Pension received by wife of railway employee

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A widow receiving a railway employee's pension and bank FD interest needs to understand UK income tax rules. While pensions are generally taxed as salary, a family pension received by a beneficiary can be treated under 'Income from Other Sources'. A specific deduction of one-third of the pension amount or £15,000 (whichever is less) is available under Section 57(iia) of the Income Tax Act.

jagdish ahuja

jagdish ahuja (Querist)
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23 March 2021 my aunt is receiving a pension amount of rs 17000 every month since last few years
how should this be treated as in income tax rules pls guide thanks
she is a senior citizen and also getting interest from FDs of banks pls guide as to how
the income tax should be filed

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 March 2021 Pension should be treated as salary received.
If the pension income and fd interest income exceed 4 lacs file ITR.
Senior citizen income exempt 3 lacs and standard deduction 50,000 and interest income exempt 50,000.

jagdish ahuja

jagdish ahuja (Querist)
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23 March 2021 sir she is a widow of the deceased employee - sorry

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 March 2021 Pension received by a family member is taxed under income from other sources

jagdish ahuja

jagdish ahuja (Querist)
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23 March 2021 Sir is there any deduction/exemption for the pension received by me as family member? Thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 March 2021 Beneficiaries of family pension will get a deduction of 1/3 of the amount of family pension received, or Rs 15,000, whichever is less, admissible as per section 57(iia) of the Income Tax Act and has to be mentioned in the last row under “Income from Other Sources” section to get the benefit.

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