Dear Mr. Hardik, I am retired and receiving superannuation from the annuity bought by my company. Is this amount quality as pension and if yes I am entitled for standard deduction?
Mahadeo
Ans: Dear Mahadeo,
Thank you for reaching out with your question. Yes, the superannuation received from the annuity purchased by your company is considered as pension income in India.
As for the standard deduction, as per the Income Tax Act, a standard deduction of Rs. 50,000 is allowed on pension income. This means that you can reduce your taxable income by Rs. 50,000, which in turn reduces your tax liability.
However, I would recommend consulting with a tax advisor or a chartered accountant to understand the specifics of your situation and ensure you're taking full advantage of any deductions or exemptions you're eligible for.
I hope this helps!
Best,
Hardik