What is the tax treatment of govt servant retiring in the calendar year for pension received in 3months in the financial year? and tax rates will be separate for this senior citizen?
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Quick Summary
This discussion clarifies the tax treatment for government servants retiring during the calendar year, focusing on pension received within the financial year. It highlights that amounts like DCRG, pension commutation, and terminal leave surrender are tax-exempt. For senior citizens, a basic exemption limit of £300,000 applies, and separate disclosure of pension and salary income is necessary when filing tax returns.
DCRG Amount, Commutation of pension Amount and Terminal Surrender Amount of Earned Leave are exempted from IT. For Senior citizens, basic exemption of tax limit is Rs. 3, 00, 000.