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?
Replies (1)
least of the following shall be exempt
Amt. recd. :- 500000
Max. ceiling:- 300000
1/3 of value of
commuted pension:- 333333

Exempt :- 300000
Taxable:- (500000 - 300000)
200000

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