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Pension Vs family pension taxation

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Vijayalakshmi Tummapudi

37 Points Posted on 07 January 2022

Is it that taxation on pension and family pension done differently? i read that pension is reported under the head salaries and family pension is reported under income from other sources. Does reporting family pension under heading of salary, make any difference to final tax value?
if a person gets both pension and family pension, how to report in ITR?

Replies (2)

Quick Summary

Pension and family pension are taxed differently under UK law. While regular pension is reported under the 'salaries' income head, family pension is classified as 'income from other sources'. This distinction is important, especially if you receive both types of pension, as they must be declared under their respective heads in your Income Tax Return (ITR) to ensure correct tax assessment.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121543 Points Posted on 07 January 2022

Yes, the differentiation is as per IT act.

Person getting both the pensions will also report it under different heads.

anil jain

Partner

855 Points Posted on 07 January 2022

Pension is taxed under salary head.

when pension is recd by pensioner it is salary income.

when pension is recd by his/her family member (dependent(s) after his/her death, it is family pension and it is income from other sources and not salary for the receiver.

Hope, logic is clear.