Retirement pension is salary under Income Tax Act and many citizen of India who have given services to foreign government do get pension . Maybe at that point of time they have returned to India and now question regarding the taxation of such receipt in India bothers. A reader Sri Brahmanadam Belinini has asked following question
Some Indian doctors who rendered services to National Health Scheme of United Kingdom during 1970-1980 in United kingdom came back to India for good in 1981. As a consideration for past services rendered in the past, they are entitled to receive a monthly amount after attaining the age of 65 years, where ever they are residing in the world. The Indian doctors who completed 65 years started getting the monthly amount from United Kingdom from National Health Services into their Indian bank accounts. Please clarify whether these are taxable, if so under what head of income, i.e whether Salaries/ Income from other sources ?