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CA Chintan Parikh (Querist)
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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)
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16 February 2011 Taxable value of Commuted Pension -

In case your client is not in receipt of Gratuity:
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In this case the commuted value of 1/2 of the pension will be exempt.
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In the above case his 5778/14445*100,
40% of pension is commuted.
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Here commuted value received (607938) is against 40% of the pension.
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It is max. exempt upto 50%.
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Hence taxable commuted pension is Zero.
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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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