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Is commuted pension under lic jeevan dhara (old) pension plan taxable

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Shailesh Wagh

31 Points Posted on 14 December 2021

My jeevan dhara (old ) plan pension plan is maturing on july 2021 . How much pension can i commute ? What income tax do i have to pay on commuted pension ?. I am in highest income tax bracket .

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Quick Summary

This discussion addresses the taxability of commuted pension received from an old LIC Jeevan Dhara plan. The user is seeking information on how much pension can be commuted and the associated income tax liability, especially as they are in the highest tax bracket. Based on the Income Tax Act 1961, commuted pension is generally considered fully exempt from tax.