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fund can not be withdrawn , since this is also known as pension plan.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can be withdrawn at the time of exit from the organization and balance two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If one third of the fund withdrawn at the time of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 If the same is withdrawn before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, February 19, 2021
Withdrawal from Superannuation Fund
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