Hindu Succession Act doesn’t have any Sec 57

SC Vasudeva

This refers to a query on division of family pension published in The Tribune dated August 13, 2018. Retired government employees are entitled to ‘family pension’ for their spouse after their death. As per Pension Rules 1972, this family pension is applicable to the spouse only and no other member of the family. On the death of the family pensioner, the pension generally lapses, except in certain cases, where one leaves some members of the family, below some financial income limits, or in case someone with a disability. How would you reconcile this with the contention of Section 57 of the Hindu Succession Act? — PS Bedi

It seems you have misunderstood reference to Section 57 of the Act as that of the Hindu Succession Act, 1956. I had referred to Section 57 of the Income-tax Act 1961 (The Act) which defines the words “family pension”. My reply was, therefore, based on a literal interpretation of the provisions of Section 57 of the Act. In case the family pension lapses, the issue of receipt of such pension would not arise. There would be no taxability in such a case. The issue should be looked into from the perspective of receipt of pension by the deceased's legal heirs where it is so permitted. If it is not as per terms of service, there would no question of its taxability. I may add that the Hindu Succession Act, 1956, does not have any Section 57 as it contains only 31 sections.

I am a senior citizen and retired pensioner having Rs 10 lakh pension and bank interest income and deposits of Rs 1.5 lakh in PPF. I have wrongly submitted 15H to the bank. Now, they are denying to withdraw it. Please advise what should I do. — Dolly Moga 

The submission of form 15H inadvertently by you will not make any difference as the bank will deduct tax at source in respect of the interest income. In case the form has been filed with the Commissioner of Income-tax by the bank and the Commissioner initiates any action against you on account of the submission of form 15H containing incorrect information, you will have to plead that the form was filed inadvertently and there was a bona fide mistake which did not lead to any concealment of income or non-payment of tax.

My daughter and son-in-law are green card holders. They are residing in the US for three years. They had opened their PPF account in the capacity of resident Indian and contributed towards PPF for many years before going to the USA. As per your advice in one of your previous replies on the issue, provison introduced w.e.f October 3, 2017, the amendment has been held in abeyance. Are my daughter and son-in-law eligible to continue the contribution of PPF till such time rules are amended by a notification. — CV Joshi

You can approach the bank/post office and in case they accept the deposit on the basis of the office memorandum referred to in my reply to a query published on 13.08.2018, your daughter and son-in-law can continue with operation of the account.