Standard deduction for family pensioners

Family pension (received after the death of an employee) is NOT eligible for the Section 16(ia) standard deduction because it is taxable under “Income from Other Sources,” not “Salaries”.

Family pensioners are allowed a standard deduction under Section 57(iia)—which is one-third of the pension received or Rs.25,000, whichever is less.

Salary head

a Salary and/or a Pension =>> Rs. 75000 deduction

Income from Other Sources

Family Pension =>> minimum of (1/3rd family pension or Rs. 25000)

So, if he is receiving BOTH, then it will be Rs. 100,000 total as above

But as Dhirajlal sir explained, if only Family Pension is received, then it will be limited to 25000 only

Agreed, Just to add the pension received by pensioner after retirement is not FAMILY pension, but just pension. Here the query is for STD over FAMILY PENSION.

No. The two deductions cannot be combined for the same family pension. Section 16(ia) allows a standard deduction from salary income, including a pension taxable as salary. Family pension is taxable under “Income from other sources,” so the applicable deduction is under section 57(iia): one-third of the family pension or ₹15,000, whichever is lower (for the relevant regime and assessment year). The ₹75,000 standard deduction under section 16(ia) does not apply to family pension; the stated ₹25,000 limit under section 57(iia) is also not the general limit under the usual provisions.

For family-pension returns, first classify the receipt correctly: a pension received by the employee is generally salary, while pension received by a family member is generally family-pension income. The applicable section 57(iia) limit can depend on the assessment year and tax regime, so confirm those details before filing.

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Standard deduction for family pensioners:

• Family pension is taxable under Other Sources with a deduction of one-third or Rs 25,000 (new regime, from FY 2024-25), whichever is lower (Rs 15,000 under the old regime), under Sec 57(iia). The Rs 75,000 salary standard deduction doesn't apply to family pension.

• The "Rs 1 lakh" claim is true only if the person also receives their own pension (salary), getting Rs 75,000 on that plus up to Rs 25,000 on the family pension.