiac & Health Screening Plus:

The details of the scheme are:
a) The executive cardiac & Health Screening Plus would be admissible to CMD,
Board of Directors, CGMs/PGMs and their spouses.
b) The scheme can be availed once in a year in lieu of one of the existing normal
two health check up scheme applicable to Sr. Executives (of 55 years and above age)
indicated at S. No.1
c) The approved list of Tests and associated consultation under this scheme is
given in Annexure-II
d) The cost of this check up for each occasion should not exceed Rs.10000/-
The test under both schemes can be under taken in any BSNL approved hospital at the
same or actual rates whichever are lower
The Executive Health Check up Schemes are now extended for a further period of one
year i.e. up to 31-12-2009.
Annexure-I
EXECUTIVE HEALTH CHECK UP SCHEME (Rate Rs.3500/-)
HAEMOGRAM
Haemoglobin
MCHC, MCV, MCH
Differential count (DLC)
Platelet Count
ESR, PCV
Total WBC (TLC)
Peripheral smear
BIOCHEMICAL PARAMETERS
Blood Sugar (Fasting & Post Prandial)
Uric Acid
Lipid Profile
Total Cholesterol, HDL, LDL
Triglycerides screening, Ratio of Cholesterol/HDL
KIDNEY ASSESSMENT
S.Urea, S. Creatinine

LEVER FUNCTION TEST

Total Protein
Globulln
SGOT & SGPT
SGGTP
Albumin
A/G Ratio
Alkaline Phosphate
S.Bilirubin (Total & Direct)
GENERAL TESTS
Blood Grouping & RH Typing
ECG (resting)
Pulmonary Function Test (PFT)
Echocardiography
(Stool) Faces Examination
X-ray Chest
Pap smear (for women)
Tread Mill Test (TMT)
Ultrasound screening of the whole abdomen
Clinical examination, Medical Summary and advice by Senior consultant,
Internet Medicine.
Genital/Rectal examination by a General surgeon (for men)
Gyneocologist consultation (for women)
Diet counseling
Consultation with Senior Cardiologist
Post Check up consultation by Senior consultant, Internet Medicine
Annexure-II
EXECUTIVE CARDIAC & Health Screening Plus
Doctor‘s Consultation and Full Medical Examination
Blood Tests:
Complete Haemogram
o (Hb, TLC, ESR, Haematocrit, Peripheral Smear)
o Blood Group (ABO, RH)
o Blood Sugar (Fasting and Post Prandial)
o Blood Urea
o Serum Uric Acid
o Serum Creatinine
o Lipid Profile
o VDRL
o Lpa
o Hbs Ag
o G6PD
o Serum electrolytes
o Liver function Test
Urine Examination
Stool Examination
X-Ray Chest PA
ECG
PSA Test*
Gynae Consultation & Pap Smear**
Eye Examination
ENT consultation
Dental consultation
TMT
PFT
Ultrasound-Whole abdomen
ECHO
Calcium CT Scoring
Post Check-up consultation
Rate for undertaking all these tests-Rs.10000/-

*For men
**For women
Sub:-Executive Health Check up scheme for Sr. Executives of BSNL

Ref:- OM No.BSNL/Admn.I/15-1/07 dated 15th January 2010
It is clarified that the Executive Cardiac & Health Screening Plus check ups are
admissible to only CMD, Board of Directors, CGMs/PGMs level officers and their
spouses. For officers of SAG level, Executive Health Check up Scheme of Rs.3500 is
admissible.
(BSNL HQ No.BSNL/Admn.I/15-1/07 dt. 29/30 -3 2010)
Sub: BSNL Employees Medical Reimbursement Scheme – Instructions for
operation of the scheme.
Pursuant to the „BSNL Employees Medical Reimbursement Scheme‟ (BSMRS)
issued vide this office letter of even no. dated 28.2.2003, the following instructions
are issued for operation of the scheme:
1. The abbreviated form of the scheme will be known as „BSNLMRS‟ in place of
„BSMRS‟.

2. All serving and retired employees of BSNL will be required to exercise their
option for either CGHS or BSNLMRS by filling up the prescribed proforma appended
at „Annexure A‟. Option, once exercised, can not be changed. It may be noted in this
connection that CGHS facility which is, in general, not available for PSU employees,
has been extended to BSNL employees who have come en masse on deputation from
DOT as a special case. The continuance of this facility is entirely under discretion of
the Ministry of Health, and can not be guaranteed by BSNL Management. However,
in case the CGHS facility is subsequently withdrawn by the Ministry of Health, the
optees of CGHS will automatically have to switch over to BSNLMRS.
3. All serving and retired employees, who opt for BSNLMRS as per para 2 above,
are required to fill up a „Registration Form‟ for „BSNLMRS‟ as appended at
„Annexure B‟. While registering for this scheme, the option regarding outdoor
treatment, viz. entitlement with voucher/without voucher/treatment from P&T
dispensary has to be exercised. Suitable Registration No. and Card will be issued to
all the beneficiaries under BSNLMRS.
4. All serving and retired employees registered under BSNLMRS must present
their claim for reimbursement of Medical Expenses in the prescribed format which is
appended herewith at „Annexure C‟ (for outdoor/domiciliary treatment) and
„Annexure D‟ (for Indoor treatment involving hospitalization). It may be noted that
claim for outdoor treatment can be availed only under one of the three options
mentioned at paras 2.1.0, 2.1.1 & 2.1.2 of the „BSNLMRS‟. These options are also
indicated in the Registration Form. Blank forms will be made available by concerned
sections of BSNL. The option regarding mode of outdoor treatment once exercised
cannot be changed during the financial year.
5. The Claim Form shall be supported by the copies of prescriptions alongwith

original vouchers ( in duplicate) towards the expenses incurred.
6. The Claim Form along with supporting documents shall be submitted to the
sections dealing with Medical Claim. The competent authority for passing the claims
in the field units may be fixed up by the CGM concerned. In the Corporate Office,
Sr.DDG(Pers) will be the competent authority.
7. A register (preferably computerized) showing the employee-wise detail of claim

will be maintained by the section handling such claims. In case of transfer of an
employee, the amount claimed towards medical-reimbursement and the balance of
entitlement as on date of transfer will be communicated to the new office through
LPC.
8. The claim papers duly checked and passed shall be sent to Accounts Branch for
payment.

9. Claim for outdoor treatment may be preferred once in a month..
10. List of recognized hospitals shall be notified immediately by all the Heads of
Territorial Circles, as outlined in the BSNLMRS, taking into consideration the
infrastructure available, quality of service, standard rate of various treatments vis-à-
vis the CGHS approved rates etc. The guidelines for this purpose have already been
issued vide this office letter of even No. dated 27.2.2002. A further detailed guideline
for empanelling of hospitals is enclosed (Annexure-G).
11. As per para 2.2.3 of BSNLMRS, working employees may be allowed advance
towards expenses on hospitalization where long duration treatment or major operation
becomes necessary. A Performa for „Application for Medical Advance‟ is appended
at „Annexure E‟.
12. As per para 2.2.2 of BSNLMRS, the reimbursement will be allowed for treatment
in non-recognized hospitals in emergency cases with the approval of CGM for field
office employee and concerned Director for C.O. employees. The amount of
reimbursement will be restricted to the CGHS rates applicable at Delhi.
13. As per para 4.0 of BSNLMRS, the facility for Direct payment to the Hospitals by
the company (i.e. BSNL) has to be arranged. All CGMs of Territorial Circles may
make suitable arrangement with approved hospitals accordingly and notify to their
employees & C.O. In C.O. this is presently being negotiated with approved hospitals.
14. An Employee should intimate regarding his/her serious illness needing
hospitalization to the sections dealing with Medical Policy implementation. A letter of
authorization shall be issued to the hospital concerned so that necessary
help is extended by the hospital. A sample of such authorization letter is enclosed for
guidance (Annexure-F).
15. All claims for reimbursement should be submitted latest by six months from the
completion of the treatment. Claims submitted beyond this period are liable to be
rejected.
16. The existing arrangement of AMA will be discontinued henceforth.
17. In case of any doubt regarding any provision of the BSNLMRS, the matter may
be referred to Corporate Office for clarification.
18. In case the spouse of any BSNL employee is employed in any other organization,
and the BSNL employee concerned wants to avail of BSNLMRS facility for his/her
spouse of other dependent family members, a certificate has to be submitted by the
spouse regarding non-availing of any medical facility for self/family from his/her
organization.

19. Any misuse of the BSNLMRS facility would attract stringent action against
employee(s) under the CCS(CCA) Rules or the rules notified by BSNL from time to
time..
20. CGMs in circle office are their own controlling officer for the purpose of
BSNLMRS.
21. The retired employees have the option to choose the Circle/SSA of their choice
for availing the facility under BSNLMRS. Any change in the Circle/SSA
subsequently will be changed on a request from the retired employee by this office.
(BSNL HQ NO. BSNL/ADMN/1, Dated: 22.4.2003 )
Subject: Empanelment of Hospitals for treatment of BSNL employees
BSNL Board is pleased to approve that the CGMs are authorized to enter into
negotiations with reputed hospitals for empanelment under BSNL for their areas.
The broad guidelines on the subject are given at page 2.
Broad guidelines for empanelment of hospitals
1. Whether the hospitals already available in the area for the BSNL employees
are inadequate.
2. Whether the facilities/services available in the Private hospital are of high
standard and schedule of rate comparable with the other recognized hospitals in the
area.
3. If required the facilities available in the hospital may be verified through a
visit to the hospital by an inspection team constituted by CGM.
4. An opinion about the Private hospital may be obtained from the Medical
Supdt. of the concerned District Hospital.
5. Whether the hospital has been recognized for treatment by any other PSU
located in the area. If so, the standard of service of the hospital may be ascertained
from them.
6. Any other relevant aspect which the CGM may deem fit to ascertain about the
hospital.
(BSNL HQ No.BSNL/ADMN/1/2, dt. 27-2-2002)
Empanelment of hospitals by CGMs of Territorial Circles within their

jurisdiction:
In continuation to this office letter No.BSNL/ADMN/1 dated 22-4-2003, the
following guideline is further issued:-
CGMs may empanel the hospitals subject to the condition that the rates of the indoor
treatment applicable to BSNL shall be limited to the CGHS rates for that particular
city or any city of concerned circle. In absence of CGHS rates approved for any city
in circle, it shall be limited to CGHS rates applicable at Delhi. For hospitals requiring
higher rates than the CGHS rates, the case for approval of empanelment may be sent
to Corporate office with specific recommendations of CGM concerned depending on
the merits. Hospitals shall not be recognized for indoor treatment till the rates for
indoor treatment in that particular hospital are not approved.

(BSNL HQ No.BSNL/ADMN/1 dt. 4-12-2003)
Clarification regarding requirement of Income Tax exemption certificate for

empanelment of Hospitals
Clarifications have been sought from circles whether empanel only those hospitals
which have income Tax exemption certificate from the respective Chief
Commissioner of Income Tax under the provisions of Rule 3(a) 2 of Income Tax
Rules.
It is, therefore, clarified that Exemption Certificate from the Income Tax
Commissioner is not a prerequisite condition for empanelment of hospitals, however,
it may be preferred. The said exemption certificate is relevant in respect of medical
treatment of prescribed diseases or ailments given in rule 3 (a) 2 of Income Tax Rules.
To comply with the rule the officer availing the medical facility for the treatment of
the prescribed disease shall have to attach with the return of the Income Tax,
certificate from the hospital specifying the medical treatment of prescribed diseases
and receipt amount paid to the hospital.
The compliance of the Income Tax Rule is mandatory, however, in case where the
certificate is applied for and issue of the certificate is under process, DDO may wait
for a reasonable period, before deducting the perquisite tax on medical facility
extended for the prescribed diseases. For any further guidance they may approach
taxation branch of BSNL Corporate Office.
Department of Posts has decided to discontinue medical facility through

P&T dispensary, being availed by serving/retired employees of BSNL w.e.f. 1-1-
2004.
Therefore, all the field units may make necessary arrangement
immediately for providing alternative arrangement of outdoor treatment under
BSNLMRS to the employees who are presently taking benefits from P&T
Dispensary and who are fulfilling eligibility conditions as per Para 1.5 of
BSNLMRS
BSNL HQ No. BSNL/ADMN/1(Pt.) dt. 28-11-2003)
Change over option from CGHS to BSNL MRS

It has been decided by the competent authority to allow all serving and eligible retired
employees of BSNL, who are currently taking medical benefit under CGHS, to
exercise their option to move over to BSNL MRS. The option must be exercised latest
by 31-3-2005. The facility of BSNLMRS shall be available to such optees from 1-4-
2005 onwards.
All CGMs may take appropriate action in this regard.
(BSNL HQ No.BSNL/admn-I/15-11/04 dt. 24-2-2005)

