Is Pension Covered Under Section 17(1)?

GM Posted by: Gaurav Mishra
• 09 October, 2025
3 Reply

Yes, under section 17(1), which is termed as a salary, and it includes your pension, which you have contributed by the central government or any employer in a financial year to the employee's accounts under the NPS (National Pension System). 

Tags : Section 17(1)

  • Rohit Jangid 11 October, 2025

    Yes, pension is covered under section 17(1) of the Income Tax Act. It is considered a valid income from salary, and a pension from an annuity policy will be deemed under the other sources. 

    An annuity pension is the payment that is received from a past or present employer after retirement. It can be the payout from the pension plans, which are created by the employee. 

    • DM
      Dev Malhotra 15 October, 2025

      If an annuity is received from the past employer, then it will be taxed as a profit instead of a salary. 

    • RK
      Rajbeer Kumar 13 October, 2025

      An annuity is received from a current employer and taxed as a salary. 

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