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Thread: IT TDS on Pension

  1. #1
    Senior Member dnaga57
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    Thumbs down IT TDS on Pension

    I find from a thread in RRewa site that on 17-1-2010 a circular is issued on TDS on pension.
    There is hardly any time for furnishing 80C documents etc. to banks.
    Anybody knows what to do

  2. #2
    Senior Member vnatarajan is on a distinguished road
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    Dear Shri DNaga,

    Yes. My bank also insisted. So keeping in view what I am likely to deposit under the exemption category-80C (Rs 1 lakh - plus Med Insurance exemption etc), I had notionally worked out the likely IT payable and asked the bank to recover some amount as TDS from my arrears in Oct 2009 itself. In Dec 2009 I shd have paid some amount - but then I didnt do so- and hence some 2% pm interest on the IT payable may be the penalty. So for 3 months till say March 2010- when I can be more precise- I may have to pay the penalty!

    Who is caring?- nobody is able to correlate your TDS if done manually by banks and link it with the IT return if you file the same electronically!
    Last edited by vnatarajan; 30-01-2010 at 10:37 AM.

  3. #3
    Senior Member Kanaujiaml is on a distinguished road
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    Quote Originally Posted by vnatarajan View Post
    Dear Shri DNaga,

    Yes. My bank also insisted. So keeping in view what I am likely to deposit under the exemption category-80C (Rs 1 lakh - plus Med Insurance exemption etc), I had notionally worked out the likely IT payable and asked the bank to recover some amount as TDS from my arrears in Oct 2009 itself. In Dec 2009 I shd have paid some amount - but then I didnt do so- and hence some 2% pm interest on the IT payable may be the penalty. So for 3 months till say March 2010- when I can be more precise- I may have to pay the penalty!

    Who is caring?- nobody is able to correlate your TDS if done manually by banks and link it with the IT return if you file the same electronically!
    I normally do not restrict banks to cut TDS on my FDs or Pension. I only insist on timely furnishing oc Certificate by the Bank. You can calculate the Tax due. If you want to save, the best option of pensioners, would be to go in for Sr. Citizen FD upto one lakh, with a lock in period of five years. You can give option for quarterly payment of interest. If possible calculate in advance estimated Tax and deposit Advance Tax. This would save any penalty due. Submit Return as early as possible and obtain refund for excessa tax paid, if any.Regards.

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