Pension is a retirement benefit, received by the employee on a regular basis, after retirement, if his employment terms so provide. Usually, pension is paid out on a monthly basis, he/she may also choose to take pension as a lump sum (also called commuted pension) instead of a periodical payment. It is taxed under the head ‘income from salary’ in his/her income tax return.
Let us understand commuted pension with the help of an example.
Suppose, At the age of 60, X decides to receive 60% of his monthly pension of ₹20,000 of the next 10 years in advance, which will be paid to him as a lump-sum. Therefore, X will receive ₹14,40,000 (60% of 20,000*10*12) as commuted pension.
X will continue to receive ₹8,000, on monthly basis for the next 10 years i.e. until you are 70 years of age, referred to as uncommuted pension. After that, you will be paid your full pension of ₹20,000 every month.
Tax treatment:
Pension is taxed in the following manner:

Important points to note:

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CMT Level 1 Study Material

As a matter of fact you can watch live market trading that helps you to connect with CMT. Join a Technical Analysis Course which works on real time markets by using tools & techniques . That’ll give you behavioural understanding of real time Share market. Understanding the money management by real time trading or investment activity. As we know CMT is an MCQ Exam & ask question on application level. Create short notes of Course Content. Get PPT based Short Notes & note interpretation of tools & Techniques on technical analysis. Short Notes help you out to quick revision at the CMT exam time. CMT Books have very complicated language & course content is not properly aligned as it takes topics from various books of different writers. 

So we have to take individual topics and understand concepts in simple, Concise and Clear manner. Take content from various books or websites like Investopedia or Stock Charts on Each Topic for in-depth understanding. Apply tools & techniques with the help of Technical analysis or trading software’s. Read Books twice as MCQ can be created from a single line. while study mark important topics.