The federal government has announced key relief for pensioners under the Budget 2026–27, keeping pension income up to Rs. 10 million annually fully exempt from tax.
According to the budget proposals, the move is aimed at protecting retired individuals’ income amid inflation while maintaining fairness in the taxation system.
Finance Minister Muhammad Aurangzeb in his speech said that under the new framework, pension income above Rs. 10 million annually will be taxed at a flat rate of 5 percent.
The policy reflects the government’s commitment to supporting senior citizens and ensuring financial stability for retirees.
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Must be very poor citizens having pension around 10 million (1 crore), did not enjoy the life while working on very low pay ( basis labour pay of Rs. 41000/-), could not have been on filers list due to system error. SHAME ON FINANCE MINISTER FOR THIS ACT, SORRY/ MISERABLE ESTATE FOR OUR COUNTRY.