sona1 (MANAGER) (352 Points)
23 December 2021Note that I receive pension from EPFO(Employees Provident Fund Organisation) Rs. 1128.00 PER MONTH which has started in the Financial Year 2020-21 .
please guide me urgent basis in the whether this income is exempt form tax U/Ds 80 C or is it a taxable income on this matter by referring income tax provisions
If Pension Income is Taxable Income then which is the process it is show in the computation sheet for the Assessment Year 2021-22.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160663 Points)
Replied 23 December 2021
As per the provisions of Income tax Act, 1961 (Act), uncommuted pension is fully taxable.
Where the individual receives pension income from the fund to which contributions are made by employer, in case of ITR 2, under the salary schedule, the individual has to report the name, address and tax deduction and collection account number (TAN) (mandatory only if tax is withheld on pension) of the employer/LIC/any other fund. Also, the individual will have to select 'pensioners' as a category in the field for nature of employment in the salary schedule.
CAclubindia
