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lic pension

chirag shetty (Article assistant) (56 Points)

03 July 2019

Chirag Shetty:
WHETHER LIC UNCOMMUTED PENSION WHETHET TAXABLE UNDER SALARY OR IFOS??????

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6 Replies

Amish Maknojia (Student) (507 Points)
Replied 03 July 2019

It should be taxable under Salary

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chirag shetty (Article assistant) (56 Points)
Replied 03 July 2019

i don't thik it is eligible for standard deduction as there are no past or present employer

prasad Nilugal ( GST Practitioner & Accounts ) (14868 Points)
Replied 03 July 2019

For Salary , It requires employer and employee relations , normally pension received form employer to employee after retirement . so what is your opinion ?.

chirag shetty (Article assistant) (56 Points)
Replied 03 July 2019

it is classified under past employers

RAJA P M ("Do the Right Thing...!!!") (128101 Points)
Replied 03 July 2019

LIC pension not under Salary Head...

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Suresh Thiyagarajan (Student) (3986 Points)
Replied 03 July 2019

1. Pension amount received from an employer or a former employer in relation to employment alone will be taxable under the head Salary.
2. Any other pension received will be taxable under the head Income from other sources (IOS).
3. In your case since pension was received (on a monthly basis) from a LIC the same will be subject to tax under IOS.
4. There could be a case where the LIC pension is in relation to employment and Employer during the course of employment has made such contribution set up under the act for the purpose of payment of pension to an employee after his/her retirement. In this case, the LIC pension will be taxable under the head Salary.
5. I am assuming LIC pension received by you is not in relation to employment hence it should be taxable under the head IOS.
Please correct me if the above solution has an alternative view.