• Mr. Rajan retired from A. Ltd. on 31-3-2022. From April 2022 he is receiving a monthly pension of Rs. 28,400. On 31-12-2022, he commuted his 30% of pension for Rs. 4,52,000 and continued to receive balance of 70% of pension. At the time of retirement, he also received Gratuity. One of his friends who is an accountant told him that a non-Government employee cannot claim exemption in respect of pension, if he is receiving Gratuity.

  Analysis the above case and advise Mr. Rajan in this regard. Also calculate the pension income taxable to tax.

  
  

Answer rating: 100% (QA)

The taxation of pension and gratuity for employees in India is governed by the Income Tax Act Heres an analysis and advice for Mr Rajan based on the i... View the full answer