Income head

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Barots (Querist)
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21 July 2011 Widow is receiving pension from the employer of her deceased husband. Whether the income is to be shown as Income from Salary/Pension or Income from Other Sources (Family Pension). The employer has deducted tax and has issued form 16 in the name of widow.

Please advice and guide

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 July 2011 If the deceased was a government employee,pension received can be considered under 'Income from other sources' on which deduction under section 57 (2) of the Income tax Act,1961 can be claimed. In other cases, pension should be offered under the head 'income from salary'.

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Barots

Barots (Querist)
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21 July 2011 Thnk you sir for your valuable reply. The deceased was the employee of MTNL Maharashtra Telephone Nigam Ltd. So the income can be showed as Income from Other Sources. Am I right? The employer has deducted tax and has issued form 16. Then in IT return details of tax deducted should be shown under schedule of form 16 or form 16A. Please advice. The pension would be shown as Income from other sources.

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U S Sharma

U S Sharma (Expert)
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21 July 2011 when form 16 is issued, means the deceased was a regular employee, and question of form 16A does not arise.

follow the calculation of form 16, it looks right in first appearance.