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Thread: Pensionary benefits

  1. #1
    Junior Member DR.VBP is on a distinguished road
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    Default Pensionary benefits

    DEAR MEMBERS
    Doubts are expressed in this forum the exact formula for calculation of retirement gratuity. Openion differ on the number of months ELEGIBILTY CONSEQUENT ON 6CPC ORDERS. Is it 10 months.15 or 16.5 for those retiring after say 33 years
    1. Any one competent to clarify? KINDLY QUOTE RELEVENT RULES
    2. WHICH ARE THE PENSION BENEFITS EXEMPTED FROM INCOME TAX

    WITH RGDS

    DR.VBP

  2. #2
    Senior Member vnatarajan is on a distinguished road
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    My friends Mr PKR/ Mr AVM are requested to kindly react to Dr VBPs queriesw/doubts.
    vnatarajan

  3. #3
    Senior Member badri mannargudi is on a distinguished road
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    Default Gratuity basis for calculation and pensiosnary beniefits from IT angle

    Respected senior citizens and my dear friennds,
    As regards, Dr.VBP's query, inquiries with our PAO/AO a reveal that Except for the enhancement of ceiling (Rs.3.5 Lakhs to Rs10 Lakhs) there is no change in so far as Gratuity is concerned. On sepcific query, it is learnt, the exisiting system of 16months and one half of a month' emoluments (Pay +Grade pay + DA at applicable Rate there on) (in the given example by Dr.)with the fraction ignoredcontinues. As for the Authority, as I said, there is no change, it appears no other specific authority is required.

    On the query #2, the enquiries reveal identical situation , that is,all pensionnary benefits are excluded from IT.
    The PAO has added that a copy of the order showing the details of paments made to the Officer is endorsed to the IT Department.

    With Regards,
    Badri

  4. #4
    Senior Member sudacgwb
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    Mr BDji!,

    Your observations are correct. There is no need for any more Orders to know it is 16.5 months salary for service of 33 and above years subject to the limit of 10 lakhs now. That is also non-taxable.

    ss

  5. #5
    Junior Member DR.VBP is on a distinguished road
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    Default pensionary benefits

    Hi badri & suda

    many thanks for the clarifications

    can i take that leave encashment & commutation also tax free?

    Rgds
    dr.vbp

  6. #6
    Senior Member badri mannargudi is on a distinguished road
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    Default Encashed Leave (on retirement) and Commuted portion of Pension are exempt from I.T

    My dear friends,
    Dr.VBP wants to know whether he can take leave encashment & commutation also 'Tax free".
    In the case of Encashment of Leave at the time of Retirement/Quitting service is wholly exempt from Income Tax. ( pl see page 374 of Swamy's Hand Book 2008 Edition.). This leads to an inference that in the case of LTC related Encashment of Earned Leave, is taxable. But it is not free from doubt, since the same page 374 states that LTC is also wholly exempt. But the question is whether the so encashed EL can be claimed to be an integral part of LTC only.

    Commuted portion of pension is also wholly exempt from Income Tax ( said page 374 refers).
    With Regards,
    Badri

    (Note: When I sought some information relating to Retirement Benefits today at Office, our Accounts Officer, after giving the information sought, sought to know whether I was contemplating V.R!)

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