Pensions, payments from employers to retired employees, are taxable but exempt from tax for certain categories like UN pensions.
Section 194P offers tax filing exemption for seniors aged 70+, relying solely on pensions and bank interest.
Pensions can be commuted (received in advance as a lump sum) or uncommuted (received periodically).
Commuted pensions for government employees are tax-free; for others, partial exemption applies.
Uncommuted pensions are fully taxable as 'Income from Salary'.
Family pensions are taxable but commuted or lump-sum payments are exempt.
Reporting pensions in ITR involves selecting the appropriate category (CG, SG, PSU, or Other Pensioners).
Ensure accurate reporting of taxable and exempt portions to avoid tax discrepancies.