Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Salary

Save Share

This query is : Resolved

CA Chintan Parikh (Querist)
Follow

16 February 2011 My Client Received Pension in this form

Before Computed : 14445

Computed : 5778

After Computed : 8667

and my client received computed amount Rs. 607938

kindly give taxable value

but my client also receive a Gratuity amounting around 500000

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

16 February 2011 Taxable value of Commuted Pension -

In case your client is not in receipt of Gratuity:
-----------------------------------
In this case the commuted value of 1/2 of the pension will be exempt.
*
In the above case his 5778/14445*100,
40% of pension is commuted.
*

Here commuted value received (607938) is against 40% of the pension.
*
It is max. exempt upto 50%.
*
Hence taxable commuted pension is Zero.
*
On Non-commuted pension, which is monthly (or periodically)received ; tax will be charged as applicable in the case of salary.
*

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