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Commuted portion of PEnsion & Gratuity

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Anil Doshi

167 Points Posted on 20 July 2022

Please inform Amount received as Gratuity & commuted portion of Pension, where we have to show in ITR1

One is exempt Income.

2ns -The same is to be included in Salary ? or perquisites ?

Please confirm

Thanks

Replies (1)

Aashok Kumar Sharma

Finance/Compliance Consultant

69816 Points Posted on 04 July 2026

Summary: Gratuity and commuted pension are reported under "Income from Salary." Include the full amount in "Gross Salary" and claim the respective exemptions under Section 10(10) or 10(10A) in the "Allowances exempt" section to reduce your taxable income. If claiming tax relief due to the lump sum, ensure Form 10E is filed first.