Income Tax

Ashok Kumar Sharma (Querist) 17 October 2010 This query is : Resolved
Dear Sir,

Recently wage revision for Bank Employees has been finalised and another pension option has been offered for which existing PF optees have contributed 2.8 times of their revised Pay for the month of Nov, 2007. This amount has been kept by the Banks with them but I-Tax thereon is being charged/paid. Sir, when payment of such amount has not been made to employees, why TDS is being deducted. Is it right as per rules? Mr. Azim Khan has commented as:

"T.D.S. is generally deducted at the time of payment or credit, whichever is earlier."

But in this case neither payment nor credit has been given to the employee and the funds have been directly credited to Pension Fund Account maintained by the Trust.

Pl comment.

Thanks.

Follow Query

Report Abuse