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
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.
I receive 2 family pensions as my husband first served in Indian Air Force and then again served as a civilian in Indian Air Force. Are my pension income taxable? As per the information I read on different websites, family pension for Armed Forced Is not taxable.
Income received by family members of the armed forces in the form of pension is exempt under section 10(19) of the Income Tax Act,1961.
However, you will have to report such income in your ITR under exempt income.
Hope this helps. 
What is “Expenses / Deductions (in case other than family pension) Expenses / Deductions” under Section 57 in ITR 2 ?
What proof we need for this one ? Do we need to carry forward this to future years ?
Hi, but where do we show in quicko for the expenses to be claimed under section 57 against the income from other source of income. thanks
where to claim expenses under section 57 against income from other source in Quicko ?
Hey @cma
Yes, we do support it in across Quicko’s product. The deduction u/s 57 is automatically calculated by Quicko as you enter the family pension income. You do not need to enter it manually.
Hi,
My mom working at PSU uses ITR1 as always, She received a commuted pension arrears of my father, Govt employee, period of pension arrears - 2001 - 2018, received in 2022 July. however, some % amount of income tax, education cess, service gratuity was deducted before the remaining balance got credited. also, total amount and deducted ( tax amount + education cess ) is showing in annual tax statement downloaded from traces site.
Are the deducted tax, any way to claim it.
Not sure, where to put the commuted pension amount in ITR - In ITR1 (( Gross total income page )) or Form 10e is required, please help.
Hi @leoindra86
The TDS that has been deducted from your commuted pension income can be claimed while filing an ITR.
As per the stated situation, we assume your mother would be receiving the commuted pension as a beneficiary of your father, then she should report the income under the head of “Income from Other Sources” (IFOS) in her ITR. In this case, she can use the ITR1 form to file her return.
If your father would have received the commuted pension and filed the ITR, then the income would be reported under the head of “Salary” and the ITR1 form should be used. In this case, Form 10E would be required to file, as it is used to claim relief under section 89(1) for arrears or advance salary.
Thanks, But income from other sources - pension is for monthly pensions not commuted, For commuted - it’s "Sec 10(10A)-Commuted value of pension received "
Pension received by the family member of the deceased employee is taxable under the head IFOS. Commuted or lump-sum payment of family pension is not taxable.
Uncommuted pension received by a family member is exempt to the extent of INR 15,000 or 1/3rd of the uncommuted pension received – whichever is less. And it also needs to be reported under IFOS.
Here’s how to report income from pension in ITR.
Hope it helps.
Is NPS allowed in the new tax regime for the professional businessman?
Hi @HIREiN
Employer’s contribution to NPS u/s 80CCD(2) is available to an individual under the new tax regime.
if the person is self employed / professional / businessman ; then ; NPS is not allowed in the new tax regime ! am i right ?
HUF is the employer and the karta is the employee . will this be ok and allowed ? in this scenario ; NPS is allowed under the new tax regime ?
