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fund can not be withdrawn , since this is also known as pension plan.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can be withdrawn at the time of exit from the organization and balance two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If one third of the fund withdrawn at the time of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 If the same is withdrawn before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)
Navigating the Complexities of GST Pre-deposit Requirements Before GSTAT
The introduction of the Goods and Services Tax Appellate Tribunal (GSTAT) has brought significant changes to the pre-deposit framework for...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
Issue before the Income-tax Appellate Tribunal (ITAT) Whether the phrase “paid up capital and general reserves” should be defined as “Ne...
-
Introduction Employee welfare is a cornerstone of corporate responsibility, and gratuity forms a critical part of the social security benefi...
-
Sr No Due Date Related to Compliance to be made 1. 11.06.2026 GST ...
-
In the complex landscape of India’s Goods and Services Tax (GST), the tax treatment of non-compete fees has emerged as a critical area f...
-
Selling a property can trigger a significant tax liability in the form of capital gains tax. However, the Income-tax Act, 1961, allows you...
-
Capital gains taxation on immovable property under the Income-tax Act, 1961 often turns on a deceptively simple question: when is a proper...
-
Tax Deducted at Source (TDS) is generally not applicable to interchange fees, payment gateway charges, or the Merchant Discount Rate (MDR)...
-
The newly enacted Income Tax Act, 2025, marks a significant step toward simplification by consolidating multiple presumptive taxation sche...
-
Introduction The law relating to companies is laid down in Companies Act, 2013 and the rules made thereunder and t...
No comments:
Post a Comment