Income Tax on Family Pension
Is Family pension taxed as salary income?
No, it is taxable as income from other sources.
As per Section 57 of Income Tax Act :-The income chargeable under the head “Income from other sources” shall be computed after making the following deductions, namely :
—–
(ii)(a) In the case of income in the nature of family pension, a deduction of a sum
i)Equal to thirty-three and one-third per cent of such income or
ii)Rs 15000,
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 ;