sanju (Accountant) (348 Points)
01 December 2011Freinds,
Family pension received by legal heirs is taxable under sec.56. and deduction is available under sec.57 i.e Rs.15000/- or 1/3rd of such pension whichever is lower. if pension is commuted thyen what is the tax treatment in the hands of legal heirs? THAnks in advance freinds.
Z
( )
(2965 Points)
Replied 12 December 2011
Explanation of that section specifically mentioned that for the purpose of this clause family pension shall be that pension which is receiveable on regular monthly basis
sec 80 CCD is applicable on non govt. employee also
(all figs in rupees)
Suppose the person opt for commutation and say for eg the commuted value of pension be 100,020 and suppose pension was 1500 Rupees. Suppose he commutes 1000 (out of 1500)
Now exempted pension will be
(if not receving gratuity)
1/3 X 1500 / 1000 X 100,020 = 50,010
(if receving gratuity)
1/2 X 1500/1000 x 100,020 = 75,015
(According to sec 80 CCE Maximum deduction which cab be availed in sec 80C,80CCC or 80CCD individually or in aggregate is 100,000)
michaelK
(NA)
(46 Points)
Replied 12 December 2011
nice explation by mr.z keep it up ...i having some more explation but i dont think its needed here commercial vehicle loans
CAclubindia
