Salary
This query is : Resolved
CA Chintan Parikh
(Querist)
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
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
(Expert)
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.
*
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.
*
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