What are the tax implications of family pension?
Pension is an employee’s retirement benefit in the form of monthly income. If this income is passed on dependent family members after an employee’s death, it is called a family pension.
Family Pensions to Dependent Nominees Family pension payments are taxed under the head "Income From Other Sources" in their Income Tax filings. Family pension exemptions on uncommuted pensions are set to a maximum of ₹15,000 or a third of the pension received – whichever is lower.