Thanks Dr Dhamija for your reply. The contention is that as per section 192 the family pension is not treated as salary but is treated as income from other sources and the paying banker is not to deduct any TDS. It is mentioned that the assessee is allowed a standard deduction of 1/3rd of pension subject to a maximum of Rs 15000.00. But if the receipent is in receipt of such income which is more than exemption limit TDS should have been deducted or in the alternative should advise the family pensioner to calculate at his or end and deposit tax with the govt. There may be numerous such cases and would have skipped to pay the amount to national exchequer.
