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MSC1 (Director)     21 July 2011

Tax on Pension

Hi, my mother is getting pension from a lifeinsurance company   (the policy was not cvered u/s 10 10D ) as well as she also getting a Retirement Pension from govt. 

govt pension is aroung Rs.288000.00 (PA)

and Insurance pension is Rs. 15000.00(PA)

and she also has some mutual fund long term income around Rs.500000.00 and she also received Dividend around .20000.00 and she has a ULIP policy which she sold after 3 year and got some amount 300000.00 (premium was Rs.100000 PA)

She also amde some transactions in IPO with a profit of Rs.20000.00

I want to file her return, can any expert help me, what would be the tax laibilities for her 

Regards

Mohan C 

Director MSC1

 

 



Learning

 3 Replies

SIDHES JENA (CEO- Jena & Company www.jenasworld.com)     25 July 2011

 

If the pension is un-commuted, it will be always taxable.

 

If the pension is un commuted- in case of govt. employees, it is exempt but your case it is taxable

 

Dividend received from an Indian Co. is not taxable. But if received from a foreign co. , u will have to pay taxes

 Whatever you earn from IPO that is also taxable 

dhiraj aggarwal (TAXPOINT (Director) 9829551008)     20 September 2011

Pension income from Govt & LIC are taxable.

Mutual fund long term gain is exempt u/s 10(23D)

Dividend from domestic co. is exempt u/s 10 (34)

ULIP surrender value after three year exempt u/s 10 (10D)

IPO income should be either STCG or LTCG, if LTCG then exempt u/s 10(38) o/w taxable u/s 111A

Sachin Agarwal (Propritor)     22 September 2011

Dear MSC!,     

                          Mr. Dhiraj Agarwal is correct. if you want to more discussion on this matter. you can write me email. my email id is sachinagarwalcallb@gmail.com

 

Thanks 

Sachin Agarwal CA LLB 

+91 9910822027


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