The pension received in the hands of the pensioners is taxable under the Income-Tax Act, 1961. The pensioner whose income after allowing certain deductions, exemptions or allowances or set-off of certain loss as per the provisions of the Act crosses rupees two lakh fifty thousand up to the age of 60 years, rupees three lakh between the age of 60-80 years and rupees five lakh beyond 80 years of age, shall be liable to pay Income Tax accordingly.
The pensioner shall furnish valid Income Tax Permanent Account Number (PAN) and details of certain deductions, exemptions or allowances or set-off of certain loss to the banks in prescribed Form 12BB.
