Tds on family pension

TDS 1393 views 3 replies

Is it mandatory by IT Act, 1961 to deduct TDS on Family Pension ? If yes under which section ?

Replies (3)

Tds is not deductible on family pension because it is taxable under head of Incone from other source. only income which is taxable under salary  liable to TDS subjest to provision of section 192

Family pension is defined in Section 57 as a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of death. Pension and family pension are qualitatively different. The former is paid during the lifetime of the employee while the latter is paid on his death to surviving family members. However, in case of family pension, since there is no employer-employee relationship between the payer and the payee, therefore, it is taxed as ‘Income from Other Sources’ in the hands of the nominee(s). In respect of family pension, deduction u/s 57(iia) of Rs. 15000 or 1/3rd of the amount received, whichever is less, is available.

There is a Kerala High Court Judgement on TDS made on Family Pension

Deduction of Income Tax at source from family pension OP No. 3706/2003 filed by Shri. K. Madan Mohan and others before Hon'ble High Court of Keraia - A pdf file is attached for reference

@ Mr. Ramachandra Raju!

I am in search for a case law regarding this aspect. Thankyou very much for providing case law refernce.yes


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