INCOME TAX FOR DEFENCE PENSIONERS

If the total pension income of a defence pensioner is more than 2.5 lacs, they have to file IT return.  Those who have not filed within the due date, they can file now belated return up to Mar 2018.

Many pensioners could not file due  non availability of correct Form 16 from their banks.  As the pension income had increased due to the payment of delinking arrears, an IT return filed with Form 10E will give good amount of Relief u/s 89(1) specially for the pensioners of the rank of Sep, Naik and Havildar and they will get refund if any excess tax recovered by the bank.

It is important that every pensioner should collect Form 16 from bank and submit IT return without fail.

Fortunately, the tax liability will be nil for the AY 2017-18 because of the relief available for delinking arrears.  You can get refund of the excess tax recovered only if you file IT return.

Those who want to file IT return now may contact Exwel Trust for help and guidance.

DETAILS OF TAX LIABILITY AND RELIEF

	SEP	NAIK	HAVILDAR
TOTAL INCOME	335620	410564	563437
TAX	3669	11388	38818
RELIEF	3669	11388	30023
TAX PAYABLE	NIL	NIL	8795
REFUND	3669	11388	30023

It is seen from the above table that the Sep and NK get full refund of the tax paid and the Hav Rs.30,023 as refund out of Rs.38,818 as tax paid.  This is applicable to all defence pensioners of the rank of Sep, Nk and Hav and equivalent ranks in other services.

TAX RELIEF ON DELINKING ARREARS

The delinking arrear is calculated from the  year 2005 onward. Therefore the Delinking arrears paid in Dec 2016 has to be spread out from 2005 and relief calculated properly for claiming relief u/s 89(1).

For an arrears of Rs.88,155 for a Sepoy the Relief available will be Rs.3669.

For an arrears of Rs.1,40792 for a Nk, the Relief available will be Rs.11,388.

For an arrears of Rs.1,78,044 for a Hav the Relief available will be Rs.30,023.

This article is published for benefit of those who have not filed tax return or who have filed tax return without preparing 10E.(Relief u/s 89(1)  You can re-file now with 10E and get refund.

Normally filing income tax after the due date will attract interest @ of 1% for the tax liability.  But in the case of Defence pensioners, who are filing with 10E, only small amout of interest will come if they happen to pay tax after adjusting the relief.  Otherwise they will get refund of the tax recovered.

CONTACT EXWEL TRUST FOR REFILING NOW

PHONE:0462-2575380