Income tax on commutation of pension

After retirement as associate professor from a college(salary ,retirement  benefits like pension gratuity leave encashment,etc of all permanent teaching and non teaching staff  are paid by govt. of WB)

Received approximately Rs 122099/- as commuted value of pension for commutation of pension of Rs 11796/-

After this received a monthly pension of Rs 31265/-.Now I am asked by the treasury officer for pension payment  to add the commuted pension with my monthly pension and pay tax for that...(ie Rs  31265+11796 per month)

Now should my total income for I.T payment be the

(i)pension  received plus commuted amount ie Rs  43061 X 12 ??

(ii)or only the pension received ie Rs. 31265 X 12 ??

Replies (3)

the uncommuted pension i.e. the monthly pension will remain as it is i.e. 31265*12

as for the commuted pension i.e. 122099 it will be as follows:

122099 minus the exemption

exemption calculated as follows:

if gratuity received : 1/3 * full commuted value of pension

if no gratuity:1/2 *full value of commuted pension

The gratuity slab not the reference looked after in this case...Should the income amount be of either (i) or (ii)...??

 

Sir, 

Is 1/3  commutation (receiving gratuity) taxable for LIC Group Super annuation -  (contribution paid entirely by employee only) .   Resigned from Private firm after 10+ years of contribution to the fund.

LIC has deducted 30% tax on my commutation. (say  1 Lac Tax levied  on 3 lacs commuted pension) 

Can I show the entire Commutation [3 Lacs] under ITR-2 > EI Sheet > Other Exempt income.. & claim refund.

Kindly reply as due date is nearing. Thanks.

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