Is MP and MLA pension taxable?

In the case of MPs, the amount received as constituency allowance and in the cases of MLAs, such allowance is exempt from tax from the A.Y. Hence, salary and allowances received by them cannot be taxed under the head ‘salary’, but are taxable under the head ‘income from other sources’.

Is MP pension taxable in India?

The bottom-line is MPs pay tax only their basic salary, period while the salaried class is granted exemption for allowances grudgingly and insultingly, so to speak. If there are three MPs or ex-MPs in a family, the ‘family pension’ is Rs 60,000 per month.

Why are some pensions not taxable?

However, the IRS makes an exception to this tax if the person must take distributions because they are totally and permanently disabled, or if the distributions are made as “part of a series of substantially equal periodic payments” once the person leaves their job.

Why is my pension taxed?

Why is my pension taxed? You may be puzzled that you have to pay income tax on most of the money taken from your pension. The reason for this is that your pension is not like a bank account – you don’t yet ‘own’ all that money, but rather it is being held for you by the pension scheme.

Is pension taxed as income?

Pensions. Most pensions are funded with pretax income, and that means the full amount of your pension income would be taxable when you receive the funds. Payments from private and government pensions are usually taxable at your ordinary income rate, assuming you made no after-tax contributions to the plan.

Is tax deducted from pension?

Uncommuted pension or any periodical payment of pension is fully taxable as salary. In the above case, Rs 9,000 received by you is fully taxable. For a government employee, commuted pension is fully exempt. For a non-government employee, it is partially exempt.

What are non taxable income in India?

Under Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income tax. However, for individuals and HUFs, an agricultural income of more than Rs. 5000 is added to the total income.