Question

3. Mr. Amalendu Roy is an employee
of a non-government concern.
During the previous year 2019-2020
he retired from service with a
monthly pension of Rs. 9,000. He
commuted 60% of the pension and
received Rs. 5,58,000. He was not in
receipt of any gratuity. Determine the
amount which is taxable for the
assessment year 2020-2021. *​

Answer 1

Answer:

60% commuted and receives Rs 5,58,000

So full amount of pension = 558000/60 *100 = Rs 930000.

Since he was not in receipt of gratuity so the exemption given for commuted pension will be least of

a) Actual Amount received

b) 1/2 of full amount of pension.

1/2 of full amount of pension = Rs 4,65,000, which is less than Rs558000.

Hence taxable commuted pension = 558000 - 465000 = Rs 93, 000

Non - commuted pension is always completely taxable.

Remaining 40% of 9000 = Rs 3600

Pensio for 12 months = 3600 *12 = Rs 43200

Now the Taxable pension= Commuted Taxable + Non-Commuted Taxable = 43200 + 93000 = Rs 136200

Also if the amount Taxable under the head salary is needed then

We'll deduct Rs50000 as standard deduction from above Taxable pension

Therefore Income Taxable under the head salary

= 136200 - 50000

= Rs 86200