You are here
Monthly Pension Received by legal heir on employee's death taxable under Income from Other Sources
Monthly Pension
Pension is normally received on retirement, by employee himself.This pension is taxable under Income from Salaries
However It may also be received on death of employee by the legal heir This pension is taxable under Income from Other Sources
Standard deduction is also available in this case of
1/3 of Pension
Rs 5000
which ever is less
Summary
| Monthly Pension Received | |
| By Employee | By Legal Heir |
| It is normally received on Retirement | It is normally received on Death |
| It is taxable under Income from Salaries | It is taxable as Income from Other Sources |
| No Standard Deduction under Income from Salaries | Standard Deduction available of lower of |
| (a) 1/3 of Pension | |
| (b) Rs 15000 | |
Note:-
(1) Only monthly pension covered here, Lump sum ex-gratia payment paid to legal heirs on death not covered here, it is Exempt
