Queries

Jagdish Chand, Patiala Kindly guide if Commutation of pension is beneficial or not on retirement at the age of 60 years.? Taxability of Commutation of Pension is as follows: A) Government Employees: Wholly exempt. B) Non-Govt. Employees: Where the employee receives gratuity, amount not exceeding the commuted value to the extent of 1/3rd of the pension is exempt. In other cases: the commuted value of ½ of pension is exempt. C) Non-Computed pension is fully taxable in the hand of a taxable person (Government + Non-Government employee) Other than taxation, if you want a lump sum for which you are going to generate higher returns by taking this lump sum and deploying it somewhere else, you should commute your pension.  CA Abhishek Raja, Founder and Promoter, GST Panacea   Chandra Mohan, Dehradun Does interest in SCSS come under the exemption of `50,000? Budget 2018...