Any payment in commutation of pension received from a pension fund setup by the Life Insurance Corporation of India in terms of section 10(23AAB) of the Income Tax Act, 1961, is:

CS Executive · Tax Laws and Practice · PYQS · June 2019
Any payment in commutation of pension received from a pension fund setup by the Life Insurance Corporation of India in terms of section 10(23AAB) of the Income Tax Act, 1961, is:
(A) Liable for tax
(B) Fully exempt from tax
(C) Partly liable for tax
(D) Taxable @ 10%

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Income Tax Act, 1961

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