Question
Is family pension taxable, and what deduction is available?
Answer
Bottom line: Family pension is taxable as "other sources", with a deduction of one-third or ₹15,000 (old regime) / ₹25,000 (new regime), whichever is lower.
1. Taxable head
Pension received by dependants is taxed under income from other sources.
2. Deduction (Section 57)
One-third of the pension or ₹15,000 under the old regime; the new regime allows ₹25,000.
3. Claim it
Take the deduction in your return.
Estimate the tax with our Income Tax Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.