Tax on perquisites in case of super annuation contribution

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 June 2011 A an employee, is eligible for superannuation from his employers. Th company is contributing 15% of the salary considered for PF purposes. The amount of contribution exceeds Rs. 100000. As per provisions of S. 17, the excess amount over Rs. 100000 would be taxable in the hands of the employee in the year of contribution. post retirement the monthly contribution received by the employee, would it again be taxable in the hands of the employee? Can anybody throw light on this matter?

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
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09 June 2011 IN CASE OF SUPPERANNUATION FUND THE AMOUNT RECD IS TAXABLE EXCEPT IT IS RECD IN SUCH CIRCUMSATNCES AS ARE MENTIONED IN SECTION 10(13)
HOWEVER ONLY THE SUM RECD OVER AND ABOVE EMPLOYEES COTRIBUTION AND INTT THEREON IS TAXABLE UNDER SECTION 17(3)
IN THIS CASE AS PER LAW THE SUM RECD WILL BE TAXED AND THIS WILL RESULT IN DOUBLE TAXATION
THIS IS A DRAFTING ERROR BUT IT IS SO
CA MANOJ GUPTA
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