Income tax on pension

- Yes it is taxable under the head salary. If the amount of pension is more than Rs.3,00,000, TDS is to be deducted. Plz check ur form 26AS.

Dear Sir,

Hope you are doing well !!

Pension received by an individual from his former employer is taxable as salary income and therefore will be reported under the head 'Income from Salaries' in the ITR.

Taxability in case of salary income:
Pension received can either be uncommuted or commuted pension. Uncommuted pension refers to periodic payments received by the individual while commuted pension means a lump sum payment received by the individual upfront in lieu of the periodic pension.

As per the provisions of Income tax Act, 1961 (Act), uncommuted pension is fully taxable. On the other hand, there is tax exemption which can be availed in respect of the commuted pension to the extent of the limits prescribed and subject to specified conditions.

LIC/any other approved fund may pay pension to an individual from the funds contributed by the employer. Commuted pension received from such fund is exempt whereas uncommuted pension from such fund is taxable under the head 'Income from Salaries'.

Hello,

Yes, it would be taxable under the Salary head.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Hi

Yes it is taxable.  It will be taxable under the head salary. 

Pension in all formats is taxable.

Hi

Yes it is also taxable.

Yes, it is still taxable.

Yes, it would be taxable.

I don't think it was a life insurance policy and in that case the tax would be paid by showing it under income from other sources.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Yes, pension will be taxable under the head other sources.

Yes, it will still be taxable.

Dear Sir,

LIC maturity amount comes under section 10(10D) of income tax Act. All payments from LIC by way of money back, claim settlement or maturity are not taxable.

Thanks and Regards

Shiv Kumar Agarwal

Generally, uncommutted pension (monthly/annual) received from pension funds are taxable. 

However, exceptionally, if your policy gives you a tax exemption, it would be written in your policy docs. So refer your policy docs before reaching any conclusion.

Section 10(10D) covers life insurance policies and not policies issued by life insurance corporation there is difference between both of them.

Sec 10(10D) benefit is not available for pension plan payout. Hence this pension will be taxable.

Hi

As per my understanding it is not covered under section 10 (10D) but if there is any way for that we need  go through your policy document.

Hi

As per my understanding it is not covered under section 10 (10D) but if there is any way for that we need  go through your policy document.

For Sec. 10(10D) exemption the payout must not be an annuity or pension plan payout.

Please share the policy document with us for appropriate advise.