Pension income

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DAVINDER SINGH (Querist)
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28 July 2012 Sir,

My mother receive Rs. 2.60 Lakhs pension per annum, can we less the standard deduction u/s 10 (16) as 30% with this or not.

Mohit Naithani

Mohit Naithani (Expert)
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28 July 2012 Its exempt upto 1/3 or 15000/- (Whichever is less) if pension recv by your mother on behalf of your father. And remaining amount is taxable under the head of Income From other sources.

But if this is her own pension then its fully taxable under the head of Income from Salary.

Uncommuted Pension is fully taxable for all employee (Govt or Pvt.) under sec 17(1)(ii).