Pension of Bankers Must be Updated and Made Tax Free
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Presently “Pension” is taxable under the head salaries in Income Tax Return. Pension is fully taxable as salary which is not justified at all.
After putting several years of service and paying income tax which is deducted at source, an employee retires and receives a monthly pension. PENSION is not Salary; it is something like sustenance a person gets in his sunset years.
Whatever he buys with this sustenance money has a tax component which is loaded on the consumer. Pension is also deemed to provide some financial security for the old people. Since life expectancy has gone up considerably, it becomes more and more difficult to make ends meet at later stages of life.
Therefore it is not fair to tax Pension money. And hence I request for completely exemption of “Pension” from Income Tax.
This will ease the life of several Senior and Super Senior citizens who are presently struggling with the burden of filing Income Tax returns and also help the Income Tax department to focus on real income earning class.
Further I request you to look into long drawn demands of retirees and pensioners of Public sector bank for periodical updation of Pension in line with central government employees. After all , bank employees are citizen of India and they too deserve same treatment as it is available to central government employees . Uniformity of law must be maintained.
Bankers should also get 100% DA neutralisation for which they have been making follow up for years and decades. Family pension should be improved in the same way.
Here I would like to point out that varies High courts of the country has also given verdict in favour of retired bank employees. But , unfortunately management of Banks under the Banner of Indian Bank Association (IBA) has been spending crores of rupees on advocates in contesting case after case in various courts. Government should make endeavour to stop perpetuating legal proceedings. Some Cases are also pending in Supreme Court of India.
It is important to mention here that it is not easy for retired pensioners to meet the cost of litigation whereas bank officials may spend crores of rupees ;from bank’s fund to deprive pensioners their legitimate right of updation of pension , family pension and 100% DA neutralisation. Government must look into this genuine demand of senior citizen and resolve it at the earliest.
In brief , I like to summarise as below
There should be no Income tax on pensioners
There should be no tax on interest earned on their PF, Gratuity and other terminal benefits
Pension /Family Pension should be updated from time to time
Legal proceedings should be stopped and money which is spent in courts should be saved in the larger interest of pensioners as also bankers and courts in India.
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