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Where to fill in pension income in itr2 utility

Anand (Others) (24 Points)

18 July 2014

I have downloaded ITR-2 tax utility for filling in the ITR offline. I require to fill in Income from Pension. However, the ITR-2 form only shows a tab for Schedule S (Details of income from Salary). This is obviously not the place to input income from Pension. Where do I fill in Pension income within this form? Thanks in advance!

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CA SONIYA AGARWAL (self practice) (3005 Points)
Replied 18 July 2014

pension income form part of salary as it arise out of retirement benefits

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Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 18 July 2014

pension is also a form of salary.... so you are reqd to fill detail of pension income under the head salary only.

Sathish M (Management Accountant) (40581 Points)
Replied 18 July 2014

Any family pension received would form part of Income from other sources. If the pension is received by you from your previous employer, it gets included within the definition of salary.

CA Vikas Agrawal (Practice) (363 Points)
Replied 19 July 2014

if received by employee than income from salary head and if by family

than under other sources with claiming deduction of 1/3 of pension or 15000/- whichever

is less.

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Dharmesh Lad (Service) (36 Points)
Replied 19 July 2014

Under head of salary source

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manoj (student) (5205 Points)
Replied 19 July 2014

But why ITR 2 if it is only Pension income den ITR 1 should be filled

Subrahmanyam (AAO) (37 Points)
Replied 20 July 2014

Agreed it is from salary in case of self and from other sources in case family pension. please clarify how 15000 or 1/3 whichever is less is come into picture - thank u in advance

CA Vikas Agrawal (Practice) (363 Points)
Replied 21 July 2014

PENSION

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Pension is a payment made by the employer after the retirement/ death of the employee as a reward for past services, following table gives a broad tax treatment of pension:-

Case	Particulars	Tax treatment
Case 1	Pension is received from UNO by the employee or his family members	It is not chargeable to tax
Case 2	Family pension received by the family members of armed forces (after the death of the employee)	It is exempt under section 10 (19) in some cases.
Case 3	Family pension received by the family members of other cases (after the death of the employee)	It is taxable in the hands of recipients under section 56 under the head “income from other sources”. Standard deduction is available under section 57 which is 1/3 of such pension or Rs. 15000, whichever is lower.
Case 4	Pension received by an employee (during his lifetime) in any other cases.	Tax treatment depends on whether Pension is Commuted or Uncommuted (Refer Below).

Uncommuted pension whether received by a Govt. or a Non Govt. employee is chargeable to tax in both cases
However Commuted pension in case of Govt. is fully EXEMPT from tax but in case of Non Govt. employee is exempt on following basis:

Situation	Tax Exemption available
If Gratuity is received	One-third of the pension, which he is normally entitled to receive, is exempt.
If Gratuity is not received	One-half of the pension which he is normally entitled to receive is exempt.

ILLUSTRATION

A retires from services of XYZ Ltd. on May 31, 2009. He gets pension of Rs. 15,000 per month up to December 31, 2009: (i.e. Rs. 15,000 × 7). With effect from January 1, 2010, he gets One Third of his pension commuted for Rs. 10,00,000 and is not in receipt of Gratuity.
While uncommuted pension is chargeable to tax, commuted pension is exempt from tax in the case of Government Employees. Therefore, pension of Rs. 10,00,000 is exempt from tax. The amount of uncommuted pension will be calculated as under:

Rs.

Uncommuted pension up to 105000

December 31, 2009 (i.e. Rs. 15000 × 7)

Uncommuted pension from January 1, 2010 30,000

to March 31, 2011 (i.e. 2/3 × 15,000 × 3)

Total Uncommuted pension chargeable to tax 1,35,000

as salary

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