Monthly pension from LIC
ANIL KUMAR (B.Com) (61 Points)
10 July 2019
Is monthly pension received from LIC is exempt. If taxable under which head of Income ?
ANIL KUMAR (B.Com) (61 Points)
10 July 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 10 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.
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