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Vineet Maheshwari (Manager)     22 January 2010

Income Tax on Pension commutation

My Father is just retired. He got the gratuity. He is also eligible to get the pension. He has commuted his 40% of the monthly pension value. I want to know the income tax liability on the commuted pension amount.

He total monthly pension is calculated as 10000/- pm & he has commuted 4000/- pm & got around 450,000/- as the commuted value. I want to know how much amount out of this 450000/- will be taxable? (Pls note that he also got the gratuity).



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 1 Replies

shreeramachandran (SENIOR CITIZEN PENSIONER)     27 May 2011

commutation amount paid to the retiree is not taxable for incmetax purposes. Kindly see the relevant pension manual of government of india

 

P.K.Shreeramachandran

AGM Telecom (Retd)

chennai 28474099


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