Commuted pension exemption rules define when government, private, and NPS-related retirement receipts remain tax-free. Commuted pension is exempt for specified Government and non-Government employees, with the exemption depending on the source of pension, the nature of the scheme, and, for non-Government employees, whether gratuity is received with pension. Receipts from approved pension funds and specified National Pension System and Unified Pension Scheme payments are exempt only within prescribed conditions and monetary limits, including closure, opting out, superannuation, partial withdrawal, and notified lump sum payments. Gallantry award recipients and their family pension receive separate exemption treatment, while uncommuted pension and excess commuted pension remain taxable.