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What is the difference between commuted pension and uncommuted pension?
a) Uncommuted pension:- Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advRead more
a) Uncommuted pension:-
Under uncommuted pension, employees choose to receive a fixed amount of pension on monthly basis. and in Commuted pension, the employee received a lump sum amount as an advance of his total pension. This means he surrenders a portion of his pension say 50% and receives an advance lumpsum amount this is called commuted pension. The pension may be fully or partly commuted.
See lessCan a divorced wife claim for family pension?
No, a divorced wife can not claim for family pension as she loses the status of a legally wedded wife. However, the legitimate child/children from a divorced wife shall be entitled to the share of family pension which the mother would have received at the time of death of her husband had she not beeRead more
No, a divorced wife can not claim for family pension as she loses the status of a legally wedded wife. However, the legitimate child/children from a divorced wife shall be entitled to the share of family pension which the mother would have received at the time of death of her husband had she not been divorced.
See lessIs family pension taxable or not?
Hi, Pension received by a family member is taxed under the head “income from other sources”. It is taxed in the hands of the receiver. Commuted Pension i.e lump sum amount of pension is not taxable. uncommuted pension received by a family member is exempt to a certain extent. Rs. 15,000 or 1/3rd ofRead more
Hi,
Pension received by a family member is taxed under the head “income from other sources”. It is taxed in the hands of the receiver.
For example – If a family member receives a pension of Rs 1,00,000 during the year then the exemption available is least of – Rs 15,000 or Rs 33,333 (1/3rd of Rs 1,00,000). Thus the taxable family pension will beRs.85,000 (Rs 1,00,000 – Rs 15,000)
See lessWho is the Father of Accounting ?
Luca Pacioli is regarded as the Father of Accounting. He published the first book on double-entry accounting in 1494. While Friar Luca is regarded as the "Father of Accounting," he did not invent the system. Instead, he simply described a method used by merchants in Venice during the Italian RenaissRead more
Luca Pacioli is regarded as the Father of Accounting. He published the first book on double-entry accounting in 1494. While Friar Luca is regarded as the “Father of Accounting,” he did not invent the system. Instead, he simply described a method used by merchants in Venice during the Italian Renaissance period. His system included most of the accounting cycle as we know it today. The first accounting book actually was one of five sections in Pacioli’s mathematics book, titled Summa de Arithmetica, Geometria, Proportioni et Proportionalita (Everything About Arithmetic, Geometry and Proportions).
See lessWhat is the difference between defined contribution plan and defined benefit plan of pension?
Hi, Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member. For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It's called funded pension plan. It can alsRead more
Hi,
Under Defined-benefit Plan a defined sum of the amount is paid after the retirement of the employee when the employee becomes a pension member. For this Employer and Employee choose to contributes to a pension fund for paying pension to its employees. It’s called funded pension plan. It can also be unfunded means the benefits are paid for by the employer by himself at the time of retirement.
Under Defined-contribution Plan, An annuity is paid to the member of an investment scheme. The contribution is made by employee from his salary or by the employer into a pension fund. This pension fund works as an investment fund. At the time of retirement, the pension will be paid out from this fund’s return. Unlike to defined benefit plan, the annuity is not fixed and guaranteed. It may vary as per the performance of the pension plan.
See lessHow income tax on pension is calculate?
Hi, The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner: Uncommuted pension i.e. periodical pensionRead more
Hi,
The taxability of Pension depends on two factors. First Type of Pension and second type of Employee. The pension is taxable under the head of “Salary” in the hands of the receiver and in the year of receipt and tax is calculated in the following manner:
b) Non-Government Employee
Any commuted pension received is partially exempt from tax in the following manner:
If the employee is in receipt of gratuity
Exemption = 1/3 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.
If the employee does not receive a gratuity
Exemption = 1/2 X (100% of Commuted Pension*) *if the employee has commuted the whole of the pension.
Caution: Exemption shall be allowed to the extent it is allowed to be commuted and the balance uncommuted Pension received periodically will be fully taxable.
For example:- Mr. A is drawing a salary of Rs. 20,000 p.m. at the time of retirement and retires from service and becomes entitled to receive a pension of Rs 10,000 p.m. He gets half his pension commuted and receives Rs. 1,50,000/- as lump sum payment. Henceforth, he shall be entitled to a pension of Rs. 5,000 p.m. (If Ram commute his full pension then he will receive Rs 3,00,000)
Taxability:-
If A is a Government Employee: Rs 1,50,000 is fully exempted.
If A is a non-Government Employee and also receiving Gratuity:
Exempted pension will be = Rs 1,00,000 (1/3 X 3,00,000) and the taxable amount will be Rs 50,000/-
If A is a non-Government Employee and not receiving Gratuity:
Then Exempted pension will be = Rs 150,000 (1/2 X 3,00,000) and the taxable amount will be Rs Nil.
See lessCan a Company has Annual General Meeting through Video Conference?
Yes, Companies can conduct AGM due in the year calendar year 2021 through video conferencing. In view of the COVID-19 pandemic, MCA vide circular no. 02/2021 dated 13.01.2021 has allowed companies whose AGM is due to be held in the year 2021 to hold AGM on or before 31st December 2021 through VideoRead more
Yes, Companies can conduct AGM due in the year calendar year 2021 through video conferencing.
In view of the COVID-19 pandemic, MCA vide circular no. 02/2021 dated 13.01.2021 has allowed companies whose AGM is due to be held in the year 2021 to hold AGM on or before 31st December 2021 through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) i.e. in accordance with the requirements as provided in paragraphs 3 and 4 of the General Circular No. 20/2020 dated 5th May 2020.
Circular is available at the link- http://www.mca.gov.in/Ministry/pdf/GeneralCircularNo.02_14012021.pdf
Earlier MCA issued circular no. 20/2020 dated May 05, 2020, that has allowed certain classes of companies to conduct the Annual General Meeting (AGM) of their members through Video Conferencing (VC) or Other Audio-Visual Means (OAVM), during the calendar year 2020 subject to the fulfillment of various requirements as mentioned in the circular.
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