It appears that private sector pensioners are unlikely to be able to claim the Rs 40,000 standard deduction tax break proposed in Budget 2018 unless the government issues a specific clarification to the contrary. Such private pension would be taxable as ‘Income from other sources’ and no standard deduction is available. To clarify, the standard deduction of Rs. Regarding pension from EPS or NPS he says: “Pension received only from employer is eligible for the benefit of deduction of Rs 40,000. As such standard deduction will not be applicable in case of pension received from NPS, opines Chandak.
Source: Economic Times March 13, 2018 04:52 UTC