Commuted Pension Calculator
Calculate lump sum from commuting up to 40% of pension — official commutation factors
Your Details
Commuted Lump Sum
₹1,15,200
Residual Pension
₹18,000/mo
* Formula: Commuted Amount × 12 × Commutation Factor. The commuted portion of pension is restored after 15 years (counted from date of retirement). Commuted pension is tax-free at the time of receipt.
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Frequently Asked Questions
Central Govt employees can commute up to 40% of their monthly pension as a lump sum. If pension is ₹50,000/month, commutation of 40% = ₹20,000 × 12 × commutation factor.
The commuted portion is restored after 15 years from the date of commutation (or from the date of retirement, whichever is later). After restoration, you receive the full pension again.
The commutation factor is based on the employee's age at time of commutation, as per the Ministry of Finance table. At age 60, the factor is 8.194; at 55 it is 10.46.
No. Commuted pension received by Central/State Govt employees is completely exempt from income tax under Section 10(10A). For private sector, 1/3rd of commuted pension is exempt.