Pension and family Pension to be spared from levy of Income Tax
BPS has requested the FM to reconsider & accept the recommendation of Vth CPC vide their 167.11 in this regard and spare the pension/family pension along with DR & FMA from the levy of income-tax. The copy of the letter is given below
BHARAT PENSIONERS SAMAJ
All India Federation of Pension Associations
The Arun Jaitley ji
Honourable Cabinet Minister for Finance
Government of India
Subject : Pension of ex-Govt employees to be net of Income Tax
With passage of time, the purchase value of pension due to steep rise in the cost of food items,caregivers and medical facilities etc gets substantially reduced.Due to inflation coupled with low interest rates value of their deposits in Banks/Post offices etc too go on reducing year by year adversely affecting the net-worth of Pensioners.Thus compelling them to compromise their standard of dignified living.
As was worked out & recommended by TECS (Tata Economic Consultancy Services) consultant to Vth CPC (Para 127.9 Vol III 5th CPC report) Pension need to be 67% of the last drawn to enable a pensioner to live with the same standard to which he was living while in service (Supreme Court pronouncement in DS Nakara vs UOI) but only 50% of last drawn is being paid. Old age relief given to Sr citizen in Income tax is too little to compensate.
You are therefore, requested to reconsider & accept the recommendation of Vth CPC vide their 167.11(copy attached) in this regard and spare the pension/family pension along with DR & FMA from the levy of income-tax.
Further to compensate fall in purchase value of their savings in deposits with banks & post offices rate of interests for senior citizens on their deposits should be 2% above the normal rate of interests as against the existing 0.25% to 0.50%.
Hoping for your sympathetic consideration
Thanking you in anticipation
Secy Genl Bharat Pensioners Samaj