Income tax liability regarding family pension
Usha Siddharthan
(Querist) 16 April 2012
This query is : Resolved
I am a widow and am 56 years old getting family pension. I get my pension as a sole beneficiary after the sudden death of my husband during his service. He was serving as Class I officer in Central Govt employment in civilian capacity. He passed away in May 2006. My pension per month comes to around Rs. 29000/-. I have no other source of income. My queries are:-
1. As a pensioner am I liable for paying income tax in the receipt of family pension?
2. Am I entitled to any deductions like medical expenses etc.?
3. Am I entitled to any standard deductions like other tax payers?
4. As I am staying alone in a rented premises, is the the rent paid is entitled to exemption from gross income?
Raj Kumar Makkad
(Expert) 16 April 2012
1. Yes.
2. Yes.
3. No.
4. Yes but as per rules.
Shonee Kapoor
(Expert) 16 April 2012
rightly stated by Ld. Makkad.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
C. P. CHUGH
(Expert) 16 April 2012
Income from Family Pension is taxabale as 'income from other sources' and is subject to a fixed deduction of 1/3rd of pension or Rs. 15000.00 which ever is lower u/s 57(iia) of the Act. You are also entitled to basic exemption of Rs. 1.90 lac in case you are less than 60 years old or Rs. 2.50 Lac if you are older than 60 yrs at any time during the year 2011-12.
2. Deduction on account of medical expenses is allowed under section 80D of the Act if you have secured a health insurance policy and is paying premium towards such mediclaim policy. The maxmium amount allowed is Rs. 15000.00 a year.
2A.In case you are suffering from certain notified diseases, you can also claim expense incurred on the treatment of such disease. The maximum amount allowed as deduction is Rs. 40000.00 per year u/s 80DDB of the Act.
3. No except as stated above and of course basic exemption limit.
4. Rent paid by you in excess of 10% of your total income is allowed as deduction u/s 80GG of the Act subject to maximum of Rs. 2000.00 per month or 25% of your total income which ever is lower.
C. P. CHUGH
(Expert) 16 April 2012
The exemption Limit under section 80DDB is Rs.60000.00 for senior citizens of the age of 60 yrs or above. It is also subject to reduction of any amount received under any insurance policy, if any.
prabhakar singh
(Expert) 17 April 2012
I am in absolute agreement with opinion expressed by Mr. Chugh.
VARUN MAHAJAN
(Expert) 19 April 2012
Mr C.P Chugh is correct but if your childrens are there you can claim deduction of there education expences.
any payment of housing loan installment if any taken is also subjected to deduction.
