Pension of ex-Govt employees to be net of Income Tax – BPS
No BPS/ SG/pension/I.Tax/018/1
Dated: 23.11.2018
To
The Arun jaitley ji
Honorable Cabinet Minister for Finance
Government of India
Subject: Pension of ex-Govt employees to be net of Income Tax
Sir,
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
With Regards
Sincerely yours,
S.C.Maheshwari
Secy Genl Bharat Pensioners Samaj
DA/Vth CPC report on Income tax on Salaries & Pensions
Vinod Kumar Mishra/Pandit Tol Tabhka says
One active action in the matter is required and it must be taken before the Parliamentary Election-2018?
Narsaiah Muta. says
Thanks Maheshwari, for thinking and acting on welfare of the pensioners. Govt. Should accept the proposal.
Sharma S K says
Just HOLLOW comments carry no weight, MAY pensioners come forward to support (TAN MAN DHAN SE) the unparallel efforts of SH S C Maheshwari ji
For the third time I hereby offer most humble support of just 500/- for the endours of BPS under the flagship great SCM ji. The amount of 500/- will be deposited in BPS A?C from my pension of NOV 2018.
SHARMA SK
Ex E.In.C. Min of Communications
Dr A V Rao says
Commendable for working for pensioners welfare.Maheswariji. God bless you.
Parthasarathy says
Exemption of income tax for the pension is a long time demand of all pensioners. However Bharat union Gen.Secretary should ask govt tht why only 70% implementationof 7cpc in most of Autonomous Bodies. Why employees and pensioners these institutions should suffer. They have denied arrears also.Employee Union should question this injustice.
A.C. Basu says
I agree with M.C. Kapoor’s observation. It is certainly injustice as per natural law. All pensioners must get grade pay as per their pay scale even a single pensioner is authorised to draw grade pay irrespective of court order.
Old age pension % should start from 65 years of age instead of 80 years.
Sir, you are humbly requested to spare your valuable time to take up these issues.
Thanks
P S MANI says
Sir,
Ex-employee’s pension and family pensioner pension should not be taxed.
R.L.Fotedar says
A goos step taken.Should be continued to force Govt.
M.C.Kapoor says
Thank you very much Maheshwari Ji for taking up these types of matters with the Govt. God bless you sir.
An other matter of very Senior Pensioners is that the Group B Gazetted Officers who were retried before 01/01/2006 and were in the pay scale of 6500-10500 were allowed Grade pay 4200 at par with their subordinates who were in the pay scale of 5000-8000 & 5500-9000. These group B Gazetted Officers were not entitled for yearly bonus payment whereas the remaining subordinate staff was getting yearly Bonus. The working employees who were in the same pay scale of 6500-10500 as on 01/01/2006 were allowed Grade pay 4600 and the Pensioners were denied this benefit. Some of the Pensioners had won their case in different CAT/lover courts and the have allowed Grade pay 4600 to those Pensioners who had won their case and rest of the Pensioners have been ignored which is against the natural justice and Hon’ble Supreme Court judgements. Will you kindly spare some time for these Senior Pensioners and take up this matter with Govt. Thank you very much sir
M.C.Kapoor
Mob.No 9868210170.