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fund can not be withdrawn , since this is also known as pension plan.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can be withdrawn at the time of exit from the organization and balance two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If one third of the fund withdrawn at the time of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 If the same is withdrawn before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)
Recommendations of 55th GST council meeting | 21 December 2024
Summary of the relevant updates is provided below for ease of your reference: A) Proposals relating to GST law, Compliances an...
-
PCIT vs. The Executor of Estate of Late Smt. Manjula A. Shah (Bombay High Court) S. 50C Capital Gains: The valuation of the stamp autho...
-
This Tax Alert summarizes a recent ruling of the Supreme Court (SC) [1] on availability of CENVAT Credit on mobile towers and pre-fabrica...
-
IFRS and US GAAP - Similarities and Differences What is IFRS? And what is GAAP? The main difference between IFRS and US GAAP is that G...
-
Madras HC reverses ITAT's order, grants deduction u/s. 80P(2)(a)(i) to assessee (a society engaged in the business of banking and provi...
-
SC dismisses assessee-company’s SLP challenging Bombay HC order upholding re-assessment initiation (beyond 4 yrs period) based on a special...
-
SC dismisses Revenue’s SLP challenging Bombay HC order in case of assessee (belonging to Lodha group of companies engaged in real estate bu...
-
Claiming a foreign tax credit (FTC) in Australia allows companies to offset foreign taxes paid on income earned overseas against their Aust...
-
HC allows HDFC Bank’s writ petition, quashes AO’s order and subsequent reference to TPO alleging that certain related party transactions [p...
-
Delhi ITAT deletes Rs. 1558.57 cr. capital gains addition on Telenor India for AY 2014-15, holds that set off of non-refundable entry fee p...
-
This Tax Alert summarizes a recent ruling of the Bombay High Court (HC)1 on admissibility of input tax credit (ITC) w.r.t GST on advance p...
No comments:
Post a Comment