Employer Details in ITR 1 for Pension Income

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  1. Employer catagory incase of a retired person should be mentioned as"NA".
  2. V K Khanna

    V K Khanna Active Member

    @Kishore Trivedi. I agree if we insist, the Bank will issue Form 16. But the question is whether it is appropriate for the Bank to issue Form 16 to a central govt pensioner. In my opinion, it's not. The reasons being:-

    1) Bank is not the employer of the pensioner,
    2) Pensioner in this case has neither retired from Bank's service.
    3) Bank only provide service for disbursement of pension which they recover from the Govt alongwith service charge
    4) It will result in change in the Employer category for return purposes.

    According to me,the employer for the pensioner is the Deptt. where he served before superannuation and who processed his pension papers. Incidentally, that Deptt cannot issue Form 16 because they donot have pension disbursement record. Thats the reason I said that Form 16 is not issued in case of the Pensioner.

    Now coming back to the problem @ Akanksha posed in respect of ITR 2, In my opinion,
    we can indicate Deptt's name from where the pensioner superannuated, as the employer and PAN details can be had either from the Deptt or from earlier Form 16 issued to the pensioner when he was in service. Moreover, the PAN details are only optional not mandatory in ITR 2.
  3. Parul_Gupta

    Parul_Gupta Active Member

    @V K Khanna : Thanks sir for your advice

    I'm also of the same opinion that as the Bank has only disbursed the payment, it should not be treated as the employer.

    The organisation from where the employee has superannuated should be treated as the employer and the details of the organisation should be mentioned in the ITR
  4. V K Khanna

    V K Khanna Active Member

    @Akansha23: I agree with you.

    J S TANEJA New Member

    I have my doubts. The Pensioner gets pension from Deptt. of Pension & Pensioner Welfare and not from the deptt. from where he/she retired. Therefore, to write the name of the Organiser from where the Employee was retired as Employer not appropriate. My Bank had issued me TDS Certificate for the pension received wherein Bank was mentioned as Employer and my name as Employee. I think we should mention Employer as Central Govt. disbursed by the Bank (name and address of the Bank) in Schedule S and under Category we should mention as Govt. This thing should have been clarified by Income Tax in their Instructions.
    J S Taneja
  6. V K Khanna

    V K Khanna Active Member

    @ JS Tanejaji

    I beg to differ with you, Sir. A Govt pensioner doesnot get pension from the Deptt. of Pension & Pensioners Welfare. The role of that Deptt, among other things, is to frame policy on pension and pension related matters and advise the Ministries/Deptts accordingly from time to time.

    Yes, I fully agree with you that this issue needs more clarity and CBDT should come up with clear instructions in future alongwith the ITR forms
  7. mskhurana

    mskhurana New Member

    As bank has made deductions on my pension and form 26 also shows bank's name under 'Name of Deductor'. It proves that bank is acting as employer in my case, though I am getting pension from central govt. I think this is a logic to fill name of the bank as 'Name of Employer'

    J S TANEJA New Member

    Yes the Central Pension Accounting Office under Ministry of Finance is responsible for Pension to Central Govt. Employees. Though Banks are deducting TDS on Pension and issuing TDS Certificate as Employer in some cases but they are not the employer, only authorised to disburse your Pension and since they are disbusing Pension(Income), they have to deduct TDS as per Income Tax Law. Now the question is, can you give Bank as your Employer under the ' EMPLOYER CATEGORY'. My answer is NO. In case you say YES, the which IT ward/circle do you give. There can be mismatch.
    Now come to second question, if you fill your previous Employer's detail i.e Ward, Employer Category etc. then the problem arises that your TDS has been deducted by Bank and you will have to compulsary give Tan no. etc of the deductor Bank . Again confusion can be created. So in my opinion, give ward and Employer Category that of your Previous Employer(from where retired) and under Schedule S, it can be mentioned as Central Govt. disbursed by Bank (no problem should arise as this will not be reflected anywhere else to cause hurdle in filing your Return) in the absence of instructions from Income Tax Deptt.
  9. mskhurana

    mskhurana New Member

    If pension disbursing bank is giving form 16 for ex-servicemen, and showing bank's name as 'Name of Employer', definitely they should have some authority to mention their name as 'Name of Employer' in form 16.

    ITR is to filled as per form 16, ex-servicemen have only form 16 issued by bank. Hence there is no other go than to mention bank's name as 'employer' as per form 16.
  10. J S TANEJA

    J S TANEJA New Member

    Today moening I talked to C.A friend, he advised me to write name of the Deptt. from where I have retired as the name of EMPLOYER. Now if you write this in Schedule S, the problem comes when you have to write name of Employer and its Tan No. in TDS in Form 16. I think there we can give details of Bank which deducted TDS. And in that column it should have been mentioned Name of Employer/Tax Deductor.
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