Two pensions and Lump sum amount

Question

My sister has been retired in Dec. 2023. She was already receiving pension from employer of her late husband. Now she is also receiving he own pension since Jan.2023. She is also received lump sum amount from her employer. Please advise,

1) What is the limit of exemption of two pensions. Is she need to pay tax on a pension receiving due to her Late husband (Lower pension than her own pension). Amount of total of both pensions are still less than 10 million.

2) She has received a one-time Lum sum amount from her employer which is also a less than 10 million. But sum of two pensions and Lum sum amount received are greater than 10 million. I understand that excess amount will be taxable.?

Answer 1

1. For receiving of two pensions, only the higher pension is exempt (no limit there)

2. Lum sum amount at end of service is taxed seperately on the average rate of tax (as seperate block of income). That will not be clubbed in the pension. For pension each year pont 1 will apply.

Comments

Thank you for your reply. But I have read in your site that, Lump sum amount of less than 10 million received after retirement wil be exempt from a tax?

---

less than 10 million isn't for lum sum, that is the limit for regular monthly pension.

---

Okey. Thanks a lot.

---

Okey. Thanks for your prompt reply.