CPAO to Bank: Deduction Income Tax at the time of each payment of pension and issue Form-16 latest by May of every year

Deduction Income Tax at the time of each payment of pension and issue Form-16 latest by May of every year

केन्द्रीय पेन्शन लेखा कार्यालय, नई दिल्ली ने सभी बैंकों को यह निर्देश दिया है कि वे पेन्शन के भुगतान के समय ही उस आय पर लगने वाले आयकर की कटौती करें तथा प्रत्येक वर्ष के मई माह तक सम्बन्धित पेन्शनर्स को उनके Form-16 अवश्य जारी करें।

CPAO/IT &Tech/Bank Performance/37 (Vol-II) 2017-18/204

 

Subject: – Deduction of Income Tax at the time of making payment.

It is observed that some of the banks are not following the guidelines of the Income Tax Act regarding tax deduction on pension payments. Pensioners have raised grievances relating to the deduction of income tax at the fag end of the year causing undue financial hardship to the pensioners. Moreover, there is considerable delay in the issuance of Form 16 to the pensioners and in some cases Form-16 are not being issued to the pensioners.

In view of the above, all Heads of CPPCs are advised to deduct the income tax at the time of each payment itself and issue Form -16 by of May every year and follow the Income tax guidelines issued from time to time.