Taxability of Pension

Saurabh Aggarwal (Chartered Accountant) (371 Points)

09 June 2010  

One of my client who is a resident female assessee has received pension of Rs 150000 on behalf of his dead husband. 

She is a salaried class employed and in her form 16 his emplyer has given her deduction of 1/3 of pension i.e. 50000 asd has taken only 1,00,000 as her income u/h other sources and deducted tax at source accordingly.

Kindly tell me whether it is right or wrong because I am of a view that deduction should be given only for Rs. 15,000 u/s 57 as it is a case of Family Pension.

Kindly tell me the correct treatment along with the section.

Thanks & Regards

Saurabh Aggarwal