Pension received by husband after wife death

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

15 February 2013 My client has received Rs.2,60,000/-in form of pension on behalf of his wife after her death.He is even having business income & bank interest income Rs.4,50,000/-. What will be the tax implications.Is pension taxable in the hands of Wife.Please clarify this issue.

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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15 February 2013 it is taxable in the hands of your Client i.e husband

as per the provision 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 less