Ravi S (Senior Finance Analyst) (40 Points)
20 March 2013Dear Members,
During this FY, i have got an option to exit the Superannuation contribution, but i am continuing my service in the present employment.
Kindly clarify me that, whether the Amount received from the Superannuation fund is taxable under Salaries or Income from other sources or Fully exempted?
Regards,
Ravi S,
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 20 March 2013
Usually Superannuation benefits are in the form of Pension. You need to study the Trust Deed and trust Rules framed by your employer company. You may commute 1/3 rd of benefits if you are receiving gratuity or 1/2 if not. The balance will be payable in monthly/quarterly/half yearly/yearly instalments as opted by you to the Fund Manager.
Taxability of Pension is regulated under section 10(10AA) of the IT Act 1961.
Regards,
CAclubindia
