Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(174599 Points)
Replied 10 July 2018
Commuted pension received by government employees is wholly exempt from tax.
In the case of commuted pension received by non-government employee, the maximum amount exempt from tax is restricted to the one-third of the total commuted pension, to which employee was entitled, where the employee also receives any gratuity.
Otherwise, the exemption is limited to commuted value of 50% of the pension to which employee is entitled.
Refer are-pensions-taxable
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