I received my family pension for the years 2013-2016 as one time payment in 2017. Since it was a big amount, the bank deducted a TDS of Rs. 1,47,315/- on my family pension. Although the bank is not supposed to deduct TDS at the source on family pension, the bank still did it. Now, when i asked the bank to refund, The TDS falsely deducted, The bank is telling me that my family pension is taxable. As per my knowledge, only uncommuted family pension is taxable, which is received periodically. and I received my family pension of 3 years as one time payment. Is my family pension taxable?
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I have 2 family pensions issued in my name, after my parents demise as both my parents were govt servants... Under Pension rules C.C.S (54)(11). On receipt of a letter regarding me second family pension, the bank imposed a false lien on my savings account. When inquired about the lien imposed, the bank falsely cited that they received an instruction from Directorate of Accounts,Govt. of Goa, to recover excess family pension payment made to me and demanded Rs. 8,01,254/- out of me. Now the only instruction given to the bank in the letter was to obtain my mom's death certificate and her PPO book so the family pension can be transferred to my name from my mother's name. When i put forth the matter to directorate of accounts, they issued several letters to the bank, explaining that they have not given any instruction of recovery of excess family pension payment and yet the bank did not lift its false lien imposed over my savings account. The false lien was imposed from 1st april 2018 to 5th november 2018. And my second family pension order was issued in September 2018 to the bank. And since the false lien was still imposed over my account and as i had no access to the funds lying in my account, I asked the bank to issue me a new pension account and to credit the 2nd family pension in the new account. Now it's been several months since the pension account is created, but my family pension is not credited to either of my accounts. How do i proceed with the matter? The bank officials are taking no actions against its employees for harassing me and barring me from using my own account for over 7 months and for not crediting me second family pension for over 4 months now.
For a government employee, commuted pension is fully exempt
2) However, for a non-government employee, it is partially exempt.
3) If Gratuity is also received with pension – 1/3rd of the amount of pension that would have been received if 100% of the pension was commuted, is exempt from commuted pension and remaining is taxed as salary.
I am aware of the above... But my situation doesn't fall in either of the above case... By definition, uncommuted pension is pension received periodically, and i received One time payment. And commuted pension implies, certain % of the pension u decide to take in lumpsum instead of periodically... Can u please answer the question pertaining to my situation alone and not general answer... And the tax rules says, family pension received as commuted or lumspsum is non taxable. So i would like to know whether my family pension received as one time payment goes as a lumpsum payment or not?
Since you have received your family pension as one time payment it would be regarded as lumpsum payment and would be non taxable
Who told you that pensions is not a taxable income.
Pension is taxable under the head salaries in your Income Tax Return.
Pension received by a family member is taxed under income from other sources in your Income Tax Return. If this pension is commuted or is a lump sum payment it is not taxable.
Pension received by a family member is taxed under income from other sources in your Income Tax Return. If this pension is commuted or is a lump sum payment it is not taxable. Uncommuted pension received by a family member is exempt to a certain extent. Rs 15,000 or 1/3rd of the uncommuted pension received -whichever is less is exempt from tax.
You issue a legal notice to the bank expressing your grievances due to their hostile and lethargic attitude by which you are made to face hardships.
If there is no response to this then you may drag the bank to the consumer forum seeking relief and compensation for their deficiency in service as well as for the unfair trade practices.
The lump sum payment what you received is arrears of pension and not due to commutation.
Hence in my opinion, they would not fall under category of exemption under lump sum as referred by you.
Commuted pension or lump sum received may be exempt in certain cases. For a government employee, commuted pension is fully exempt. For a non-government employee, it is partially exempt. If Gratuity is also received with pension – 1/3rd of the amount of pension that would have been received if 100% of the pension was commuted, is exempt from commuted pension and remaining is taxed as salary. And in case only pension is received, gratuity is not received – ½ of the amount of pension that would have been received if 100% of the pension was commuted is exempt.
So the bank has to refund my Rs.1,47,315/- right? And what action can be taken against the bank for not abiding by the rules, and deducting TDS on family pension, for which the bank has no authority to do so, as TDS on family pensions cannot be deducted at the source, as it does not fall under the ambit of section 192 of income tax.?
Pension received by a family member is taxed under income from other sources in your Income Tax Return. If this pension is commuted or is one time payment it is not taxable.
1) bank has to refund your money . Immediate refund for wrong TDS together with the interest for the financial loss to the depositor should be initiated.
2) Inconvenience meted out to the depositor should be compensated with some compensation amount being credited to the depositors account as then such deductions shall be done carefully in future.
3) complain to banking ombudsman against the bank wrongly deducting TDS
I have complaint to the banking ombudsman before, regarding the false deduction of TDS, and the false lien imposed. They only inquired with the bank. Bank gave a false reply that they received a letter to recover excess pension and that they deducted TDS on pension. The banking ombudsman did not check the documents attached, and disposed off my complaint. They didn't check the actual instruction given in the letter, that the bank was quoting nor did they check that it was family pension and not pension.
Filecomplaint against bank before consumer forum seek compensation against bank for wrongful deduction of TDS
seek litigation costs
TDS is not deducted on family pension as it does not come under the ambit of section 192 of the income tax act.
You issue a legal notice to the bank about it, however if the bank has already deposited the deducted amount you may have to claim refund only, the bank cannot refund.
You cannot expect justice from banking ombudsmen because they will try to protect the interest of bank as preference instead of redressing the grievances of customers.
Hence you may approach consumer forum for relief and compensation.
You can file a case before banking ombudsman and If not resolved by them can file a consumer complaint before the forum for deficiency of service
