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Netting of recovery of pension related to previous years with commutation arrears paid during the current year

Income Tax - Started By: - MANIAN T V - Dated:- 17-3-2016 Last Replied Date:- 26-3-2016 - Excess paid pension related to previous years recovered during current year. I am a Retd Bank officer, retired in June 2013.As per the wage settlement reached between the united forum of bank employees/officers association and IBA( Indian Banks association) in May 2015 with retrospective effect from 01 Nov 2012, Pension of the officers retired on or after November 2012 was REDUCED( A Historical case). Diffe .....

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after deducting the recovery of pension for 27 months ).(i.e Recovery of pension was related to FY 2013-14 & FY 2014-15,FY 2015-16. which were already taxed by the employer were deducted from a non taxable of income of commutation arrears.). When I took up the case with HRM department I was replied as below: In respect of pension amount excess paid recovered, there is no provision in the Income Tax Act to consider it as deduction from the pension of the current year. However, any reduction o .....

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& FY 2014-15 can be deducted from the gross income by the tax payer at the time of filing return for FY 2015-16 as the employer has not considered as a deduction from the gross income of FY 2015-16, even though both Salary & Pension are at par as per Sec 17(1) of IT Act? Income Tax has already been charged/recovered at source for the difference amount of pension related to FY 2013-14 & FY 2014-15.( which is now recovered during FY 2015-16). Whether the assessee/tax payer can claim r .....

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ated as advance commutation paid, which was non taxable. I request Tax experts to guide me to claim relief for the Income Tax paid on the portion of pension related FY 2013-14 & FY 2014-15 by whatever name called (pension or advance commutation) I have read in this forum, the treatment of excess paid salary(related to previous financial years) in cases like salary paid by mistake, excess paid due to downgrading the basic pay with retrospective effect due to various reasons. I remember, it wa .....

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said reasons. It is therefore seems suitable that refund should be claimed. This can be brought for discussion before the Authority during the time of your Income Tax assessment. If the amount involved in substantial, then I feel an CA or a consultant could help you better to take up the issue and resolve. Thanks. - Reply By MANIAN T V - The Reply = Whether the employer will show this recovered pension amount in Form 16 or the employer is supposed to furnish a separate certificate of recovery wi .....

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