Deduction u/s 80c

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 March 2013 if an employee retires in march,2013 & he gets his pension commuted, will he get deduction under 80C for his contribution to PF in the year 2012-13(because he is getting his savings back in the year of saving itself)?

CA PRIKSHIT GUPTA

CA PRIKSHIT GUPTA (Expert)
Follow

10 March 2013 he will get 80C for PF
because it is for salary

when he get pension commuted that is separate issue. it will be calculated with related rule

Message likes : 1 times

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

10 March 2013 Agree. Deduction u/s 80C will be available as usual.

Commuted pension will treated as per section 10(10A) which is as under:

Commutation of Pension {Section 10(10A)]:
In case of employees of Central & State Govt., Local Authority, Defense Services and corporations established under Central or State Acts, the entire commuted value of pension is exempt.
In case of any other employee, if the employee receives gratuity, the commuted value of 1/3 of the pension is exempt, otherwise, the commuted value of ½ of the pension is exempt.

Note:
Where any such payments are received by an employee from more than one employer in the same previous year, the aggregate amount exempt from income-tax shall not exceed the limit i.e. Rs. 350000/-.

Where any such payment or payments was or were received in any one or more earlier previous years also and the whole or any part of the amount of such payment or payments was or were not included in the total income of the assessee of such previous year or years, the aggregate amount exempt from income-tax shall not exceed the limit of Rs. 350000/-.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

ASIM ATREY AND ASSOCIATES

CA Garima Bhatia

SHIBSANKAR DEY

RAHUL SURANA

CA.Pinank Arvindbhai Shah

Subscribe Now

Deduction u/s 80c

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA