commutation
Sankar W R (12 Points)
03 January 2018
is commutation amount is to be included for tax calculation
Sankar W R (12 Points)
03 January 2018
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160579 Points)
Replied 03 January 2018
Commuted pension or lump sum received may be exempt in certain cases.For a government employee, commuted pension is fully exempt.For a non-government employee, it is partially exempt.
If Gratuity is also received with pension – 1/3rd of the amount of pension that would have been received if 100% of the pension was commuted is exempt from commuted pension and remaining is taxed as salary.
And in case only pension is received, gratuity is not received – ½ of the amount of pension that would have been received if 100% of the pension was commuted is exempt.
Courtesy: Cleartax
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