Hi,
I have been in a superannuation scheme for the last five years, and now my employer has informed me that the contributions to my account have exceeded the tax limit of 100k. I have two options to choose from:
1. Out of the total contributions from my account, the contribution to be made in the superannuation fund is up to 100k, and the remaining part to be contributed to the PF.
2. Withdraw all the funds from the superannuation as per tax rules and start full contributions to the PF scheme.
Please suggest which option would be better. Also, what is the tax amount on withdrawing from the Superannuation scheme?
Thanks,
Vikas
From India, Warangal
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I have been in a superannuation scheme for the last five years, and now my employer has informed me that the contributions to my account have exceeded the tax limit of 100k. I have two options to choose from:
1. Out of the total contributions from my account, the contribution to be made in the superannuation fund is up to 100k, and the remaining part to be contributed to the PF.
2. Withdraw all the funds from the superannuation as per tax rules and start full contributions to the PF scheme.
Please suggest which option would be better. Also, what is the tax amount on withdrawing from the Superannuation scheme?
Thanks,
Vikas
From India, Warangal
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If your employer is telling you to withdraw the superannuation amount as the contribution has exceeded the limit of 1 lac, please ask them the reason for it and the rule under which he is saying so.
In my opinion, the limit of 1 lac was for a contribution to the superannuation fund for one year under the FBT scheme. If the contribution exceeded 1 lac per annum, the employer was supposed to pay FBT on it. Now the FBT has been withdrawn, and there is no tax on this contribution.
I think the employer does not know about the correct procedure of the law. Please seek clarification from them.
Hope this would help you.
From India, New Delhi
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118In my opinion, the limit of 1 lac was for a contribution to the superannuation fund for one year under the FBT scheme. If the contribution exceeded 1 lac per annum, the employer was supposed to pay FBT on it. Now the FBT has been withdrawn, and there is no tax on this contribution.
I think the employer does not know about the correct procedure of the law. Please seek clarification from them.
Hope this would help you.
From India, New Delhi
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