Just you should know – On commutation of pension issue.

On commutation of pension issue, the retired IPS officers had gone to the SC but the SC agreed to the Govt’s explanation and dismissed the case. The association had asked the period of monthly deduction should be 12 years only. The arguments of the Govt included
1. The commutation formula was prepared by experts.
2. It is linked to LIC norms.
3. No more deduction if the pensioner dies before completing 15 years.
4. No income tax levied on the lump sum amount of commutation.
5. Income tax burden on the pensioner gets reduced for 15 years.