Assessee is receiving pension on behalf of the deceased spouse who was working in RBI on monthly basis.
How will this pension income be treated as per the income tax act.
Will it be Fully exempt as pension is from the central government body.
Thanks & Regards
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Pension Taxabity
Replies (1)
Hi,
Pension received by family members of deceased employee is taxable as family pension under section 56 of the Income-tax Act, 1961 (the Act). Further as per Section 57 of the Act, standard deduction in case of family pension is available amounting to the lower of : -
i.) One-Third of Pension or
ii.) INR 15,000
Separately, family pension received by widow/children/nominee after death of members of armed forces of India including para-milatary forces during the performance of their operational duties is fully exempt under section 10(19) of the Act.
Accordingly, unless covered by the above exemption in the present case pension received by spouse of deceased person is exigible to tax on the pension income after deduction as computed above under the head Income from other sources.
Further, family pension is taxable whether or not the pension is from a government body.
Hope the above clarifies.
Pension received by family members of deceased employee is taxable as family pension under section 56 of the Income-tax Act, 1961 (the Act). Further as per Section 57 of the Act, standard deduction in case of family pension is available amounting to the lower of : -
i.) One-Third of Pension or
ii.) INR 15,000
Separately, family pension received by widow/children/nominee after death of members of armed forces of India including para-milatary forces during the performance of their operational duties is fully exempt under section 10(19) of the Act.
Accordingly, unless covered by the above exemption in the present case pension received by spouse of deceased person is exigible to tax on the pension income after deduction as computed above under the head Income from other sources.
Further, family pension is taxable whether or not the pension is from a government body.
Hope the above clarifies.
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