What Is Pension?

1.	What Is Pension?
Answer» Pension is a periodical payment received by the employee from the employer after he ceases to be the employee. It is taxed as Salary. Calculation of pension is DONE in two forms: Uncommuted Pension - is regular periodical pension to employee which is taxable to all kinds of employees. COMMUTED Pension is a lump sum payment in LIEU of periodical pension. If such pension is received by government employee then it is wholly exempt. Non government employees can avail exemption to a certain EXTENT: If employee is in receipt of gratuity, 1/3 of commuted value. If not, then one half of commuted value. Pension is a periodical payment received by the employee from the employer after he ceases to be the employee. It is taxed as Salary. Calculation of pension is done in two forms: Non government employees can avail exemption to a certain extent:

Answer»

Pension is a periodical payment received by the employee from the employer after he ceases to be the employee. It is taxed as Salary.

Calculation of pension is DONE in two forms:

Uncommuted Pension - is regular periodical pension to employee which is taxable to all kinds of employees.
COMMUTED Pension is a lump sum payment in LIEU of periodical pension.
If such pension is received by government employee then it is wholly exempt.

Non government employees can avail exemption to a certain EXTENT:

Pension is a periodical payment received by the employee from the employer after he ceases to be the employee. It is taxed as Salary.

Calculation of pension is done in two forms:

Non government employees can avail exemption to a certain extent:

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