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Taxability of superannuation fund at the time of resignation

RaAaM (Student CA Final ) (54 Points)

03 August 2016

One of My client has received 8,45,000 at the time of resignation from its superannuation fund and TDS has been deducted @ 10%. Further he has invested all the money in Fixed deposits and earned interest of Rs. 3,00,000. His total income is Rs. 11,45,000. Is the receipt of superannuation is exempt or any way to save tax for the FY'15-16. Reply as early as possible. Its urgent!!!!

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3 Replies

Udgam Koomar (Tax Technologist) (1949 Points)
Replied 03 August 2016

Specially in Private, full superannuation is taxabl and considered as part of the salary if you received it due to resignation. Since the aforementioned amount is not covered under Section 10(13) and no other Section provides for Exemption of the same, it is thus treated as an Income and consequently taxable in the hands of the employee

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RaAaM (Student CA Final ) (54 Points)
Replied 03 August 2016

Thank You !!!

Pratik Patil (2 Points)
Replied 15 May 2017

Hi , i am working for a MNC which had super annuation scheme with LIC India. Now i have resigned from the company and want to withdraw my accumulated amount which is near about 40,000 including interest earned. My company finance officials are saying that 30 % would be deducted from the total amount. Is it the right calculation. So i will get only 28,000 only which is less than even my principal amount. Please help me with the percantage of tax on withdrawal of superannuation on resignation. Thanks.