Where to Show Pension Income in ITR-1 for AY 2025-26: Step-by-Step

Q: Do I need to file ITR if I am a pensioner?

Yes, you must file an ITR if your gross total income, including pension, exceeds the basic exemption limit (₹3 lakh for senior citizens aged 60-80 under the old regime) or to claim a TDS refund.

Q: Can I show pension from a previous employer in ITR-1?

Yes, pension from a previous employer is treated as salary and can be reported in ITR-1 under the 'Pensioners' option in the 'Nature of Employment' dropdown.

Q: Where do I show pension from an NPS account in ITR-1?

Annuity from an NPS account is taxable and should be reported under 'Income from Salaries' in ITR-1, similar to a regular pension.

Q: What documents do I need to report pension income?

You need a Pension Certificate or Form 16 from your bank/employer, along with bank statements and Form 26AS/AIS to cross-verify pension amounts.

Q: What if my bank has already deducted TDS on my pension?

Report gross pension income in your ITR and claim TDS as a credit in the 'Tax Paid' section, which will be adjusted against your final tax liability.

Q: Is standard deduction of ₹50,000 available on family pension?

No, the ₹50,000 standard deduction applies to 'Salary' income. Family pension, taxed as 'Income from Other Sources,' qualifies for a ₹15,000 or 1/3rd pension deduction under Section 57(iia).

Q: I receive a pension from the UN/an international organization. Is it taxable?

Pensions from organizations like the UN are generally tax-exempt and should be reported in the 'Exempt Income' schedule of the ITR.

Q: What is 'Not Applicable' in the Nature of Employment dropdown?

'Not Applicable' in the 'Nature of Employment' dropdown is selected for individuals receiving only family pension, as they are not traditional employees or pensioners.

Q: Can I file ITR-1 if I have both pension income and capital gains?

ITR-1 is not allowed for capital gains, except for long-term capital gains up to ₹1.25 lakh from specific sources in AY 2025-26. Otherwise, use ITR-2.

Q: What happens if I fill my pension in the wrong section?

Reporting pension in the wrong section may trigger a defective return notice, requiring correction via a revised ITR. Misreporting can also lead to penalties.

Rajesh Kumar Kar
Aug 28
6 min read

Where to Show Pension Income in ITR-1 for AY 2025-26: Step-by-Step

Knowing where to show pension income in ITR-1 is a common question for many retirees. This guide makes it simple by providing clear, step-by-step instructions. You can report your pension income straightforwardly under the "Income from Salaries" head, once you select the correct 'Nature of Employment'. This article offers a visual walkthrough for both regular and family pensions for the Assessment Year (AY) 2025-26, ensuring you can file your return with confidence.

Table of Index

Are You Eligible to Use ITR-1?
Step-by-Step: How to Show Regular Pension in ITR-1
How to Show Family Pension in ITR-1? (It’s Different!)
Reporting Commuted vs. Uncommuted Pension
Conclusion
FAQs

Type of Pension	Where to Show in ITR-1	Key Section/Field
Regular Pension	Income from Salaries	Select 'Pensioners' in 'Nature of Employment' and enter details in 'Salary as per Section 17(1)'.
Family Pension	Income from Other Sources	Select 'Family Pension' from the dropdown in the 'Income from Other Sources' section.

Are You Eligible to Use ITR-1?

Before you determine where to show pension income in ITR-1, it's crucial to confirm you are eligible to use this form. The ITR-1 form, also known as Sahaj, is for resident individuals whose total income does not exceed ₹50 lakh. Using ITR-1 for pensioners is appropriate if your income comes from salary/pension, one house property, and other sources like interest.

You can use ITR-1 if you meet these conditions:

You are a Resident Individual.
Your total income is up to ₹50 lakh.
Your income sources include Salary/Pension, one house property, and other sources (like bank interest).
You have agricultural income up to ₹5,000.

You cannot use ITR-1 if you are a director in a company or have income from capital gains (with minor exceptions for AY 2025-26). For more complex situations, consider Choosing the right ITR form or visiting the official Income Tax e-Filing portal.

Step-by-Step: How to Show Regular Pension in ITR-1

To report pension income, you need to follow a few simple steps on the income tax portal. The ITR-1 filing steps for pensioners are designed to be intuitive, and this guide will walk you through the process for AY 2025-26.

Step 1: Log in and Navigate to the 'Personal Information' Tab

First, you need to log in to the income tax e-filing portal using your credentials. Once logged in, proceed to the ITR-1 form and click on the 'Personal Information' tab to begin. This section contains your pre-filled personal details like name, PAN, and address.

Step 2: Select 'Pensioners' in Nature of Employment

In the 'Personal Information' section, you will find a dropdown menu for 'Nature of Employment'. Selecting 'Pensioners' in ITR-1 is the most important step to correctly report your pension. From the list, choose the sub-category that matches your former employer:

CG Pensioners (Central Government)
SG Pensioners (State Government)
PSU Pensioners (Public Sector Undertaking)
Other Pensioners (for private sector pensions)

Step 3: Enter Pension Details under 'Gross Total Income'

After setting your employment nature, move to the 'Gross Total Income' tab. You should enter your gross total income from pension in the 'Salary as per Section 17(1)' field. Pensioners should use their Form 16 or pension certificate provided by the bank or previous employer to fill this section accurately. For tax purposes, regular pension is treated as salary.

