Section 10(10A) Commutation Pension Exemption allowable Despite Subsequent Employment

Arun Dhir Vs DCIT (ITAT Chandigarh)

The Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, has ruled in favor of the taxpayer, Arun Dhir, allowing him to claim exemption under Section 10(10A) of the Income Tax Act, 1961, for a lump-sum payment received in commutation of his pension. The decision, delivered in the case of Arun Dhir Vs DCIT (A.Y. 2013-14), establishes that the benefit of commutation of pension is not restricted only to payments received at the moment of superannuation or retirement.

The taxpayer,

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