Tax Consultant
1489 Points
Posted on 10 July 2026
Good news for family pensioners under the new tax regime.
Section 57(iia) deduction on family pension IS AVAILABLE under the new tax regime. This was specifically preserved when the new regime was updated.
How it works: The standard deduction under Section 57(iia) allows a deduction of one-third of the family pension received, subject to a maximum of Rs 25,000 per year.
From AY 2026-27 (Budget 2024 update): The maximum limit was enhanced to Rs 25,000 (increased from Rs 15,000). The deduction is for family members receiving pension from a deceased employee, not the original employee's own pension.
For regular (own) pension: Salaried standard deduction of Rs 75,000 applies under the new regime.
For family pension (pension received by dependents after the employee's death): Section 57(iia) deduction applies, maximum Rs 25,000.
Both these deductions appear in the ITR form. For family pension, report the gross family pension under Schedule OS (Income from Other Sources), and claim the 57(iia) deduction below it.
This [income tax on pension guide for AY 2026-27](https://taxgarden.in/blog/income-tax-on-pension-india-ay-2026-27-commuted-uncommuted-family) covers own pension, commuted pension, and family pension with all applicable deductions.