Family Pension –Tax Treatment

 Family Pension –Tax Treatment

	Rs.
Family pension Received	XXX
Less: Deduction 1.Rs.15,000 (or) 2.1/3 of pension Whichever is less	XXX
Taxabl e Pension	XXX

 

Problem :

From the following calculate Income from other sources.

	Rs.
a)Dividend from an Indian Company	10,000
b)University Remuneration	8,000
c)Royalty for writing books(He Claims to have spent Rs.20,000 for writing the book)	80,000
d)Dividend from foreign company	12,000
e) Interim dividend	6,000
f)Family Pension	48,000

 

 Solution

	Rs.
a)Dividend from an Indian Company	10,000
b)University Remuneration	8,000
c)Royalty for writing books(He Claims to have spent Rs.20,000 for writing the book) (80,000-20,000)	60,000
d)Dividend from foreign company	12,000
e) Interim dividend	6,000
f)Family Pension                           48,000 Less: Rs.15,000           1/3 x48,000= Rs.16,000       15,000	33,000
INCOME FROM OTHER SOURCE	1,29,000