Pension

This query is : Resolved

Rajkumar (Querist)
Follow

10 May 2009 Mr. X works in a PSU wherein employees contribute every month towards a pension fund which is managed by the employees and is recognised by the PSU. Upon retirement, the amount due to an employee is deposited with LIC whereby Mr. X receives a fixed sum every month post retirement. Is this pension exempt from tax u/s 10(23AAB)?

sivasankar

sivasankar (Expert)
Follow

11 May 2009 Hi friend,
Section 10(23AAB)refers to the income of the fund in which Mr.X has invested and not the income of Mr.X.
Pension is always taxable in the hands of the receipient.
Hence kindly advise your clients to invest their money non pension fund ulips and get tax exempted money after retirement.