Tax on Retirement Benefits
Gratuity, leave encashment, pension commutation, VRS and PF
- 1ComputeExemptions on each benefit.
- 2RelieveSection 89 where it helps.
- 3PlanCorpus deployed tax-efficiently.
Share your details. We’ll reply on WhatsApp with the next steps and a checklist.
Pick a plan — the fee is adjusted if you hire us within 30 days.
About Tax on Retirement Benefits
A clear overview, in simple terms — what it is, why it matters, and how we handle it.
Private-sector employees can receive gratuity tax-free up to ₹20 lakh and leave encashment on retirement up to ₹25 lakh (lifetime limits). Commuted pension is fully exempt for government employees; for others, one-third is exempt if gratuity is also received, or half if not. VRS compensation is exempt up to ₹5 lakh, and PF is tax-free after five years of continuous service. Monthly pension is taxed as salary.
Retirement often brings the year's largest income, so timing matters: arrears, leave encashment and gratuity may be spread or relieved under Section 89, and pension income can benefit from the standard deduction.
We compute exemptions, check employer TDS, and plan the deployment of the corpus — SCSS, annuities, debt funds — with their tax treatment.
| Gratuity (private) | Exempt up to ₹20 lakh |
|---|---|
| Leave encashment (non-govt) | Exempt up to ₹25 lakh |
| Commuted pension (non-govt) | 1/3 exempt with gratuity, 1/2 without |
| VRS | Exempt up to ₹5 lakh |
| EPF | Tax-free after 5 years' service |
Who this is for
Common scenarios where this service is a good fit.
- Employees retiring or taking VRS
- Retirees with pension income
- Families planning retirement corpus
What you get
Clear deliverables so you know exactly what's included.
- Exemption computation
- Section 89 relief
- Corpus tax planning
- ITR filing
Expert review before every submission — not just data entry.
Working notes and reconciliations you can rely on in future notices.
Resident Indians, NRIs, expats and cross-border businesses — all served.
Documents required
A practical checklist. We'll tell you if anything else is needed based on your case.
* This is a base checklist. After a quick pre-check, we may ask for additional items specific to your case.
Process
A simple, trackable workflow — designed to avoid back-and-forth.
Exemptions on each benefit.
Section 89 where it helps.
Corpus deployed tax-efficiently.
Get a quote
We share a clear quote on WhatsApp after a quick checklist pre-check.
- Fixed quote on WhatsApp after a short look at your facts and documents.
- Government fees, if any, are paid at actuals and shown separately.
| Factor | DIY | Indus Tax |
|---|---|---|
| Expert review | ❌ | ✅ |
| Notice risk reduction | ❌ | ✅ |
| Deduction optimisation | ❌ | ✅ |
| Audit-ready records | ❌ | ✅ |
| AIS/26AS reconciliation | ❌ | ✅ |
Share your facts and deadline. We'll reply with the right checklist and a clear quote.
Fee adjusted against our service fee if you go ahead within 30 days.
- Priority CA Call-backSkip the queue — a CA calls you within 30 minutes.₹255
- RecommendedCA Consultation (30 min)Talk one matter through properly with a CA.₹755
- In-depth CA Review (60 min)Documents reviewed before the call, written action plan after.₹1,155
Call-backs run Mon–Sat, 9 AM–6 PM IST. Booked outside these hours? We call you first thing the next working morning.
Compare the 3 plansFrequently asked questions
Answers to the most common questions we get.
Official sources
Indus Tax is a private professional services firm and is not affiliated with any government authority. Rules and fees change — we confirm current positions before filing.
