TDS on Pension.

This query is : Resolved

K.B.Shah

K.B.Shah (Querist)
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11 February 2011 Respected Sir,

FACT OF THE CASE :-

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.

Kindly guide us in the matter.

CA Debasish Banerjee

CA Debasish Banerjee (Expert)
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12 February 2011 Monthly pension from Bank -- not as an employee -- will attract Tax at source if it a MIS phased Pension Scheme.

Filing of returns -- YES

O.D.SHARMA

O.D.SHARMA (Expert)
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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.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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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.

2) File Income tax return u/s 139(1).

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