14 July 2012
Hello Sir, one of my Lady client Received Pension on behaf of his late Husband, means she is nominee of His late Husband, Now Can there is any deduction Under which he claim a deduction on his husband Pension. She Received near 3,50,000 as a pension.
14 July 2012
It is taxable in the hands of recipients under section 56 under the head “income from other sources”. Standard deduction is available under section 57 which is 1/3 of such pension or Rs. 15000, whichever is lower. Notes: Assumed that Pension is not received by the member of armed forced. Pension is not received from UNO
14 July 2012
Tax treatment depends on whether Pension is Commuted or Uncommuted: Uncommuted pension whether received by a Govt. or a Non Govt. employee is chargeable to tax in both cases
However Commuted pension in case of Govt. is fully EXEMPT from tax but in case of Non Govt. employee is exempt on following basis: If Gratuity is received
One-third of the pension, which he is normally entitled to receive, is exempt.
If Gratuity is not received
One-half of the pension which he is normally entitled to receive is exempt.
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