commuted pension

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Akansha Verma (Querist)
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29 August 2016 A retired from service on 31.3.2015 and started getting pension of 6000rs monthly.On 1.1.2016, A commuted 1\4 of pension and received 90000. calculate taxable amount of pension for assessment year 2016-17 if the assessee has not received gratuity at the time of retirement.

Amol S Joglekar

Amol S Joglekar (Expert)
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29 August 2016 what is the issue? all put together is less than 300,000

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Akansha Verma

Akansha Verma (Querist)
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29 August 2016 I am not getting the answer

Amol S Joglekar

Amol S Joglekar (Expert)
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29 August 2016 6000 per month makes it 12 X 6000 = 72,000 per year
if you add 90,000 commutation to it......90,000+72,000 = 162,000, which is well below the basic exemption limit......Then what is your query? What is bothering you?

Akansha Verma

Akansha Verma (Querist)
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29 August 2016 67500 answer is given in the book

Amol S Joglekar

Amol S Joglekar (Expert)
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29 August 2016 oh.... i see.... you are asking that way.......sorry....
9 months @ 6000 = 54000
after 1/4 th commutation, pension will be paid at 6000 X 3/4 = 4500 per month
so 3 months @ 4500 = 13500
So the pension would be = 54000+13500 = 67500

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Akansha Verma

Akansha Verma (Querist)
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29 August 2016 thank you sir..

Amol S Joglekar

Amol S Joglekar (Expert)
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29 August 2016 you are most welcome.

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