Commutation of Pension

In section 10(10A), the words are ".... if Gratuity is received, then commuted value of one-third of pension is exempt.".

So, shouldn't it mean that, theoretically if an employer has given Rs. 5 lacs after commuting pension @ 50%, then instead of 500000÷50% × 1/3 being exempt, commuted value of (500000/50% × 1/3) is exempt because here 500000÷50% is total pension, then (500000÷50%) × 1/3 becomes one-third of pension and then it will be further commuted?