Posts Tagged ‘Pension payments’

Deduction of Income Tax at the time of making payment


Deduction of Income Tax at the time of making payment

NEW DELHI-110066

CPAO/IT &Tech/Bank Performance/37 (Vol-II)/2017-18/ 204


Office Memorandum

Subject:- Deduction of Income Tax at the time of making payment.

It is observed that some of the banks are not following the guidelines of the Income Tax Act regarding tax deduction on pension payments. Pensioners have raised grievances relating to the deduction of income tax at the fag end of the year causing undue financial hardship to the pensioners. Moreover, there is considerable delay in the issuance of Form-16 to the pensioners and in some cases, Form-16 are not being issued to the pensioners.

In view of the above, all Heads of CPPCs are advised to deduct the income tax at the time of each payment itself and issue Form-16 by 31st of May every year and follow the Income-tax guidelines issued from time to time.

(Md. Shahid Kamal Ansari)
(Asstt. Controller of Accounts)
Ph No.011-26103074

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Be the first to comment - What do you think?  Posted by admin - March 13, 2018 at 9:26 pm

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Recovery of excess payments made to pensioners

Recovery of excess payments made to pensioners



March 17,2016

The Chairman/chief Executive Officer
All Agency Banks

Dear sir,

Recovery of excess payments made to pensioners

We have been receiving complaints from pensioners stating that the recovery of excess/wrong pension payments are being made in a manner that is not in keeping with the extant guidelines. In this connection, the instructions contained in circular Nos. CO.DGBA (NBS) No.44/GA.64 (11-CVL) 90/91 dated April 18, 1991 and CO.DGBA (NBS) No.50/GA.64 (11-CVL) 90/91 dated may 6, 1991 laying down a uniform procedure in consultation with the controller General of accounts and various non- civil ministries for recovery are reiterated below:

a) As soon as the excess/wrong payment made to a pensioner comes to the notice of the paying branch, the branch should adjust the same against the amount standing to the credit of the pensioner’s account to the extent possible including lumpsum arrears payment.

b) If the entire amount of over payment cannot be adjusted form the account, the pensioner may be asked to pay forthwith the balance amount of over payment.

c) In case the pensioner expresses his inability to pay the amount,the same may be adjusted from the future pension payments to be made to the pensioners. For recovering the over-payment made to pensioner from his future pension payment in instalments 1/3rd of net (Pension + relief) payable each month may be recovered unless the pensioner concerned gives consent in writing to pay a higher installment amount.

d) If the over payment cannot be recovered from the pensioner due to his death or discontinuance of pensioon then action has to be taken as per the letter of undertaking given by the pensioner under the scheme.

e) The pensioner may also be advised about the details of overpayment/wrong payment and mode of its recovery.

The above uniform procedure may be strictly adhered to while effecting recovery of excess/wrong pension payments made to pensioners.

2. As regards the issue of refund of excess/wrong payments to the government, banks may be guided by the guidelines laid down in our circulars Nos. DGBA.GAD.H-10450/45.03.001/2008-09 dated June 1, 2009 and DGBA.GAD.H.4054/45.03.001/2014-15 dated March 13,2015 which have been incorporated in our master circular on disbursement of government pension by agency banks dated july 1, 2015.

Yours faithfully

(Manish Parashar)
Deputy General Manager

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Penal interest of 8% to be paid by Banks on delayed payment of Pension/Pension arrears-RBI Circular dated 13-04-2012

Penal interest of 8% to be paid by Banks on delayed payment of Pension/Pension arrears-RBI Circular dated 13-04-2012

RBI Circular dated 13-04-2012 regarding 8% penal interest as penalty on delayed credit of pension/revised pension/arrears.


DGBA.GAD.No. H-6760 / 45.01.001 /2011-12

April 13, 2012

1. The Chairman / Managing Director
Associate Banks of SBI
2. The Chairman and Managing Director
All Nationalised Banks and ID81 Bank Ltd.
3. The Managing Director
ICICI Bank Ltd., Axis Bank Ltd., HDFC Bank Ltd.

Dear Sir
Pension payments to Central / State Government pensioners by Agency banks – Compensation for delay
Please refer to our circular DGBA.GAD.No.H-6212 / 45.01.011 / 2010-11 dated March 11, 2011, on the captioned subject, wherein we had advised the agency banks that all the pensioners, including non-State resident pensioners, would be compensated for delay in credit of pension / revised pension / arrears, for the delayed period beyond the due date at the “Bank Rate plus two per cent” penal interest.
2. Recently. the Bank Rate, which was kept unchanged at 6 per cent since April 2003, has been aligned with Marginal Standing Facility (MSF) rate and currently stands at 9.5 %. Henceforth, whenever there is an adjustment to the MSF rate, the Reserve Bank will consider and align the Bank Rate with the revised MSF rate.

3. It has now been decided todelink the penal interest levied for delayed credit of pension / revised pension / arrears, from the Bank Rate plus two per cent, and charge a fixed interest rate of 8 per cent on such delays. This rate will be subject to review by RBI as considered appropriate.

4. You may please issue suitable instructions to your concerned Regional Offices / branches authorized to disburse pension, accordingly.

5. Please acknowledge receipt.

Yours faithfully,
(CG. Biswal)
Deputy General Manager


Be the first to comment - What do you think?  Posted by admin - July 10, 2013 at 5:15 pm

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