TDS on Income from Pension for Asstt. Year 2014-15

      7 Comments on 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 salary income.  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.

7 thoughts on “TDS on Income from Pension for Asstt. Year 2014-15

  1. narendran

    Sir
    Iam a central govt pensioner,receiving pension
    through SBI.Iam issued with form16 which indicates 11 month pension is taken in account for TDS deduction&and same is reflected u/s section 192 (salary)in 26as I want clarification why 12 months is not taken in to account?.If I file return for 12 month pension there will be MISMATCH in 26as ,will it cause any problem

    Reply
  2. sdchaktavarthy

    My income tax for 2014 2015 has already been deducted from my March pension in the SBI.I am a senior citizen considered as exempted from payment of advance tax
    .please clarify.

    Reply
  3. Manik Anchlia

    Is this applicable to the pensioners who are senior citizens and have no income from business or profession? Any TDS from pension amounts to deducting tax in advance which is contrary to exemption granted to senior citizens from paying advance tax. Please clarify.

    Reply

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