i retired early at the age of 52 . I received superannuation fund along with gratuity from my employer of which i commuted 1/3 of the superannuation corpus . Is the commuted pension taxable even though i retired early and have not taken up further employment?
1/3 of the commuted fund is fully exempt from tax on retirement. Further, the remaining amount if transferred to an annuity is tax-free and if the amount is withdrawn, it is taxable in the hands of the employee.