Understanding Taxation on Superannuation Funds: Guidelines and Exemptions

vaibhavi.mahadik
Please let me know the tax treatment on superannuation fund. Whether the tax will be calculated as per the income tax slab or any fixed percentage of tax will be applicable?

Thank you.
aa_somani
Hello Vaibhavi,

Tax on superannuation funds is as per the Income Tax slab. There is no fixed percentage.
Avika
Dear Vaibhavi,

You need to calculate tax as per the normal income tax rates. However, as it is an employee welfare trust, you can seek income tax exemption from the department.

Thanks,
Avika
pon1965
I think the lump sum amount to be received is tax-exempt. Only the annuities are taxable as per existing tax rules.

Pon
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