Pensioners Tax Deduction: While presenting the budget, Nirmala Sitharaman has increased the tax exemption limit on family pension. The exemption on family pension has been increased from Rs 15000 per annum to Rs 25000.
Pensioners Tax Deduction: The Union Finance Minister has given a big relief to the taxpayers by increasing the limit of standard deduction. In the budget, the limit of standard deduction has been increased to Rs 75000 per annum under the New Tax Regime, which was earlier Rs 50000 per annum. Also, the tax slab has also been changed under the New Tax Regime. Apart from this, along with the big announcement in Budget 2024, another announcement has also been made for government pensioners.
While presenting the budget, Nirmala Sitharaman has increased the limit of tax exemption on family pension. It has been proposed to increase the exemption on family pension from Rs 15000 per annum to Rs 25000, which means that pensioners availing family pension on pension earnings can avail tax exemption of up to Rs 25000. Which is a big relief news for pensioners.
What is family pension?
The amount paid by the government for the entire life of a government employee after his retirement is called pension. Similarly, family pension is the pension that is given to the family of a government employee after his death in service. On the other hand, if a retired employee dies and he has received pension or allowance, then the government gives family pension.
Which member gets family pension?
As per government rules till 2004, family pension is given to the widow or widower of the deceased employee until he/she gets married again. If the deceased employee has no widow or widower, then it is given to the children dependent on that employee, who are below 25 years of age.
How much family pension is given?
As per pension rules, family pension is given at the rate of 30% of the basic salary of the government employee. But it cannot be less than ₹3500 per month. Family pension of an unmarried son is given till the age of 25 years or till he gets married or starts earning.
