Income Tax on Central Govt Pension to be deducted each month – CPAO OM dated 9th March 2018.
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
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF EXPENDITURE
CENTRAL PENSION ACCOUNTING OFFICE
TRIKOOT-II BHIKAJI CAMA PLACE,
NEW DELHI – 110066
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 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
(Md. Shahid Kamal Ansari)
(Asstt. Controller of Accounts)