Whether pension income is taxable under the head of salary or income from other sources?

Pension income is generally taxable under the head of "Income from Salaries." The Income Tax Act, 1961 considers pension received by an individual as a form of salary, and therefore it is taxed accordingly. When you receive pension income, it is treated similarly to the salary income you received during your employment.

The pension income is subject to tax deductions, such as standard deduction (if applicable), and other deductions available under the Income Tax Act. The income tax is calculated based on the applicable tax slab rates for the respective financial year.

However, it's important to note that if you receive any commuted pension, i.e., a lump sum amount received in lieu of a portion of the pension, the commuted portion is exempt from tax. The remaining portion of the pension that is received regularly is taxable under the head of "Income from Salaries."

On the other hand, if you receive any additional income apart from pension, such as rental income, interest income, or dividends, those income sources will be taxed under the head of "Income from Other Sources." It is important to report all your income from various sources while filing your income tax return and pay taxes accordingly.

To ensure accurate tax calculations and compliance with the tax laws, it is advisable to consult a tax professional or refer to the official guidelines provided by the Income Tax Department of India.