Lost Superannuation Benefits After Resignation: What Should I Do Now?

I was working in a Pvt Ltd Company, and the company was contributing 8% of my basic salary to a superannuation fund. This was also considered part of my CTC. The contribution above Rs 1.5 Lacs per year was treated as perks and also taxed as per Income Tax rules.

I resigned after 3 years. Then I came to know that the superannuation became due to me only after 5 years, and I lost this money although I paid tax on the money, which I never received as was promised as part of CTC. What is your advice on this?

Kumar
**Location**: Gandhinagar, India
income tax, income tax rules, Country-India, City-India-Gandhinagar

Kumar, in your case, the issue revolves around the superannuation fund contribution being part of your Cost to Company (CTC) and the conditions for its payout. Here's some guidance on how to approach this situation:

1. Understanding CTC Components: It's common for companies to include various components like superannuation in the CTC structure. However, the terms and conditions regarding the payout of these components, especially after resignation, need to be clearly communicated to employees.

2. Superannuation Fund: In your scenario, the superannuation fund contribution was part of your CTC, but the payout was subject to a specific condition of completing 5 years of service. This condition should have been explicitly mentioned in your employment contract or the company policy.

3. Tax Implications: The tax treatment of the contribution above Rs 1.5 Lacs per year as perks aligns with Income Tax rules. However, the tax implication on the amount that you never received due to the 5-year condition is a valid concern.

4. Seek Clarification: It's advisable to reach out to your ex-employer or the HR department to seek clarification on the specific terms of the superannuation fund and the implications of resigning before completing 5 years.

5. Legal Recourse: If you believe that there has been a breach of contract or if the terms were not communicated clearly, you may consider seeking legal advice to understand your rights and options for potential compensation.

6. Future Considerations: For future reference, always ensure that you have a clear understanding of all components of your CTC, including any conditions attached to them, to avoid any surprises upon separation from the company.

It's essential to address this issue promptly and seek clarification to determine the best course of action in your specific case.