Hey,
If you are a pensioner about to withdraw your contribution, you must think about ‘how to claim pension tax relief’. It will help you reach your end goal of getting the most out of your pension claim. Keep reading to know details about the same.
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Can I claim tax relief on employer pension contributions?
According to the rules and regulations shared by the Income Tax department and Pension Fund Regulatory and Development Authority i.e. NPS (National Pension Scheme) , pensioners are allowed to claim tax relief from employers to an extent.
Can I claim tax relief on pension contributions?
As an employee, you are eligible for a tax deduction of up to 10% of your salary (Basic + DA). If your employer contribution to your pension is more than Rs. 1.50 lakh provided under section 80 CCE and Section 80 CCD(2). Then, you will get a tax deduction of 14%.
Whereas, uncommuted pension or any periodical payment of pension is fully taxable as salary. Commuted pension gets certain exemptions. Government employees can claim pension tax relief of 100%.
You will need to file a return if your annual pension income exceeds Rs 2.5 lakh. For senior citizens, the limit to file annual pension income is Rs 3 lakh. For citizens above the age of 80, the limit has been set at Rs 5 lakh.
This is all from my end on how to claim pension tax relief.
Read more :
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Authors Of The Question
How to claim pension tax relief ?
Kalpana
120Views
2 Year
2022-10-11T20:35:56+00:00 2022-10-11T20:35:58+00:00Comment
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