Taxability of family pension

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Family pensions are taxable under 'income from other sources'. The key question is whether to declare it on a receipt or due basis. This depends on your regular accounting method. If you use the mercantile system, it's taxed on the due basis, while the cash system means it's taxed on receipt. You can also claim a deduction of Rs. 15,000 or one-third of the pension received, whichever is less.

Puneet Jain

Puneet Jain (Querist)
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14 April 2020 i want to know whether the family pension is taxable on receipt or due basis . remember the pension is received from treasury and there is no form filed by them regarding this.

RAJA P M

RAJA P M (Expert)
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15 April 2020 Yes... The peanuts taxable. You can take it as receipt basis.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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16 April 2020 It may also be useful to note that from family pension so received , deduction u/s 57(iia) of Rs. 15000 or 1/3rd of the amount received, whichever is less, is available.

Puneet Jain

Puneet Jain (Querist)
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16 April 2020 can i tax family pension on due basis

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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16 April 2020 Family pension taxable under income from other sources on accrual or due basis not on receipt basis

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 April 2020 Family pension is to be computed in accordance with the method of accounting regularly employed by you. Hence, if you followed mercantile system in earlier year's , then income will be computed on due basis in rest of the year's.. If you followed cash system in earlier year's, then family pension should be computed on receipt basis in the next following year's.

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