Step 4: What About Standard Deduction?

Many pensioners wonder about the standard deduction on pension in ITR-1. You do not need to enter this amount manually. The ITR utility automatically applies the standard deduction of ₹50,000 against your pension income once you report it under the salary head. This automatic deduction simplifies the filing process.

How to Show Family Pension in ITR-1? (It's Different!)

You should report family pension in ITR-1 differently from regular pension. It is not considered salary; instead, it's taxed as 'Income from Other Sources'. This distinction is vital for accurate tax filing.

Step 1: Navigate to 'Income from Other Sources'

To report family pension, go to the 'Gross Total Income' tab on the ITR form. Within this tab, locate the section titled 'Income from Other Sources'. This is where you will declare any income that isn't from salary or house property.

Step 2: Select 'Family Pension' from the Dropdown

In the 'Income from Other Sources' section, you will find a dropdown menu to specify the type of income. You must select 'Family Pension' from this list and enter the total amount you received during the financial year.

Step 3: Claiming the Deduction on Family Pension

A specific deduction is available for family pension under Section 57(iia) of the Income Tax Act. You can claim a deduction of 1/3rd of the pension amount or ₹15,000, whichever is less. The ITR utility typically calculates this automatically after you enter the gross family pension. For instance, if you receive a gross family pension of ₹60,000, 1/3rd is ₹20,000. Since ₹15,000 is less, that will be your allowable deduction.

Reporting Commuted vs. Uncommuted Pension

Understanding the difference between commuted and uncommuted pension is important for tax reporting. Commuted pension is a lump-sum amount received, while uncommuted pension is a periodic payment, usually monthly. Their tax treatment varies, which affects how you report them. Uncommuted pension is fully taxable as salary. For government employees, commuted pension is completely exempt from tax. For non-government employees, it is partially exempt under Section 10(10A) of the Income Tax Act. A detailed guide on pension taxation can provide further clarity.

Pension Type	Tax Treatment for Government Employees	Tax Treatment for Non-Government Employees
Uncommuted	Fully taxable as 'Salary'.	Fully taxable as 'Salary'.
Commuted	Fully exempt from tax.	Partially exempt. If gratuity is also received, 1/3rd is exempt; otherwise, 1/2 is exempt.

Conclusion

Filing pension income correctly in your ITR is straightforward once you know the rules. Remember, regular pension is shown under 'Income from Salaries' by first selecting 'Pensioners' in the 'Nature of Employment' tab. Family pension, on the other hand, goes into 'Income from Other Sources'. Always use the form for the correct Assessment Year and double-check all details with your Form 16 and Annual Information Statement (AIS).

Key Takeaways:

Regular Pension: Report under 'Income from Salaries'.
Family Pension: Report under 'Income from Other Sources'.
Verification: Always use Form 16 and AIS to verify income and TDS figures.

Still have questions? Let Taxbuddy's experts help you file your ITR accurately and maximize your savings. Get started today

FAQs

Q1. Do I need to file ITR if I am a pensioner?

Yes, filing an ITR is necessary if your gross total income (pension plus other income) is more than the basic exemption limit for your age group. For senior citizens (60-80 years), this limit is ₹3 lakh under the old tax regime. Filing is also required if you want to claim a TDS refund.

Q2. Can I show pension from a previous employer in ITR-1?

Yes, you can report pension from a previous employer in ITR-1. This income is treated as salary, and you should declare it by selecting 'Pensioners' under the 'Nature of Employment' dropdown.

Q3. Where do I show pension from an NPS account in ITR-1?

Annuity received from a National Pension System (NPS) account is taxable. You should report this annuity under 'Income from Salaries,' just like a regular pension.

Q4. What documents do I need to report pension income?

The primary documents you need are the Pension Certificate or Form 16 issued by your bank or former employer. It is also a good practice to cross-verify the amounts with your bank statements and Form 26AS/AIS.

Q5. What if my bank has already deducted TDS on my pension?

You must still report your gross pension income in your ITR. The Tax Deducted at Source (TDS) can be claimed as a credit in the 'Tax Paid' section of the return, which will be adjusted against your final tax liability.

Q6. Is standard deduction of ₹50,000 available on family pension?

No, the standard deduction of ₹50,000 applies to income under the head 'Salary'. Since family pension is taxed as 'Income from Other Sources', it is not eligible for this deduction. Instead, it has a specific deduction of ₹15,000 or 1/3rd of the pension, whichever is lower, under Section 57(iia).

Q7. I receive a pension from the UN/an international organization. Is it taxable?

Pensions received from certain international organizations, like the United Nations (UNO), are generally exempt from tax. You should report this income in the 'Exempt Income' schedule of the ITR.

Q8. What is 'Not Applicable' in the Nature of Employment dropdown?

This option is usually selected by individuals who only receive family pension. Since they are not traditional employees or pensioners, this category applies to them.

Q9. Can I file ITR-1 if I have both pension income and capital gains?

You generally cannot use ITR-1 if you have capital gains income. For the Assessment Year 2025-26, a minor exception allows for long-term capital gains up to ₹1.25 lakh from specific sources. For any other capital gains, you must use ITR-2.

Q10. What happens if I fill my pension in the wrong section?

If you report your pension income in the wrong section, the Income Tax Department may issue a notice for a defective return. This would require you to correct the error and refile your ITR. Misreporting income can also lead to penalties.