Azharuddin was one of four cricketers banned by the BCCI following a match-fixing saga four years ago.
"For the moment, he has been ruled out (of the pension scheme) because he is fighting a case against the Board in the court. The Board will take a decision once the case is over," BCCI treasurer Jyoti Bajpai said .
The BCCI's newly-announced scheme grants a monthly pension of 5,000 rupees (about 113 dollars) to former Test players and umpires.
Azharuddin, suspended for life in 2000 by the BCCI, has challenged the ban in court.
All-rounders Manoj Prabhakar and Ajay Jadeja were each suspended for five years, and batsman Ajay Sharma for life.
Jadeja, whose appeal against the ban was upheld by a court last year, was included in the pension scheme.
Azharuddin was India's most successful captain with 14 Test victories before being surpassed by current skipper Sourav Ganguly, who led India to the 15th win in the third and final Test against Pakistan at Rawalpindi this month.
The stylish right-handed batsman scored 6,215 runs in 99 Tests and 9,378 in 334 One-day Internationals.
Bajpai said the Board had finalised a list of 174, including 12 umpires, for the scheme, which did not cover One-day International cricketers and umpires.
"We will be paying them the pension as part of our platinum jubilee celebrations. The scheme starts this month," he said.