Exemption towards commuted value of pension

Is the exemption towards commuted value of pension (Section 10(10A)) applicable only in case of retirement or applicable even otherwise?

For e.g. if a person switches job and withdraws 1/3 of the pension provided by the old employer (and also received gratuity from the old employer) does the exemption still apply since the person has not actually retired

@Saad_C @Kaushal_Soni @Divya_Singhvi @Laxmi_Navlani @AkashJhaveri can you help with this?

Hi @vrrv101,

If you are eligible to get the commuted value of pension from your employer, you are eligible for the 1/3rd deduction (if gratuity is also received) or 1/2 deduction (if no gratuity is received).

There is no condition that you should be actually retired.

You can refer the below guide on taxation of pension for more details.

Hope it helps!

Thank you for the clarification.