Superannuation is one of the retirement benefit
offered to employees by their employers.
Employers contribute a fixed percentage upto a
maximum of 15% of employees basic pay plus dearness allowance. This
contribution is part of Cost to the company of employees.
When an employee can withdraw the money from the
Superannuation Fund?
Employees are eligible to withdraw the money from
the fund either at the time of retirement (or) at the time of resignation .
At any point of time, full amount available in the
fund can not be withdrawn , since this is also known as pension plan. One third
can be withdrawn at the time of exit from the organization and balance two
third can be opted as pension. Even entire fund amount can be opted as pension.
If one third of the fund withdrawn at the time of
retirement , the same is tax exempted. If the same is withdrawn before
retirement , the same is taxable.
If an employee resigns and moving to other
Organisation , it is possible to transfer the fund to other organization also.
Otherwise , it is recommended to keep in the fund
itself till 58 years , since the fund will earn a interest based on the total
fund available with the Service provider.
Friday, 19 February 2021
Withdrawal from Superannuation Fund
Subscribe to:
Post Comments (Atom)
Is RPM is the appropriate method for a distributor incurring AMP expenses?
The key issue is whether the Resale Price Method (RPM) is appropriate for determining the Arm’s Length Price (ALP) for a distributor incurr...
-
Direct Tax · No change in the rate of corporate tax including surcharge & cess.
-
Buyback is an important provision related to Share Capital of a company. Rule 17 of the Companies Act set out norms for buyback...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
The Input Service Distributor (ISD) mandate, introduced in the Union Budget 2024, will take effect from April 1, 2025, as per amendments to ...
-
In this post, I will discuss Secretarial Standards related to Proxies under SS – 2. Right to Appoint: A Member entitled to attend and ...
-
The Union Budget 2025 introduces significant amendments to transfer pricing (TP) regulations under the Income Tax Act. These changes focu...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
The Income Tax Department has developed the latest JAVA base ITR Forms utility. ITR-1 (Sahaj) and ITR-4S (Subam) JAVA base utility has ...
-
Sr No Due Date Related to Compliance to be made 1 11.02.2025 GST ...
-
The article outlines the U.S. Securities and Exchange Commission’s (SEC) evolving role in regulating digital assets such as cryptocurrencie...
No comments:
Post a Comment