Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Superannuation taxability

ashish dharkar (accountant) (140 Points)

09 July 2024

SUPERANNUATION PAYOUT RECEIVED 35% OF THE CORPUS is taxable

Reply
Follow
Share

2 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (3549 Points)
Replied 10 July 2024

That's correct. According to Indian tax laws, when a superannuation fund payout is received, 35%of the corpus (amount received) is taxable as income. This is considered as "Income from other sources" and is subject to tax at the receipient's slab rate.

Here's a breakdown:

65% of the corpus is tax-free

35% of the corpus is taxable

It's important to note that this taxability rule applies to superannuation funds that are not exempt from tax, like the Employees' Provident Fund (EPF).