Tds on arrear pension

Legal and Procedural Considerations EPFO is not the final authority on income tax matters—the Income Tax Department is.

Since you've already paid the tax and claimed relief, EPFO should not demand the same amount again unless they are required to remit TDS themselves and are trying to recover it from you.

 If EPFO insists on recovering the TDS amount, they should ideally coordinate with the Income Tax Department to verify that you've already paid the tax.

You may request EPFO to accept your Form 10E and ITR acknowledgment as proof of compliance.

Unilateral stoppage of pension would be highly irregular and potentially unlawful. Pension is a statutory entitlement, and any suspension must follow due process.

 Suggested Next Steps Write a formal letter to EPFO reiterating: That you've paid the tax and claimed relief under Section 89. That the Income Tax Department has accepted your return. That any further recovery should be coordinated between EPFO and the Income Tax Department.

Attach supporting documents: ITR acknowledgment Form 10E Tax payment challan Request written clarification from EPFO on what legal provision they are invoking to demand the amount again.

If they persist, consider filing a grievance through the EPFO grievance portal. You’ve done your part diligently as a senior citizen and taxpayer. If EPFO continues to press for payment despite your compliance, they must justify it legally.

You're not alone in this—many pensioners face similar confusion when arrears and TDS intersect.

Thank you very much sir for your quick response. Sir can I consult with you regarding this issue . I have sent request mssg for your permission in your watchup.

With regards 

Prasanta Bordoloi 

The Employees' Provident Fund Organisation (EPFO) department is legally required to collect TDS (Tax Deducted at Source) on pension arrears, as pension income is considered taxable income in the hands of the pensioner under the Income Tax Act. 

However since you have already paid the applicable tax to the income tax department directly, you don't need to pay heed to their demand, insted you can enlose a photocopy of the ITR where the tax paid in this regard is reflected.

If they still insist on payment of tax, you may escalate the matter legally by first issuing a legal notice to refraqin from making such illegal demands.

The PF department cannoit stop your pension for any reason.

You may need to file Form 10E with the Income Tax Department to get tax relief on salary arrears, including pension arrears, which can help manage the tax burden

Yes, having remitted the tax as due and filed the return, the issue is closed. Further action, if at all any, lies within the province of the province of IT authorities.

Thanks everyone one for reply , the EPFO department insisted to pay the demanded amount as they pressured me hard , fearing that they may witheld my pension , I had to deposit the demanded amount .

I thought that they will submit necessary corrections statment in their tax filing as TDA for the FY 24-25 and I will get back this 341152.00 from income tax department by submitting a revised return . But after receipt of the demanded amount they are telling that they will deposit the TDS amount to income tax against FY25-26 , by this insane  act of EPFO there will mismatch of 26AS of FY25-26 with my actual income.   Since I already disclosed this income in FY 24- 25 and paid the tax on that so there will be problem for me.

In the mean time I am going to inform this tax default to income tax ITO .

EPF mischievous intentions is that they want to escape from penalty and interest which may levied by Income Tax Department for not deducting and depositing the income tax in time . 

If I don't get justice I will lodge grievances to CPO , in CPGRAMS.

You can very well escalate the matter through legal forum if you do not get your grievances redressed. 

You can contact any experienced lawyer in the local and take the assistance of the lawyer to tackle the issue legally.

Since I habe submitted the draft on 29 th Aug , may be they have not yet presented in the bank , can I instruct the bank not to clear the draft.

But the original draft is not with me 

How can you encash the demand draft when you don't have the original?

If I got the arrear pension income in 24-25 and paid the Tax amount , but the tax dedting authority wants to show this income FY 25-26  how to stop this unethical approach of my Tax Deducting Authority.

Better option for you is to claim refund of the excess tax remitted.

I approached to EPFO and requested them to refund my Draft , they are reluctant to return it. 

Ok I told them to deposit my  excess tax which I paid to them by DD to deposit this amount in the Income tax department in the correct FY ie 24-25 , but they want to deposit this against Fy 25-26.

For better understanding of my entire issue to the learned people of the group, let me rephrase the entire episode chronologically.

1. I got arrear pension of 6 years amounting to Rs1708000.00 in the FY 24-25 ( Sept 24), it was the pension of EPF higher pension.

2. They are supposed to deduct TDS on that as per the the verdict of Honourable Supreme court vide case verdict of EPFO vs Sunil kumar B & ORS Nov 4 , 2022,  the EPFO was to deduct TDS on that amount. Inspire of this they paid me the full arrear .

3. I disclosed  this arrear amount while submitting my income tax return of FY 24-25 and paid the Income tax directly to income tax department to the tune of 190551.00

4. In the meantime I got a notice from EPFO in the month of Aug 2025 directing me to deposit Rs 341152.00 by DD in favour of Regional Provident fund Tinsukia.

5. I informed them and told them that I have already deposited the due income tax on this arrear payment  and submitted the necessary proof of payment, but they insisted that their notice should be honoured first. 

6. Honouring their notice I again sent them a draft for 341152.00 and requested them to deposit this amount to Income tax department showing this income against correct FY 24-25 in their 24Q , 4th Qtr to be submitted as per section 192A 

7. They replied me verbally that they will deposit this amount not against the income FY 24-25 but against the income of FY 25-26.

8. If they do this the same arrear income will have to be shown by the tax payer in 2 FY ie 24-25 and 25-26.  But the actual problem will come when the return will be submitted against FY 25-26 AS Yr 26-27 by the tax payer. 

Since the tax payer has disclosed this in the Tax return of FY 24-25 and paid the due tax ,again he will not be able to show this arrear in FY25-26 , so there will be mismatch of income with 26AS , so he will be in  tax default and may lead to double taxation. 

9. Actually this is quite a treachery of EPFO Tinsukia for avoiding penalties and fine from Income Tax department for not submitting correct disclosure of the income of employees . Also this may attract charges for not complying honorable supreme court order ( ref verdict number given above ) 

10. In the mean time I have brought this default to the notice of ITO .

11. Soving of problem

A. The EPFO can refund the DD to the incumbent against production of proof of tax payment ( I already diposited) 

OR

B. They should deposit this to income tax department showing it in correct financial year.

You may serve a legal notice upon the EPFO requesting return of the Demand Draft, if not already deposited with the authority concerned.

They may submit it today .

But it is not a problem if they deposit it against income of 24-25 . 

I think I should serve a legal notice not to show this income in wrong FY 25-26 .

By the way can I serve this notice from district court , as I understand district court does not take up income tax matter

The legal notice has to be initiated from your  side itself and not through court.

If you are not knowing the legal procedures you may take the assistance of a local advocate and proceed legally to get your grievances redressed accordingly