Scope of Rule4 of Reward rules. - Income Tax - 1766/CBDT

INSTRUCTION NO. 1766/CBDT Dated: June 29, 1987 It is stated that according to Rule 4 of the Reward Rules circulated in Board's letter No.385/30/80-IT(B) dated 15.1.1982 the regional reward will be cash equivalent of two months basic pay of each of the eligible persons subject to a minimum of Rs.400/- and a maximum of Rs.1600/- and the All India Reward will be the cash equivalent to three months basic pay of each of the eligible persons subject to a minimum of Rs.600/- and a maximum of Rs.2400/-. The basic pay would be the pay drawn on the last day of the relevant financial year. Some of the Commissioners want clarification whether consequent on the revision of pay scales with effect from 1.1.1986 the basic pay as per the revised scales of pay should be considered in respect of reward for the financial year 1985-86. They also want that the maximum and the minimum fixed in the above mentioned rules should also be changed suitably. 2. The question of changing the maximum and minimum is being examined in consultation with the DOMS and a decision will be taken shortly. However, since it has been provided in rule 4 of the Reward Rules that the basic pay would be the pay drawn on the last day of the relevant financial year, there is no objection to the reward amount being determined on the basis of revised scales of pay. 3. This may be brought to the notice of all concerned.