explain me tax on family pension
ravi pratap sharma
(Querist) 09 October 2009
This query is : Resolved
My dad (Army Retd.)unfortunately died on feb09 and hence my mom started getting a family pension. I want to know about which ITR and the taxing, what benefits can be claimed, what if the 1 lac limit in s.80 is not claimed any other way like gift to her son, or daughter in law or grandson. what are other benifits if the annual income comes to 3lac including "income from other sources" eg interest, income from house rent etc.
A V Vishal
(Expert) 09 October 2009
Your mother has to file her return in ITR 1, under the Income Tax Act family pension gets a STANDARD DEDUCTION of 33.33% or Rs 15000 whichever is lower, since you have not mentioned her age it is difficult to answer the rest of the query, however, gifts to children or grandchildren donot qualify for any exemptions/deductions to her in her tax return.
tarun goyal
(Expert) 09 October 2009
i think it is treated as income from other sources. and as far as think there is no standard deduction now a days . kindly update.
A V Vishal
(Expert) 09 October 2009
Tarun
Go through S.57 of the Income Tax Act.
Deductions.
57. The income chargeable under the head Income from other sources shall be computed after making the following deductions, namely :
(i) ...................... ;
[(ia) .....................;]
(ii)...................... ;
[(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 ;]
ravi pratap sharma
(Querist) 10 October 2009
my second question still remains unanswered. i.e. what are other benefits if the annual income comes to 3lac including "income from other sources" e.g. interest, income from house rent etc.
A V Vishal
(Expert) 10 October 2009
For Income from House Property your mother can claim municipal tax payment, 30% as deduction from the Net Annual Value of the rental income and any interest and principal repayments on the housing loan, if any and further for interest receipts though there are no specific deductions any expenses incurred on collection of the interest can be claimed as an expense.
tarun goyal
(Expert) 11 October 2009
dear vishal, thanx for clarifying. i found myself wrong.
