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Superannuation annuity for senior citizen is tax free?

neha (Others) (419 Points)

06 August 2022

the annuity received by senior citizen who worked in pvt company via super annuation with LIC then the annuit recived thats exempt income right under /'Sec 10(13)-Approved superannuation fund received/' ?

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KALPESH JOSHI (215 Points)
Replied 19 August 2022

Employee’s contribution to the approved superannuation fund is deductible under Section 80C subject to overall limit of Rs 150,000.
Any benefit received from superannuation fund on death or injury are tax free
Interest from a superannuation fund is tax free
On retirement, 1/3 of the commuted fund is fully exempt from tax and the remaining amount if transferred to an annuity is tax-free and if the amount is withdrawn, it is taxable in the hands of the employee.
Employer’s contribution of up to Rs 1.5 lakh in respect of an employee is exempt. However, if the contribution exceeds Rs 1.5 lakh, the amount in excess will be taxable in the hands of the employee as a perquisite.