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Taxability of Lumpsum Pension amount after death

Edukondalu Pericherla (5 Points)

06 July 2018

Could you please let me know whether lumpsum family pension received by legal heir I.e wife is taxable or exempt ?

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3 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166449 Points)
Replied 06 July 2018

Lump sum ex gratia payment made, to the widow or other legal heirs of an employee, who dies while still in active service, will not be taxable as income under the Income-tax Act, 1961.

Refer: Circular/573/21081990.

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Edukondalu Pericherla (5 Points)
Replied 06 July 2018

Thanks for your reply.

In this case assessee was died on 21/12/2015 and lumpsum payment of pension of 5,20,000 (21/12/2015 to 30/04/2017) made to legal heir I.e wife on 11/05/2017 and also she is receiving monthly family pension from 01/05/ 2017 regularly which is taxable u/s 57(iii).

I would like to know whether above lumpsum payment is taxable or exempt.

Thanks in Advance.