How to Save Taxes on Retirement Income?

How Can You Save Tax on Retirement Income?

Which Sections Can Help You Save Tax on Retirement Income?

What Is Tax Obligation on the Pension?

FAQs About How to Save Tax on Retirement Income

Which ITR is applicable after retirement? up-arrow

Individuals will have to fill in and submit Form ITR-1, also called the Sahaj Form, after retirement. They will have to submit this ITR form if their income is equal to or below ₹50 Lakh.

Is TDS applicable on the income from the pension? up-arrow

Yes. Pension comes in the "salary" list; therefore, TDS applies to the amount you receive. However, when the pension is paid to your family members, the amount does not come after the TDS deduction because this income comes in the list of "income from other sources".

What are the common financial mistakes I should avoid while retiring? up-arrow

Some of the most common mistakes you should avoid are taking retirement without proper financial and tax planning. You should not cash out savings before time and should be covered under a health and life insurance policy.

Which incomes in India are excluded from income tax obligations? up-arrow

As per Section 10(1), you do not need to pay any tax on your income from farming and agriculture. However, you need to mention these incomes while filing income tax returns.