Income Tax Department — Grievances and Suggestions by Senior Citizens and Very Senior Citizens who are drawing Pensions from Public sector Banks | |||
1. Interest on Fixed Deposit is paid without deduction of Income tax on furnishing Form 15 H. 2. No Income Tax should be deducted before the actual interest paid/credit exceeds the exemption limit (i.e.) Rs. 10, 000/Rs.50, 000/-. 3. Senior citizens need not pay Advance Tax, 4. The subject of taxation is total Income i.e. Gross Total Income (-) admissible deductions under Chapter VIA. 5. Taxable Income is arrived at after deducting the proposed savings from the estimated Total Income. 6. The savings for claiming deductions must be from the income of the year liable to tax. 7. Banks are refusing to accept declarations by Pensioners, indicating the amount of proposed savings and deducting Income tax till proof of investments is produced. 8. Majority of Sr. Citizens in General and very Sr. Citizens in particular are claiming refund of Income tax deducted by banks in full. 9. The action of the banks is only resulting in all round increase with no Revenue Benefit. 10. Increasing the interest burden on the Govt on the amounts refunded. 11. While savings made during anytime of the year is eligible for deduction, insisting on proof of investment, even before the Pensioner receives any income in the financial year is illogical. 12. The Banks may be instructed to accept the declarations furnished by the Pensioners and allow admissible deductions before deducting tax. 13. If necessary a special form may be prescribed for furnishing the declaration by pensioners. Failure to invest before the date indicated in the declaration may be considered as an attempt to prevent/postpone deduction of tax due. Penal provisions may be included. 14. Income tax due may be recovered from pension for the months of Jan and February, including interest/penalty, if any as prescribed, and pensioner shall have no right to protest. 15. As liability to pay tax arises only after the income exceeds the maximum amount not liable to tax, it is not fair to deduct tax from the amount which attracts no tax. Senior Citizens and Very senior Citizens of Bangalore Was this information helpful? | |||
Income Tax Department customer support has been notified about the posted complaint. | |||
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