Exemption of Pension up to Rs. 5 lakhs per annum from Income Tax: Proposal will be examined - MoS  for Finance. Shiva Pratap Shukla D.O. No. 370150/9/2017- TPL MINISTER OF STATE FOR FINANCE GOVERNMENT OF INDIA NEW DELHI-110001 14th November 2017 Dear Dr.Tharoor Ji, Kindly refer to your D.O. letter No. DO/S1/09/2017/986 dated 26.09.2017 requesting, for providing the exemption of Rs. 5 lakhs per annum to pension income. I have got the matter examined. Currently, the basic exemption limit for individual taxpayer is Rs, 2, 50,000, However, considering the specific needs of the senior citizens, the basic exemption limit for a senior citizen above 60 year, is fixed at Rs.3,00,000 and for very senior citizen i.e. above 80 years, the same is fixed Rs. 5,00,000. Therefore, a pensioner who is a senior citizen is not required to pay any income-tax if his. total income, including pension., does not exceed Rs. 3 lakhs Similarly, a pensioner who is very senior citizen is not required to pay tax ...