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Who is Responsible for Deduction of Income Tax at Source from Pension Payment?


Who is responsible for deduction of Income Tax at source from pension payment?

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

43. Who is responsible for deduction of Income Tax at source from pension payment? 
Ans: The pension paying Bank is responsible for deduction of Income Tax from pension amount in accordance with the rates prescribed by the Income Tax authorities from time to time. While deducting such tax from the pension amount, the paying Bank, on the basis of declaration submitted by the pensioner, will also allow deductions on account of relief to the pensioner available under the Income Tax Act. The paying Branch will also issue a certificate of tax deduction on the prescribed form to pensioner in the month of April each year.

44. Where should a pensioner submit details of investment for claiming relief under Income Tax Act?
Ans: The pensioner should submit the details of investment to Pension Paying Branch. In this regard, to avoid possibility of excess deduction of TDS, It is advisable that pensioner should submit his/her investment & other details related to claiming relief under Income Tax Act well in advance i.e. at the beginning of Financial Year. Accordingly the Branch will arrange for deduction of Income Tax and issue a certificate containing details of Income Tax deducted from pension by the Pension Paying Branch.

45. Which office will the customer approach for grievance resolution? 
Ans: The pensioner’s grievance will be resolved at the Pension paying Branch. On-line help from CPPC will be available to the branch (in case of need). The pensioner is not required to approach CPPC directly.

46. Which authority the pensioner should approach for redressal of his/ her grievances? 
Ans: In case pensioner need any clarification regarding their pension payment, the following options are available: SMS “UNHAPPY” to 8008202020 Call our dedicated pension helpline- 1800110009 Lodge online grievance on www.sbi.co.in Call our Contact Centre on 180042503800 or 1800112211 Lodge a grievance to gm.customer@sbi.co.in or dgm.customer@sbi.co.in A pensioner can initially approach the Branch Manager of pension paying Branch and, thereafter, the Head Office of the concerned Bank for redressal of his/her complaint. They can also approach the Banking Ombudsman of the concerned State in terms of Banking Ombudsman Scheme 2006 of the Reserve Bank of India (details available at the Bank’s website www.rbi.org.in) This is applicable only in respect of complaints relating to services rendered by Banks. For other issues the complainant will have to approach the respective pension paying authority.

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