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Pension From LIC

CA Sumit Arora (CA) (1411 Points)

19 November 2009

Whether Pension Received from LIC is Taxable or Non Taxable. If yes then under which section it is taxable?

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20 Replies

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 19 November 2009

If its the pension recd on expiry of policy..., than taxability depends on policy

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UMAKANTH (Student) (64 Points)
Replied 19 November 2009

The pension received from LIC is taxable under Income from Other sources.

This being a family pension, deduction of Rs.15000 per annum or 33 1/3 % which is lower is

eligible as standard deduction

UMAKANTH (Student) (64 Points)
Replied 19 November 2009

section is 57

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9060 Points)
Replied 19 November 2009

its taxable

praveen (Chartered Accountant) (6971 Points)
Replied 19 November 2009

I suppose this question is raised due to the question given in PCC taxation paper.

As per LIC India website. Any amount paid to Jeevan Suraksha Scheme is fully exempt u/s 80CCC

Hence pension received on it is taxable.

In case if the pension is commuted then it is exempted u/s 10(10A)

So I think it is taxable

Here is the link

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CA Nitin Wadhwani (Chartered Accountant) (4469 Points)
Replied 19 November 2009

It's taxable without any deduction (Family Pension deduction cited above is not available.)

CA Sumit Arora (CA) (1411 Points)
Replied 19 November 2009

Dear in the Same manner we availed the deduction under section 80C payment to lic for life insurance but at the the time of Receiving ,the Balance is fully exempted.

CA Sumit Arora (CA) (1411 Points)
Replied 19 November 2009

Dear Praveen the pension is exempted under section 10(10A) when the relation of payer and payee is employer and employee. This is not for other pensions.