Is pension amount taxable if total income exceeds exemption limit?
Ans: Taxability of pension income depends on various factors like whether it is received by government employees or non-government employees, whether it is family pension, whether it is lumpsum or commuted pension etc.
In case of family pension, Standard Deduction of Rs 15,000 or 1/3rd of the pension amount, whichever is lower, is available.
In case of gov employees, Commuted or lump sum pension is exempt from taxes.
Commuted or lump sum pension received by non-government employee is partially exempt depending on whether gratuity is also received by the person.
