Update on MACP Entitlements and Recovery Status

The letter from the Office of the Principal Chief Commissioner of Income Tax for Andhra Pradesh & Telangana, Hyderabad, dated August 4, 2023, pertains to the withdrawal of grant of Modified Assured Career Progression (MACP) and subsequent recovery, if applicable, for officials who were given MACP while ignoring their promotion to OS/Steno Grade-I after January 1, 2006.

The letter references earlier communications from the Central Board of Direct Taxes (CBDT) clarifying that promotions within the same Grade Pay under certain conditions should be considered for MACP eligibility. The letter calls for information on cases where MACP was granted in such scenarios, whether any withdrawal of MACP has occurred based on CBDT’s earlier letter, any recovery actions taken, and any requests for waiver of such recovery. The information is requested to be provided for further consideration and action.

MACP Clarifications and Recovery Status: Call for Information

Office of the Pr. Chief Commissioner of Income Tax
Andhra Pradesh & Telangana, Hyderabad,
10th Floor, Income Tax Towers, A C Guards, Hyderabad – 500 004.

F. No. Pr.CCIT/Estt/Miscellaneous/2023


All the DDOs
of the Income tax Department,
Andhra Pradesh & Telangana State


Sub: Information on withdrawal of grant of MACP and subsequent recovery, if any, in respect of the officials who were granted MACP ignoring the promotion to OS/Steno Grade-I after 01.01.2006 and any requests from such officials, if any, for waiver of such recovery – Calling for – Regarding.

Ref: (1) CBDT’s letter in F.No. A-26017/10/2021-Ad.IX, Dt. 11th July, 2023
(2) CBDT’s letter in F.No. A-26017/10/2015-Ad.IX, Dt. 2nd February, 2021

Please refer to the above.

With reference to the matter relating to the treatment of promotion to the grade of OS/Steno Grade I, for the purpose of determining MACP entitlement, the CBDT, vide it’s letter cited under reference No. 2 above, communicated the clarifications as issued by the DOP&T as under:

“….. the promotion earned by employee, even though in the same Grade Pay as both the feeder grade and promotional grade are in the same Grade Pay, entails the benefit of pay fixation under Rule 13 of CCS(RP) Rules, 2008. Thus, it cannot be said that the employee has stagnated in a particular grade for 10 years or more in order to be eligible for financial upgradation under MACP Scheme. Therefore the promotion earned to the higher grade with the same Grade Pay shall count as an offset for determining, his eligibility of ‘financial upgradation under MACP scheme. Accordingly, the next financial upgradation under MACPS would become due only if the employee stagnates in that promotional grade for I0 or more years or has also rendered overall regular service of 20/30 years, subject to fulfilment of other eligibility conditions prescribed under MACPS for further financial upgradation.”

It was directed to implement the same in treatment of promotion to the grade of OS/Steno Grade I for the purpose of determining MACP entitlements.

Subsequently, the CBDT, vide letter cited under reference (1) above(copy enclosed), has requested for the information with respect to any recovery made in connection with the implementation of the above said clarification and if so, whether any requests seeking waiver of such recovery have been received from the affected individuals, for taking up the matter with D/o Expenditure through IFU, D/o Revenue.

In the above connection, I am directed to request the list of the officials who were granted financial upgradation under MACP, ignoring the promotion to the Grade of OS/Steno Grade after 01.01.2006 and also the list of the cases wherein such grant of MACP, if any, has been withdrawn, subsequent to the Board’s letter in F.No. A-26017/10/2015-Ad.IX dated the 2nd February, 2021(copy enclosed). Further, whether any recovery in this connection was made by your office and if so, any requests seeking waiver of such recovery have been received in your office, may also be furnished.

The above information may be furnished by return mail.

Yours faithfully,

Dy. Commissioner of Income Tax (HQrs)(Admn)
O/O Pr. CCIT, AP & TS, Hyderabad


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