I found it funny to know that my friend and her parents went for a vacation in Maldives by availing her father’s commuted pension or the advance amount that they received against their father’s pension. However my father said it is actually good. At least they know how to enjoy life and if there is a scope to get money, why unsee it? So you can also opt for it after knowing the commuted pension taxability of course. Let me share more details about it and also whether TDS is deducted or not, here.
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Is commutation of pension is taxable or not?
Now in simple words let me tell you that the government employees are very lucky in such cases. For a government employee it is fully exempt for but a non-government employee, it is partially exempt.
Now people often also ask: Is commuted pension taxable in India for family members of armed forces or that by UNO employees or not. Do know that for them as well, commuted pension is tax exempt.
Which sections state commutation of pension taxable or not?
As per Section 10 (10A), any commuted person, or the accumulated pension in lieu of monthly pension received by a government employee is fully tax exempt.
Any amount received for encashment of accumulated leave at the time of retirement/superannuation is exempt from tax under section 10 (10AA0(i).
I hope these details are enough to tell about the
commuted pension taxability in India.
Read More:What is uncommuted pension?
Can you withdraw pension contribution before retirement?
Authors Of The Question
Is Commuted Pension Taxable In India?
Shridhar
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2 Year
2022-08-31T15:07:56+00:00 2022-08-31T15:07:57+00:00Comment
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