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Rule 90 of Income Tax Rules 1962: Commutation of annuity

Rule 90 : Commutation of annuity
(Part XIII : Approved Superannuation Funds)

Any payment in commutation of annuity shall not exceed—

(a) in a case where the employee receives any gratuity, the commuted value of one-third of the annuity which he is normally entitled to receive, and

(b) in any other case, the commuted value of one-half of such annuity,
such commuted value being determined having regard to the age of the recipient, the state of his health, the rate of interest and officially recognised tables of mortality.




Extra Notes for Readers:

- Rule 90 was substituted by the Income Tax (2nd Amendment) Rules, 1968


Check at Income Tax Dept. official site for latest version of the Rule.

This page was created/last updated on 17th October 2016.

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