BSNL MRS –Review of BSNL MRS policy

The management committee has reviewed the recommendations of BSNL MRS
Review Committee and approved following modification in the BSN MRS policy.
1.Empanelment of reputed Hospitals:

Competent Authorities in BSNL may continue to empanel those hospitals who agree
to provide medical facilities at CGHS rate \s on continuous basis as per the current
practice. In addition, other reputed hospitals can also be empanelled for providing
medical services to the employees of BSNL at special discounted rates to be arrived
by mutual negotiations between the competent authority in BSNL and Hospital
Management, which may not necessarily be CGHS rates, subject to the condition that
the charges for medical facilities shall be reimbursed by BSNL as per CGHS rates and
the excess charges if any, shall be borne by the employee.
1. No. of dependents under BSNL MRS
The dependent as defined under clause 1.4(iii) of orders No. BSNL/ADMN/1 dated
28-2-2003 is modified and replaced as under:
For serving and retired employees, dependent means and includes self, spouse, two
dependent children and dependent parents. Criteria of dependency shall be as defined
under CGHS and CS(MA) Rules and as amended by the Central Government from
time to time.
2. Grant of advance for treatment in hospital not extending credit facility:
A. Treatment undertaken in Govt. Hospitals
For undertaking treatment in Government Hospitals, AIIMS or any such Government
institutions which are not extending credit facility, an advance can be granted up to
80% of the estimated expenditure and paid directly to the Hospital.
B. Treatment undertaken in empanelled hospitals not extending credit facility:
i. For undertaking treatment in empanelled hospitals which are extending CGHS rates
but not extending credit facility, an advance can be granted up to 80% of the cost of
treatment as per the CGHS rates and paid directly to the Hospital. However, the
administration should try to get credit facility from the hospital as far as possible.
ii. For undertaking treatment in empanelled reputed/specialized hospital not extending
CGHS rate facility, an advance can be granted up to 80%of the cost of treatment on
furnishing the estimates which should clearly indicate that the amount is estimated
strictly as per CGHS rates only and in the absence of such comments the advance will
be restricted to 60% only and paid to the hospital.
3. Treatment in life threatening cases:
A. In life threatening diseases for which CGHS rates are not available, if the
treatment is undertaken in any Government hospitals including AIIMS payment may
be made as per actuals.
B. If such treatments are undertaken in any empanelled hospitals the
reimbursement may be restricted to AIIMS rates or actuals whichever is lower.

The orders shall be effective from the date of issue of the order
Clarification regarding consideration of claims of cataract surgery with IOL
The issue of consideration of claims of cataract surgery with IOL was considered in
Corporate Office and it has been decided that the claims of cataract surgery with IOL
may be considered as Indoor treatment.
(BSNL HQ NO. BSNL/Admn.I/14-2/09, dt. 25-3-2010)
Sub: BSNL Medical Reimbursement Scheme –Guideline for the reimbursement

of cost of appliances
Cost of appliances is reimbursable within the annual limit of outdoor treatment i.e.
one months‟ salary, as per Para 2.1.0 of BSNLMRS. Appliances covered under CGHS
rules shall only be considered for the reimbursement within the limit of outdoor
treatment.
(BSNL HQ No.BSNL/ADMN/1, dt. 23-12-2003)
Reimbursement of cost of CPAP/BPIP Machine

Reimbursement of cost of CPAP/BPIP machine under outdoor treatment was under
consideration. The competent Authority has now decided that the reimbursement of
CPAP/BIPAP Machine may be allowed subject to following conditions:
a. 50% of the cost of machine shall be borne by the employee and 50% by
NSNL.
b. 50% cost borne by the employee can be claimed as part of annual outdoor
ceiling limit to the extent it is available
c. 50% of the cost borne by BSNL will be as per the rates prescribed by CGHS
for such appliances
d. Requests should be accompanied by copies of Steep lab Reports and all basic
investigation reports.
e. The machine shall be provided once in a life time to the beneficiary
f. The responsibility of maintenance of machine shall be of the beneficiary and
expenditure incurred in this regard shall be borne by the beneficiary.
(BSNL HQ No.BSNL/admn.I/14-7/09 dt. December 18, 2009)
Clarification on BSNLMRS
Please refer to your letter no.TF/Bill/SKB/09-10 dated 18th November 2009 on the
subject mentioned above. Clarification to your queries raised in your letter no.
TF/Bill/SKB/09-10 dated 17-8-2009 are as follows:-
1. For undertaking outdoor treatment outside the place of posting/State,
permission of Competent Authority is not required. Reimbursement of the expenditure
is governed by the limit/ceiling prescribed for outdoor treatments. No TA/DA is
allowed for such journeys. However, outstation permission has to be sought as per
administrative procedure in the case of employee.

2. There is no limit prescribed for consultation with follow-up check ups

except the ceiling prescribed for outdoor treatment.
Reimbursement of outdoor expenses should be entertained for those employees only

who have opted for reimbursement with vouchers
(BSNL HQ No.BSNL/Admn.I/14-2/09 dt. 30-12-2009 addressed to TF, Jabalpur with
copy to all circles)
Sub: BSNLMRS-Guidelines for implementation and monitoring

The following guidelines are issued with immediate effect to monitor and
control the expenditure under BSNLMRS
1. Guidelines to monitor the expenditure on indoor treatment:
i) In case the cumulative expenditure in any financial year claimed
for reimbursement under indoor treatment is more than two months basic pay +DA of
the employee concerned, the reimbursement shall have to be approved by the
respective CGM.
ii) In case it exceeds five times of the Basic Pay + DA of the
employee, the approval of the Corporate Office shall be needed before making the
reimbursement.
2. Guidelines to monitor overall expenditure
ii) All the Circles shall submit a quarterly report indicating the
expenditure during the quarter as per proforma given in Annexure I. The report shall
positively be sent to Jt.DDG (Admn.) in BSNL corporate office by 15th
July/October/January/April.
iii) Expenditure per employee for all SSAs within a Circle may be
monitored at the Circle level. A team from the circle office may check the procedure
for sanction of Medical expenses in respect of 15% of the constituent units subject to
a minimum of one unit, whose average expenditure per employee is the highest in the
circle. This exercise must be done at least once a year and a detailed report indicating
misuse, if any detected, along with corrective action and suggestion for improvement
may be sent to corporate Office, positively before end of 1st quarter of the financial
year.
iv) Each month, SSA Head should get 1% of the paid bills (subject to
min. of 5 & max. of 10) with the highest expenditure in respect of indoor treatment
specially checked and send a detailed Report of such checking to the circle office.
Similarly, action may also be taken for 1% of the highest cumulative accepted claims
in the six-monthly periods ending 30th September and 31st March each year (subject to
min. of 2 and max. of 5)
This issues with the approval of the Competent Authority
Annexure-I
Medical Expenses for quarter ending…………………..

1. Name of the circle

2. Total No. of employees
3. (i) No. of employees opting for BSNLMRS
(ii) No. of employees opting for CGHS
4. Details of Expenditure under BSNLMRS
Qtr/ Outdoor treatment Exp. on Total
Month Under para 2.1.0 Under para 2.1.1 Total Indoor Medical
No. of Exp. No. of Exp. O/D Treatment exp.
Beneficiary Beneficiary Exp.
Total
Signature
Name & Designation
Date
(BSNL HQ NO. BSNL/Admn.I/1 dt.3-6-2004)

Guidelines to monitor the expenditure on Indoor treatment-reg

It was decided by the competent authority that the cases of Indoor treatment wherein
the cumulative expenditure in any financial Year exceeds five times of the Basic Pay
+ DA of the concerned employee shall be sent to Corporate Office for the expenditure
approval of the Competent Authority. Instructions in this regard was issued vide
Order No.BSNL/AdmnI/1 dated 3-6-2004.
It is observed that sufficient information required for taking decision in such cases is
not being sent along with the cases, causing delay in getting the approval of
Competent Authority. Therefore, it is decided that the details of the such cases of
indoor treatment shall be sent in enclosed proforma to avoid the delay in processing of
such cases for getting the approval of Competent Authority.
Cases for expenditure approval of indoor treatment from c.o.
(Case for expenditure exceeding five times of the basic pay + DA)
Ref.No. Date:
To
The Assistant Director General (Admn.)
Bharat Sanchar Nigam Limited,
Corporate Office, Statesman House,
New Delhi
The expenditure of indoor treatment as detailed below may kindly be

approved.
1. Name of Circle & SSA
2. Name of Employee & Desgn.
3. Basic Pay + DA as on 01.04……………
4. BSNL MRS Reg. No.
5. Name of Patient
5(a). Relationship with employee
6. Name of disease/illness
7. Period of treatment
8. Name of Hospital
9. Whether hospital is BSNL approved YES/NO
10. If not, copy of CGM‟s approval *
Copy of the approval of CGM allowing to undertake treatment in non
recognized hospital/copy of the approval for taking treatment outside the HQ if any.

11. Summary of expenditure:

Details Voucher No. Amount
Consultation
Disgnostics/Tests
Medicines
Surgery/other procedure
charges
Appliances
Room Rent
Charges for Nurses
Others
Total
It is certified that all the bills have been verified and the claims admitted are as
per CGHS/BSNL agreed rates
The case has been recommended by CGM (………………)
Encl: As per attached list
Signature
Name:
Designation:
Phone No.:
List of Enclosures
1. Copy of all Bills & vouchers duly attested by the officer forwarding
the claim to Corporate Office
2. Copy of BSNLMRS Photo I-card, identifying the patient therein by
signature of the concerned doctor
3. Copy of approval of CGM, in case of treatment in non-recognized
hospital or hospitals not covering the place of duty.
(BSNL HQNo.BSNL/Admn.I/1 dt. 5-11-2004)
BSNL MRS-Guidelines for regulation of expenditure on Indoor treatment
The issue of restoration of powers to field units for sanctioning of Indoor medical
expenditure beyond five times Basic + DA of the employee was in consideration at
Corporate Office for some time. The following decision has been taken by the
competent authority for streamlining the process of sanction of indoor expenditure:
1. CGMs shall have full powers to approve the expenditure incurred on the
treatment taken in Govt. hospitals.

2. In respect of Indoor treatment, taken in empanelled hospitals, CGMs shall

have full powers to settle the claims, where at least 90% of the total expenditure are
covered under the rate list prescribed by CGHS for specialized and general purpose
treatment and diagnostic procedure.
3. In case of treatment taken in non-empanelled hospitals in emergency
condition with approval of competent authority, CGMs shall have full powers to settle
the claim by restricting it to CGHS rates.
4. The financial powers shall not be sub-delegated by CGM.
5. In all cases involving hospitalization of two or more than two days, a
designated officer of BSNL shall visit the hospital and give a certificate as per
enclosed format. The certificate shall be attached to the claim while forwarding the
same to CGM‟s office for approval.
6. The instruction regarding attaching a certificate by the concerned doctor
identifying the patient in the copy of the BSNLMRS Card as conveyed by this office
O.M.No.BSNL/Admn.I/15-4/04(pt.) dated 15-10-2004 should be strictly followed.
Certificate of visit of BSNL Officer

As per the instructions of ----------------------------------------------I visited the --
----------------hospital at -------A.M./P.M. on--------------(date) and found that -----------
----------------(name of the patient) is undergoing treatment under Dr. --------------------
---------, under Registration No.--------------------in ward No. ----------------------- and
observed the following particulars of the patient.
Date of admission:--------------------------
Name of disease:-------------------------------
Name of Employee:-------------------------
Relationship with the employee”--------------------
BSNLMRS Card No.--------------------
The patient/ the employee is satisfied with the treatment being given. As per the
documents available with him/her, he is found to be the authorized beneficiary to take
treatment under BSNLMRS.
Signature
Name of the officer:---------------
Date:----------
Place--------------
To
--------------
(BSNL HQ No.BSNL/Admn.I/15-2/05(pt.) dt. 8-8-2005)

