Income Tax on Pension

Is the exemption towards commuted value of pension (Section 10(10A)) applicable only in case of retirement or applicable even otherwise?

For e.g. if a person switches job and withdraws 1/3 of the pension provided by the old employer (and also received gratuity from the old employer) does the exemption still apply since the person has not actually retired

@Saad_C @Kaushal_Soni @Divya_Singhvi @Laxmi_Navlani @AkashJhaveri can you help with this?

Hi @vrrv101,

If you are eligible to get the commuted value of pension from your employer, you are eligible for the 1/3rd deduction (if gratuity is also received) or 1/2 deduction (if no gratuity is received).

There is no condition that you should be actually retired.

You can refer the below guide on taxation of pension for more details.

Hope it helps!

Thank you for the clarification.

I receive 2 family pensions as my husband first served in Indian Air Force and then again served as a civilian in Indian Air Force. Are my pension income taxable? As per the information I read on different websites, family pension for Armed Forced Is not taxable.

Hi @Urmila_Mishra

Income received by family members of the armed forces in the form of pension is exempt under section 10(19) of the Income Tax Act,1961.

However, you will have to report such income in your ITR under exempt income.

Hope this helps. :slight_smile:

What is “Expenses / Deductions (in case other than family pension) Expenses / Deductions” under Section 57 in ITR 2 ?

What proof we need for this one ? Do we need to carry forward this to future years ?

Hi, but where do we show in quicko for the expenses to be claimed under section 57 against the income from other source of income. thanks

where to claim expenses under section 57 against income from other source in Quicko ?

Hey @cma
Yes, we do support it in across Quicko’s product. The deduction u/s 57 is automatically calculated by Quicko as you enter the family pension income. You do not need to enter it manually.

cc: @Sreetama_Chakraborty