Pension is a periodical payment received by an employee after his retirement and is taxed as salary.Pension is taxable under two heads
1.Uncommuted pension
Under this pension is taxable as salary you/s 15 of the Income Tax act in India in the hands of Govt as well as non govt employees
2.Commuted Pension
Under this Pension received by by an employee of Central,State,Local Authority and statutory corporations is wholly exempt from tax you/S 10(10A)(I). Judges of the Supreme and High Courts are entitled for exemption under the same above section.
1.Uncommuted pension
Under this pension is taxable as salary you/s 15 of the Income Tax act in India in the hands of Govt as well as non govt employees
2.Commuted Pension
Under this Pension received by by an employee of Central,State,Local Authority and statutory corporations is wholly exempt from tax you/S 10(10A)(I). Judges of the Supreme and High Courts are entitled for exemption under the same above section.