Section 790 Liability of certain pensions, etc to tax
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Where an individual has ceased to hold an office or employment and a pension, annuity or other annual payment is paid to the individual or to the individual's widow or widower, or to the individual's child or any of the individual's relatives or dependants by the person or the heirs, executors, administrators or successors of the person under whom the individual held such office or by whom the individual was so employed, such pension, annuity or other annual payment shall, notwithstanding that it is paid voluntarily or is capable of being discontinued, be deemed to be income for the purpose of assessment of income tax and shall be assessed and charged under Schedule D or E, as the case may require.
What is the tax treatment of a voluntary pension paid to an ex-employee?
A pension voluntarily paid by an employer or his/her heirs or successors to you as an ex-employee (or your widow/widower, or child, relative or dependants) is to be taxed as income of yours under Schedule E....
