I would like to share with you an important information regarding Family pension and Income Tax because near about 25% employee who earned Family pension income between or over taxable Limit and thus they are in confusion whether they pay tax or not. In this matter, look the following explanation:
- Family pension is not totally exempted. It is taxable under "Income from other Sources" head along with below deduction .
- Deduction under section 57 (iia) is allowed
- 1/3 of the Family Pension.
- Rs. 15,000.00
- No TDS Deductions u/s 192 because Family Pension is not a 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 ;]
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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