INCOME TAX FROM POOR DEFENCE PENSIONERS

INCOME TAX FROM POOR DEFENCE PENSIONERS

This is the first time that an ordinary defence pensioner (other than Officers) have been subjected to large amount of tax deduction in the pension and arrears.  Banks are not clearly mentioning the tax deducted and amount of arrears paid.  They are not issuing proper TDS certificates (Form 16A) for the tax deducted to enable them to file Form 10E for refund.

Some banks have deducted 50% of the pension in the month of Dec, Jan, Feb & Mar and still not issuing Form 16A.  Normally a common man is having slight fear about income tax.  Even if the banks deduct wrong amount, the pensioners are afraid to question the bank for details.  Therefore the banks take advantage of the situation and deduct tax without any justification.  This is not a healthy practice.

Most of the defence pensioners are unable to find out whether they have been paid the correct delinking arrears or not.  Because the amount of tax recovered on the delinking arrears is not shown anywhere.  In the circumstances, how can they get correct year wise break up for the arrears for the period from 2006 to 2014 to claim relief under Sec.89(1).

One pensioner entitled for Rs.2,38,000 delinking arrears.  But has been paid only Rs.2,10,000 as delinking arrears.  The fact that the bank had deducted a sum of Rs.28000 for tax had not been mentioned anywhere.  In this situation, how can a pensioner claim relief ?

Since the delinking arrear is calculated from 2006, the pensioners are in need of pension statement from 2006 to till date.  But the banks are not providing statement of account, thus causing great hardship to claim relief.

Every pensioner must be vigilant.  Please register your PAN number with the Bank immediately, if not done so far.  A 55 year old Naik Group Y with 15.5. years of service received delinking arrears of Rs.1,27,300.  The bank had deducted Rs.8034 as tax after registering PAN Card.  The bank would have deducted Rs.16068 (Double the amount) if he had not submitted PAN Card.  In actual calculation, the pensioner has to pay a tax of Rs.5329 only.  In normal course this pensioner is not liable to pay any tax.  Now because of the payment of delinking arrears, a tax of Rs.5329 has been recovered.  Since the arrears is paid from 2006, the pensioner can claim relief under Sec 89(1).  Accordingly if he claims relief after submitting Form 10E, he will get a relief of Rs.5329 which is equal to the amount of tax recovered and ultimately he will get a refund of the tax recovered i.e. Rs.8034.  If he does not file Form 10E he will not get refund.  The purpose of this article is to create awareness among the low paid pensioners to claim relief by filing form 10E immediately.  Here the Exwel Trust is helping the low paid pensioners to get refund of the tax recovered.

As far as I know, the Exwel Trust is the only organization helping the low paid pensioners to get refund.  (There are some websites helping only the Officers but not O.Rs) Please visit our website www.exweltrust.in and send your particulars as per the format given in the website.  If you are not vigilant and alert, you will not get refund.

Exwel Trust

No.3D St.Mark Street,

Johns High school Road

Samathanapuram,

Tirunelveli 627002.

Phone:04622575380

Mobile.09894152959