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Jennifer Walker

3. Mr. Amalendu Roy is an employeeof a non-government concern.During the previous year 2019-2020he retired from service with amonthly pension of Rs. 9,000. Hecommuted 60% of the pension andreceived Rs. 5,58,000. He was not inreceipt of any gratuity. Determine theamount which is taxable for theassessment year 2020-2021. *​

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448 cents Pavel
Answer:

60% commuted and receives Rs 5,58,000

So full amount of pension = 558000/60 *100 = Rs 930000.

Since he was not in receipt of gratuity so the exemption given for commuted pension will be least of

a) Actual Amount received

b) 1/2 of full amount of pension.

1/2 of full amount of pension = Rs 4,65,000, which is less than Rs558000.

Hence taxable commuted pension = 558000 - 465000 = Rs 93, 000

Non - commuted pension is always completely taxable.

Remaining 40% of 9000 = Rs 3600

Pensio for 12 months = 3600 *12 = Rs 43200

Now the Taxable pension= Commuted Taxable + Non-Commuted Taxable = 43200 + 93000 = Rs 136200

Also if the amount Taxable under the head salary is needed then

We'll deduct Rs50000 as standard deduction from above Taxable pension

Therefore Income Taxable under the head salary

= 136200 - 50000

= Rs 86200

377
Pavel
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