Family pension and tax section

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  1. KUTTS18

    KUTTS18 New Member

    My mom gets her family pension from sub treasury office. They have deducted tax from her pension on our request.

    But now when i see the Form26 AS, i could see that tax has been deducted under Section192 as TDS from Salary or pension. I informed this to treasury office, but they said if they deduct tax then they always show it under section 192 regardless of salary/pension/family pension.

    As per my understanding family pension is considered as income from other sources and not under salary or pension. Now while filing return how shall i show the pension amount, income from salary/pension or income from other sources?

    When i filled the efile online form, i specified family pension under 'Income from other sources'. But its giving me a warning "The amount of salary disclosed in "Income details/Part BT1" is less than 90% of Salary reported in TDS1.
  2. ZED

    ZED Well-Known Member

    There should have been no TDS to begin with. Brother what have you done......

    We can try two things, provided full tax has been paid legitimately.

    1.) If you try to furnish the return showing that income as salary income then you might receive notice to explain the reason for the difference (It's in respect of that warning.) Simple reply to that ....
    [Not a very appealing thing to do]

    [Taking protection u/s 292B]
    2.) You may deliberately show TDS under TDS other than salary and simultaneously claim refund also(if arises). Earlier you mentioned form 15H was submitted, so your mum is a senior citizen. Since form 15H was submitted, there must not have been much income. But in respect of pension, you asked the treasurer to deduct tax, this means her income must have reached the maximum amount not chargeable to tax (I am presuming it to be more than 3 Lakhs)

    But, when tax was deducted u/s 192, they must have deducted on the full value but however, deduction is available u/s 57 to the extent of lower of 1/3rd of pension or 15,000.

    S.57(iia) in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or fifteen thousand rupees, whichever is less.

    Explanation.—For the purposes of this clause, "family pension" means a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of his death ;

    [You may read text in bold only]

    292B. No return of income, assessment, notice, summons or other proceeding, furnished or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in such return of income, assessment, notice, summons or other proceeding if such return of income, assessment, notice, summons or other proceeding is in substance and effect in conformity with or according to the intent and purpose of this Act.
  3. KUTTS18

    KUTTS18 New Member

    1. My mom is a senior citizen.
    2. Family pension was more than 3lkh. Since for senior citizen income upto 3lkh is tax free, they have deducted tax only for the remaining amount.
    3. We did ask treasury to deduct tax, but we never expected them to deduct under salary head.

    For eg if 4lkh is the family pension and 1lkh is the FD interest
    1. Enter 4lkh under 'Income from salary/pension' and enter 1lkh under 'Income from other sources'.
    2. Only enter 5lkh under 'Income from other sources'.
    3. Enter 4lkh under 'Income from salary/pension' and enter 5lkh under 'Income from other sources' and ask for refund.

    Which option is the best?
  4. ZED

    ZED Well-Known Member

    This option is better.

    This option will also do but you might have some trouble claiming the deduction of 15K.
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