Taxablity of life stage pension plan in hands of nri

This query is : Resolved

Yogesh Jain (Querist)
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20 September 2016 My client is a NRI, he has invested Rs. 10 Lakh via installment of Rs. 2 Lakh each in ICICI Prudential Life stage Pension Plan for five years, now after 7 years including those 5 years my client has received Rs. 1740877 from company and they have deducted TDS of Rs. 228932 @ 30.9% on Rs. 740877 u/s 195 .

Now I would like to ask that whether Rs. 740877 received from ICICI will be taxable as Interest Income or as a Pension in my client hand ? Also If it is taxable as pension than can my client avail the benefit of exemption of 1/3 or 1/2 portion of commuted pension of Rs. 740877 ? also if it is pension but my client does not have employer - employee relation with ICICI so whether it will be taxable under other sources ? Please suggest me the appropriate tax treatment of same.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 September 2016 The amount will be taxable under income from other sources. File return and avail slab benefits.

Yogesh Jain

Yogesh Jain (Querist)
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20 September 2016 Dear Sir,

Thanks for the Reply, but I want to know why cant I claim the benefit of commuted pension and avail 1/3 of Rs. 740877 as exempt as it is a pension plan ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 September 2016 Check the policy conditions.

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