Tax

Pension actually received should be taken......and not gross amount.

m sure on the above, but still wait for more reply.

calculate on net after deductions allowed.

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.

From the income being paid as pension the banks are required to deduct specified amount of standard deduction u/s 16. Similarly they are required to allow deductions under chapter VIA, tax rebate u/s 88, 88B (in respect of senior citizens) & 88C. (Under the income tax act any person who has attained the age 65 years or more during the previous year is treated as senior citizen and a rebate of Rs. 15,000/- or the entire tax payable whichever is less, is allowable u/s 88B.)

The rebate u/s 88 is allowable to the pensioner on furnishing of relevant details by him to the bank. Similarly relief u/s 89(1) for the arrear of pension received is also to be granted by the banks, instructions in this regard have been issued by Reserve Bank of India vide R.B.I.'s pension circular (Central Series) No. 7/CDR/1992 (Ref No. PGBA. GA: (NBS) No 60/GAG4 (11CVD-91/92) DT. 27/4/92.