Tax on Family Pension

Friends

Family pension is not totally exempted. It is taxable under "Income from other Sources" head alongwith below deduction .

Deduction under section 57 (iia) is allowed

• 1/3 of the Family Pension.
• Rs. 15,000.00

(least of the above)

(No tds u/s 192 (due to non 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 ;]