TaxTMI 
TaxTMI 
TaxTMI 
Pension - (New) Section 19 / (Old) Section 10(10A)
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.... the members of the defence services; (iv) the members of the civil services of a State, or the holders of civil posts under a State; or (v) the employees of a local authority or a corporation established by a Central Act or State Act or Provincial Act. Amount of Deduction :- Entire amount of Pension Commutation of Pension received by Non-Government Employees [ Section 19(1) (Table: Sl. No. 8) ] Nature of Income - Payment in commutation of pension is received under any scheme from any other employer. Deduction Amount - The commuted value shall be determined having regard to the age of the recipient, the state of his health, the rate of interest and officially recognised tables o....
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....m Trust received by an assessee, who is a subscriber to the Unified Pension Scheme; subject to the condtion • (a) such payment received at the time of his superannuation or voluntary retirement or retirement under rule 56(j) of the Fundamental Rules (which is not treated as penalty under the Central Civil Services (Classification, Control and Appeal) Rules, 1965); and • (b) the said payment does not exceed 60% of the Individual corpus, as defined in notification number. FX-1/3/2024-PR of the Department of Financial Services, dated the 24th January, 2025; [ Schedule - II (Table: Sl. No. 15) ] • Any sum received as "lump sum amount" from the National Pension System Trust by ....
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....] Under Income Tax Act, 1961 [ Upto 31.03.2026] PENSION [Section 10(10A)] • Pension can be divided into two types: • Uncommuted Pension • Commuted Pension Uncommuted Pension • Monthly pensions are taxable as Salary under section 15 in the hands of a Government employee as well as a non - Government employee. • Family pensions are taxable as "Income from Other Sources," with a deduction of the lower of 15,000 (Rs. 25,000 if not opted out of New tax regime under Section 115BAC) or 1/3rd of the pension. Commuted Pension Receipts which are exempt [ Section10(10A)] • (i) Government Employees: - Any payment in commutation ....
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....Such excess is liable to tax in the assessment year relevant to the previous in which it is due or paid .The assessee can, however, claim relief in term of section 89 read with rule 21A . Pension received from National Pension System (NPS) • Closer of NPS Account • any payment from the NPS Trust to an assessee on closure of his account or on his opting out of the National pension scheme, to the extent it does not exceed 60% of the total amount payable to him at the time of such closure or his opting out of the scheme; [ Section 10(12A) ] • any payment from the National Pension System Trust to an assessee, who is a subscriber to the Unified P....
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.... or "Maha Vir Chakra" or "Vir Chakra" or such other gallantry award as the Central Government may, by notification in the Official Gazette, specify in this behalf; . Other Exemptions for Specific Pensions • Lump sum amount received in lieu of pension by persons absorbed in public sector corporations will be fully exempt under 10(10A)(i) as per Circular No. 286 dated 17-11-1980. • Such circular Explained in - In S. Ranganatha Rao Versus Accountant-General and Others 1981 (1) TMI 56 - Karnataka High Court, the above said circular was explained with the following observations : • In para. 3 of the said circular it is stated that the Board has been adv....