INCOME TAX FOR A SEPOY FOR THE FINANCIAL YEAR 2016-2017 HOW TO GET REFUND

INCOME TAX FOR A SEPOY FOR THE FINANCIAL YEAR 2016-2017

HOW TO GET REFUND

So far a Defence Pensioner of the Rank of Sepoy was not nearing the Income Tax limit of Rs.2.5 lakhs.  But in this Financial year 2016-17 even a Sepoy will be  required to pay income tax because of the payment of Delinking Arrears.  Since the other arrears such as OROP 2^nd and 3^rd Instalments, 7^th CPC arrears etc., also added in this year, the Tax Deduction at Source becomes mandatory.

Even though the regular pension of a Sepoy does not bring him under the Income Tax limit, but for the Arrears payment, this Tax Deduction will be made now.

Let us analyze the total income of a Sepoy in the FY 2016 to 17 including all the arrears and find out his Total Tax.

Total Pension for the Financial year From 1.4.2016 to

31.3.2017 as per 7 CPC Revised Pension (Sepoy)       Rs.2,09,500 (Approx)

The Delinking arrears paid for Sepoy GP.E 15 Yrs.       Rs.   92,708

(For the period from 1.1.2006 to 23.9.2012)

OROP 2^nd Installment arrears paid in Sep/Oct 2016

(For the period from 1.7.2014  to 31.3.2016.                Rs.   27,870

Total Pension & Arrears received                   --     Rs. 3,30,078

Less Tax Limit            --          --          --          --         Rs. 2,50,000

Net Taxable Income    --          --          --          --        Rs.    80,078

Tax deduction if pan card is not given           --          --  Rs.    16,016

Tax deduction if pan card is given     -           --          -- Rs.      8,008

Since the arrears amounting to Rs.1,20,578 has been paid in this year for the period from 2006 to 20014, you can claim Tax Relief under Section 89 and get refund of the tax collected by the bank.  For this you have to approach an auditor with your Annual pension statement along all the arrears payment with the Financial Year wise break up and PAN Card.

It is better that all the Defence pensioners apply for PAN Card if they do not have now and give the number to the bank and  file income Tax return with the help of an Auditor. If you do not give Pan Number, the Bank will deduct 20% tax on your pension arrears.

YOU CAN GET REFUND OF THE TAX DEDUCTED BY PROVIDING FINANCIAL YEARWISE BREAK UP OF THE ARREARS TO THE AUDITOR.

YOU CAN GET FINANCIAL YEARWISE BREAK UP FOR ALL ARREARS ON REQUEST TO

MOBILE NO.9894125019.