So, there is no deduction available from pension income?
Not exactly. Family pension received by the family members of the deceased employee is charged to tax under section 56 of the I T Act as income from other source. However, under section 57(iia) standard deduction is available to the extent of 33.33 % or RS 15000 whichever is less. The said provision is as under:(iia) in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or fifteen thousand rupees, whichever is less. Explanation.For the purposes of this clause, family pension means a regular monthly amount payable by the employer to a person belonging to the family of an employee in the event of his death ; You may like to read these postings also! Why Is Pension Fund Investment Not A Great Tax Saving Move? Is Salary or Pension Received By Employees Of United Nations Tax Free?
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