I am directed to refer to the letter no.BSNL/Admn./15-2/05(pt) dated 8th August, 2005

and to say that certain clarifications are sought from various Telecom Circles. This is
to clarify that the CGM concerned shall settle the medical claim prior to the date 8-8-
2005 in accordance with the office order mentioned above. Also it is informed that the
CGM has the power to give permission for taking treatment from outside the
geographical jurisdiction of the State after getting a Certificate from CGHS
wing/Empannelled hospital of the place that such medical facilities are not available
in that State in which the official is posted or residing or the place of residence of the
family. In such cases the verification should be invariable done by a Class-I officer of
DE Rank of the Circle/SSA where the treatment is taking place.
(BSNL HQ No.Misc./L&A/04-05, dt. 26-8-2005)
Sub: BSNL MRS-Guidelines for regulation of expenditure on indoor treatment
In continuation of this office orders of even No. dated 8th August 2005 on the subject
cited above, it is further clarified that in case an employee or his dependent has to be
hospitalized in emergency at a place other than his/her place of posting, parent office
will advise an officer posted at the place of hospitalization to visit the hospital and
certify the hospitalization. However, if such visit and certification is not found
feasible due to some practical difficulty then the CGM, in respect of the field staff and
the concerned Director, in respect of the Corporate Office staff, may exempt the
requirement of aforesaid certification.
In all other cases the certification by an officer of the parent office of an
employee or by an officer posted at the place of hospitalization will be invariably
required. In case the family of any employee permanently stays at a place other than
the place of posting of the employee, an arrangement may be made in advance such
that a BSNL officer posted at the place of residence of the family is asked to visit the
hospital and certify the hospitalization.
(BSNL HQ No.BSNL/Admn.I/15-2/05(pt.), dt. 24-3-2006)
The following amendments/clarifications in BSNLMRS are issued with

immediate effect.
1. Eligibility of employees taking voluntary retirement:
Employees who have taken voluntary retirement from BSNL shall be treated at par
with the retired employees, as defined in clause 1.4 (ix) of BSNLMRS, for taking
benefit under BSNLMRS.
2. Waiver of outdoor treatment limit for specified chronic diseases:

Limit of expenditure on outdoor treatment has been fixed as one month‟s salary i.e.
Basic + DA. In case of chronic diseases as listed below, Circle heads are hereby,
empowered to waive of this limit in deserving cases.
List of chronic diseases
Cancer
Renal failure

Poliomyelitis, Cerebral Palsy & Spastics

T.B.
Thalassaemia Major

3. Treatement from hospitals outside the jurisdiction of the circle:

i) In general, employee and his/her dependant family members shall be allowed to
take indoor treatment at hospital as applicable for his/her place of posting and as
applicable for the place of residence of his/her family.
ii) Taking indoor treatment in any hospitals other than those as above, shall be
permissible only for taking specialized treatment, for which a certificate from the
local hospital stating that such facility is not available in the place of posting or the
headquarter of the employee or the place of residence of the facility, as the case may
be.
This issues with the approval of the competent authority.
(BSNL HQ NO. BSNL/Admn.I/1 dt.3-6-2004)
Guidelines for the implementation of BSNLMRS

The following additional guidelines are issued for the implementation of BSNLMRS.
1. Eligibility of family dependents of expired employees:
on the death of BSNL employee who was availing BSNLMRS facilities,
spouse/children who become family pensioners shall continue to avail the same
facility, as was being availed by the employee prior to his/her death. However, the
dependents shall not be entitled to change any option.
2. Claim of reimbursement, if both husband and wife are BSNL employees

In case where both husband and wife are BSNL employees, only one of them may be
allowed to avail of the medical benefit according to his/her status. For this purpose,
they should furnish to their respective authorities a joint declaration as to who will
prefer the claim for reimbursement of medical expenses incurred on the medical
attendance and the treatment in respect of spouse and children. The above declaration
should be submitted in duplicate and copy shall be recorded in the personal file of
each of them in their respective offices. This declaration shall remain in force till such
time as it is revised on the express request in writing by both the husband and the wife
e.g. in the event of promotion, transfer, resignation etc. of either of the two. In the
absence of such a joint declaration, the medical benefits shall be availed of by the
wife and the children according to the status of husband.
3. Provision of TA for outstation treatment
Travelling allowance may be allowed for the journeys undertaken (both sides) for
medical treatment taken with the approval of competent authority to the station other
than the place of posting as per Rules. The persons covered shall be as follows:-
i) Travelling Allowance may be allowed to the patient for the journeys
undertaken for taking medical treatment at the outstation.
ii) Attendant or escort who is required to travel along with the patient, if the
Medical Authority attending the patient has certified in writing that it is unsafe for the
patient to travel alone and an attendant/escort is necessary to accompany him.

iii) Donor of Kidney who is required to travel for donating kidney to BSNL
employee of his family member.
The TA is admissible as per the entitlement of the employee.
4. Correcting of deformity-Cosmetic surgery
Cosmetic surgery shall not be allowed.
(BSNL HQ No.BSNL/Admn.I/1(Pt.), dt. 24-9-2004)
Applicability of scale of pay w.r.t. entitlement under BSNL MRS- case of

absorbed Group ‗B‘ Executives.
Approval of the Management committee is hereby conveyed that the medical benefits
admissible under BSNLMRS to Executives (Group B) of BSNL absorbed from
DOT/DTO/DTS shall be as per the IDA scales instead of being regulated as per
presumptive pay in corresponding CDA pay scale with effect from the financial year
2004-05
(BSNL HQ No.BSNL/Admn.I/1(Pt.) dt. 27-9-2004)
Implementation of guidelines reg indoor treatment under BSNLMRS
Following further guidelines on indoor treatment under BSNLMRS are issued:
1.A Medical Card containing photographs of all the family members and dependents
of concerned employee shall be issued to all BSNLMRS optees immediately. The
medical/hospitalization claim should be duly certified by the doctor along with
photograph of the person given indoor treatment.
2.In all cases of extreme emergencies, the employee concerned shall have to inform
the SSA Head or his Controllling officer soon after hospitalization for indoor
treatment. In order to ensure that the facility is used by the employees and his
dependent family members only, a designated officer of BSNL may visit the hospital
and verify the authenticity of the beneficiary.
(BSNL HQ no.BSNL/Admn.I/15-4/04(Pt.) dt. 15-10-2004)
BSNL MRS-Guidelines for nomination of officers to visit hospitals for certifying

the hospitalization of BSNLMRS beneficiary
As per the existing policy, in all cases involving hospitalization of two or more days, a
designated officer of BSNL not below the rank of STS Grade shall visit the hospital
and give a certificate as per the prescribed format.
In all the cases of hospitalization in Delhi by visiting officers of field units the cases
for certification were being referred corporate office. It has been decided by the
competent authority that all such cases shall be referred to NTR. NTR shall nominate
/depute an officer of not below the rank of STS to visit the hospital and forward his
report directly to the requesting office.
For all future nomination the above instruction may kindly be followed.
(BSNL HQ No.BSNL/Amn.I/15-5/07(ii) dt. 8-1-2008)
Guidelines for various Coronary Stents for BSNLMRS beneficiaries

It is learnt that claims of reimbursement in respect of coronary stents are withheld for
various reasons. I am directed to forward a copy of CGHS OM No.Misc./1002/2006
/CGHS(R&H) /CGHS(P) dated 12th September 2007 issuing guidelines for various
Coronary stents. These guidelines maximum of three coronary stents are permitted.
Under BSNLMRS CGMs may permit reimbursement of the cost of the third stent.
(BSNL HQ No.BSNL/admn.I/15-6/06 dt. 9-1-2009)
Revision of Rates and guidelines for various coronary stents for CGHS/CS(MA)
beneficiaries
The undersigned is directed to invite attention to the Office Memorandum
No.9005/2003/R&H/CGHS?CGHS(P) dated 1st August, 2005, of the Ministry of
Health & Family Welfare, vide which rates for different types stents were revised and
to convey approval of Ministry for revised rates and guidelines for Coronary Stents
for reimbursement to beneficiaries under CGHS and under Central Services (Medical
Attendance) Rules, 1944.
2. The following coronary Stents are approved for reimbursement to
beneficiaries under CGHS and under Central Services (Medical Attendance) Rules,
1944, as per the ceiling rates given below:
S.No. Name of drug Eluting Stent (DES)/Bare Revised Ceiling Rate
Metal Stent
1 Cypher Stent Rs.95000/-+VAT
2 Taxus Stent Rs.67300/-+VAT
3 Endeavor Rs.85000/-+VAT
4 Xience V EECSS Rs.95000/-+VAT
5 Yukon Choice Rs.55000/-+VAT
6 Bare Metal Stent Rs.50000/-(all inclusive)
Reimbursement to beneficiaries or to empanelled hospitals (in case of pensioner

CGHS beneficiaries, who are not to be charged by the hospital) shall be limited to
ceiling rate or actual cost, whichever may be less.
3. a maximum of three coronary stents shall be permitted on the advice of
Government Specialist, of which not more than two shall be of Drug eluting Stents.
However, DES shall be permitted only for patients where-stenosis will involve high
risk to patient‟s life, i.e.
(a) Ostel/Proximal LAD lesions
(b) Stenosis of a coronary artery, which is giving collaterals to another blocked
artery, thus supplying a large area of myocardium
(c) Stenting of restenotic lesions after previous angioplasty
Permission shall be granted as per laid down procedure
4. If a beneficiary under CGHS or under Central Services (Medical Attendance)

Rules, 1944, has been implanted by any other non-approved drug coated stent or a
drug eluting stent is implanted in conditions other than those mentioned above
reimbursement shall be limited to the cost of Bare metal stent.
If a non-approved drug eluting stent is implanted or a drug eluting stent is implanted
in conditions other than those mentioned above in an empanelled hospital and no
written informed consent was obtained from the beneficiary, that he/she would bear
the difference in cost between the DES and Bare Metal Stent, and the hospital has
charged this amount from the beneficiary, the additional amount shall be deducted
from the pending bills of hospitals and shall be paid to the beneficiary.
5. It is essential for the empanelled hospitals to quote the Batch number when a
coronary stent of any type (ordinary metal/Drug Eluting Stent) is implanted in the
case of a beneficiary under CGHS or under Central Services (Medical Attendance)
Rules, 1944. In addition to this, the outer pouch of the stent packet along with the
sticker on it on which details of the stent are printed shall also be enclosed with the
medical bill for claiming reimbursement from the government. In case the private
empanelled hospital has not given the batch number and /or outer pouch of the stent(s)
in a particular case, the beneficiary is required to obtain the same from the hospital
before the CGHS /concerned department, as the case may be, finally settles the claim
for reimbursement.
6. These orders shall supersede this Ministry‟s Office Memorandum
No.9005/2003/R&H/CGHS/CGHS(P) dated 1st August, 2005, on the same subject and
shall come into force from the date of issue.
7. This issues with the concurrence of Finance Division vide Dy.No.4902/07/IFD
dated the 11th September, 2007.
(GOI, Dept. of Health &FW No.1002/2006/CGHS(R&H)/CGHS(P) dt. 12-9-2007)
BSNLMRS-guidelines for regulation of expenditure on indoor treatment-cases

where no CGHS rates are prescribed for any treatment/procedure
The issue of treatment of diseases for which no CGHS rates are prescribed was under
consideration of BSNL Corporate Office for sometime. Following guidelines for
finalization of such cases have been approved by the competent authority:
i. Any life saving treatment or transplant operation, for which no CGHS rates
are prescribed, can be undertaken at any Govt. Hospitals or govt. Medical
colleges/Institutes.
ii. For past cases where such treatments have already been taken at hospitals
other than Govt. Hospitals/Colleges/Institutes, the rates prescribed by the respective
State Medical college would be applicable for settlement of their claims.
(BSNL HQ No.BSNL/ADMN.I/1-1/07 dt. 23-4-2007)
It has been decided by the competent authority that where no CGHS rates are
prescribed and AIIMS rates are also not available or rates in Govt. Hospitals, Govt.
Medical colleges/Institutes are not available following procedure shall be adopted

1. In the first instance, in such case reimbursement may be made as per the
hospital rate by the CGM concerned in the field units.
2. Immediately, the case may be referred to corporate office along with details
and cost.
3. Corporate office may get the rates from all the empanelled hospitals in Delhi
for the said treatment and notify the lowest rate for the treatment for reimbursement in
the subsequent cases.
4. The difference between the hospital rates and the notified rates will be borne
by the employee concerned in the subsequent cases
The rates so notified will be effective till the rates for such treatment/procedure are
notified by CGHS or AIIMS.
(BSNL HQ No.BSNL/Admn.I/14-2/09(pt.), dt. October, 28/29, 2009)
Reimbursement of expenditure for treatment of live liver transplant incurred by

