Tds on pension

TDS 883 views 6 replies

 

good afternoon to all experts,

                             can you please told me that supoose a man ( age 62 years) rec. pension per month 20000. and he also do job in a private limited co. his salary is 25000. than  co. will deducted tds only salary . than what is the role of pension. in his case. and pension  is not cross the slab rate (250000).than what we do in this case

Replies (6)

FOR COMPUTING SLAB RATE BOTH WILL BE CONSIDERED..

NO SEPATRETE SLAB APPLY FOR PENSON.

The accessee need to pay the tax for his  pention income and salary income  before the July 31st...................no need ro deduct TDS from his pension  income only becouse he is getting 25000 salary extra per month........................it is the duty of the assessee to disclose all his incomes and pay the tax.....................

 

but nitin sir. salary and pension 

25000*12=300000

20000*12=240000

than total income=540000

than tds deduct on total income as per my view plz clear

Dear Rajiv,

                   If the assessee receiving the pension from the bank, the bank itself deduct the TDS, or If the assessee was the govt employee then the treasury itself deducts the TDS when they feel the pension would cross the slab. OR          

If the assessee discloses his actual income inthe begining of the financial year then with his consent  you can deduct the tds as per his projected income of the year. If he discloses at the end of the year inthe statement of income then you can deduct TDS in the last month salary if the TDS exceeds the last month salary you ask him to remit the balance into govt ac through bank challan.

Mr. Rajiv,  Pension and Salary both will be taxed under the Head "Income From Salaries".  The employer paying salary is responsible for deduction of tax from the salary he pays only if salary payable in the financial year crosses the prescribed limit.  The employer has to take into consideration any other income of the employee, voluntarily reported by the employee.  If employee fails to report his other income( other than present salary) then the present employer is not responsible to consider the pension income and deduct tax accordingly.  The employee, however, is responsible to pay declare his total income ( from present salaries and pension) and pay tax accordignly.  If tax has not been deducted by the present employer, the employee receiving pension is also required to pay advance tax as per provisions of Income Tax Act. 

Bank paid penson after deducting TDS...


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