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 ;]
Hi,
ReplyDeleteI came to this page while looking for info about tds deduction on family pension. My relative is getting family pension which is under exemption limit. But he doesn't know if the bank is deducting any tds or not. He hasn't updated his PAN in the SBI account.
Looking at your post it seems like the bank should not be deducting any TDS as family pension is not "salary". But i am bit confused by the last part about deductions:
"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."
Please can you elaborate a little. Is the bank supposed to deduct this amount?
Thanks