BSNLMRS beneficiary
The issue of reimbursement of expenditure incurred on live liver transplant was under
consideration for some time. The competent authority has approved the limit of
reimbursement for the treatment involving live liver transplant up to Rs.10 lakhs. The
pending cases may be settled after adjusting provisional amounts sanctioned
(BSNL HQ NO. BSNL/Admn.I/15-6/2007, December 1, 2009)
Subject:- Acceptance of Medical/Fitness certificates issued by RMPs-clarification
reg.
I am directed to refer to queries received from different Circles seeking
clarification about the authority competent to issue Medical Certificate and Fitness
Certificate in respect of officers/officials who opted for BSNL Medical
Reimbursement Scheme.
The matter has been examined in the light of provisions laid in para 2.1.0 of letter
No.BSNL/ADMN/1 dated 28.2.2003 vide which Medical Policy for BSNL employees
was introduced. It is hereby clarified that Medical Certificate/Fitness Certificate
issued by Registered Medical Practitioner (RMP) of any branch of health care e.g.
Allopathic, Homeopathic, Ayurvedic, Naturopathy, Yogic etc. should be accepted in
respect of all employees (Gazetted/Non-gazetted), who have opted for BSNL Medical
Reimbursement Scheme. (BSNL HQ No.10-1/2004-PAT(BSNL) dt.
25-5-2004)
Clarifications on eligibility of retired employees for BSNLMRS

Clarifications have been sought from various field units on the eligibility of retired
employees for opting BSNLMRS. The issue for eligibility for BSNLMRS of retired
employees is clarified as under:
No. Category Eligibility
i An employee who has retired after October 2000 and has not Not eligible
opted for BSNL (though option was offered & date-deadline for

opting has passed)

ii An employee who has retired from BSNL but option to opt for Eligible
DOT or BSNL was not offered to him viz. Group „A‟ officers
iii An employee who opted for DOT but was serving in BSNL at the Not eligible
time of his retirement
iv An employee who opted for DOT and retired from DOT Not eligible
v An employee who opted for BSNL and retired from BSNL Eligible
(BSNL/Admn.1/1 dated 3-11-2004)
Guidelines for inclusion of certain diseases in the list of chronic diseases under
BSNLMRS
Cases for inclusion of certain diseases in the list of chronic diseases have been
received from circle Offices for waiver of limit under outdoor treatment, BSNLMRS.
The issue has been examined and decided as follows:
1.Instead of sending the case for inclusion of any disease under the list of chronic
diseases, case may be sent for waiver of the limit for the specific case of the
beneficiary. All such cases shall be examined on its merits by the Heads of circle and
recommended for relaxation to Corporate office.
2.While referring such cases along with the case details following information should
also be furnished for expeditious disposal. The information should be supported by
Doctor‟s certification.
a.Whether the disease under consideration has been listed as chronic disease under
CS(MA) Rules.
b.Whether the disease is completely curable if so the time period for the cure and
expenditure involved
c.If the disease is not completely curable, the treatment for checking/controlling the
disease
d.Average monthly expenditure involved in treatment of such disease
It is also requested that in all the correspondences the telephone/fax numbers of the
signing authority be invariably be mentioned for quick communications.
(BSNL HQ No.BSNL/Admn/1/1 dt. 17-4-2006)
BSNLMRS-Guidelines for regulating the procedures under BSNLMRS

The committee constituted for review of BSNLMRS policy deliberated various issues
and has recommended guidelines regulating the procedures followed under
BSNLMRS. The competent authority has approved the recommendations.
The Dependent as defined under CS(MA) Rules and as amended by Central
Government from time to time shall continue apply in BSNLMRS. Copy of OM no.4-
24/96-C&P/CGHS/CGHS(P) dated 31st May 2007 Department of Health & Family
Welfare is enclosed for ready reference.
Reimbursement of outdoor expenses in case of beneficiaries suffering from
chronic disease, the claims shall be settled as per the provisions of BSNLMRS up to
the annual limit (i.e. one month‟s salary) thereafter the claims relating to identified

chronic disease for which outdoor treatment limit is waived off shall be settled strictly
as per CGHS rates.
The committee has also deliberated the issue of existing provision of
categorization of rooms of BSNLMRS and observed that there are only three
categories of rooms under CGHS. Since the indoor treatment claims are settled as per
CGHS rates, and the committee recommended that the claims may be settled as per
ceiling fixed under CGHS for Pvt. Ward category based on the certificate of the
hospital that Pvt. Ward (Non-AC) is non-existent.
(BSNL HQ No.BSNL/Admn.I/15-10/07 dt. 14/19-2-2008)
BSNLMRS-Guidelines for regulation of expenditure on indoor treatment

Ref:Letter No.Misc./L&A/04-05 dated 26-8-2005
Approval of competent authority of BSNL is hereby accorded for empowering
the CGM to grant permission for taking treatment from outside the state jurisdiction
even in the cases where such medical facilities are available in that particular state, if
the beneficiary/patient wants to avail the medical facility in the hospital empanelled
by a BSNL Unit outside the Circle limit subject to the following two conditions:-
1.No TA/DA will be paid to official/patient and/or to the attendant accompanying the
official/patient
2.The claim will be restricted as per the approved rates of CGHS for the station/state
in which the official is posted or actual charged by the hospital as per the agreement,
whichever is lower.
(BSNL HQ No.18-395/06-L&A, dt. 24-11-2006)
Treatment of employees of BSNL
An issue has been raised in a meeting of the standing Committee of National council,
where an entitled room is not available for indoor treatment for the employees have
been accommodated in lower category and a request is made for allowing the
employees to avail higher facility than he is entitled for. It has been decided that
where employees are willing to bear the difference of room rent than what they are
entitled for, they may be allowed for such higher facility. However, the difference
between the actual bill and the entitlement shall be paid by the employee concerned
directly to the Hospital. The bills raised to BSNL shall be as per the entitlement of the
employee. However, all the claims should invariably be as per CGHS rates.
Payment of Hospital claims on Inpatient Bills

Of late this office is in receipt of many complaints from the authorities of BSNL
Empanelled Hospitals alleging that claims preferred by them on BSNL towards
treatment of BSNL employees are delayed and neither paid in full nor reasons for
disallowing the claims partially, communicated to them. I am directed to
communicate that apart

from taking necessary action and reviewing the existing mechanism for timely
payment of claims without any delay, following procedure may be followed to avoid
such complaints.
While forwarding the cheque for the amount due to be paid, in the covering letter to
the hospital authorities, details may be furnished in the following format for each item
on which claim is restricted.
Sl. Details Amount Amount Reasons for Relevant clause of MOU

no. of claim claimed disallowed disallowance under which Disallowance
was effected
1 2 3 4 5 6
At the foot of the letter the break up of the total amount claimed, total amount for
which cheque is enclosed and the total amount of disallowance may be indicated. It
may be ensured that the sum total of the disallowance of individual items as furnished
in the above proforma agrees with the total amount of disallowance furnished at the
foot of
the letter.
By adopting this procedure it is felt that better treatment is meted out to our
employees by the Hospital authorities when they visit the hospital for treatment of
their ailments. This will also ensure credibility of BSNL in prompt settlement of
hospital bills apart from gaining goodwill.
Hence the contents of this letter may be brought to the notice of all concerned and it
may be ensured that this procedure is followed without fail.
(BSNL HQ No.1-6/2007/FC/BSNL Dated: 19/11/2007)

Procedure for reimbursement of medical claims for Retired employees of BSNL

under BSNLMRS
The procedure for reimbursement of medical claims for retired employees has been
approved by the competent authority and is enclosed herewith for its implementation.
(BSNL HQ No.BSNL/Admn.I/1(Pt) dt. 23-8-2006)
Procedure for reimbursement of medical claims for Retired employees of BSNL

under BSNL
1.0 General:
1.1 Eligibility:(Presently defined as per clause 1.4 (ix) of Circular dated 28-2-2003
and amended vide order No.BSNL/ADMN.I/1 dated 3-6-2004)
(i)Employees retired after 1-10-2000, i.e. after formation of BSNL, are only eligible.
(ii)Employees who were on deemed deputation to BSNL at the time of retirement and
absorbed in BSNL subsequently.
(iii)Employees who were on deemed deputation to BSNL at the time of retirement,
and whose cases of absorption have not been finalized so far after they have given
option for absorption in BSNL. However, after the cases of absorption are finalized,
only such retired employees as have been absorbed in BSNL shall be eligible for
BSNLMRS.
1.2 Registration for BSNLMRS: (As per guidelines outlined in Para 3 of office
order No.BSNL/ADMN/1 dated 22-4-03)
In order to avail the facility of BSNLMRS after retirement, all eligible employees
may fill up the stipulated registration form for BSNLMRS, 3 months prior to his
scheduled date of retirement and submit to his controlling SSA office. The eligible
employees who have already retired, may fill up the registration form and submit it
either to the SSA office from where he has retired or from where he is getting the
benefits of BSNLMRS at present. A separate registration form has been designed
exclusively for the retired employees (Annex.I). Provision for indication of choice for
change of Circle/SSA has been made in the Registration form.
1.3 Issue of BSNLMRS Card: (As per guidelines issued vide Para 3 of office order
No.BSNL/ADMN/1 dated 22-4-03 and BSNL/ADMN.i./15-4/04(Pt.) dated 15-10-
04(Pt.)
After due verification of the registration form, the BSNLMRS Card will be issued to
the eligible employees. The BSNLMRS Card shall contain the Registration No.,
details of self and dependent members, including photographs, and particulars of SSA
office from which the benefits shall be taken, including space for indicating
subsequent changes of place, if any.
1.3.1 Annual verification:
(i) The medical card issued to the pensioner may be got revalidated every year by
the beneficiary in the month of April. For this purpose, a certificate will be given by
the pensioner/beneficiary that dependent members whose names were included in the
card continue to satisfy the eligibility conditions as per the BSNLMRS.

(ii) The retired employee, who is gainfully employed and where the spouse of the
retired employee is serving and he/she is receiving medical facilities from the
organizations of the spouse, he/she shall not be eligible for the medical facilities.
(iii) The facilities under the scheme shall be liable to be withdrawn at any time for
misuse or abuse of the facility under the scheme. Such facilities shall not be restored
without the approval of corporate Office.
1.4 Change of place of settlement (As per provision made vide Para 21 of
Circular dated 22-4-03)
(i) While registering for BSNLMRS, the retired employee may indicate his place
of settlement after retirement. The circle head of his office while in service, shall issue
an Advice Memo [Proforma-I] indicating new Circle & SSA from which the benefit is
intended to be taken. Based on such Advice memo, new BSNLMRS card shall be
issued by the SSA.
(ii) For any subsequent change of place of settlement, the retired employee shall
apply to the Head of Circle, through the SSA office from which he is getting his
medical reimbursement in the prescribed proforma. The office of Head of circle after
due verification, shall issue Advice memo [Proforma-II] for change of Circle or SSA
in favour of new circle/SSA under intimation to Corporate Office. (Proforma Advice
Memo enclosed)
1.5 Mode of payment:
All payment, i.e. payment for outdoor treatment with/without voucher and payment
for reimbursement of indoor treatment from non-empanelled hospitals may be made
by account payee cheque, mentioning the A/c No. as declared by the retired
employee. Such cheques should be sent to the retired employees by Registered Post.
Wherever possible, the mode of electronic transfer of payment shall be implemented.
1.6 Accessibility of information regarding BSNLMRS:
all circulars of BSNLMRS relevant to the Retired employees shall be made available
in BSNL website, i.e. www.bsnl.co.in in a suitably created section.
2.0 Outdoor Treatment:
2.1 Payment of Outdoor treatment expenditure without voucher:
(Presently, as per provisions of Para 2.1.1 of Notification No.BSNL/ADMN/1 dated
28-2-03 and guidelines issued dated 22-4-03)
As per provision in Para 2.1.1 of BSNLMRS Notification No.BSNL/ADMN/1 dated
28-2-03, the payment are presently made to such retired employees, who have opted
for „reimbursement under Para 2.1.1, i.e. without voucher‟ in four equal installments.
Such payment shall, in general, be made through cheque and sent to the residence of
the employee by the 1st week of each quarter. SSA Head shall make all necessary
arrangement for this purpose.

