Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

Income tax on pension

Tax queries 199 views 1 replies

ankit

assst

226 Points Joined April 2010

Dear Sir,

I have a query regarding pension income of my father.

we have file a case against government for pension and we win the case, now the problem is there we recevied Rs. 11 lacs from government diffrence from oct 2010 to july 2017.

in this commuted pension Rs. 1.2 lacs and gratutiy Rs. 0.78 lacs approx,

government deducted Tax Rs. 1.1 lacs somthing, now i would like to know that whats the process to get refund, or any else to save my tax.

Replies (1)

Commuted pension and Gratuity amount received by a government employer is fully exempt from tax. So Rs. 1.2 + 0.78 = 1.98 lakh is fully exempt from tax. In respect of balance pension amount you have to pay tax but you can claim relief for arrears receipt in the return. file itr1 and claim the refund for Excess tax deducted if any