Income Tax

Respected sir                                                                                                                                    ,23/03/2011
I am a retired Bank official retired on 30/09/2009.At the time of my retirement the exemption limit for Gratuity was Rs.3.5/lacs.However due to wage revision i got arrears of Gratuity Rs.151000/-In the month of Aug 2010 by which time Gratuity Exemption limit was raised to Rs.10,00 000/- Whether gratuity arrears of Rs.151000/- received by me in Aug,2010 is taxable? My total Gratuity amount received is less than Rs.10/- Lacs

Second query I paid Rs.606001/- by way contribution towards Pension fund to avail Pension option which was compulsory if u want to exercise second option of pension.This is applicable to all employees who now opted for pension has to contribute 56% of the banks contribution they received which also has to be refunded.

Question is whether we can claim exmption for the amount we received by way of pension? In my case I received Pension of Rs.274008/- up to Oct 2011 and I paid Rs.606001/- towards pension cost.As this amount is not paid to us but adjusted against purchase cost of pension

Pl note i had to pay

Rs.1021858 Banks' contribution

+ Rs.572274/- 56% of Bk's contribution

Total Rs.1594098/-

But this amount was adjusted against

Rs.714089 Commutation (non taxable) payable to me

and Rs.274008/- Pension arrears (Taxable) payable to me up to oct 2010 and I paid net amount of Rs.606001/- towards the purchase price of Pension

Since the year ending is very close i request u to assist me in the matter at your earliest.
This will be useful to all employees in the Banking Industy who opted for second option of pension

with regards

RHR MUMBAI