family pension deduction u/s 57(iia) of Income Tax Act

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This topic contains 1 reply, has 2 voices, and was last updated by Dr. Ashok Dhamija Dr. Ashok Dhamija 3 months ago.

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  • #5375

    Sir, if family pension is received monthly, then the deduction available for u/s 57(iia) is calculated monthly or for yearly lumpsum amount as there is no specific mention of whole year in the provision …???

    Thanks in advance.

  • #5380

    Section 57(ii-a) of the Income Tax Act allows the following deduction from the family pension:

    “(iia) in the case of income in the nature of family pension, a deduction of a sum equal to thirty-three and one-third per cent of such income or fifteen thousand rupees, whichever is less.”

    The total income in the year from family pension is calculated, and from it, a deduction of one-third of this income is allowed or a deduction of ₹ 15,000 is allowed, whichever is less.

    For example, if the total income in the year from family pension is ₹ 3 lakh, then its one-third is ₹ 1 lakh; in such a case, only ₹ 15,000 deduction will be allowed.

    But, if suppose the total income in the year from family pension is ₹ 30,000 only, then its one-third would be ₹ 10,000. Since this amount of ₹ 10,000 is less than ₹ 15,000, therefore, in such a case, only ₹ 10,000 would be allowed as deduction from the total amount of family pension.

    In brief, thus, deduction on family pension is computed on the basis of yearly total and not the monthly total.

         


    Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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