Commuted pension of a government employee exempted from tax and non govt employee exemption limit- 1. If gratuity received than Commuted of 100% Pension x 1/3.
DEDUCTION OF PENSION UNDER INCOME TAX OF INDIA under section 10(10A) Pension which is received by the employee periodically (UNCOMMUTED PENSION) Chargeable to tax under section 15. COMMUTED PENSION- Commuted pension refers to taking lump sum amount by commuting the whole or part of the pension. Where an employee had commuted his pension then the remaining portion will be received periodically. Commuted pension of a government employee exempted from tax and non govt employee exemption limit- 1. If gratuity received than Commuted of 100% Pension x 1/3. 2. If gratuity not received than Commuted of 100% Pension x ½ Pension is received from UNO by the Employee’s or his family member is not chargeable to tax. Any payment in commutation of pension received from fund set up by LIC u/s. 10(23AAB) is fully exempt you can read a good blog on cakart blog on this topic [Pension Income] https://www.cakart.in/blog/pensioners-income-tax/
Hi, Deduction of pension scheme is available if you invest in pension schemes NPS is National Pension Scheme which is handled by government of india Contributions from the subscribers are collected and deposited in pension account . Deduction u/s 80CCD is not just available to salaried individuals it is also available to nonsalaried individuals,both can contribute to national pension scheme and avail tax benefits Amount allowed as deduction u/s 80CCD is If its an employee-- 10% of salary for Financial year ( salary includes DA ) If its not an employee-- 10% of gross total income in financial year There is an amendment in the budget of 2015 Additional deduction of Rs.50000 is available apart from deduction u/s 80C RS.150000 if you Invest in Pension fund. First the deduction allowed was limited upto 1 lakh which is now increased to 1,50,000 Thanks :)
Uncommuted pension received by a person from his former employer is fully taxable. Commuted pension is taxable to the extent it is not exempted under section 10(10A) 1.Govt employees,employees of local authority and employees of statutory corporation fully exempt. 2.others.- A)if gratuity not received commuted value of half of pension which he is normally entitled to receive. B)If gratuity is also received commuted value of 1/3rd of pension which he is normally entitled to receive
Hiii friend.... Pension is available for deduction if you invest in Pension fund or in schemes of Govt like National Pension scheme. Additional deduction of Rs.50000 is available apart from deduction u/s 80C (RS.150000) if you Invest in Pension fund. The maximum deduction can be availed is Rs.150000 (80C) + Rs.50000. Section 80CCD. For more information about taxability of Pension click below link https://www.cakart.in/blog/pensioners-income-tax/ Regards,