Pension 

Pension is a type of retirement benefit employees get from the government or a company or other employers in consideration their past faithful service towards the organisation.

It is payable after retirement and can be monthly or in lump sum amount. They promises you to pay benefits from the day you retired till as long as you live.

Pensions are of two types:

1. Commuted pension :

In commuted pension the pension is received in  a single payment i.e. in lump sum. The lump sum amount taken by whole of the, or part of the pension. Commutation means interchange. 

2. Uncommuted pension :

In uncommuted pension the pension is received in the hands of employees after retirement is given periodically. Mostly monthly basis.

In India it is taxable for all type of employees whether government employees or non government employees.

How it is supposed to be taxed in india