. Mr. Ganesh retires on 31.10.2010 voluntarily from XYZ (P) Ltd. as per the scheme approved under section 10(10C) of the…

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. Mr. Ganesh retires on 31.10.2010 voluntarily from XYZ (P) Ltd. as per the scheme approved under section 10(10C) of the Income-tax Act, 1961. He furnishes the following particulars: Salary `40,000 p.m.; Pension `16,000 p.m.; D.A. forming part of basic pay `12,000 p.m.; Compensation on voluntary retirement `8,00,000; Gratuity `11,10,000; Leave Salary `6,75,000; He gets 60% of his pension commuted for `,600,000 on 31.1.2011. Completed years of service 18 years and 7 months. Leave availed while in service 19 months. But for the voluntary retirement Mr. Ganesh would have retired only after 45 months. The last increment he received was on 1.11.2010. Compute his taxable salary income for the A.Y. 2011-12.
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