Pension

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This query is : Resolved

RAJEEVA S L (Querist)

30 August 2012 If received the pension form LIC on Pension plan insurance, is it exemption or taxable?

give the legal provision with section reference

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

30 August 2012 Pension In Case of Salaried Employee is exmpted provided some condition, Not LIC pension.

Praveen Kumar Rathi

Praveen Kumar Rathi (Expert)

01 September 2012 where it is mentioned that pension from salary is exempt.

Pension is always taxable.

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

01 September 2012 Pension Received from LICLumps
Sum Pension -Lumps sum Recd is tax free upto one third (1/3) of the
commuted value. (Suppose Fund generated is Rs 600000/- out of this 2,00,000/-
can be taken without attracting any tax liablility).Excess lumps sum withdrawal
will be taxed under the head " Income From other Sources"
Annuity or Periodical Pension- will be taxed under the head "Income From other
Sources"

CA Ayush Agarwal

CA Ayush Agarwal (Expert)

01 September 2012 Income from Pension Annuity is covered by TDS provisions u/s 192.
There is no TDS provision for payment of family pension.
Banks paying pension on behalf of govt. is the person responsible for payment & hence is liable to comply with the TDS provisions & will be penalized in case of default. In case of pension amounts received by non-governmental persons, the company is responsible for TDS, failing which penalty as well as penal interest would be levied on them.
Pensioners can submit proofs for deduction u/s 80C, 80 D etc, & even entitled to relief u/s 89 (in case of arrears) to avoid TDS & are entitled to receive Form 16 from banks in case of tax deduction.
There is no provision to give declarations by pensioners like 15 G /H to avoid TDS.

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