PENSION COMMUTATION

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Accountant
211 Points Posted on 21 September 2020
1/3 pension commuted by psu employee.In FORM-16 the amount has not shown in exempt income column. How it is to be treated in return.
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On 21 September 2020 at 16:15 Report
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This discussion clarifies the tax treatment of commuted pension for PSU employees. While commuted pension received by government employees is generally wholly exempt from tax under Section 10(10A), there's confusion on how to declare it in the Income Tax Return (ITR) when it's not shown in the exempt income column of Form 16. The thread aims to provide guidance on correctly reporting this exempt income.

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155 Points Posted on 21 September 2020
Any commuted pension received bty a Govt. employee (Central, state, local authority and statutory corporation ) is wholly exempt from tax under section 10(10A). Likewise, the full commuted value of pension received by a govt. servant on his absorption in a public sector corporation is exempt. ( circular No. 286 dated 17/11/1980).
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On 21 September 2020 at 16:40
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Accountant
211 Points Posted on 21 September 2020
But sir, how it is to be shown in ITR
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On 21 September 2020 at 17:10

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