07 August 2010
What should be the treatment of monthly pension received by the widow of the deceased govt employee? The employer has deducted tds on the amount of pension remitted and has issued form 16 in the name of the widow. Whether the amount received should be shown as part of salary (as form 16 is received in the name of widow) or tthe same should be shown as "Income from other sources" as family pension?
07 August 2010
It shall be treated as Family Pension in the hands of widow. Deduction u/s 57 @ 33.33% of such pension subject to max 15000 shall be available
07 August 2010
It shall be treated as family pension and chargeable under the head other source of income.
Allowable deduction is 1/3rd of the pension or Rs. 15,000/- whichever is lower. Taxability subject to threshold limit and slabs of tax applicable to concerned individual.
TDS deducted can be utilised to meet tax liability or may be claimed as refund depending upon the case facts.
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