27 July 2012
It is very much TAXABLE. There is wrong notion of many DEFENSE officers about this. It is because, in MAHARASHTRA, they are exempt from Professional Tax. Many a times these people are having high RANKS and it becomes difficult to convince them. The best way is to ask them to get the circular from their PAY OFFICE. (These people imediately surrender on this argument)
27 July 2012
In case of employees of Central & State Govt. Local Authority, Defence Services and Corporation established under Central or State Acts, the entire commuted value of pension is exempt.Thanks
CAclubindia
