Availability of Standard deduction on pension.
This query is : Resolved
08 July 2021
P&GS scheme pension as well as pension paid by employer is counted as salary income, hence std deduction can be claimed u/s 16(I). If for Jeevan Suraksha Pension scheme premium was paid by the employee (and not by the employer) while in service from his salary income, does the pension earned qualify for standard deduction? Also if employee himself pays premium after retirement towards this policy, he won't be able to claim it, am I right? Please give clear picture.
09 July 2021
Yes, you are right, it will not be counted as salary hence standard deduction not available.
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09 July 2021
Thank you sir, that answers my last part of the question. But If for Jeevan Suraksha Pension scheme premium was paid by the employee himself while in service from his salary income (and not by the employer) , does the pension earned qualify for standard deduction? We never get Form 16for P & GS pension and Jeevan Suraksha pension, still can it be shown as Salary/Pension income? Will the ITR form accept it without entry into relevant section for salary income where Form 16 entries automatically appear when uploaded by the issuer/employer?
09 July 2021
For Jeevan Suraksha Pension scheme standard deduction not available, ITR form will not accept it. Enter such pension under income from other sources.
09 July 2021
Thanks a lot, that clears all possible doubts! 👍🏻🙏🏻😀
10 July 2021
You are welcome. .
29 July 2021
Dear sir, Further to the query raised by me few days back, for which you promptly guided me with perfect advice, I need your help again in the following.
While in service with Air India, I joined Employees' Superannuation scheme started by the Company, corpus of which, was transferred post retirement, to L.I.C. P & G.S. Master Policy GSCA- 320198. The annuity being received monthly can be treated as Salary/Pension incom, thus qualifies for Standard Deduction to the extent received or Rs. 50000, whichever is less. This was already clarified by you sir. Now while filing ITR 2, (since I have LTCG), to get this standard deduction, I can show it as a salary /pension income. It is asking to fill Employer's name and particulars. Since I am getting the pension from L.I.C. and not Air India, what should I mention as my Source of pension, Air India or L.I.C.? Should I write L.I.C. P & G.S. Master Policy # GSCA-320198 in place of Employee or should I write Air India? L.I.C. does not issue Form 16, nor Air India has anything to do with it. TAN of L.I.C. is also not known, but since, there is no TDS, it need not be mentioned. Please let me know sir. Best regards,
Sunil Joshi
While in service with Air India, I joined Employees' Superannuation scheme started by the Company, corpus of which, was transferred post retirement, to L.I.C. P & G.S. Master Policy GSCA- 320198. The annuity being received monthly can be treated as Salary/Pension incom, thus qualifies for Standard Deduction to the extent received or Rs. 50000, whichever is less. This was already clarified by you sir. Now while filing ITR 2, (since I have LTCG), to get this standard deduction, I can show it as a salary /pension income. It is asking to fill Employer's name and particulars. Since I am getting the pension from L.I.C. and not Air India, what should I mention as my Source of pension, Air India or L.I.C.? Should I write L.I.C. P & G.S. Master Policy # GSCA-320198 in place of Employee or should I write Air India? L.I.C. does not issue Form 16, nor Air India has anything to do with it. TAN of L.I.C. is also not known, but since, there is no TDS, it need not be mentioned. Please let me know sir. Best regards,
Sunil Joshi
29 July 2021
Treat it as salary, emplyer details mention Air India as they only paid the amount to LIC which you are receiving the pension.
29 July 2021
Thaks a lot sir! Namaskar!
30 July 2021
You are welcome...........
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