Hello,
My mother is family pensioner and receives pension after my father's demise. I understand that family pension goes under the head of 'Income from other sources' and also elligible for deduction of Rs. 15000 or 1/3rd of amount whichever is lesser.
However, the pension provider (ICICI Prudential) sent this pension as salary and issued form 16. Also, the same has been reflecting in Form 26AS under section 192. The TDS deducted is zero as pension amount is well below taxable limit.
Que1: Is this correct on pension provider's side to consider family pension as salary (form 16) or should it have been more appropriate to treat this as income from other sources and issue form 16A? So it also gets reflected in form 26AS under section 194A??
Que2: Now while filing ITR1, for reporting purpose, which schedule to be used under 'Tax Details' tab - TDS1 (tax deducted from salary) or TDS2 (tax deducted from income other than salary)?
CAclubindia
