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
(Expert)
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
because it is for salary
when he get pension commuted that is separate issue. it will be calculated with related rule
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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/-.
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/-.
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