Income tax deduction on pension payments and Form-16 : CPAO Instruction
CPAO/IT &Tech/Bank Performance/37 (Vol-II) 2017-18/204
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 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 of May every year and follow the Income tax guidelines issued from time to time.
(Md. Shahid Kamal Ansari)
(Asstt. Controller of Accounts)