Annuity Income Taxable Under Which Head

You will be eligible to claim standard deduction of rs 40 000 from the said taxable salary.

Annuity income taxable under which head. The income is chargeable under the head of salary under of income tax act 1961. In it filing it has to be shown under the head other income. When an annuity payment is made 50 of each payment would be income taxable. The main rule about taxation with an inherited annuity or one that is purchased is that any principal that is funded with money that was already subject to taxes will still not be taxed.

Tax on annuity from insurance company. Principal that was not taxed and earnings will be subject to taxation as income. Pension is under the salary head a fully taxable b partially taxable c not taxable d none of the above 23. In case you have bought an annuity plan from an insurance company the amount of such annuity is fully taxable under the head income from other sources since this amount does not have any co relation with any employment no standard deduction is available against this amount.

C section14 d section16 22. Lic annuity income does not fall under section 10 10d. Annuity which you will receive on a periodic basis in future will be taxable as an income under the head salaries. Annuity under nps account.

If the payout is over an annuitant s lifetime and annuitant outlives life expectancy all further payments are subject.