Giving big relief to the taxpayers, the Union Finance Minister has increased the limit of standard deduction. In the budget, the limit of standard deduction has been increased to Rs 75,000 per year under the new tax regime, which was earlier Rs 50,000 per year. Besides, changes have also been made in the tax slab under the New Tax Regime. Apart from this, along with the big announcement in Budget 2024, another announcement has also been made for government pensioners.
While presenting the budget on Tuesday, Nirmala Sitharaman has increased the limit of tax exemption on family pension (Family Pension Tax Deduction). It has been proposed to increase the exemption on family pension from Rs 15,000 to Rs 25,000 annually, which means that pensioners availing family pension can avail tax exemption of up to Rs 25,000 on pension income. Which is a big relief news for pensioners.
What is family pension?
The amount that is paid by the government for the entire life of the government employees after they retire, is pension. Similarly, family pension is the pension which is given to the family of government employees after their death in service. Whereas if a retired employee dies and he has received pension or allowance, then the government gives family pension.
Which member gets family pension?
According to government rules till 2004, family pension is given to the widow or widower of the deceased employee, unless he or she remarries. If the deceased employee has no widow or widower, it is given to the dependent children of the employee who are below 25 years of age.
How much family pension is given?
According to pension rules, family pension is given at 30% of the basic salary of a government employee. But it cannot be less than ₹3500 per month. Family pension of an unmarried son is given till he attains the age of 25 years or till he gets married or starts earning.