TDS on Pension Without Information to Pensioner

ALL INDIA UNION BANK RETIREES FEDERATION
(Affiliated to All India Bank Retirees Federation)
A/12, Girdhar Apt., Kastur Park, Shimpoli Road, Borivali (W), Mumbai 400 092

  Chairman                                           President                                       General Secretary
      D. A. Masdekar                                 B. G. Raithatha                                       R. K. Powar
        9970899393                                      9427207021                                          7710030963
damasdekar@gmail.com                    ubiretirees@gmail.com                         rkpowar@gmail.com

No. AIUBRF/203/2019                                                          1st July 2019
CIRCULAR LETTER


To: Members & retired colleagues

Sub: Reduction in monthly Pension of July 2019

Banks reply to our letter No. AIUBRF/202/2019

After we took up the issue with the Bank this morning about the monthly pensions of July 2019 of some of the retired employees being reduced without informing the concerned pensioners,  the Pension Section, EBD has responded to our letter with the following clarifications which is reproduced here under for information of all.

“Sir, This has reference to the trailing mail.
Please note that TDS on staff pension is centralised for financial year 2019-20. The amount deducted from pension in the month of June 2019 is the TDS amount for April to June Quarter. This is for your information. -> Sender Mr. Ganpat Patel, Manager, EBD

Following the above reply, we received a further reply which reads as under:

 Sir, with further reference to Mr. Ganpat Patel's reply, if the pensioner has submitted the declaration to the Branch and TDS is not to be deducted, the same may be sent to Mr. Mithilesh Kumar, Chief Manager (Taxation Cell) Central Office with a request to refund the TDS now deducted and not to deduct TDS in future. -> Sender Mr. Mithilesh Kumar, CM, EBD.

The officials of Employees Benefit Department, Central Office have agreed to refund the amount deducted as TDS; which they could have been avoided had the Bank given prior information to all the pensioners that TDS on staff pension payment would be recovered w. e. f. July 2019 and called for submission of I T declaration form seeking exemption of TDS recovery from monthly pension.

The department has already started refunding the TDS deducted and has sent sms alerts to the concerned pensioners. Those who have not received the refund in their pension accounts, are requested to send letter for refund to Mr. Mithilesh Kumar, CM at his email id -> mk.singh@unionbankofindia.com and copy may be endorsed to us for follow up.
AIUBRF has requested the bank management to issue circular instructing all the branches to accept the I. T. Declaration Forms from all the pensioners when they approach the pension paying branches without insisting for the evidence of investment u/s 80/C (PF/PPF/NSC/LIC Premium), u/s 80D (Health Insurance Premium paid) immediately, but accept xerox copies of investments allowable for exemption of I T in mid-March 2020.

We are enclosing the I. T. Declaration Form to be submitted to the pension paying branches. The letter should also be submitted enclosing the Declaration Form stating that the TDS need not be deducted from their monthly pension. The acknowledgement thereof should be obtained.

Friends, AIUBRF has taken immediate action to bring to the notice of the Bank that the deduction of T D S from monthly pension is not justifiable unless they are given an opportunity to declare their investments as per I T Act.

We will circulate our letter to the Bank on the matters explained hereinabove.

With kind regards,

Yours faithfully,

(R. K. Powar)
General Secretary       

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