Tds on pension income

IMPORTANT CIRCULAR FOR TDS ON PENSION INCOME

TDS on Income from Pension for
Asstt. Year 2014-15.
In the case of pensioners who receive their
pension from a nationalized bank, the
instructions contained in this circular shall
apply in the same manner as they apply to
salaryincome. The deductions from the
amount of pension under section 80C on
account of contribution to Life Insurance,
Provident Fund, NSC etc., if the pensioner
furnishes the relevant details to the banks,
may be allowed.
Necessary instructions in this regard were
issued by the Reserve Bank of India to the
State Bank of India and other nationalized
Banks vide RBI's Pension Circular(Central
Series) No.7/C.D.R./1992 (Ref. CO: DGBA:
GA (NBS) No.60/GA.64 (11CVL)-/92) dated
the 27th April 1992, and, these instructions
should be followed by all the branches of
the Banks, which have been entrusted with
the task of payment of pensions.
Further all branches of the banks are bound
u/s 203 to issue certificate of tax deducted
in Form 16 to the pensioners also vide
CBDT circular no. 761 dated 13.1.98.