Terminal benefit received on permanent absorption in public sector is also exempt - The terminal benefit received by a civil servant on his retirement from Government service and absorption in a public sector corporation under rule 37(1)(b) of the Central Civil Services (Pension) Rules, 1972, equal to twice the amount of the commuted value of one-third of his pension in addition to the lump sum amount under rule 37(1A) is exempt from tax under section 10(10A)(i) - C.K. Karunakaran v. Union of India [1981] 127 ITR 136 (Delhi).
Commuted pension - It cannot be said that entire commuted pension is not taxable; it is taxable subject to the provisions of section 10(10A)(iib) - CIT v. K.A. Narayan [2002] 124 Taxman 880/254 ITR 683 (Mad.).
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