LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Income Tax on Arrear Commutation Amount

trnghosh (sr asst) (167 Points)

22 September 2021

I got some arrear commutation amount after retirement as my basic has been revised due to Bipartite settlement. So far my knowledge I know that commutation amount is non taxable but to my surprise my pension paying authority ( SBI) deduct tax on arrear commutation amount. Is that Ok?

Shall be glad if anyone give some idea on this.

Many thanks for your time.

T K Ghosh

Reply
Follow
Share

4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 23 September 2021

Seems to be salary arrears, as commutation pension amount is generally paid in single slot,

trnghosh (sr asst) (167 Points)
Replied 23 September 2021

It is not salary arrears, when I retire at that time some negotiation talks going on in between bank and IBA which is materialized later after my retirement. As a result my basic changed and the commutation amount which I got previous increased and I get salary arrear and commutation arrear as well. My question is about the second one commutation arrear and for that I asked here. Surprisingly the details of the credit also shows " XI Bipartite Commutation arrear".