Whether Income Tax deducted at source (TDS) on Pension ?

Whether Income Tax deducted at source (TDS) on Pension ?

CENTRALISED PENSION PROCESSING CENTER

Payment of Pensions to Central Government and State Government Pensioners through Centralized Pension Processing Cell (CPPC)

Frequently Asked Questions and Answers

36. If the pensioner has a query or requires clarification on the amount of pension paid, what should he/she do?

Ans: The pensioner should approach any Pension Paying Branch for resolution and help. The Branch will attend to it, with on-line help from the CPPC, if needed.

37. If the pensioner wants details of pension paid during a financial year or Pension Payment Slip, whom should he/she approach? 

Ans: The details for a year would be provided to the Pensioner by the Pension Paying Branch by obtaining the details from the centralized database and also available at web portal “Pension Seva. SBI”.

38. Has the pensioner got right to retain half portion of the PPO for record and to get it updated from paying branch whenever there is a change in the quantum of pension due to revision in basic pension, dearness relief, etc.? 

Ans: Yes. The pensioner has right to retain half portion of the PPO for record and whenever there is a revision in the Basic Pension/DR etc. the pension paying Branch has to call for the pensioner’s half of the PPO and record thereon the changes according to Government Orders/Notifications and return the same to the pensioner.

39. What types of pensions are handled by Centralized Pension Processing Cell (CPPC)? 

Ans: All type of pension to pensioners of Central Govt. and State Govt. etc., (except SBI/IBI pensions) are handled by CPPC. Payment of pension in respect of specific autonomous bodies is also handled, where specifically agreed.

40. What should an Autonomous Body/ Corporate Customer do to avail the facilities of CPPC from SBI branches, if the Autonomous Body does not have pension payment arrangement with SBI?

Ans: The concerned Autonomous Body should approach the nearest Branch to firm up and finalize the pension payment arrangements.

41. Can the pension paying Bank recover the excess amount credited to the pensioner’s account? 

Ans: Yes. The pension paying Branch before commencement of pension obtains an undertaking from the pensioner in the prescribed form for this purpose and therefore, can recover the excess payment made to the pensioner’s account due to delay in receipt of any material information or due to any bonafide error. The Bank has also right to recover the excess amount of pension credited to the deceased pensioner’s account from his/ her legal heirs/nominees.

42. Whether Income Tax deducted at source (TDS) on Pension ? 

Ans: Yes. As per Income Tax Act, TDS is applicable on pension to individual male or female & senior citizen except certain categories of disability pension (i.e. disability element and service element of a disabled officer of the Indian Armed forces) which are exempted.