Does salary include all kinds of Pension?

Yes, Salary includes all kinds of Pension i.e., Uncommuted Pension and Commuted Pension

Taxability of Uncommuted pension :
It is fully taxable for both government & non government employee.

Taxability of Commuted pension :

  • In case of government employees fully exempted
  • In case of non government employee
    • who is availing gratuity will get exemption of 1/3 of commuted pension.
    • who is not availing gratuity will get exemption of 1/2 of commuted pension.

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