2.2 Settlement of claim for Outdoor treatment expenditure with voucher:

(As per provisions of Para 2.1.0 of Notification No.BSNL/ADMN/1 dated 28-2-03
and guidelines issued dated 22-4-03)
Such claims shall be accepted only from those retired employees who have opted for
„Outdoor treatment expenditure reimbursement with voucher‟, while registering for
the scheme. As per prevailing instructions dated 22-4-03, the claim should be
submitted in stipulated form along with all supporting vouchers like copy of
prescription, bills in original. The claim shall be admitted up to the prescribed limit,
i.e. equal to the salary (Basic+DA) of last month of service, per annum. The claims
may preferably be submitted each month for the preceding month. However, claims
received within six months of incurring the expenditure will also be accepted.
3.0 Indoor Treatment:
(i) In normal circumstances, indoor treatment should be taken only from BSNL
empanelled hospitals and referral from a Doctor registered in the allopathic system of
medicine is essential.
(ii) The retired beneficiary may approach the designated office (not below the
rank of STS or equivalent) in the SSA/circle office for issue of authorization letter for
the particular BSNL empanelled hospital. Advice of any doctor registered in the
allopathic system of medicine for hospitalization and copy of BSNLMRS Card have
to be submitted as supporting documents for issue of authorization letter.
(iii) the designated office of the SSA officer shall issue an authorization letter in
prescribed format for treatment in the particular BSNL empanelled hospital.
(iv) In general, empanelled hospitals, shall send the bills to BSNL, as per
agreement. However, in some cases, the empanelled hospitals may not extend such
facility. In such cases, the payment has to be made by the retired employee to the
hospital and such expenditure may be claimed in stipulated form along with all
supporting vouchers. Medical advance shall not be given in any case.
(v) Retired employee may draw the attention of the designated officer in
SSA/Circle office in case he/she faces any problem in getting proper treatment in the
empanelled hospital.
(vi) Retired employee or is dependent may take indoor treatment from non-
empanelled hospitals only in cases of emergency. The designated officer in BSNL
may be informed as early as possible regarding such treatment being taken in non-
empanelled hospitals. However, reimbursement shall be restricted to prevailing CGHS
rates only after due verification.
(vii) Emergent cases are those which involve accident, serious nature of disease etc.
In such cases only, the person on the spot may use his/her discretion for taking the
patient for treatment in a private hospital in case no Government or an empanelled
hospital is available near than the private hospital. The administrative office will
decide on merit of the case whether it was a case of real emergency necessitating
admission in a private hospital.

(viii) All controlling offices of BSNL shall ensure that all indoor expenditure
reimbursement claim preferred by retired employee is settled within a maximum
period of one month.
4. List of empanelled hospitals & providing credit facilities:

List of empanelled hospitals and those providing credit facilities shall be available
with the respective circle office/SSA on their website. These lists would also be
supplied on request.
Clarification on eligibility of retired Group ‗A‘ officers of BSNL MRS
It is decided by the Competent Authority that the BSNLMRS shall not apply to those
employees who have retired from BSNL without being absorbed in BSNL or have not
given option for absorption in BSNL. It is further decided that quarterly
reimbursement for outdoor treatment, if any, being made shall be discontinued w.e.f.
30th September 2006. (BSNL HQ No. BSNL/
Admn. I dt. 6-9-2006)
Extension of BSNLMRS to the members of deceased BSNL employees who have

absorbed or have opted for BSNL and expired before the implementation of
BSNLMRS.
It has been decided by the competent authority that the BSNLMRS can be extended to
the dependents of the deceased BSNL employees who had opted/absorbed in BSNL
before their superannuation and expired before the implementation of BSNLMRS and
were not availing CGHS facility.
Issue of BSNLMRS Card to family pensioner after changing the place of

settlement other than the place which was given by the employee at the time of
retirement
Please refer to your letter no.ESTT/BSNL-ASM/BSNLMRS/04-05/PtI/8 dated 24th
September 2008 on the subject mentioned above. The procedure followed in case of
retired employees for change of place of settlement shall also be applicable for family
pensioners. Therefore, provisions under clause 1.4(ii) circulated vide letter
no.BSNL/Admn.I/1(pt.) dated 23rd August 2006 will be also applicable in the case of
family pensioners.
(BSNL HQ No.BSNl/Admn.I/14-2/09 dt. 31-12-2009 addressed to CGM Assam
Circle with copy to all circles)
Age-limit for dependent children of Government servants and pensioners for

availing medical facilities under CGHS and Central Services (MA) Rules, 1944
The undersigned is directed to state that the age-limit for dependent sons and
daughters was earlier fixed vide Office Memorandum No.B-12014/7/92-CGHS (P),
dated the 31st December, 1993, issued by the Ministry of Health and Family Welfare,
according to which for sons to be dependent on his father/mother, he had to be less

than 25 years of age or till he started earning, whichever was earlier. As a result of
stay granted by the Hon‟ble High Court of Delhi in Civil Miscellaneous Petition
No.115/97 in Civil Writ Petition No.2542 of 1996 in Shri Madan Mohan Sharma v.
Union of India, the Ministry of Health and Family Welfare issued an Office
memorandum No.4-24/96-C&P/CGHS(P) on 17th September, 1999, upper age-limit
for sons was removed subject to fulfilling other conditions regarding dependency and
normally staying with the Government servant/pensioners. The Hon‟ble High court of
Delhi has dismissed the petition by its order on 29th November, 2006.
2. In view of the dismissal of the Writ Petition, it has been decided to re-fix the
age limit for dependants, as indicated below:
(i) Son Till he starts earning or attains the age of

25 years, whichever is earlier
(ii) Daughter Till she starts earning or gets married,
irrespective of the age limit, whichever is
earlier
(iii) Sons suffering from any Irrespective of age-limit
permanent disability of any kind
(physical or mental)
(iv) Dependent divorced/abandoned Irrespective of age-limit
or separated from their
husband/widowed daughters and
dependent
unmarried/divorced/abandoned
or separated from their
husband/widowed sisters
(v) Minor brother(s) Up to the age of becoming a major
3. The other conditions of dependency and normally residing with the

Government servant/pensioner will remain the same.
This order will take effect from the date of issue of the office memorandum
This order would also be applicable to Central Government employees covered
under Central Services (Medical Attendance) Rules, 1944.
This issues with the concurrence of IFD vide their Dy.No.2552/2007, dated the
th
15 May, 2007
(Ministry of Health and Family Welfare OM No.4-24/96-C&P/CGHS/ CGHS(P)

dated 31st May 2007)

Age-limit for dependent children of Government servants and pensioners for

availing medical facilities under CGHS and Central Services (MA) Rules, 1944-
Clarification regarding disability
2.Subsequent to the issuing of the Office Memorandum of 31st May, 2007, referred to
above, the Ministry of Health and Family Welfare has been receiving requests for
clarification from, many sources, as to whether renal failure constitutes a permanent
disability. After examination of the matter in the Ministry of Health and Family
above-mentioned Office Memorandum of 31st May, 2007, are “disability” as defined
in Section 2(i) of “THE PERSONS WITH DFISABILITIES (EQUAL
OPPORTUNITIES, PROTECTION OF RIGHTS AND FULL PARTICIPATION)
ACT, 1995 (No. of 1996)”, which is reproduced below:-
“(i) “disability” means-
(i) Blindness;
(ii) low vision;
(iii) leprosy-cured;
(iv) hearing impairment;
(v) locomotor disability;
(vi) mental retardation;
(vii) mental illness;”
3.The other conditions of dependency and normally residing with the

Government/pensioner will remain the same.
(G.I.M.H.O.M.No.4-24/96-C&P/CGHS/CGHS(P), dated 29-8-2007)
Revision of income limit of dependents for eligibility of BSNLMRS facility
I am directed to inform you that the ceiling limit of dependency for the purpose of
BSNLMRS enhanced with respect to the amendment to CS(MA) rules issued by
Ministry of Health vide OM no.S.11012/1/98-CGHS(P) dated 10-12-2008 may be
made applicable to the family members, who derived the benefits of recommendations
of VIth CPC / II PRC of PSUs. As per the order, the income limit for dependency of
the family members (other than spouse) is Rs.3500/- per month.
(CGMT TVM No.Genl/197-13/2005/47 dt. 21-10-2009)
Revision in CGHS Rates
Ministry of Health and Family Welfare has revised rates for various investigations
and procedures for various cities and has notified. The details can be obtained from
their website at http://mohfw.nic.in/cghs.htm. For further clarifications on revised
rates, Directors CGHS in the State shall be contacted. All BSNL units are requested to
ensure that all the hospitals empanelled are charging as per the revised rates.

Sub:- Revision of rates of subscription under Central Government Health

Scheme due to revision of pay and allowances of Central Government employees
and revision of pension/ family pension on account of implementation of
recommendations of the Sixth Central Pay Commission
Ref:-OM No.BSNL/Admn.I/15-5/07 dated 28th October 2009
Department of Health and Family Welfare have revised rates of subscription under
CGHS subsequent to revision of pay scales as per the recommendations of Sixth
Central Pay Commission. OM no.S.111011/2/2008-CGHS(P) dated 20th May 2009 on
the subject is enclosed for reference. The instructions shall be followed in the cases of
CGHS optees.
The undersigned is directed to invite reference to the Office Memoranda, No.S-

11011/18/99-Desk.I/CGHS(P) dated the 3rd July, 2000; and No.S-11011/6/98-
CGHS(P) dated 27th May, 1998, 20th September, 2004 and 28th October, 2005, issued
by the Ministry of Health & Family welfare, vide which orders were issued revising
the rates of monthly subscription for availing CGHS facility, as also the entitlement
for free diet, entitlement of accommodation in private empanelled hospitals under
CGHS, etc. On the basis of the recommendations of the Sixth Central Pay
commission, Pay and allowances of serving employees and pension of civil
pensioners/family pensioners have been revised by the concerned authorities
2. The upward revision of pay/pension o doctors and other staff in the CGHS has
increased the cost of operating the Central Government Health Scheme. It has, there,
been decided to revise the rates of subscriptions, to be made by employees/
pensioners, for availing benefits under the CGHS, with effect from 1st June, 2009. It
has also been decided to revise the monetary ceiling limits for various entitlements of
the beneficiaries for availing CGHS facilities.
3. In supersession of all earlier instructions, the following revisions are being

made, in so far as it relates to the facilities mentioned below
(A) Monthly Contributions for availing CGHS facility:
S. Grade pay drawn by the officer Contribution (Rupees per month)

No.
1 Up to Rs.1650 per month 50
2 Rs.1800; Rs.1900; Rs.2000; Rs.2400; 125
and Rs.2800 per month

3 Rs.4200 per month 225

4 Rs.4600; Rs.4800; Rs.5400; and 325
rs.6600 per month
5 Rs.7600 and above per month 500
(B) Entitlement of wards in private hospitals empanelled under CGHS:
S. No. Ward entitlement Pay drawn in pay band

1 General ward Up to Rs.13950
2 Semi-private ward Rs.13960 to Rs.19530
3 Private ward Rs.19540 and above
(C) Monetary Ceiling for Free Diet

The monetary ceiling for free diet for CGHS beneficiaries is revised to
pay/pension/family pension of Rs.7450 per month
(D) Monetary ceiling for free diet for beneficiaries suffering from TB or mental
disease:
The monetary ceiling for free diet in case of beneficiary suffering from TB or Mental
disease is revised to pay/pension/family pension of Rs.11160 per month
(E) Pay slab for determining the entitlement of Nursing Home facilities in
Government/State Government/Municipal Hospitals:
The monetary ceiling for determining the entitlement of nursing home facilities in
Central Government/State Government/Municipals Hospitals is revised to
pay/pension/ family pension Rs.13950 per month and above
(F) Monetary ceiling for direct consultation with Specialists in Central

Government/State Government/Municipal Hospitals:
The monetary ceiling for determining the entitlement for direct consultation with
specialists in Central Government/State Government/Municipal Hospitals is revised to
pay /pension/family pension of Rs.33480 per month and above
(G) Pay slab for determining the entitlement of accommodation in AIIMS, New
Delhi
The revised entitlement, be revised as per the pay drawn by the officials, as given
below
S. No. Pay (in the pay band)/ Pension/ Family Ward entitlement
Pension drawn per month
1 Up to Rs.19530 General ward

