Question

How the gratuity and commutaion to be incorporated in income tax return for pensioners

Answer 1

Answer:

Uncommuted pension or any periodical payment of pension is fully taxable as salary. ... If Gratuity is also received with pension – 1/3rd of the amount of pension that would have been received if 100% of the pension wascommuted, is exempt from commutedpension and remaining is taxed as salary.