An employee of a company who was entitled for a gratuity of ₹ 8,00,000 also received ₹ 12,00,000 by commuting 40% of his pension. The taxable amount of commuted pension is –
A. ₹ 2,00,000
B. ₹ 4,00,000
C. ₹ 12,00,000
D. ₹ 20,00,000
Answer:A
An employee of a company who was entitled for a gratuity of ₹ 8,00,000 also received ₹ 12,00,000 by commuting 40% of his pension. The taxable amount of commuted pension is –
A. ₹ 2,00,000 B. ₹ 4,00,000 C. ₹ 12,00,000 D. ₹ 20,00,000