CA Final
880 Points
Joined December 2009
The question is not clear whether it is commuted or uncommuted pension. Uncommuted pension is always TAXABLE.
After reading Sec 10(23AAB), I realised that sec is not at all applicable to his query..Section 10(23AAB) talks about tax exemption of INCOME earned by a FUND SET UP BY LIC or other insurer and not about the taxability of pension received by a person from such fund.
Is it one time pension or do you receive it periodically? Can you please upload the terms and conditions of the policy?. Lets find out.