2 From Rs.19540 to Rs.25110 Private Ward

3 Rs.25120 and above Private Ward/ Deluxe
Ward
1. It is clarified that the reference to pay in this order relates to the pay drawn in the
pay band
2. Pensioners have an option to get their CGHS pensioner card made by either
making CGHS contribution on an annual basis (twelve months) or by making
contribution for 10 (ten) years [120 (one hundred and twenty) months] for getting a
pensioner CGHS card with life time validity. It is clarified that:
(i) Contributions to be made by pensioners/family pensioners would be the
amount that they were subscribing at the time of their retirement or at the time of
death of the Government servant;
(ii) Pensioner beneficiaries, who have already obtained CGHS card with life
time validity by paying a lump sum amount equivalent to 10 years‟ contribution, will
not be required to pay any additional amount as a result of the revision in the rates of
contribution for availing CGHS facility.
(iii) Entitlement of pensioners/family pensioners, who have already deposited
their contribution for life time CGHS facility, will not be changed.
(iv) Pensioners/ family pensioners who are contributing to the CGHS on an
annual basis and wish to continue to avail CGHS benefits will have to contribute at
the revised rates up to the time of contribution needed to cover a period of a total of
ten years from the time pensioner CGHS card was issued for the first time to them.
The revised rate of contribution for the remaining period would be with reference to
the grade pay that he/she would have drawn in the post held by him/ her (at the time
of his/her retirement/death) had he/she continued to be in service now but for his/her
retirement/ death; and
(v) Any pensioner/family pensioner who is entitled to avail CGHS facility has
not so far got his/ her pensioner CGHS card made, the rate of contribution in such
cases will be with reference to the grade pay that he/she would have drawn in the post
held by him/her (at the time of his/her retirement/ death) had he/she continued to be in
service now but for his/her retirement/death
3. This issues with the concurrence of the Department of Expenditure vide its‟ office
memorandum no.18(1)/EV/2009 dated the 17th April 2009
(Dept. of Health & FW NO.S.11011/2/2008-CGHS(P) dt. 20-5-2009)
As per Government of India instructions (FRSR) employees are eligible for special
increment for undergoing sterilization operations subject to the conditions stipulated
in those provisions and recommendations of the Central Pay Commissions from time
to time. As per the above instructions sterilization operation should be conducted in
Government Hospitals/CGHS or any other institutions approved/recognized by the
Central/State Governments for the purpose and the certificate issued by such

institution will be acceptable. BSNL employees in addition to these hospitals can

undergo sterilization operation in any BSNL empanelled hospital and a certificate
from the Medical Officer incharge of that hospital may be accepted for the grant of
special increment after observing the prevalent prescribed Rules.
(BSNLHQ NO.BSNL/Afmn.I/14-2/09, dt. 9-2-2010)
Childeren‘s Educational Assistance
1. Admissibility :
i) All Govt. Servants are eligible. There is not pay limit.
ii) If both husband and wife employed : If both husband and the wife are
Central Govt. Employees, the allowance will be admissible to only one of them. If
either of them is employed in other organisations outside the Central Govt., CEA will
be allowed to the Govt. Servant only if similar allowance is not granted to the spouse
and a declaration to that effect is to be furnished.
iii) Conditions regarding age etc., of the children : The allowance will be
admissible in respect of the employee‟s child, including step child studying in a
recognised school and is between the age of 5 years and 20 years ( 18 years in the
case of CEA Scheme administered by the Ministry of External Affairs). However, if
the child completes the age of 20 years in the middle of an academic year, CEA will
be allowed till the end of the academic year. CEA will not be admissible for a child
for more than two academic years in the same class. Regular attendance is an essential
condition. If the period of absence exceeds one month without proper leave, the
allowance is not payable even if the child continues to be on the roll of the school.
iv) Admissibility during leave, suspension : The allowance will be admissible

to the Govt. Servant on duty, on leave or under suspension, but not allowed for the
period treated as „Dies Non‟.
v) On quitting Service:
a) In the case of quitting service on resignation/ retirement/ discharge/ removal,
the allowance will be admissible up to the end of that academic year.
b) In the case of death while in service, the Children‟s Educational Allowance or
Reimbursement of tuition fees or Hostel subsidy will be admissible in respect of the
children subject to the observance of other conditions of its grant provided wife/
husband of the Government Servant is not employed in service of the Central Govt.,
State Govt., Autonomous Body, PSU, Semi Govt. Organisation, such as Municipality,
Port Trust Authority or any other organisation partly or fully funded by the Central

Govt. / State Govt. (The benefit will not, however, be admissible in cases where
liberalised pesionary awards have been sanctioned.)
c) Payment under these provisions will be made by the office in which the Govt.
servants worked prior to his retirement, resignation, death, as the case may be.
vi) Maximum limit : The allowance will be admissible up to a maximum of

three children at any time, born upto 31.12.1987., and restricted to two children at any
time, born thereafter. This limit is inclusive of the children for whom Hostel Subsidy
is availed.
2. Rate of Allowance
Children‟s Educational Allowance is admissible Rs. 100/- per month for a child in
primary, secondary and higher secondary classes.
3. Conditions
a) The allowance is admissible when a Govt. Servant is compelled to send his
child to a school away from the station of posting/ residence owing to the absence of a
school of the required standard at the station. The condition of „non availability of the
school of the required standard‟ will be fulfilled in the following cases:
i) A school not having facility for teaching in the language which the child was
studying earlier;
ii) For an Anglo Indian child a school not run by the Anglo Indian Community or
a school not affiliated to the Council for Indian School Certificate Examination or the
Indian Council of Secondary Education.
iii) A school run by the body of a religious persuasion and giving religious
instructions compulsorily if the child is prevented by the tenets of its religious
persuasion.
iv) If the child could not get admission for any reasons to the available school of
the required standard and
v) If the available school of the required standard is situated away from the
residence and there is no convenient train/ bus and journey takes more than an hour.
b) If a Govt. Servant is transferred from a station where there is no school of the

requisite standard to a station where there is such a school and if he was in receipt of
the allowance at the former station in respect of any child, he shall continue to remain
eligible for such allowance as long as the continues to study in the same school.

c) Similarly, if the child is compelled to study in the final year of the Secondary/
Higher Secondary classes at the old station for Board Examination for continuity of
studies, the Govt. Servant can draw CEA up to the end of the academic year even if a
school of the required standard is available at the new station of posting.
4. Period of admissibility of CEA

The allowance is admissible for the whole year including vacation, except for the
child passing the Secondary/ Higher Secondary / Senior Secondary classes when the
allowance will be limited to the end of the month of the completion of examination. If
the child fails in the examination the allowance is allowed for the period of vacation.
5. During temporary stay with Govt. Servant

The allowance is admissible during any period not exceeding 4 months when –
(i) the employee goes and stays with the child, or
(ii) the child has to stay with the Govt. Servant on medical grounds (production of
MC is necessary in such cases) or
(iii) the child stays with the Govt. Servant during vacation.
6. Special condition to those posted to North Eastern Region

CEA at the rates prescribed in para 3 is admissible if the child/ children do not
accompany the employee on transfer to NE Region, comprising the states of Assam,
Meghalaya, Manipur, Tripura, Nagaland, Arunachal Pradesh and Mizoram and also
Andaman and Nicobar Islands and Lakshadweep. The concession is also admissible in
the case of officials on deputation to State Governments of Manipur and Tripura.
7. Not admissible if RTF / Hostel subsidy is claimed

CEA will not be admissible if reimbursement of Tuition Fees and / or Hostel Subsidy
are availed for the child.
8. Procedure for sanction and payment of Children‘s Educational Allowance

The claim for grant of Children‟s Educational Allowance should be submitted by the
Govt. Servant in Form 1 giving the details of the children, viz., Name, Date of Birth,
Class/ School in which studying and the period for which CEA is claimed. The
certificates prescribed are to be suitably completed by the claimant and signed. The
earlier procedure of getting the certificate countersigned by the School Authorities has
been discontinued. Wherever necessary, the Head of Office can have the details
verified from the School authorities. The CEA can be sanctioned by the Heads of
Office after satisfying that the claim is admissible under the rules. The sanction will
be issued in the form of an order and the allowance drawn in the monthly pay bills till

the end of the academic year. For the subsequent year the same procedure will be
repeated.
9. Register
The DDO may keep a suitable register in which the details of CEA sanctioned to the
officials may be recorded immediately after sanction. This will facilitate keeping a
check on the admissibility of any further claims received from the Govt. Servants for
other children.
Reimbursement of Tuition Fee:

1. Conditions
The conditions applicable for grant of CEA as per para 2 above are equally applicable
to Reimbursement of Tuition Fee.
2. Rates
The tuition fee actually paid by a Govt. Servant in respect of his/her child is
reimbursable up to the limits shown below:
a) Classes I to X Rs. 40/- p.m per child.

b) Classes XI to XII Rs. 50/- pm. per child.
c) Classes I to XII in respect of physically
handicapped and mentally retarded children. Rs.100/- p.m. per child.
3. Science Fee
In addition to the above fee, Science fee up to Rs. 10/- p.m is reimbursable in respect
of a child studying in classes IX to XII and offering science subjects.
4. For studies in College, etc

Reimbursement of fees actually paid is allowed for the PUC/ First year class of an
Intermediate College or of a Technical College or first year of Polytechnic or for a
correspondence course up to the rates prescribed by Government College for
corresponding classes. If minimum qualification for admission to the two year
Diploma Course in Polytechnic is 10th class of the revised pattern of education and
the student joins the polytechnic after X class, the reimbursement of tuition fees shall
be allowed for the I and the II year classes of the above course.
5. For physically handicapped children

Reimbursement of tuition fee in case of physically handicapped/ mentally retarded
child of a Govt. Servant shall be permitted even if the institution in which the child is
studying is not recognised by the Central/ State Govt. or Union Territory
Administration, as the case may be.

6. Not Admissible if CEA is claimed: Reimbursement of Tuition Fees is not

admissible if Children‟s Educational Allowance is claimed for the child.
7. Procedure for sanction and reimbursement

i) The Govt. Servant should submit his claim in Form 2 giving the details of
Name, Date of Birth, Class / School in which studying, fees payable/ paid, period of
claim and amount claimed. The claim should be supported by the cash receipt for the
fee paid initially. No certificate is required from the school authorities. On receipt of
the claim with proof of initial fee paid, the amount may be reimbursed as admissible.
Subsequent claims may be preferred periodically by the Govt. Servant with a
declaration that the children continue to study in the same school and he continue to
incur expenditure on fees.
ii) After the claim is scrutinised, a formal sanction may be issued by the Head of
Office for the reimbursement of the amount admissible and the amount drawn in a
separate bill to which a copy of the sanction will be attached. The sanction may also
be recorded on the claim of the Govt. Servant and enclosed with the bill.
8. Register
A register for recording the details of tuition fees reimbursed may be maintained by
the DDO in which entries are made as and when the reimbursement is allowed. This is
to facilitate scrutiny of further claims received from the Govt. Servant and for limiting
the concession to the maximum of 3 / 2 children as prescribed under the rules.
Hostel Subsidy
Conditions
The conditions applicable for grant of CEA as per para 2 of CEA portion are equally
applicable to Hostel Subsidy.
Rates
Hostel Subsidy of Rs. 300/- per month per child is admissible if because of transfer of
a Govt. Servant is obliged to keep his child in the hostel of a residential school away
from the station at which he is posted and/or residing. If the child is admitted in to the
hostel in anticipation of his transfer, the subsidy is payable from the date of actual
transfer.
Admissibility
The subsidy is payable upto 10+2 stage or up to Higher Secondary/ Senior Secondary
stage, as the case may be.
Not admissible if CEA is claimed

The subsidy is not admissible for the child in respect of which CEA is claimed.
Special concession to those posted to North Eastern Region, etc.

If the child / children studying in schools do not accompany the employee on transfer
to North Eastern Region comprising the states of Assam, Meghalaya, Manipur,
Tripura, Nagaland, Arunachal Pradesh and Mizoram and also Andaman and Nicobar
Islands and Lakshadweep and are put in hostels at the last station of posting or nay
other station, Hostel Subsidy is admissible at the rate mentioned in para 2 above
without other restrictions. This concession is also admissible to the employees on
deputation to the State Govt. of Manipur and Tripura.
Procedure for payment

Government Servant should submit his claim in Form 3 which contains certificates to
be signed. This will be supported by a certificate in Form 4 to be signed by the Head
of the Educational Institution in which the child is admitted. On receipt of the claim
and the certificate, the Head of Office will sanction the payment of subsidy indicating
the amount and the period of payment. The claim will be preferred by the DDO in a
separate bill enclosing the copy of the sanction.
9. Journey Fare for children studying at our stations

The journey fare will be admissible to legitimate children/step children/adopted
children studying in recognized educational institutions at a place in India away form
the residence of the government servant or his family in accordance with the
government rates on the normal terms and conditions applicable.
Note:- The allowances and facilities not covered above, and as are available to DOT
employees on govt. pattern/Rules will continue to be admissible to these employees.
(BSNL HQ Lr.No.BSNL/26/SR/2002 dated 7-8-2002)
GRANT OF PERKS
REIMBURSEMENT OF COST OF NEWS PAPERS AND MAGAZINES
In supersession of all earlier orders issued in this regard, the competent authority has
decided to regulate the facility of reimbursement of cost of newspapers and
magazines supplied at the residence of Group ‗B‘ and above level officers of
BSNL as per limits given below:
Sl. No. Details Limit

1 Officers of JAG level & below Rs.100 per month
2 SAG/HAG level officers Rs.300 per month
3 Board of Directors Rs.500 per month

The reimbursement shall be limited to 85% of the cost of Newspapers and 95% of the
cost of magazines.
This order comes into effect from 1st October 2004.
(BSNL HQ No.BSNL/Admn.I/13-1/200, dt. 26/10/2004)
Grant of Perks & Allowances to Executive employees (including un-absorbed
officers who are working in BSNL on deputation/deemed deputation)
Order for grant of Perks and Allowances was issued under this office order no.15-
8/2006-PAT(BSNL) dated 23-8-2006 and 17-3-2008 on the basis of pre-revised scales
applicable in respect of the Executive employees (including un-absorbed officers who
are working in BSNL on deputation/deemed deputation). Consequent on revision of
pay (CDA/IDA) of the un-absorbed officers w.e.f. 1-1-2006 and absorbed and directly
recruited Executives w.e.f. 1-1-2007, the issue of grant of Perks & Allowances
payable to executive employees in BSNL on revised pay has been under consideration
in this office.
2. Accordingly, it has been decided with the approval of Board of directors of

