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  • Category: Miscellaneous

    Pensioners should be exempted from paying tax

    Members,
    After many years of hard work, and sincere payment of taxes, a person retires with some pension for his future to lead a tension free life. But Government imposes tax to that pension amount which is half of the last salary drawn. Is it fair? I would suggest that collecting tax from the pensioners should be done away. Else they should collect only half tax from the pensioners.

    For example - The 5% slab should be reduced to 2.5 percent, and the 20% slab should be reduced to 10%.. This will be a great relief to the pensioners. Further, Senior Citizens drawing pension should be fully exempted from paying tax to the government.

    What do you say? Your views and comments please.
  • #644242
    The government is paying pension and taking tax. But what about old people who suffered all the way in their lives by working in private organisations and retired. These people will not get any pension. Only EPF pension of Rs.2500/-maximum they may get. So to carry on with their lives they will be working hard somewhere and earning money. Those people have to pay tax on that hard earned money in their old age also. In his entire life, he will be paying tax only but without getting any return from the government. As a matter of fact, the government will know him as a taxpayer only otherwise he is nonexistent. Is it not inhuman on the part of the government to collect tax on the small earnings of these old people who are earning through their hard work? I have my sympathies with such people who suffer more in their old age for making their lives and paying tax to the government. Really the government should think of such people and give some tax exemptions to them. There are people who demand and get everything from the government but there are people who are suffering a lot without any help from the society or the government.
    drrao
    always confident

  • #644245
    I personally feel that not only the pensioners but all the citizens whose income is less than 10 lakhs per year may be exempted from paying the income tax. There was a talk that income tax may be replaced with transaction tax at the time of the present government taking charge. The cost of living is increasing along with the increase in the income of the individuals. It is high time the limit may be enhanced to ten lakhs per year.
    " Be Good and Do Good "

  • #644252
    The idea of exempting the pensioners from paying income tax is welcome. However, income is income whether it is as salary or as pension. Government is taxing the income of an individual. There is a reduction in the taxable limit if one is a senior citizen. Again a further reduction is allowed if one attains 80 years. That means the tax is not collected from pensioners (majority of them will be senior citizens) at the same rate as that of working category.
    Again, there are several cases where the retired hands get a pension amount more than the salary they were drawing. Pay revision, DA revision etc. increase the pension amount. Personally I am getting more than ten thousand rupees monthly than the salary I was drawing. Of course, relaxation of tax from the income is always welcome.

    T.M.Sankaran
    Gold Member ISC

  • #644256
    Although it would be a good initiative on behalf of the government to let the pensioners be exempted from paying taxes but seems less possible. But at least we can draw a line wherein the financially weak can be withdrawn from the list while the load can be distributed among the financially heathier section or a group. This should provide the good justification for either of the side.

  • #644265
    I don't agree to this impractical demand. In fact, many pensioners lead their life more lavishly after retirement. Furthermore, the pensioners get more interest from various deposit schemes all over the country. I have seen many pensioners working (full-time/part-time) until they reach their seventies.

    Actually, if the people can settle their children properly, manage to have their own residence during their working days and invest their retirement benefits prudently, they will lead a better life after retirement. So, there should not be any exception to the rules for pensioners.

    Beware! I question everything and everybody.

  • #644270
    Mr. TM Sankaran,
    Just think about the time when you were drawing full salary, and the years you have spent after your retirement. And compare your pension with the present salary drawn by your counterparts in active service. Think about the escalation of prices of the commodities and the cost of living. The percentage of pensioners will be far less than the personnel in active service. Paying the pensioners won't affect the government. It is only a piece of halwa spent to feed the pensioners from the government fund. Hence I strongly recommend that the pensioners should be considered for concession or cancellation of tax This will be the gratitude shown by the government to its workers who worked sincerely till their old age.

    @Partha,
    There are many pensioners who suffer after their retirement. The percentage is comparatively more than the pensioners who enjoy their life. As suggested by a member, all pensioners drawing annual pension below 10 lakh should be exempted from tax. And this should be reviewed with the Pay commission, once in 10 years.

    No life without Sun

  • #644272
    I support the author as the PM and Finance minister as gone on record that the sincere tax payers would be taken care off. And seniors citizens are more sincere enough.
    K Mohan
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #644286
    It is a good thought that pensioners should be exempted for income tax as they are already hard pressed by the inflationary trends.

    Only thing is there are some pensioners who are having very good income from other sources also and they come in the highest slab of tax payers.

    So instead of exempting the pensioners it will be a good idea to exempt the pension part only whether it is a Govt pension or self contributory pension scheme or National Pension Scheme or annuity from insurance. That will be very helpful to those who are having only pension income.

    Knowledge is power.

  • #644311
    Members,
    My request is only to exempt the pension amount drawn by the pensioner from paying tax. If a pensioner is well off, and has many sources of income other than the pension, he/she should pay taxes for the other income.

    No life without Sun


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