POSTED BY December 30, 2012 1:30 am ONE COMMENTON
I have a related query on taxation of the commutation amount, my previous employer says the commutation amount is taxable at 30%, however I understand from various posts and responses on the net that, the commutation amount should be added to the individuals income of that particular FY and taxed as per the tab slab for that FY.
which is this correct ?
a) Tax to be deduced at 30% of the Commutation amount ?
b) Commutation amount to be added to income of that FY and taxed accordingly ?
Your response and input will be greatly appreciated.