Pension plan and tax liability

Gopi Chodimella (16 Points)

10 September 2018  

Hello,

 

I have a ICICI Prudential Super Pension Plan, which I have paid premium for minimum period. The Plan matured in 2017 and have postponed the Vesting till 2020.

 

When I recently visited the ICICI Pru Branch and wanted to redeem, I was told that the entire corpus would be taxable unless I buy annuity with the same company (ICICI Pru). Below are my questions and I request experts to help clarify the same.

 

1. If I redeem now, is my entire corpus going to be considered as income and taxable at my slab (including my premiums)?

2. If I wait till vesting is completed, will I get any tax exemtions?

3. Someone told me that the corpus would be non-taxable since I waited till maturity. Is this true?

4. I understand, if I buy annuty.. this will be tax free. However do I have to buy annuity from ICICI Pru ONLY or redeem and use the amount to buy annuity from another Company - such as HDFC Life etc. who pays better pension?

5. Will I get any benefit if I wait till vesting period is completed or can redeem now?

 

Any clarification will be of great help. Thanks.

 

Regads,

Gopi