TAXATION OF EPF PENSION

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies the taxability of EPF pensions in the UK. Monthly pensions received after retirement are taxable under the 'salary' head, with a standard deduction of £50,000 available. Family pensions paid to widows and minor children are also taxable, with an exemption for amounts up to £5,000. All pensions, including those from EPF contributions previously eligible for 80C deductions, are considered taxable income.

Sowmya.S.Balan

Sowmya.S.Balan (Querist)
Follow

08 October 2020 1. IS MONTHLY PENSION RECEIVED FROM EMPLOYEES PROVIDENT FUND ORGANISATION AFTER RETIREMENT IS TAXABLE OR EXEMPTED ?
2. IN CASE OF DEATH OF EMPLOYEE PENSION RECEIVED FROM EMPLOYEES PROVIDENT FUND ORGANISATION TO WIDOW AND MINOR CHILD IS TAXABLE ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

08 October 2020 1 Taxable under salary head standard deduction of 50,000 can be claimed.
2 Taxable amount above 5000 which is exempt.
Pension received by dependent family member of the retired individual is known as family pension and it is considered as, ‘income from other sources’.

Sowmya.S.Balan

Sowmya.S.Balan (Querist)
Follow

09 October 2020 thank u sir. i have a doubt sir. EPF pension is paid out of the contribution made by employees in previous years. which is also allowed under 80C. then why it is taxable ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

09 October 2020 All pensions paid are taxable including it's paid directly from government. No differentiation can be made.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now