Clarification regarding applicability of standard deduction to pension received from the former employer
The Central Board of Direct Taxes (CBDT) has clarified that the pension received by a taxpayer from his former employer is taxable under the head “Salaries”. The Finance Act, 2018 has amended Section 16 of the Income–tax Act, 1961 (“the Act”) to provide that a taxpayer having income chargeable under the head “Salaries” shall be allowed a deduction of Rs 40,000/- or the amount of salary, whichever is less, for computing his taxable income. Accordingly, any taxpayer who is in receipt of pension from his former employer shall be entitled to claim a deduction of Rs 40,000/- or the amount of pension, whichever is less, under Section 16 of the Act.
Earlier, the representations were received seeking clarification as to whether a taxpayer, who receives pension from his former employer, shall also be eligible to claim this deduction.
Dear sir,
I retired from a private company after 35 years of service, but my employer do not provide pension. So I invested in pension funds / schemes of HDFC SLIC / LIC, and am getting pension income chargeable to income tax from them. Will I get the Standard Deduction of Rs 50,000?
Thanking you,
I retired from a private company after 23 years of service, but am not eligible for pension for some reason.
So I invested in pension funds / schemes of HDFC SLIC / LIC, and am getting pension income chargeable to income tax from them.
Will I get the Standard Deduction of Rs 40,000?
I’ve retired as a bank employee in the middle of 2018-2019 and getting pension from bank after commutation. Now my question is that whether should i claim Rs. 40000/- twice (one from income salary & other is from income other source) as Standard Deduction at the time of filling IT return of 2018-2019 FY?
I am a retired bank officer. On 28.2.15 I retired from Bank service. I get monthly pension from Bank. At the time of retirement, I commuted pension. Also I get annuity after retirement from LIC under scheme Jeevan Suraksha. This was also commuted before starting to get annuity. My query is whether I am eligible to claim standard deduction
of Rs.40000/- while filing IT return for FY 2018-19 under section 16(ia) ?
Sir,I was employed with a private firm at Bangalore.I get Pension under EPF,1975 thro PF office monthly. (Rs.8760/-p.a)
I also get Super annuation gratuity thro LIC of India monthly. (Rs 36120/-p.a) This total of Rs 44880 has
been shown under”Income from Salaries” and ITO
has been clearing my returns.
Now under the new rules, can I claim Standard deduction ? Please clarify. I am 73 yrs old.