Family Pension

Family Pension – Family pension is the pension received by the family members of a deceased employee or pensioner. It is usually granted to the spouse or dependent children as a source of financial support after the death of the original pension holder. For income tax purposes, family pension is taxable under the head “Income from Other Sources”, but a standard deduction of ₹15,000 (or as prescribed in the Income Tax Act) is allowed while computing taxable income. The Assessment Year (AY) is the year in which the income earned in the previous Financial Year (FY) is assessed and taxed.

Example: Family pension received during FY 2022–23 is assessed and taxed in AY 2023–24