Tds being deducted on family pension by sub treasury office

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Abraham Ajay Kumar Peravali

21 Points Posted on 14 July 2019

My Father was a govt employee and post retirement he got pension. After this death in 1996, my mother started receiving family pension. My mother has no other income under head salaries. Only "other income" from bank deposits in addition to the salary. Though the account is marked as Family pension account, the Sub Treasury office is deducting TDS on it u/s 192. This year when trying to file ITR, the tool give a validation error stating the salary shown under salaries is less than the value showed in TDS1.

What is the solution for this?

Replies (2)

abhishek tiwari

64 Points Posted on 14 July 2019

FILE ITR - 1 AND SHOW FAMILY PENSION INCOME FROM OTHER SOURCE CONTACT FOR QUERY 7000879216 WHATSAPP GROUP 5 LINK https://chat.whatsapp.com/CpLYTn8P3lp6C72XFrDg28

Suresh Thiyagarajan

Student

2612 Points Posted on 14 July 2019

1. According to sec 17 pension received from employer or former employer alone will be taxable under the head Salaries. Family pension will be taxable under the head Income from Other Sources.
2. In the above case looking at it from a practical scenario, government offices pay pensions to their employees. There is a possibility that they might treat the family pension as pension and decide to deduct TDS u/s 192 just like for other employees. But in actual, there is no specific section which governs deduction of TDS for family pension. There is also a practical difficulty from there side they fail to deduct TDS.
3. However, it is important to take the matter to the concerned officer in the respective government office and sort it out.
4. Because deduction of TDS u/s 192 will reflect in 26AS as salary income but whereas the same will be shown as IOS in your mothers ITR. There could be a disparity and the department could raise a question on the same. Though the issue is minor in nature but it is very blatant for the department to get its attention.
Please correct me if the above solution has an alternative view.