Pension

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2014 What shall be the tax treatment for the following case?

My client has received arrears of her father's pension(govt employee) from the date of his retirement till date of his death and also received a lump sum amount in respect of family pension from the date of her father's death to till date in the fy 13-14. Please tell whether rebate u/s 89 can be availed and if yes then how?

Rupesh Jain

Rupesh Jain (Expert)
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13 August 2014 it is exempt in hand of legal heir of pension of his father pension when he alive.

after when you received the family pension then its taxable under the "income from other sources" and calim deduction u/s 57 15000 or 1/3 which ever is less and then you can claim rebate u/s 87.

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Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2014 thanks sir but section 57 is applicable only in case of family pension. what about the ordinery pension which would had been taxable in the hands of his father but since he is no more then whether it should be taxed in hand of his daughter in normal manner and whether 89 can be claimed as on that also since it has been received as arrear or past years also??? kindly clarify

Rupesh Jain

Rupesh Jain (Expert)
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13 August 2014 his father (live) period pension will taxable in hand of her/his father due to return will file by legal heir of assess under the assesse pan with death certificate of assesse.

and after that pension will taxable under income form other sources as family pension.
pension recd after the expire of father will exempt in hand of legal heir due to he (father ) is no more and recd after the death.

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