Pensing income taxable or not?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2014 Dear expert,

My father was working in pvt co. and now he getting pension of Rs.756*12 = Total 9072

I want file IT return with present profession income,
should I add pension as income, I mean pension is taxable or not?
Thanks in advance.

Rupesh Jain

Rupesh Jain (Expert)
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07 July 2014 pension income will taxable as salary .

file ITR-1.

CA Parul Saxena online

CA Parul Saxena online

(Expert)
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07 July 2014 Yes pension income is to be taxed as salary

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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2014 But i need to refund TDS u/s 194J, so i have to file ITR-4, Right?

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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10 August 2024 Yes, pension income is taxable, and you need to consider it when filing your income tax return. Here’s how you should handle it:

### **1. Taxability of Pension Income:**

- **Pension as Income:** Pension received by an individual is taxable under the head "Income from Salary" as per the Income Tax Act, 1961. This is considered as a form of salary and is subject to tax.

- **Exemptions and Deductions:**
- **Pension Amount:** In the case of a private pension, there are no specific exemptions; the entire amount is taxable.
- **Standard Deduction:** You can claim a standard deduction of ₹50,000 on salary income, which includes pension.

### **2. Filing Your Income Tax Return:**

- **ITR Form Selection:**
- **ITR-1 (Sahaj):** If you have only pension income and income from other sources like interest and if your total income does not exceed ₹50 lakh, you should ideally file ITR-1.
- **ITR-4:** This form is used for individuals who have income from a profession or business, and it is not typically required for individuals who only have pension and interest income.

- **TDS Refund under Section 194J:**
- **Section 194J:** This section pertains to TDS on professional fees, and if you have received TDS under this section, it needs to be reported in your return to claim a refund.
- **ITR-4:** This form is for individuals who are carrying out a profession or business, and you would use this form if you have additional income from a profession or business.

### **Steps to File Your Return:**

1. **Determine Income Sources:**
- Include pension income under the salary section.
- Add any other income you may have, such as from profession or business, if applicable.

2. **Select the Correct ITR Form:**
- **ITR-1:** Suitable if your total income includes salary (pension), interest income, and other income sources but does not involve business or profession.
- **ITR-4:** Use this if you have income from a profession or business.

3. **Fill Out the Return:**
- Report pension income under the "Salary" section.
- Report any TDS on professional fees (if applicable) in the "Tax Paid and Verification" section.
- Claim a refund for the excess TDS deducted by providing the correct details in your return.

4. **File Your Return:**
- E-file your return through the Income Tax e-filing portal.
- Ensure you provide accurate details and claim all eligible deductions and exemptions.

### **Summary:**

- **Pension Income:** Yes, it is taxable and should be included in your income while filing your return.
- **ITR Form:** Use ITR-1 if you have only pension and other income sources and no profession or business income. Use ITR-4 if you are also engaged in a profession or business.
- **Claim Refund:** Report TDS under the appropriate section to claim a refund if TDS has been deducted and you are entitled to a refund.

If you have any doubts or complex scenarios, it’s always a good idea to consult with a tax professional or accountant to ensure that you are filing correctly and claiming any eligible refunds.