New Delhi, April 30 -- Pension income is taxable in India, but the tax treatment depends on the type of pension received. Regular pension payments are generally taxed as salary. However, lump sum amounts or commuted pensions may be fully or partially exempt depending on the taxpayer's employment type and eligibility under income tax rules.

Pension is a form of payment made by an employer to an employee after retirement or to the family after the death of the employee, in consideration of past services. It can be received periodically or as a lump sum. A clear understanding of these rules ensures compliance and helps you make the most of available tax benefits.

The following types of pensions are relevant for taxation:

When filing the I...