I am a senior citizen getting pension from EPFO. Where to include this pension amount in ITR? If I include this in Salary category I will be counted as a professional employee and hence liable to pay advance tax (if tax amount is more than Rs. 10000/-). In order to avoid, can I include my pension income with other income? Is it a right way?
4 Answers
Hi,
EPS'95 pension is to be treated as salary and should be shown as income from salary however small / big the monthly amount is.
OK, I accept that pension income is taxable. Please confirm whether a senior citizen receiving pension only is liable to pay advance tax.
Hi,
I am assuming that this is 'uncommuted pension'.
Commuted pension means the lumpsum amount received and uncommuted means which is received in installments (like monthly).
Following is exempted from Commuted pension:
a) Govt employee - Fully exempted
b) Non governmental employees: 1/3 of the total pension.(If he also receives gratuity) or 2/3 of total pension(If he doesnt receive any gratuity).
Uncommuted pension is always taxable.
Dear Sir,
According to Section 207 of the Act, a resident senior citizen (an individual of age 60 years or more) who does not have any income from business or profession is not liable to pay advance tax.
For instance, a senior citizen may have various sources of income such as rental income, pension, interest from bank deposits, or dividends. She/he does not have to pay advance tax, as these sources of income do not fall under the income tax head of “income from business or profession”.
OK, I understood. But when we put pension income in Salary category of ITR form, I naturally doubt whether this income has been accounted as professional income. Is it so?
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