Tuesday, March 6, 2012

Tax on Family Pension


Family pension is not totally exempted. It is taxable under "Income from other Sources" head alongwith below deduction .

Deduction under section 57 (iia) is allowed
  • 1/3 of the Family Pension.
  • Rs. 15,000.00
(least of the above)

(No tds u/s 192 (due to non salary) )

As per income tax act, detail is given as under:-

10[(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 11[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 ;]

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