My Mother has been receiving Pension. My father was in Army and he expired a year ago. This is the first time I am filing the pension for my mother. There were some settlement due to the 7th pay commission. Now do I have to calculate the income tax for the whole amount of income that was done during the last financial year? Also She has received some bank interests where there was no TDS deducted from the interest amount. Also I have another question, can she claim HRA since we are still living in the rented apartment.
1 Answers
Hi,
Yes, family pension is a taxable income. Also, interest on bank deposits is a taxable income.
HRA - she can not claim as she is not receiving it. However, you can have a look at Section 80GG.
The Tax Deduction amount under 80GG is Rs 60,000 per annum. Section 80GG is applicable for all those individuals who do not own a residential house & do not receive HRA (House Rent Allowance).
The extent of tax deduction will be limited to the least amount of the following;
- Rent paid minus 10 percent the adjusted total income.
- Rs 5,000 per month.
- 25 % of the total income.
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