Family pension is taxed under other sources, not salary.
Family pension is taxed under other sources, not salary. The deduction is the lower of one-third of family pension or ₹15,000 in the old regime; the monetary ceiling is ₹25,000 under the default regime.
Operational-duty family pension for specified armed/paramilitary deaths can be exempt. The recipient does not claim the salary standard deduction on family pension.
Identify regular versus family pension; test specific exemption; compute one-third; apply regime ceiling; add other income and TDS.
Family pension ₹90,000 gives one-third ₹30,000. Deduction is ₹25,000 under the default regime and ₹15,000 under the old regime.
The example is an illustration, not a substitute for the taxpayer's facts. A change in status, period, payment mode, document, city, asset, relationship or scheme can change the result.
Search pages often state a rate or limit without identifying the governing base. The calculation must distinguish gross receipt from taxable profit, tax from TDS, a deduction from an exemption, salary from business income, and an accounting entry from the tax treatment.
| Decision point | Required treatment |
|---|---|
| Legal year | Use the Act, rules and notification effective for the income or transaction period |
| Taxpayer category | Confirm residence, age, entity, employee/business status and regime |
| Calculation base | Use the statutory definition rather than CTC, net bank receipt or accounting label |
| Ceiling or rate | Apply actual-amount, percentage, shared, lifetime and gross-income limits in sequence |
| Documentation | Link every input to an invoice, statement, contract, certificate or official record |
| Final output | Show tax, surcharge, cess, interest and TDS/TCS credits separately |
This page is written around the entities and concepts search engines expect for the topic: pension, commuted pension, family pension, standard deduction, section 194P. They are used only where relevant and are connected to the live calculator and knowledge hub rather than repeated mechanically.
See the broader Income Tax & Salary knowledge hub for related rules and calculators on this topic.
Family pension is taxed under other sources, not salary. The deduction is the lower of one-third of family pension or ₹15,000 in the old regime; the monetary ceiling is ₹25,000 under the default regime.
Finin2min rule: establish eligibility, calculate transparently, and preserve an audit trail.
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