Letter To PM: Exempt Pension From Income Tax

New Delhi: The Bharatiya Pensioners Manch (BPM) has urged Prime Minister Narendra Modi to exempt pension from income tax so that the country’s senior citizens get some financial relief.

The pensioners’ body argued that if pension of Members of Parliament and Members of Legislative Assemblies is not taxable, the Central government should not levy income tax on the pension of retired employees.

“Every retired person is paid pension as a superannuation fund for his/her livelihood on account of serving the nation for so many years,” BPM wrote in a letter to the Prime Minister.

“Now, the question is raised why the income tax is levied on pension (of retired employees). This is not an income for any service or work. If MPs and MLAs pension is not taxable, why our pension is taxed?” the letter stated.

The body had resolved in its first all-India conference, held three years ago, that pension should be exempted from income tax. Despite the issue being raised several times thereafter with the Finance minister, there has been no response from the ministry.

“Bharatiya Pensioners Manch urges you to kindly intervene in the matter and direct the Ministry of Finance to consider this long-pending genuine demand of pensioners. An early and immediate action with a line of reply to this organization will be highly appreciated,” BPM has written.

The pensioners’ body pointed out that it had written to the Finance minister on the issue thrice — on August 23, 2018; December 14, 2018; and February 25, 2021.

“We are sorry to say that nothing has been done so far in this regard,” the letter added.

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