Mr. Vikash is getting a pension Rs. 4,000 per month from a company. During the previous year, he got two-third pension commuted and received Rs. 1,86,000.

 Mr. Vikash is getting a pension Rs. 4,000 per month from a company. During the previous year, he got two-third pension commuted and received Rs. 1,86,000. Compute the exempted amount, if (a) he also received gratuity (b) he did not received gratuity, for the assessment year 2022-23.

Ans – To compute the exempted amount of pension for Mr. Vikash for the assessment year 2022-23, we need to consider whether he received gratuity or not. The exempted amount of pension depends on various factors, including the type of pension, the commuted portion, and whether gratuity was received.

Given Information:

• Monthly pension: Rs. 4,000
• Commuted pension received: Rs. 1,86,000
• Mr. Vikash received two-thirds of his pension as a commuted amount.

Let's calculate the exempted amount of pension in both scenarios:

a) Mr. Vikash received gratuity:

In this case, the exempted amount of pension is calculated using the formula: Exempted Amount = (1/3 of commuted pension) + (15% of uncommuted pension)

Calculation:

1. Commuted pension received = Rs. 1,86,000
2. Uncommuted pension per month = Monthly pension - Commuted pension per month Uncommuted pension per month = Rs. 4,000 - (2/3) * Rs. 4,000 = Rs. 4,000 - Rs. 2,666.67 = Rs. 1,333.33
3. Exempted Amount = (1/3) * Rs. 1,86,000 + (15/100) * Rs. 1,333.33 = Rs. 62,000 + Rs. 200 = Rs. 62,200

Therefore, if Mr. Vikash received gratuity, the exempted amount of pension is Rs. 62,200.

b) Mr. Vikash did not receive gratuity:

In this case, the exempted amount of pension is calculated using the formula: Exempted Amount = (1/2 of commuted pension) + (1/4 of uncommuted pension)

Calculation:

1. Commuted pension received = Rs. 1,86,000
2. Uncommuted pension per month = Monthly pension - Commuted pension per month Uncommuted pension per month = Rs. 4,000 - (2/3) * Rs. 4,000 = Rs. 4,000 - Rs. 2,666.67 = Rs. 1,333.33
3. Exempted Amount = (1/2) * Rs. 1,86,000 + (1/4) * Rs. 1,333.33 = Rs. 93,000 + Rs. 333.33 = Rs. 93,333.33

Therefore, if Mr. Vikash did not receive gratuity, the exempted amount of pension is Rs. 93,333.33.

Please note that these calculations are based on the rules and regulations of the Income Tax Act in India. Tax laws may vary in different jurisdictions, and it's advisable to consult a tax professional for accurate and up-to-date information.

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