AFVOA Newletters of Year 2008

Page 51 of 56 taken simultaneously in regard to Government's contribution towards enhanced subscription. Orders in regard to the payment of the second installment of arrears will be issued separately." 2. A number of representations have been received by Central Board of Direct Taxes (CBDT) seeking clarification as to whether TDS need to be deducted on 40% of arrear to be paid during 2008-09 or on the entire arrear payable to the government servant. The matter has been examined by the CBDT and the issue is clarified as under:- Salary is as defined under Section 15 of Income Tax Act, 1961:- (a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not; (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him; (c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year. 3. It is clear from the Office Memorandum issued by the Department of Expenditure that 60% of the pay arrears neither fall in the category of due nor are allowed. Moreover, Section 192 of Income Tax Act'61, inter alia, requires any person responsible for paying any income chargeable under the head "Salaries" to deduct income tax on the amount payable at the stipulated rate at the time of payment. Therefore it is clarified that income tax at source would be deducted u/s 192 only from the arrears of salary actually paid during FY 2008-09. On the balance, tax would be deducted during the financial year in which these pay arrears are actually paid. - o0o- 28. A tribute to Ex-Gunner Bachan Singh. This gem of a soldier (Africa Star / Burma Star / Defence of India Medal) who passed away on 15 Oct 2008, fought a long battle for his dues and received his pension arrears of about 60 years a few months back.. He got injured in North Africa, was treated in a Military Hospital in Cairo during WWII and then was medically boarded out in 1947. He was granted disability pension which was abruptly discontinued by the CDA in 1949 while holding that his disability had gone below 20%, this despite the fact that a duly constituted medical board by the Army had confirmed a disability of 30%. His pleas for a resurvey medical board fell on deaf ears. However, with the help of our distinguished veteran member, Lt Gen S Pattabhiraman (then GOC-in-C WC), his case was taken up with the PCDA(P) as well as the Govt for re-consideration. A thorough medical examination of this 95 year old soldier was carried out in 2005 at Command Hospital, Chandimandir. The Board opined that the disability was such that it could not have improved in any manner, and that it had remained constant / static all these years since 1949. Gen Pattabhiraman's help resulted in the sanctioning of his disability pension with arrears with effect from 1949, a historical landmark, and something which goes to show that the Govt had not been that insensitive as it is projected to be. Of course, the arrears were not much but still the spirit behind the gesture was symbolic, and the old fauji had something to look forward to, and a reason to thank the men in the olive green. The battle did not end there, the bank which was to release his arrears made him and his relatives visit the branch numerous times but kept delaying his payment on flimsy grounds. It took some tough talk by representatives of the Army who visited the branch to get the ball rolling.