One of my senior colleague is a retired Colonel and is receiving Pension from Government of India since last one year. Now this year, he will be filing return of Income Tax towards salary receiving from current organisation.
Should while computing the Gross Taxable Income, pension received from Government would be considered as a taxable income or is it tax free, being paid to ex-serviceman?
24 March 2008
Thanks sir for quick reply. Could you also please confirm whether the Government should deduct TDS on it or not, as when we contact SBI bank, where pension amount is being credited, they said no TDS is deducted by bank. So now onus is coming on current organisation to deduct TDS. We want to be sure that no extra TDS is deducted i.e. some amount by Government and rest by us.
CAclubindia
