Are state government individual, family pensions exempted.

Are individual and family pensions given by state government are exempted from income tax? If a woman recieves both her pension and her deceased husband's pension. What exemptions are given?

Thank you.

Replies (10)

There is no Exemption for Pension. If it is above taxable limit for senior citizen then  you have to file return.

Thank you for the reply Shiroor.

So, no kinds of exemptions apply to pensions? What about family pension?

Anybody else who could give me information.

Any kinds of exemptions available for pensions apart from 3 lac rupees senior citizen exemption?

Well , there are two categories of pension :

1. Uncommuted pension (pension received in regular instalments )  this is FULLY TAXABLE for all kinds of employees .

2. Commuted pension ( lumpsum payment instead of paying in installment ) this is exempted in following manner based on the type of employee U/S 10(10A)

 (a)  Govt employees - FULLY EXEMPT

 (b)  Non-Government Employee :

if employee also receives gratuity – 1/3 of Commuted value of pension

if employee not receives gratuity – ½ of Commuted value of pension

Commuted value of pension = Pension received / % of pension commuted

If pension is partly commuted and partly uncommuted then each portion’s exemption is calculated accordingly.

Thanks for the information Ankit.

The pensioner receives her pension and her deceased husband's pension every month, so is this uncommuted pension? so she should pay income tax on both the pensions?

Family pension is taxable as income from other sources and a standard deduction of 1/3rd of pension or Rs 15,000 whichever is less is allowed.

YES , both the pension are uncommuted pension .

1 . her own pension is taxable U/H salaries - fully taxable 

2. her husband pension ( family pension ) taxable U/H income from other sources - and from this exemption of 33.33% or 150000 which ever is less is available U/S 57 

 

HOWEVER tax is payable  if total income exceeds basic exemtion limit . 

Thanks for the information Shiroor and Ankit.

So, the pensions are taxable and apart from the senior citizen exemption of 3 lacs, she does not have any other exemption and she has to pay income tax.

Yes above 3 lakhs pay tax

Thank you for the reply Shiroor.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
12 November 2026
Auditor

Oz Taxation

Vijayawada

Graduate (Any)

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
ARTICLESHIP 22 October 2026
Articleship intern

Srinath Manikanta

Hyderabad

CA Inter

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
28 October 2026
Assistant Director/ Associate Director-Finance & Accounting

Krea University

Chennai

CA

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details