Income Tax Deduction
Ashok Kumar Sharma
(Querist) 18 October 2010
This query is : Resolved
Dear Sir,
Recently wage revision for Bank Employees has been finalised and another pension option has been offered for which existing PF optees have contributed 2.8 times of their revised Pay for the month of Nov, 2007. This amount has been kept by the Banks with them but I-Tax thereon is being charged/paid. Sir, when payment of such amount has not been made to employees, why TDS is being deducted. Is it right as per rules? Mr. Azim Khan has commented as:
"T.D.S. is generally deducted at the time of payment or credit, whichever is earlier."
But in this case neither payment nor credit has been given to the employee and the funds have been directly credited to Pension Fund Account maintained by the Trust.
Reply to my above question "tax is to be deducted as the amount has been credited to pension fund". But, Sir this is the case of 2nd pension option for which the Banks have charged extra amount said to be shortfall in pension fund. Pl review the case in this context.
Thanks.
aman kumar
(Expert) 18 October 2010
case is not clear but i think they are taken TDS OF MONEY that you earn on last years as arrears & money is not calculated in your total income of that years , so when you get money ( go in pansion fund )you should pay tax
