07 April 2019
Dear Sir / Madam, I am 65 years old and retired. My only sources of incomes are Bank FD, Post Office Savings, Senior Citizen Savings Scheme, LIC Pension as Annuity ( Superannuation Scheme ) and savings interest from my bank. My gross annual income for FY 2018-19 is slightly below 6.65 lakh. I have been filing my IT returns for past 24 yrs and all my IT returns have been assessed and I have received the refunds as may be the case.
I understand that for FY 2018-19 (AY2019-20) there is a new IT rule which allows retired senior citizen to claim standard deduction upto Rs 40000 for any LIC Pension received as annuity amount of pension received from a LIC superannuation scheme from their P&GS section.. I get Rs 32,760 per year, monthly LIC annuity as pension of of Rs 2730 directly into my saving bank account. My bank passbook shows all of the monthly entries for pension received.
No TDS is deducted by LIC. So uptill now I used to add this entire pension ( taxable ) into my gross income to compute tax as per tax slab for the year.
I request help and guidance on following 1. Is it correct that LIC superannuation scheme pension annuity paid by P&GS dept is eligible for standard deduction of Max Rs 40000 per year for FY 2018-19? 2. If yes, then how do I claim this standard deduction in my ITR2, should I use the "salaries" section and claim standard deduction? Is it allowed? 3. I have TAN number of the LIC P&GS section which is giving me this monthly pension directly into my savings account. 4. What other documents I need to have to make claim for this standard deduction while filing my ITR2 for AY 2019-20?
Kindly please guide me on how to claim the standard deduction. It will help me have additional Rs 2700 in hand instead of blocking in some tax saving instrument.
CAclubindia
