Pension

As per sec 10 (10A),
Uncommuted pension i.e pension received in regular instalments is taxable for all employees.

Commuted means to pay in one time rather to pay in instalments.

Commuted pension is exempt from tax as per the following provisions:

Employees of Central Government, State Government, Local authority, statutory corporation

Commuted pension is fully exempt in hands of such employees.

only disability pension, war widow pension is exempt