Clarification regarding applicability of standard deduction to pension received from the former employer

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..... Clarification regarding applicability of standard deduction to pension received from the former employer
News and Press Release
Dated:- 5-4-2018

The Central Board of Direct Taxes (CBDT) .....

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..... has clarified that the pension received by a taxpayer from his former employer is taxable under the head "Salaries". The Finance Act, 2018 has amended Section 16 of the Income-tax Act, 1961("the Act") .....

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..... to provide that a taxpayer having income chargeable under the head "Salaries" shall be allowed a deduction of ₹ 40,000/- or the amount of salary, whichever is less, for computing his taxable in .....

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..... come. Accordingly, any taxpayer who is in receipt of pension from his former employer shall be entitled to claim a deduction of ₹ 40,000/- or the amount of pension, whichever is less, under Sect .....

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..... ion 16 of the Act. Earlier, the representations were received seeking clarification as to whether a taxpayer, who receives pension from his former employer, shall also be eligible to claim this dedu .....

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..... ction.
News - Press release - PIB .....

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