Mr. X retired from a Pvt. Ltd. Company on 31-3-2011. The company paid Rs. 80,000 in lieu of commutation of 25 percent of pension on 31-01-2012, but does not pay any gratuity to its employees. The amount taxable as commuted pension for the Assessment Year 2012-13 is:
A. Rs. 80,000
B. Rs. 3,20,000
C. Rs. 1,60,000
D. Nil
Answer:D
Mr. X retired from a Pvt. Ltd. Company on 31-3-2011. The company paid Rs. 80,000 in lieu of commutation of 25 percent of pension on 31-01-2012, but does not pay any gratuity to its employees. The amount taxable as commuted pension for the Assessment Year 2012-13 is:
A. Rs. 80,000 B. Rs. 3,20,000 C. Rs. 1,60,000 D. Nil