How to Report Family Pension Income in myITreturn.com?

Family pension is the pension received by a family member or eligible heir after the death of an employee. It should not be confused with pension received by an employee after retirement.

For income-tax purposes, pension received by an employee is generally taxable under the head “Salaries”, whereas family pension received after the employee's death is generally taxable under “Income from Other Sources.”

myITreturn provides a separate Family Pension section where you can report normal taxable family pension as well as certain categories of family pension that may qualify for exemption.

Tax treatment of Family Pension for AY 2026-27

In the case of ordinary taxable family pension, a deduction is available under Section 57(iia) of the Income-tax Act, 1961.

Certain Family Pensions may be exempt

Not every family pension is taxable. Certain categories of family pension may qualify for exemption where the prescribed legal conditions are satisfied.

1. Family pension relating to certain Armed Forces personnel

Family pension received by the widow, children or nominated heirs of a member of the Armed Forces, including specified para-military forces, may be exempt where the member's death occurred in the course of qualifying operational duties and the prescribed conditions are satisfied.

This exemption is provided under Section 10(19) of the Income-tax Act, 1961.

2. Family pension relating to specified Gallantry Award recipients

Pension received by certain Central or State Government employees who were awarded specified gallantry awards is exempt subject to the applicable conditions. The exemption may also extend to eligible family pension received by their family members.

This is covered under Section 10(18) of the Income-tax Act, 1961.

How to add Family Pension in myITreturn

Step 1: Open the Family Pension section

Log in to your myITreturn account and select the relevant member for whom the Income Tax Return is being prepared.

From the top menu, go to:

Income → Other Income → Other Source - Family Pension

This will open the Family Pension screen.

Step 2: Select the appropriate type of Family Pension

The Family Pension screen provides separate fields depending on the nature of pension received.

Pension received on behalf of a deceased Armed Forces member

Enter the amount in this field where you are receiving family pension relating to an Armed Forces member and the pension qualifies for the applicable exemption.

The exemption is subject to the statutory conditions, including the nature and circumstances of the operational-duty death.

Pension relating to a Central/State Government Gallantry Award recipient 

Use this field where the family pension relates to an eligible Central or State Government employee who was awarded a specified gallantry award, including:

• Param Vir Chakra
• Maha Vir Chakra
• Vir Chakra
• Any other gallantry award notified for this purpose

Qualifying family pension in such cases may be exempt under Section 10(18), subject to the prescribed conditions.

Family Pension of Others

For normal taxable family pension, enter the total amount received during the financial year under “Received as Nominee of deceased”.

The screen displays:

• Income
• Deduction
• Taxable Income

Step 3: Review the deduction and taxable income

After entering the family pension amount, verify the Income, Deduction and Taxable Income displayed on the screen.

For ordinary taxable family pension, the deduction for AY 2026-27 is generally:

• New Tax Regime: ₹25,000 or one-third of family pension, whichever is lower.
• Old Tax Regime: ₹15,000 or one-third of family pension, whichever is lower.

Step 4: Save and continue

Once the details have been entered and verified, click Save & Next to proceed further with your return.

Important points to remember

• Do not report your own retirement pension as family pension. Pension received by an employee after retirement and family pension received after the employee's death have different tax treatments.
• Enter the gross family pension received during the financial year before applying the applicable deduction.
• Do not claim the ordinary family-pension deduction against an amount that is already fully exempt under an applicable exemption provision.
• Check your Pension Payment Order, pension certificate, bank statement and other supporting documents before entering the amount.
• Where an Armed Forces exemption is being claimed, ensure that all statutory conditions for the exemption are satisfied.
• The maximum deduction of ₹25,000 applies under the new tax regime. The applicable limit should therefore be checked according to the tax regime selected for the return.

Income-tax Act, 2025 position

The Income-tax Act, 2025 came into force from 1 April 2026. However, the income being reported for FY 2025-26 / AY 2026-27 continues to be governed by the Income-tax Act, 1961 in accordance with the applicable repeal and savings provisions.

For tax years beginning on or after 1 April 2026, the corresponding deduction relating to family pension is contained in Section 93(1)(d) of the Income-tax Act, 2025.

The relevant exemptions relating to qualifying gallantry-award recipients and specified Armed Forces family pensions are also carried forward under the Income-tax Act, 2025.

Conclusion

Family pension is generally taxable under Income from Other Sources, but the actual tax treatment depends on the nature of the pension and the tax regime applicable to the taxpayer.

While filing through myITreturn, go to Income → Other Income → Other Source - Family Pension, select the appropriate category, enter the amount received and verify the deduction and taxable income before proceeding.

Special care should be taken where the pension relates to an Armed Forces member or a specified gallantry-award recipient, since qualifying family pensions may be exempt subject to the conditions prescribed under the Income-tax law.

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