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Asked by Pankaj on :Jun. 14, 2018

Hi everyone....I retired from central government …

Hi everyone....I retired from central government job last month. I got 300000 as pension on retirem…

Hi everyone....

I retired from central government job last month. I got 300000 as pension on retirement and I am receiving 5000 per months? Do I need to pay tax on these amounts?

0

Jeeba Jun. 14, 2018

As per the Income Tax Act, commuted pension(Lump sum) is exempted from tax for central government employees/ local authorities/ statutory authorities/ member of defence services.

Further, uncommuted pension is taxable in the hand of both government and non-government employees.

So, pension of 3000000 is not taxable and you have to pay tax on monthly receipt of 5000 at an applicable rate.

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