As the family and employer of the deceased person doesn't have an emplyer employee relationship, it cannot be treated as Salary in the hands of the family who receives the pension. Hence, it shall be charged under the residual head " Income from other sources"
".... (iia) in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or fifteen thousand rupees, whichever is less.
Explanation.—For the purposes of this clause, "family pension" means a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of his death ;"
Hence, standard deduction of Rs.15000 or 1/3rd of pension received shall be allowed.
Hope this clarified. Sir, correct this if my view is not tenable.