No more partial treatment to pensioners when it comes to commutation of pension in the New Income Tax Bill, 2025

Good news arrives for pensioners. The Lok Sabha Select Committee proposes fair tax treatment in the Direct Tax Bill, 2025. The bill addresses unequal tax on commuted pensions. Government employees enjoy full tax exemption. Private sector employees get partial exemption. Non-employees receive no exemption. The new bill aims to fix this disparity. It extends deduction benefits to non-employee pensioners.