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Pension is Taxable or not

Piyush Agrawal (Pursuing CA & CS Final & Doing Practice of Tax Consultants ) (45 Points)

15 August 2019

One of my client is widow her husband was working in naval dockyard during the duty her husband expired and now she is receiving pension per month so whether it is taxable or not and while filing the income tax returns which ITR to be select

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177754 Points)
Replied 15 August 2019

In general Family pension is taxable... but ...

it is exempted from income tax only for those pensioners who are in receipt of Disability element of pension, Gallantry awards and Liberalised Family Pension (LFP) for death in notified operations.

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sundhar jkn (205 Points)
Replied 15 August 2019

This is called family pension. it should be taxed under the head income from other sources and deduction will be allowed for the same. Quantum of deduction will be (1/3 of pension or 15,000) whichever is less.

praveen (intermediate) (303 Points)
Replied 16 August 2019

yes it's taxable but m agree with opinion of Mr dhirajlal Sir you can claim 15000 deduction or 1/3 which ever is less

Suresh Thiyagarajan (Student) (3986 Points)
Replied 16 August 2019

1. Two sections exempt family pension as a whole. Sec 10(18) and sec 10(19).
2. Sec 10(18) exempts family pension received by a member of a family of an individual who had been awarded gallantry award as the CG notify in this behalf.
3. Sec 10(19) exempts family pension received by a widow or children of an individual who served in armed forces, where the death of such individual is during the course of carrying out his duty under such circumstances specified by the CG.
4. If your situation is covered under either one of the above two sections, family pension received by the widow will be fully exempt from payment of tax.
5. However, if it is not covered then it will be subject to tax under Income from Other Sources (IOS) and deductions to the extent of Rs. 15,000 or 1/3rd of the family pension received during the year, whichever is lower, will be allowed.
Please correct me if the above solution has an alternative view.

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