BSNL that the following Perks & Allowances may be paid to the Executive
employees (including un-absorbed officers who are working in BSNL on
deputation/deemed deputation) on their revised basic pay w.e.f. 27-2-2009 in partial
modification of this office order no.15-8/2006-PAT(BSNL) dated 23-8-2006.
(i) PROFESSIONAL UPGRADATION ALLOWANCE: Professional Up-

gradation Allowance may be paid @ two percent of revised basic pay per month.
(ii) DIET ALLOWANCE: Diet allowance stands ABOLISHED w.e.f. 27-2-
2009.
(iii) TRANSPORT ALLOWANCE: The rate of Transport Allowance will
continue to be admissible at existing rate as per following revised pay scales
(CDA/IDA)
Revised Pay Scales Rate of Transport Rate of

Allowance per month Transport
(A1/ A class cities) Allowance per
month (Other
places)
Grade Pay in CDA IIDA Scale
For posts in the grade Rs.24900-50500 (E3) Rs.1400 Rs.800
pay of Rs.5400 and and above
above and pay scale of
HAG+ and above
Rs.9300-34800 (Grade Rs.16400-40500 (E1A) Rs.800 Rs.500

pay Rs.4200) and and above but below

above but below the Rs.24900-50500 (E3)
pay scale of posts in
the grade pay of
Rs.5400
Transport Allowance to Handicapped executive employees is admissible at double

the rate prescribed above. The existing conditions governing Transport Allowance
at double the rates to the handicapped Executives will continue to be applicable.
(iv) RURAL DUTY ALLOWANCE: The rural duty allowance will continue
to be admissible @Rs.300 p.m.
(v) ENTERTAINMENT ALLOWANCE : The ENTERTAINMENT
ALLOWANCE stands ABOLISHED w.e.f. 27-2-2009.
(vi) FURNISHING ALLOWANCE: The Furnishing Allowance will be paid
as per following rates on revised pay w.e.f. 27-2-2009
Distance Rates
Transfer in the More than 100 K.M. 25% of one month revised
geographical boundary of Basic Pay
the same territorial circle
but in different SSA
Transfer outside the More than 100 K.M. but 37.5% of one month
geographical boundary of less than 500 K.M. revised Basic Pay
Transfer outside the More than 500 K.M. 50% of one month revised
geographical boundary of Basic Pay
However, cases already settled prior to issue of this office order will not be re-
opened.
3. All other terms and conditions mentioned in this office order no.15-8/2006
(PAT(BSNL) dated 23-8-2006 will continue to be applicable in this case.
4. The term “ basic pay” in revised pay structure in case of un-absorbed officers
who are working on deemed deputation /deputation basis, includes pay drawn in the
prescribed pay band plus the applicable grade pay but does not include any other type
of pay like special pay, etc. However, in respect of pay scale of HAG and above, the
basic pay means the pay in the prescribed scale.

5. In case of any doubt with regard to admissibility of above allowances, the

same may be referred to Corporate office with IFA comments for clarification.
6. While making payment of above Allowances to the Executive Employees, the

concerned DDO/paying authority will ensure that payment of all allowance and perks,
which are within the limit of 50% of the basic pay, should not exceed the maximum
ceiling of 50% of the basic pay of the concerned executive in terms of DPE OM dated
26-11-2008. The list of allowances which are outside the purview of 50% of the basic
pay is given in para 10(i) of DPE OM dated 26-11-2008
(BSNL HQ No.1-33/2008-PAT(BSNL)/perks/3 dt. 4-9-2009)
Grant of Transport Allowance to the employees having official accommodation

within one km of office or within a campus housing place of work and residence
The issue of removal of restriction for payment of Transport Allowance to all BSNL
employees who are provided with official accommodation within one kilometer of
office or within a campus housing the place of work and residence has been under
consideration in this office, subsequent to revision of pay of the Executive and Non-
executive employees in IDA pay scales w.e.f. 1-1-2007 and un-absorbed officers
(deputationists /deemed deputationists) in CDA pay scales w.e.f. 1-1-2006.
2. The approval of the Board of Directors of BSNL is herby conveyed for

removal of restriction for payment of Transport Allowance to the BSNL employees
(absorbed/directly recruited/unabsorbed Non-executive/Executive employees) who
have not been provided with facility of official car and having official accommodation
within one kilometer of office or within a campus housing the place of work and
residence in respect of following categories of employees w.e.f. dates mentioned
below.

deputation/deemed deputation basis in BSNL.
(b) From 27-2-2009 in respect of absorbed or directly recruited executive employees
of BSNL.
© From 7-5-2010 in respect of absorbed or directly recruited non-executive
employees of BSNL.
3. While making payment of above Allowance to the Executive employees who

are drawing pay in IDA scale, the concerned DDO/paying authority will ensure that
payment of all allowances and perks, which are within the limit of 50% of the basic
pay, should not exceed the maximum ceiling of 50% of the basic of the concerned
executive in terms of DPE OM dated 26-11-2008. The list of allowance which are

outside the purview of 50% of the basic pay is given in para 10(i) of DPE OM dated
26-11-2008.
(BSNL HQ No.1-10/2010-PAT(BSNL)/Transport Allowance dt. 1-7-2010)
Rates of Dearness Allowance
1. Dearness Allowance
CDA Scale
From 1-1-2006 Nil
From 1-7-2006 2% (Revised pay + Grade Pay)
IDA SCALE
From 1-1-2007 Nil (2nd CPC PSU Revised Basic Pay)
From 1-4-2007 0.8% (Revised Basic Pay)
From 1-4-2010 34.8% (revised Basic Pay)
House Rent allowance (HRA) to unabsorbed officers

Based on the recommendations of the Sixth Central Pay Commission, the earlier
classification of cities has been revised viz. A-1 to “X”, A, B-1 & B-2 to “Y” and C &
unclassified to “Z”. in determining the revised classification, the population of Urban
agglomeration area of the city has been taken into consideration, the population of
Urban Agglomeration area of the city has been taken into consideration. Accordingly,
the rate of House Rent Allowance shall be as under:_
Classification of Cities/Towns Rate of House Rent Allowance as a percentage of
(Basic pay + NPA where applicable)
X 30%
Y 20%
Z 10%
1. The term “basic pay” in the revised pay structure means the pay drawn in the
prescribed pay band plus the applicable grade pay but does not include any other type
of pay like special pay etc. In the case of Government servants in the pay scales of
HAG + and above, basic pay means the pay in the prescribed scale.
2. In respect of those employees who opt to retain their pre-revised scales of pay,
the pay for the purpose of these orders shall also include, in addition to the basic pay
in the applicable pre revised scales., stagnation increment(s), dearness Pay and Non-
Practising Allowance as per orders in force on 1-1-2006
These orders shall be effective from September 1, 2008
(M.O.F. No.2(13)/2008-E-II(B) dt. 29-8-2008)
House Rent Allowance to BSNL (Absorbed Employees) will be at the following

rates and will be payable on revised pay w.e.f. 27-2-2009
Cities with population Rates of HRA
50 Lakh and above 30% of basic pay
5 to 50 lakh 20% of basic pay
Less than 5 lakh 10% of basic pay
City Compensatory allowance (CCA)

The payment of CCA stands dispensed with w.e.f. 27-2-2009
Non Executives
Pay scales range (IDA) Rate of Transport allowance p.m. (1-1-2005)
A-1/A Class city * Other places
Rs. Rs.
Rs.8570-12245/- 750 475
Below the scale of 300 200
Rs.8570-12245/-
Casual Labour with 300 200

Temporary status
Incentive for Officials working in rural/unclassified areas: The employees who

serve for a minimum period of 2 years in the rural/unclassified area shall only be
entitled for rural allowance @Rs.100/- p.m. In case any employee serves for lesser
term in rural area, by whatsoever reason, the amount of rural allowance so paid shall
be recovered from him/her. (1-1-2005)
Other Compensatory Allowances (w.e.f. 1-10-2000)

The monthly rates of the allowances will be as given below as per government rules
and normal applicability conditions:-
CDA Pay IDA Pay Bad climate Composite Hill

allowance compensatory
Allowance
Below Rs.3000 p.m. Up to Rs.4000 p.m. 40 100
Rs.3000-4499 p.m. Rs.4001-5250 p.m. 80 140
Rs.4500-5999 p.m. Rs.5251-6499 p.m. 120 240
Rs.6000-8999 p.m. Rs.6500-11224 p.m. 160 300
Rs.9000 p.m. & above Rs.11225 p.m. & above 200 300
Cycle Allowance
Cycle Allowance to employees requiring extensive traveling as per government rules

on the normal conditions applicable @Rs.30/- p.m.
Washing Allowance
The employees in Group C & D who have been supplied with the uniforms will be
entitled to washing allowance @Rs.30/- p.m. as per the government rules on the
normal conditions applicable.
Cash Handling Allowance to Cashiers
Cash Handling Allowance to Cashiers will be admissible as per the government rates
on the normal conditions applicable
Amount of average monthly cash Rate per month

disbursed
Up to Rs.50000/- 75
Over Rs.50000/- & up to Rs.2 lakhs 150

Over Rs.2 lakhs & up to Rs.5 lakhs 200

Over Rs.5 lakhs & up to Rs.10 lakhs 250
Over Rs.10 lakhs 300
Special allowance to Group D staff assisting cashier in bringing cash from Banks
Group D staff in question will be entitled to the above allowance @ Rs.30/-

p.m. as per government rules and on the normal conditions applicable.
Children‘s Education Allowance
This allowance will be admissible to these employees in accordance with the

government rules as per the normal conditions applicable @ Rs.100/- p.m. per child
for classes I to XII.
Reimbursement of Tuition fees
Tuition fees will be reimbursed in accordance with the raters prescribed by the
government on the normal conditions applicable at the following rates:
Classes Subject to a maximum of
I to X Rs.40 p.m. per child
XI & XII Rs.50 p.m. per child
Classes I to XII in respect of physically handicapped/mentally retarded children:

Rs.100 p.m. per child.
Science fee up to the limit of Rs.10 p.m. will be reimbursable in addition to the tuition
fees in respect of children offering science subjects in class IX to XII.
Hostel subsidy
Hostel subsidy will be admissible to the employees in accordance with the rates
prescribed by the government @Rs.300 p.m. per child on the normal terms &
conditions applicable.
Journey Fare for children studying at our stations
The journey fare will be admissible to legitimate children/step children/adopted

children studying in recognized educational institutions at a place in India away form

the residence of the government servant or his family in accordance with the
government rates on the normal terms and conditions applicable.
Note:- The allowances and facilities not covered above, and as are available to DOT
employees on govt. pattern/Rules will continue to be admissible to these employees.
(BSNL HQ Lr.No.BSNL/26/SR/2002 dated 7-8-2002)

[After revisions of pay scale as per 2nd PRC)
7.2.1 Transport Allowance Existing amount will continue. It will be reviewed on 1-1-
2012 or as and when Transport Allowance for executives
in general in BSNL is revised, which ever is earlier
7.2.2 Transport Allowance for Existing higher rate will continue. It will be reviewed on
handicapped employees 1-1-2012 or as and when Transport Allowance for
executives in general in BSNL is revised, which ever is
earlier
7.2.3 Special (Duty) allowance , Existing percentages will continue on revised basic pay.
Island Duty Allowance, The eligibilities and attendant conditions will be
Hard Area Allowance applicable as in the case of BSNL Executives
7.2.4 Special Compensatory Existing amount of allowance as applicable to the

(Remote Locality) relevant pre-revised pay slabs will be increased by 75%.
Allowance, Special The eligibilities and attendant conditions will be
Compensatory (bad applicable as in the case of BSNL Executives
climate) Allowance,
Special compensatory
(Hill area) Allowance and
Scheduled/tribal Area
Allowance
7.2.5 Cycle Maintenance Existing amount of allowance stands increased by 50%

Allowance
7.2.6 Cash Handling Allowance Existing amount of allowance stands increased by 50%
7.2.7 Escort allowance (Gr.D Existing amount of allowance stands increased by 50%
accompanying cashier)
7.2.8 Children Education Existing rates & amount will continue

