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Wife pension is it taxable in the husbands hand

Rajasekaran (Manager Accounts) (33 Points)

07 March 2014

My sister was a government employee. during her pregnancy she passed away after delivering a male baby. Her husband is working in a PSU. His son is a minor. They are getting the pensiom. Is it taxable income in the hands of my sister's husband. Pl clarify with quotes if available

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6 Replies

Yash Nakipuria (Student CA ) (39 Points)
Replied 07 March 2014

Actually family pension is taxable under IOS & the assessee can claim a deduction of i) 15,000 or ii) 1/3rd of the amount of pension, whichever is lower.

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Manoj Mehta (Head Of Department (Accounts & Finance)) (1479 Points)
Replied 07 March 2014

Dear yash please clearify the sec of the deductions. I think the whole amount of pension will be treated as income of the assessee's husband and hence fully taxable. I am not sure about such deductions from pension. Please clearify yash about the same.

(Guest)

I agree with Yash. Family pension is granted to the family of a Govt. servant in the event of his death while in service.

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.

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