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Correct way to show income from annuity in ITR

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Amit Kumar Das

32 Points Posted on 13 July 2026

Should annuity received from LICI be clubbed with interest incomes(FDs and savings bank) received from banks and shown as income from other sources in thr ITR or it should be separetely mentioned?

Replies (2)

Quick Summary

Determining the correct way to show annuity income in your Income Tax Return (ITR) depends on the type of annuity you receive. Annuities from employer-related superannuation funds may be taxed as salary or pension, aligning with your Form 16. However, annuities from life insurance policies or private schemes typically fall under 'income from other sources' and are taxed according to your income slab. Always verify how the income is reported in your AIS and Form 26AS before filing.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

212444 Points Posted on 13 July 2026

Declare it separately...

Thinking Bridge

Practical Finance Training

229 Points Posted on 13 July 2026

The treatment varies based on type of annuity you receive. If it is a Pension / superannuation annuity from your employer related superannuation fund, it may be taxed as Salary / Pension, depending on reporting in your form 16, AIS, and Form 26AS. If it is annuity from any life insurance policy, or any private annuity scheme then it may fall under “income from other sources” and tax will be applicable according to your income tax slab. Check: Before you file your income tax return: nature of the annuity you are getting; has payer issued form 16 or 16A; how the income reflects inAIS / Form 26AS. Reporting it under the appropriate head of income is essential.