Purpose:
This section provides a tax exemption on family pension received by the widow or children of a deceased member of the armed forces (Army, Navy, Air Force, or Paramilitary Forces).
Key Conditions for Exemption:
✅ Applicable to:
- Family pensionreceived by the widow, children, or dependent heirs of a deceased armed forces member.
- Only for armed forces personnel(not civilians or non-military government employees).
✅ Exemption Limit:
- ₹15,000 per month (₹1,80,000 per year)(as per the latest amendment).
- Amount exceeding ₹15,000/month is taxable.
Example 1: Family Pension Within Exemption Limit
- Recipient:Widow of an Army Havildar (non-commissioned officer).
- Family Pension Received:₹12,000/month.
- Pension Amount:₹12,000/month (₹1,44,000/year)
- Exempt Amount:₹12,000/month (fully exempt, as it is below ₹15,000/month)
- Taxable Income:₹0
Example 2: Family Pension Exceeding Exemption Limit
- Recipient:Son of a deceased Air Force Wing Commander.
- Family Pension Received:₹25,000/month.
- Exempt Amount:₹15,000/month (₹1,80,000/year)
- Taxable Amount:₹25,000 – ₹15,000 = ₹10,000/month (₹1,20,000/year taxable under “Income from Other Sources”)
Example 3: Civilian Government Employee (Not Covered)
- Recipient:Widow of a deceased Railway Officer (non-military).
- Family Pension Received:₹20,000/month.
- Taxable Income:₹20,000/month (fully taxable, as Section 10(19) applies only to armed forces).
