TAXATION FOR COMMUTED PENSION

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sachin Alwadhi (Querist)
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23 July 2023 Hi

Kindly guide one of client pensioner of national insurance company receiving pension through Lic and received arrear of pension and commuted pension separately during fy 2022-23 .now come to taxation point regular pension will shown under head salary under pension column ,secondly arrear of pension will also taxable under head salary (pension column) but subject to filing to form 10e to take relief under 89.Thirdly commuted pension will show under head of salary but under commuted pension column.Now if we are govt employee then commuted pension fully exempt but non govt employee we can half of commuted pension exempt under 10(10a) now question can we claim exemption under 10(10a) just put figure under exempted income or we need to file 10 e also for commuted pension exemption or just putting figure under 10(10a) is sufficient?

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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23 July 2023 JUST FILING U/S. 10(10A) IS SUFFICIENT.

sachin Alwadhi

sachin Alwadhi (Querist)
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23 July 2023 then Under which conditions 10e for commuted pension need to file?

Dhirajlal Rambhia online

Dhirajlal Rambhia online

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23 July 2023 For non-government employee only receives a pension and not gratuity, 50% of the 100% of the commuted pension is exempt. Remaining is to be declared as taxable in the year of receipt.
Form 10e can be filed for any arrears of uncommuted pension.

sachin Alwadhi

sachin Alwadhi (Querist)
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23 July 2023 Further one more query our client national insurance corporation is public sector undertaking of central government.So commuted pension received from such psu of central government classified as central govt pension or non government pension

Dhirajlal Rambhia online

Dhirajlal Rambhia online

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23 July 2023 Employees of a public sector undertaking (PSU) are not government servants. The expression “government servants” includes employees working directly under the central government or any of the state governments or the Government of a union territory.

sachin Alwadhi

sachin Alwadhi (Querist)
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23 July 2023 THANKS FOR Wonderful explanation!!!

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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23 July 2023 My Pleasure.

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