Deduction of Income Tax from Pension

Bank has deducted instalment of Income Tax from Pension. After deduction of investment under section 80C tax liability is nil. Bank couldn't be informed about this earlier, but informed about this soon after deduction of first installment by Bank. Even after informing Bank about the investment, the Bank again deducted second installment of Tax. Please let me know the rule position about this. Is Bank not authorized to take into consideration of investment under sec 80C while deducing tax?
Replies (3)

S.192(2A) is applicable when the assessee is entitled to relief u/s 89(1). In this case, the following are the applicable Provisions.

S.192(1) Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year. 

 

S.192 (2D) The person responsible for making the payment referred to in sub-section (1) shall, for the purposes of estimating income of the assessee or computing tax deductible under sub-section (1), obtain from the assessee the evidence or proof or particulars of prescribed claims (including claim for set-off of loss) under the provisions of the Act in such form and manner as may be prescribed.

 

Rule 26C. (1) The assessee shall furnish to the person responsible for making payment under sub-section (1) of section 192, the evidence or the particulars of the claims referred to in sub-rule (2), in Form No.12BB for the purpose of estimating his income or computing the tax deduction at source.

 

 

Nair Ji, did you submitted the details in the requisite manner as are mentioned under Rule 26C? If not then the bank can not consider your claim.

 

Please refer to the following link

https://www.incometaxindia.gov.in/_layouts/15/dit/Pages/viewer.aspx?grp=Rule&cname=CMSID&cval=78C9EA92-E3D9-43dc-94BF-59774C80347C&searchFilter=[{%22CrawledPropertyKey%22:0,%22Value%22:%22Income-tax%20Rules%22,%22SearchOperand%22:2},{%22CrawledPropertyKey%22:1,%22Value%22:%22Rule%22,%22SearchOperand%22:2}]&k=&IsDlg=0

 

Thank you very much Sir for the guidance. I had submitted Form 12BB alongwith proof (Investment in Senior Citizens Saving Scheme) when the Bank first deducted IT in the previous month, but this month also they deducted IT even after submitting Form 12BB.

Insist that they revise the TDS return filed by them. This is a time-consuming method. Even if after making several requests, the bank keeps on deducting tax without considering the deductions then you may complain its AO that the bank is wrongfully deducting tax at source.

 

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