Sir,                                                                                               22/03/11

 

As regards my pension query: At Banking Industry level It was declared by IBA that banks do not have enough funds to pay to the new pensioners.(How surprising the Banking industry as a whole has made tremendous profits since last so may years but for pension payment they do not have funds). As a result a via media was found out that if the gap in the pension fund is met out by Banks @70% and by employees @30% then this scheme of offering second pension option becomes viable.

 

I am refering to this 30% which every employee contributed to meet the gap in the pension fund.To take an actual case the details are as under.

Banks contribution received by employee                              Rs.10,21,858

Add: 56% of above(

(employees’ share to meet gap in pension funds                    Rs.572240

less commutation                                                               RS.714089

less Pension arrears payable                                               Rs.274008

 

Net amount to be paid by employee                         Rs.606001

 

From the above data my question is whether Rs.274008 by way of pension arrears can be claimed as an exemption as it is adjusted against the purchase amount.

 

with regards

RHR MUMBAI