John, who recently retired from service of a company on 31st March, 2019 is eligible for a monthly pension of ₹20,000. He has received gratuity on his retirement also. He wants to commute 50% of his pension for ₹6.00 lak

CS Executive · Tax Laws and Practice · PYQS · June 2019
John, who recently retired from service of a company on 31st March, 2019 is eligible for a monthly pension of ₹20,000. He has received gratuity on his retirement also. He wants to commute 50% of his pension for ₹6.00 lakh. How much amount of this commuted pension shall be subject to tax in A.Y. 2019-20?
(A) ₹6,00,000
(B) ₹2,00,000
(C) ₹3,00,000
(D) ₹3,50,000

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

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