Mr.X is a pensioner of "Swatantrata Sainik Samman Pension Scheme,1980" approved u/s-10(17a)(ii) for exemption from Income Tax. Mr.X is Drawing a monthaly pension of Rs.35,000 (Approx.)from a Nationalised Bank . Mr.X's has not produced a certificate u/s-197(1) from the respective Assessing Officer in respect of "NIL" deduction of TAX. And hence......
1) Whether Mr.X's Pension is Liable to Deduct the Tax at Source.
2) Whether Mr.X's is required to file IT Return u/s-139.
12 February 2011
Why don't u ask for exemption certificate.If produced fine ,Else deduct TDS & matter will be decided at Asessment point after filing the return.
12 February 2011
1) It has been clarified by CBDT vide circular No. 771 dt. 3/11/98 that in the case of pensioners receiving pension through nationalised banks, provisions of TDS are applicable in the same manner as they apply to the salary income.
CAclubindia
