This post is restricted to taxation of money received on surrender of pension plans offered by various insurance companies in India. Every insurance company on its website and plethora of financial websites say same thing about taxation aspect of pension plans :
- annuity/pension is fully taxable
- One third commutation of pension is tax free u/s 10(10A) of the I.T.Act
- Surrender of pension plan before vesting is fully taxable.
I have a different take on the taxation aspect of surrender value received by the investor