Family Pension deduction under 57(iia) in new regime

Dear Experts

Is it correct that for FY 24-25 (AY 25-26) deduction under section 57(iia) under new regime for family pension is either 25000 or 1/3 of the total annual pension which ever is less.

Thank you in advance.

Regards

Replies (5)
Quick Summary
Query asks about family pension deduction u/s 57(iia) under new tax regime and whether it is Rs 25,000 or 1/3 of pension (whichever is less) for FY 2024-25. Discussion clarifies deduction limits differ by regime and year, with Rs 25,000 applicable under new regime and older limits under old regime.

Yes.

Under the new tax regime, for Financial Year 2025-26, a family pensioner can claim a standard deduction of ₹25,000 from their family pension income. This deduction was increased from the previous limit of ₹15,000, as announced in Budget 2025

Sir that means this is not applicable for FY 24-25 and only for FY 25-26 ?

Yes, that is true.     From FY 2025-26 onwards....           

1/3 OF Pension received or ( Rs.15000 in case of old regime,Rs.25000 in case of Default/new regime.) Which ever is less is applicable from FY 2024-25.

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.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 14 August 2026
Article Assistant

N J Suresh & Associates

Bengaluru

CA Inter

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
CA Articles

Kothari Jain Patil & Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details