Allowance and Hostel
Subsidy
Perks specific in BSNL

7.3.1 Food Allowance Discontinued
7.3.2 Skill Up-grading In order to help non-executive employees of BSNL up-
Allowance grade their skills, a new allowance @2% of revised basic

pay per month will be paid
7.3.3 Rural Duty Allowance Existing amount will continue
(BSNL HQ No.1-16/2010-PAT(BSNL) dt. 7-5-2010)
Grant of Training Allowance to the Executive employees (including un-absorbed

officers who are working in BSNL on deputation/deemed deputation) on revised
pay
Consequent on revision of pay of the Executive employees in CDA Scales w.e.f. 1-1-
2006 and in IDA scales w.e.f. 1-1-2007, the issue of grant of Training allowance
in this office. The approval of Board of directors of BSNL is hereby, conveyed for the
grant of Training allowance @7.5% on revised basic pay to the Executive employees
of BSNL.
2. The Training allowance on revised pay may be paid to unabsorbed officers

w.e.f. 1-9-2008 and absorbed and directly recruited executives w.e.f. 27-2-2009.
3. All other terms and conditions mentioned in the DOP& Training OM

No.13024/1/2008-Trg I dated 5-9-2008 will continue to be applicable in this case.
(BSNL HQ No.1-33/2008-PAT(BSNL)/Training allwance/1 dt. 4-9-2009 & 9-

9-2009)
Grant of Training Allowance on revised rate in respect of all employees working

in BSNL
The rates of Training Allowance for all categories of executives (absorbed/
unabsorbed/ directly recruited) has been revised from 15% of pre-revised pay to 7.5%
of the revised pay vide this office order of even number dated 4-9-2009 and
corrigendum dated 9-9-2009.
2. The rate of Training allowance has also been revised to 7.5% of the revised
pay in respect of Non-executive employees vide para 7.4.3 of this office order no.1-
16/2010-PAT(BSNL) dated 7-5-2010
3. The issue for further revising the rate of Training allowance has been under
consideration for all employees in this office
4.The approval of the Board of Directors of BSNL is, herby, conveyed for
enhancement of rate of Training Allowance from 7.5% to 11% of the revised basic
pay in respect of following categories of employees w.e.f. dates mentioned below.


deputation/deemed deputation basis in BSNL. This is in partial modification of this
office order of even number dated 4-9-2009 read with corrigendum dated 9-9-2009.
(b) From 27-2-2009 in respect fof absorbed or directly recruited executive employees
of BSNL. This is in partial modification of this office order of even number dated 4-9-
2009 read with corrigendum dated 9-9-2009.
© From 7-5-2010 in respect of absorbed or directly recruited non-executive
employees of BSNL. This is in partial modification of para 7.4.3 of this office order
no.1-16/2010-PAT(BSNL) dated 7-5-2010
5. The other terms and conditions mentioned in this office order of even number
dated 4-9-2009 will be applicable in respect of all employees.
(BSNL HQ No.1-33/2008-PAT(BSNL)/Trg. Allowance dated 1-7-2010)
Grant of Headquarter Allowance to the Executive employees (including un-

absorbed officers/who are working in BSNL on deputation/deemed deputation)
on revised pay
2. Now it has been decided with the approval of the Board of Directors of BSNL
that Headquarter allowance may continue to be paid at the existing rates as per
department of Personnel & Training OM No.2/8/97-Estt(Pay.II) dated 16-7-1998 to
the Executive employees ( including un absorbed officers who are working in BSNL
on deputation /deemed deputation) and therefore, following revised scales are
indicated as replacement against the pre-revised CDA/IDA scales for making payment
of Headquarter allowance.
Revised Pay Rates per month
CDA Scale IDA Scale
Officers in the grade Pay Rs.29100-54500 (E-4 Rs.800
of Rs.6600 Scale)
Officers in grade pay of Rs.32900-58000/Rs.43200- Rs.1000
Rs.7600/8700 66000 (E-5/E-7 scale)
3. All other terms and conditions mentioned in the above DOP7 Training OM
dated 16-7-1998 will continue to be applicable in this case.
(BSNL HQ No.1-33/2008-PAT(BSNL)/Hqr allwance/2 dt. 4-9-2009)
Grant of Allowances to the Executive employees (including un-absorbed officers

who are working in BSNL on deputation/deemed deputation) on revised pay
Consequent on revision of pay of the Executive employees (including un absorbed
officers who are working in BSNL on deputation/deemed deputation) in CDA Scales

w.e.f. 1-1-2006 and in IDA scales w.e.f. 1-1-2007, the issue of grant of Allowances
in this office. The approval of Board of directors of BSNL is hereby, conveyed for the
grant of allowances to all Executive employees on their revised pay (CDA/IDA) till
further orders.
2. The following allowance may be paid at revised pay (CDA/IDA) to the un
absorbed officers w.e.f. 1-9-2008 and absorbed and directly recruited Executives
w.e.f. 27-2-2009
a) Special (Duty) Allowance (SDA):

Special (Duty) allowance will be admissible @ 12.5% of revised basic pay in NE
region (including Sikkim) and Ladakh. However, the attendant conditions prescribed
in Department of Expenditure OM No.11(5)/2008-EII(B) dated 29-8-2008 will be
applicable.
b) Special Compensatory (Remote Locality ) Allowance:

Special compensatory (Remote Locality) Allowance will be admissible at the
following rates as per classification of areas and attendant conditions mentioned in
Department of Expenditure OM No.3(1)/2008-EII(B) dated 29-8-2008.
Part A Part B Part C Part D
Grade Pay in IDA Scale (Rs./p.m.) (Rs./p.m.) (Rs./p.m.) (Rs./p.m.)
CDA
For posts in the Revised pay in 2600 2100 1500 400
grade pay of the scale of
Rs.5400 and Rs.24900-50500
above and pay (E3) and above
scale of HAG+
and above
For the posts in Revised pay in 2000 1600 1200 320

the Grade pay the scale below
less than Rs.24900-50500
Rs.5400 (E3)
c)Special Compensatory (Bad climate )Allowance:
Special compensatory (Bad climate) Allowance will be admissible at the following

rates as per the attendant conditions prescribed in Department of Expenditure OM
No.5(1)/2008-EII(B) dated 29-8-2008
Category Rate per month

Grade Pay in CDA IDA Scale (Rs.)

For posts in the grade pay of Revised pay in the scale of Rs.24900- 400
Rs.5400 and above and pay 50500 (E3) and above
scale of HAG+ and above
For the posts in the Grade Revised pay in the scale below 240
pay less than Rs.5400 Rs.24900-50500 (E3)
d) Special Compensatory (Hill Area ) Allowance:
Special compensatory (Hill Area) Allowance will be admissible at the following rates
as per the attendant conditions prescribed in Department of Expenditure OM
No.5(1)/2008-EII(B) dated 29-8-2008
e) Scheduled /Tribal Area Allowance:
Tribal Area Allowance will be admissible at the following rates as per the attendant
conditions prescribed in Department of Expenditure OM No.5(1)/2008-EII(B)
dated 29-8-2008.


f) Inland Special Duty Allowance:
Inland Special duty Allowance will be admissible at the following rates as per the
attendant conditions prescribed in Department of Expenditure OM No.5(1)/2008-
EII(B)dated 29-8-2008
Areas Rates
Areas around Capital Towns (Port Blair in A & N Islands 12.5% of basic pay +
Kavarati and Agatti in Lakshadweep) NPA where
applicable
Difficult Areas (North and Middle Andaman, south Andaman 20% of basic pay
excluding Port Blair in A&N Islands , all Islands in +NPA where
Lakshadweep except Kavarati, Agatti and Minicoy) applicable
More difficult areas (like Andaman Nicobar group of Islands, 25% of basic pay
East Islands in A&N Islands, Minicoy in Lakshadweep) +NPA where
applicable
g) Hard Area Allowances
Hard Area allowance will be admissible @ 25% of basic pay + NPA where applicable
along with attendant conditions prescribed in Department of Expenditure OM
No.12(4)/2008-EII(B) dated 29-8-2008.
3. All other terms and conditions of Department of Expenditure OMs mentioned
above will continue to be applicable
(BSNL HQ No.1-33/2008-PAT(BSNL)/comp. Allowance/4 dt. 4-9-2009)
Admissibility of Diet Allowance and Professional Up gradation Allowance during

absence from duty due to leave for period exceeding 30 days-clarification
regarding
As per this office order of even number dated 23-8-2006, Perks have been granted to
Executive employees in BSNL.
References have been received from field unit seeking clarification on admissibility of
Diet Allowance and Professional Up gradation Allowance during absence from duty
due to leave for period exceeding 30 days.
The case has been examined in consultation with EF Branch and it has been decided
that Diet Allowance and Professional Up gradation Allowance will not be admissible
during absence from duty exceeding 30 days due to leave.
(BSNL HQ No.15/8/2006-PAT(BSNL), dt. 5-12-2007)

Personal Claims – Descriptive Questions

***
1. What are the types of advances admissible for BSNL employees? Also mention
the advances that can be had from Banks having MOU with the BSNL.
2. What are the entitlements to an officer on transfer?
3. How do you regularize the TA of an employee deputed for training centre
which provided accommodation and food (2) Not provided any of the above.
4. What are the conditions to sanction Encashment of Leave along with LTC?
5. What is formula to calculate Pension, Retirement Gratuity, Family Pension and
Commutation of pension?
6. Write about BSNL Employees „Gratuity Trust Rules‟
7. How do you check the applications for withdrawals from GPF?
8. What are the benefits available in EPF Scheme? Write about contributions by
employee, employer and administrative charges payable by BSNL.
9. What are the salient features of BSNL GSLI Scheme – 2005.
10. What are the perks granted to the non-executives and executives of BSNL?

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E2-E3/Finance Rev. Date: 01.04.

BSNL, India For Internal Circulation Only 1

Personal claims (I.Tax, Loans & Adv.,

2. Income that is exempt from tax (only items related to salary)

2.2 Gratuity [Sec.10 (10]

BSNL, India For Internal Circulation Only 2

Non Government Employee (Covered by Payment of Gratuities Act)

Non Government Employee ( Not covered by Payment of Gratuities Act)

Half months‟ average salary(includes DA) Fraction of a year is ignored

However, the assessee can claim relief under Sec.89

2.3 Commuted Value of Pension [Sec.17(1)(iii)]

Employee of Central/State Fully Exempt

However, the assessee can claim relief under Sec.89

Any payment received by way of commutation of pension by an individual out of annuity

2.4 Leave Encashment

BSNL, India For Internal Circulation Only 3

At the time of retirement/leaving job

Government Employee Fully Exempt

Non Government Employee: - Least of the following is exempt

2.6 Special allowances prescribed as exempt under section 10(14):

1. Traveling allowance/Transfer allowance

11. Compensatory modified area allowance: Rs.1000 p.m. in some cases.

3.1 Rent free unfurnished accommodation:

(a) Accommodation provided by Central Government /State Government: Licence

In a case where an unfurnished accommodation is provided by any employer other than

3.2 Rent free furnished accommodation (not being in a Hotel)

BSNL, India For Internal Circulation Only 5

3.2.1 Rent free furnished accommodation in a Hotel (includes Guest House)

24% of salary or Actual charges paid by Employer whichever is lower

3.3 Accommodation provided at concessional rent

In a case where an unfurnished accommodation is provided by any employer other than

3.4 Interest free loan or loan at concessional rate of interest

Housing loanUp to 5 years 10.25 %

BSNL, India For Internal Circulation Only 6

When perquisite is not chargeable to tax

1. If a loan is made available for medical treatment in respect of diseases specified in

3.5 Use of Movable assets

Perquisite in respect of sale of movable assets to employees

Electronic items/ Motor car Any other asset

BSNL, India For Internal Circulation Only 7

3.7 Medical facilities:

1. Fixed medical allowance is always chargeable to tax.

2. The perquisite in respect of medical facilities is generally taxable in the hands of

Hospital Nature of medical Expenditure Is it chargeable to

BSNL, India For Internal Circulation Only 8

Tiffin allowance & Servant allowance are taxable.

Tax is to be deducted at source by Employer / Payer

I. From Salary (Sec.192)

Rate of tax deduction at source Normal rates applicable to an individual

Income Tax Rates (A.Y. 2008-09) (F.Y.2007-08)

Net income range Income-tax rates Education Secondary

[10% of the net income in excess of

[Rs.500 plus 20% of the net income

BSNL, India For Internal Circulation Only 9

[20% of the net income in excess of

[Rs.20,500 plus 30% of the net

[Rs.11,000 plus 30% of the net

4. Permissible deductions from Salary Income (Sec16)

In the case of non-Government employee entertainment allowance is not deductible

BSNL, India For Internal Circulation Only 10

Income from House Property

Let Out House Property

Gross annual value xxxx

Net annual value xxxx