Pension received from epf

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 March 2013 What is the taxability of the monthly Pension received by the family from EPF after the death of the employee? Will section 57(iia) be applicable in this case also?

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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19 July 2013 In case the pention is commuted then it is covered by section 10(10A)(i) Any payment in commutation 193 of pension received under the Civil Pensions (Commutation) Rules of the Central Government or under any similar scheme applicable to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the defence services or the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority 194 ] or a corporation established by a Central, State or Provincial Act;

(ii) Any payment in commutation of pension received under any scheme of any other employer, to the extent it does not exceed - (a) In a case where the employee receives any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive, and

(b) In any other case, the commuted value of one-half of such pension, such commuted value being determined having regard to the age of the recipient, the state of his health, the rate of interest and officially recognised tables of mortality :

(iii) Any payment in commutation of pension received from a fund under clause (23AAB);

Deductions.
57. The income chargeable under the head Income from other sources shall be computed after making the following deductions, namely :
(i) in the case of dividends, 41[other than dividends referred to in section 115O,] 42[or interest on securities], any reasonable sum paid by way of commission or remuneration to a banker or any other person for the purpose of realising such dividend 43[or interest] on behalf of the assessee ;
44[(ia) in the case of income of the nature referred to in sub-clause (x) of clause (24) of section 2 which is chargeable to income-tax under the head Income from other sources, deductions, so far as may be, in accordance with the provisions of clause (va) of sub-section (1) of section 36 ;]
(ii) in the case of income of the nature referred to in clauses (ii) and (iii) of sub-section (2) of section 56, deductions, so far as may be, in accordance with the provisions of sub-clause (ii) of clause (a) and clause (c) of section 30, section 31 and 45[sub-sections (1) 46[***] and (2)] of section 32 and subject to the provisions of 47[section 38] ;