Question

write detail note on pension

Answer 1

the pension was given to the old people who are retired. the government fixes amount as half of their salary before they retired

Answer 2

Concise Oxford Dictionary defines 'pension' as a periodic payment made especially by Government or a company or other employees to the employee in consideration of past service payable after his retirement .

Pension is of two types :

Uncommuted Pension : Uncommuted pension refers to pension received periodically. It is fully taxable in the hands of both government and non government employees.

Commuted Pension : Commutation means inter change. Commuted pension means lump sum amount taken by commuting the whole or part of the pension. Many persons convert their future right to receive pension into a lump sum amount receivable immediately.