12 May 2022
As per sec 10(10a) of IT act, commuted pension received by a Government Employee is fully exempt from tax. For non- Govt Employees, only part exemption is allowed. My question is "Do the PSU bank employees come under the definition of Govt. Employee" for the purpose of this section?
New ITR forms for AY 22-23 is asking the pensioners mark the nature of employment which includes different options like CG - Pensioners, SG pensioners, PSU pensioners, other pensioners. (CG / SG - Central Govt / State Govt). Once it is marked as PSU pensioner, can the IT exemption be claimed for commuted pension which is fully exempt explicitly for Govt Employees only?
Can you therefore please comment / advise whether commuted pension is fully or partly exempt for us PSU bank employees?
CAclubindia
