Deduction of income tax at each payment and from-16 to be issued by 31st of May every year
The department of expenditure vide No.CPAO/IT &Tech/Bank Performance/37 (Vol-II)/2017-18/ 204 dated 09.03.2017 issued notification regarding deduction of income tax at the time of each payment as below
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.
To download detail notification click belowincometasx_deduction2017-18.pdf (12 downloads)
Source: department of expenditure