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Is Pension Commutation on Superannuation Taxable - A Reader's Query

T S Khurana |221 Answers |Ask -Follow

Tax Expert - Answered on Nov 29, 2024

A certified management accountant since 1993, T S Khurana is a fellow member of The Institute of Cost Accountants of India. His areas of expertise are income tax, specifically litigation cases, and GST.

Since the last 21 years, he has also been providing expert advice on financial matters, including investments and diversification of funds, and wealth building in the long term to his clients.
He believes that investment in real estate is the safest way for better returns and wealth generation over a period of time.

A former chairman of the Chandigarh Chapter of Institute of Cost Accountants of India, T S Khurana has also served as member of its technical committee.... more

Asked by Anonymous - Aug 26, 2024Hindi

Money

Whether pension commutation amount on superannuation is taxable ? Whether there is any exemption limit ? I got Rs.29.85 lakhs pension commutation but no TDS was deducted. Kindly clarify.

Ans: Pension Commutation of Government Employee is fully exempt u/s 10(10A).
Most welcome for any further clarifications. Thanks.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Dear Mr. Hardik, I am retired and receiving superannuation from the annuity bought by my company. Is this amount quality as pension and if yes I am entitled for standard deduction? Mahadeo

Ans: Dear Mahadeo,

Thank you for reaching out with your question. Yes, the superannuation received from the annuity purchased by your company is considered as pension income in India.

As for the standard deduction, as per the Income Tax Act, a standard deduction of Rs. 50,000 is allowed on pension income. This means that you can reduce your taxable income by Rs. 50,000, which in turn reduces your tax liability.

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Sir, I get my pension after TDS. My doubt is whether the TDS also included in the total income for which I have to pay income tax.

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I have superannuation schrme with presemt employer and they have discountinued the same. I sm of age 54 years now and employer asked to withdraw 33% fund and balance fund will convert in pension scheme. I have question that this 33% fund will attract tax as per Invome tax of Indian Govt?

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Hi Sushil, my daughter is doing her Graduation in Psychology Hons and Research from Amity University Kolkata. She wishes to pursue higher education in Psychology for doing Masters and subsequent Doctorate abroad. Post completion of Master and Doctorate. Pls suggest for best options. Also should she settle abroad post studies or does India have better career options in Psychology in the near future? kindly suggest. Tanushyam Kanjilal

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Thank you for reaching out. It’s great to hear that your daughter is pursuing her graduation in Psychology and research at Amity University Kolkata.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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