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PENSION COMMUTATION

Tapan Bose (Accountant ) (210 Points)

21 September 2020

1/3 pension commuted by psu employee.In FORM-16 the amount has not shown in exempt income column. How it is to be treated in return.

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2 Replies

Vijay Prakash (155 Points)
Replied 21 September 2020

Any commuted pension received bty a Govt. employee (Central, state, local authority and statutory corporation ) is wholly exempt from tax under section 10(10A). Likewise, the full commuted value of pension received by a govt. servant on his absorption in a public sector corporation is exempt. ( circular No. 286 dated 17/11/1980).