Family pension is the amount received by the spouse or dependent family members after the death of a government employee or other eligible individual. It is intended to provide financial support to the family after the passing of the primary earner.
For tax purposes, family pension is taxable under the head "Income from Other Sources" in your tax return.
A standard deduction is available on family pension income, calculated as the lower of:
One-third of the pension received, or
₹25,000 (or ₹15,000 under the old tax regime)
This deduction helps reduce your taxable income and overall tax liability.
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