Example:-X retires from B Ltd. on 31st July, 2014. He gets pension of ₹ 1,000 per month up to 31st December, 2014. W.e.f 1st January, 2015 he gets 60% of pension commuted for ₹ 1,70,000. Does it make any difference if he also receives gratuity of ₹ 3,000 at the time of retirement?

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..... 2015 - Chapter No. 04 - Salary - Pension - [Sec. 10(10A)] . In case of a non-government employee while uncommuted pension is fully chargeable to tax, commuted pension is partly chargeable to tax and partly exempt from tax. Amount of taxable pension will be computed as under: UNCOMMUTED PENSION From 31 st July 2014 to 31 st December 2014 (1,000 x 5) .....

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..... uity Amount exempt (1/3 of commuted value of full pension) (1/3 x 2,83,333) ₹ 94,444 Commuted pension chargeable to tax as salary (1,70,000 94,444) ₹ 75,556 - FAQ - Frequently Asked Questions, TMI Short Notes , Experts comment, opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - .....

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