Pension are generally of 2 types - Commuted (Lumpsum) Pension or Uncommuted (Monthly) Pension.
Uncommuted Pension is taxable by the employee under the head salary doesnt matter who the employer is. And if the pension is received by family members the same is taxable as IFOS.
Commuted or Lumpsum pension is taxable in the same manner. However, it is exempt if received by a govt. employee.
Further, Pension received by a family member is taxed under income from other sources. If this pension is commuted or is a lump sum payment it is not taxable. Uncommuted pension received by a family member is exempt to a certain extent. Rs 15,000 or 1/3rd of the uncommuted pension received -whichever is less is exempt from tax.
This would be simply taxable under the Head Salary and Taxable Normally. No Deduction available for such Uncommuted pension received by Employee Himself.
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