What would be the taxable amount on commuted pension received by Jogen, if he would retire from a private organization?

Section C (4 Mark)

Read the senario and answer to the question.

Jogen commuted his 40% of pension in April, 2008 with Rs. 2,15,000.

What would be the taxable amount on commuted pension received by Jogen, if he would retire from a private organization?
A . Rs. 1,07,500
B . Rs. 35,833
C . Rs. 1,70,167
D . Rs. Nil

Answer: B