They are taxed under different heads
- Pension to the retiree → taxed as salary, with the salary standard deduction available
- Family pension (received by a dependant after the pensioner dies) → taxed under other sources, with its own deduction (one-third of the pension, subject to a cap)
Getting the head wrong is a common cause of mismatch notices.
What you should do
- Identify whether you are the pensioner or a family member receiving family pension
- For your own pension, report under salary and take the standard deduction
- For family pension, report under other sources and claim the family-pension deduction
- Cross-check the amounts against your AIS — see AIS mismatch guide
- Draft both correctly in LastMinute ITR
Common mistake
Treating family pension as salary (or vice versa). The deduction and head differ — misclassifying changes your tax and can trigger AIS reconciliation.
Related guides
Check your pension entries with LastMinute — file on incometax.gov.in.