When Pension Income is not Taxable under Income Tax Act ?
In following cases Pension income is exempt :
i) Pension received by an individual who has been in the service of the Central Government or State Government and has been awarded “Param Vir Chakra” or “Maha Vir Chakra” or “Vir Chakra” or such other gallantry award as the Central Government may, by notification in the Official Gazette, specify in this behalf;(
family pension received by any member of the family of such individual is also exempt) [ Section 10(18) Income Tax Act ]
ii) Family pension received by the widow or children or nominated heirs, as the case may be, of a member of the armed forces (including para-military forces) of the Union, where the death of such member has occurred in the course of operational duties, in such circumstances and subject to such conditions, as may be prescribed in Rule 2BBA of Income Tax Rule [ Section 10(19) Income Tax Act ]
iii) Pension received from the United Nations Organisation is exempt.