Employer versus non-employer annuities: tax rules explained

It is assumed that the annuity payment in your query refers to the periodic annuity received from the pension fund set up by an employer or otherwise, excluding the government.

- Parizad Sirwalla

It is assumed that the annuity payment in your query refers to the periodic annuity received from the pension fund set up by an employer or otherwise, excluding the government. Where the annuity is received from a fund set up by employer or former employer, it is taxable as 'Income from Salaries'. Standard deduction (up to ₹75,000 or ₹50,000, subject to tax regime opted) is available against overall salary income (including such annuity income).