@ Rashmi: This is where the confusion is. I'm aware of the EPF rules. I filed my taxes few years ago based on that. The EPS rules seem different: Please see on www.incometaxindia.gov.in, CHAPTER III INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME: Section 10(10A)(ii). Half of the pension settlement appears to be exempt income. I received my gratuity payment when I left the company many years ago. So I'm assuming this pension withdrawal qualifies as "commuted pension", which is eligible for 50% exemption. So only 50% of the Rs.57K would be under exempt income, and the remaining 50% would be under "income from other sources". Correct? (background info given below)
Background information:
I worked in a Tata company which kept EPF in the Tata Provident Fund. So the passbook was never visible or accessible on the EPFO. They also started my EPS when I joined the company, but this pension amount was stored with the government (but the passbook for that also is not available on EPFO website). When I left the company, they paid me my gratuity amount (more than 6 years ago). Few years ago, I withdrew my EPF from the Tata Provident Fund. They gave me my account statement for all years, and I filed my taxes in the way you mentioned above. Normally, PF final settlement form submitted is Form 19. But Tata had its own form for this. Anyway, the EPF was withdrawn and my taxes were filed few years back. But then I was told that the EPS amount would still be there. So last financial year I submitted form 10C via the EPFO, for pension withdrawal, and that's the 57K that I received. I still don't have access to the EPS passbook. It's not shown on the EPFO website, so I don't know what percentage of the 57K is interest.