could anyone tell me whether deduction of Rs. 15000 or 1/3 which ever is lower, available on monthly basis or at the end of the year. family is receiving pension on monthly.?
thanks in advance.
THE PROVISIONS RELATING TO PENSION UNDER THE INCOME TAX ACT ARE UNDER
and.. to answer your question regarding the applicability of deduction of rs 15k, it is per annum
Pension
7.
-
Pension received from United Nation Organization by the employee of his family members
Fully Exempt
8.
Commuted Pension received by an employee of Central Government, State Government, Local Authority Employees and Statutory Corporation
Fully Exempt
9.
Commuted Pension received by other employees who also receive gratuity
1/3 of full value of commuted pension will be exempt from tax
10.
Commuted Pension received by other employees who do not receive any gratuity
1/2 of full value of commuted pension will be exempt from tax
11.
Family Pension received by the family members of Armed Forces
Fully Exempt
12.
Family pension received by family members in any other case
33.33% of Family Pension subject to maximum of Rs. 15,000 shall be exempt from tax
National Pension System (NPS)
15.
National Pension System
Any payment from the National Pension System Trust to an employee on closure of his account or on his opting out of the pension scheme referred to in section 80CCD, to the extent it does not exceed 40% of the total amount payable to him at the time of such closure or his opting out of the scheme.
regards
Arvind Venkat
CA-IPCC
CAclubindia
