Dear Sirs,
I am a retd Bank officer, retired in June 2013.As per the wage settlement reached between the united forum of bank employees/officers association and IBA( Indian Banks association) in May 2015 with retrospective effect from 01 Nov 2012, Pension of the officers retired on or after November 2012 was REDUCED( A Historical case).Difference in salary for 8 months was paid in my case.And difference in pension approx. Rs2600-00( in my case) per month from July 2013 to October 2015 was recovered from me.( Recovery was done like this, difference in commutation was credited to my SB account. Difference of pension for 28 months was immediately recovered from the SB Account).
My doubt/question, how this recovery of pension has to be taken while calculating Income Tax for AY 2016-17.Whether this recovery can be deducted from the gross income. Please clarify.( which will benefit the retired bank pensioners-Officers).
This position is applicable to all the officers retired from Nov 2012 to May 2015.
CAclubindia
