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Group super annuation - commutation taxability

Viswa nath (Sales professional) (69 Points)

21 March 2019

Sir,

1. For LIC Group Super annuation - contribution paid entirely by employee and there are no employer contribution. Is the whole annual contribution deductible from gross income. (upto 1.5L?). Is it under 80CCC?

2. Is Super annuation in above case, the 1/3rd commutation taxable during resignation after 5+ years.

3. Is there any other pension scheme available, which we can contribute individually and claim deduction under 80CCC.

4. Hope NPS contributions can be reduced from gross income 80CCD. Is it eligible under 80C as well?

If 1.5 lakhs invested in NPS, would be eligible for 1.5L under 80CCD(1) & 50K under 80CCD(1b). or

should we invest 2L to get rebate of 1.5L under 80CCD(1) & 50K under 80CCD(1b)

Thanks.

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2 Replies

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 22 March 2019

1. yes deductible
2. not taxable
3. there are pension schemes notified by central govt. google it
4. no
5. no
6. yes

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Viswa nath (Sales professional) (69 Points)
Replied 11 April 2019

Thanks Sir,

1. On Point-2 : Could you please refer any section stating that, since most of the online Q&A, states commutation is taxable.

2. Voluntary PF : Person having 10+ Years of EPF account wants to close EPF on resignation. IF he starts contributing to Voluntary PF for past 2 years, will the VPF portion be taxable.

3. Another Scenario : First employer : EPF : 10 years; EPF transferred to second employer; Employee resigns after 4 years of service and closes EPF. Hope the withdrawals are not taxable as the contribution age of the PF is taken as 10+4 years under same UAN,