Professors in Gujarat university was given Two options by the Government for the payment at the time of their retirement in 1980s.
Option 1. Either to opt for Pension Scheme or
Option 2. Eligible for Lumpsum One Time Payment at the time of retirement.
They had selected Option 2 for lumpsum One time payment at the time of retirement.
Later on at the time of retirement They approached the government to switch over for pension scheme but Government did not allowed for the same.
After that They appealed the matter in Honorable Gujarat High Court and subsequently Honorable Supreme Court and both the Honorable Court gave decision in their favour.
Now, They Have received pension from their retirement year to till date in FY 2022-23 along with interest and from Jan'23 onwards They have started receiving monthly pension.
Whether such pension received from their retirement year to till date is taxable or exempt?
Can we claim the same as commuted pension or arrears of pension and claim the same as exempt?
CAclubindia
