18 April 2012
if a personnel from nationalised bank retires at the prescribed age and gets commuted pension; is he eligible to full exemption (taking the stand that the PSU bank is covered under government organisation) or just 1/3rd exemption available to non governmental organisation
18 April 2012
The language of the Income Tax Act states that full exemption to "to the members of the civil services of the Union or holders of posts connected with defence or of civil posts under the Union (such members or holders being persons not governed by the said Rules) or to the members of the all-India services or to the members of the defence services or to the members of the civil services of a State or holders of civil posts under a State or to the employees of a local authority] or a corporation established by a Central, State or Provincial Act ". Hence in the given case, you have to check whether such Nationalized bank etablished under any Act by Central/State Govt.If that would be the case he will get full exemption for the pension recieved. Regards Prasanna
CAclubindia
