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(Registered under the Trade Unions Act 1926, Registration No: 3427/Delhi)
State Bank of Buildings, St. Mark’s Road, Bangalore – 560 001
2. We have to day once again taken up the issue with the Finance Ministry
Government of India and also IBA on the issue of exemption of amount
contributed towards 2nd option on Pension out of arrears of salary and
allowances and 56% of the P.F. amount by the retirees. A copy of our
communication is annexed.
With greetings
(G.D.NADAF)
GENERAL SECRETARY
No./1452/120/11
17.02.2011
To,
The Chairman,
The Indian Banks’ Association,
World Trade Centre Complex,
Centre 1, 6th Floor, Cuffe Parade,
MUMBAI – 400 005.
Dear Sir,
9TH BIPARTITE SETTLEMENT
2ND OPTION ON PENSION CONTRIBUTION TOWARDS PENSION
CORPUS FUND BY CPF OPTEES
6. It may please be noted that the Pension amount paid out of the
corpus fund is always taxable in the respective years.
10. We once again request you to take-up the issue with the concerned at
your earliest convenience and provide the necessary relief to the
employees.
Thanking you,
Yours faithfully,
(G.D.NADAF)
GENERAL SECRETARY
No.1410/121/11 17.02.2011
To,
Sri. Pranab Kumar Mukherjee,
Hon’ble Finance Minister,
Government of India,
South Block, Parliament House,
New Delhi.
Respected Sir,
9TH BIPARTITE SETTLEMENT AND ANOTHER OPTION ON PENSION
FOR BANK EMPLOYEES
CONTRIBUTION TOWARDS PENSION CORPUS FUND BY CPF OPTEES
5. Since the amount retained towards the Pension Corpus is not paid to
the employees, the question of tax deduction at source does not arise in
respect of withheld amount for the Pension Corpus.
7. It may please be noted that the monthly Pension amount paid out of
the Corpus fund is always taxable in the respective years.
8. The Income Tax Law provides that the contributions made by the
employees towards the superannuation benefits such as Provident Fund,
Pension Fund etc. are eligible for tax exemption, as these are treated as
Investments in the eligible securities for all practical purposes. Thus, the
money contributed to the Pension Fund Corpus either 2.8 times of Revised
Basic Pay as at 01.11.2007 in case of existing employees or 56% of Bank’s
contribution to PF in respect of retired employees or families of employees
who died during the period should be exempted from the payment of
Income Tax or should be allowed as deduction from the total income
received by way of Pensionary benefits, as the case may be.
Thanking you,
Yours faithfully,
(G.D.NADAF)
GENERAL SECRETARY