How is the superannuation commutation amount calculated and how is the annuity installment for every six months calculated? My superannuation account was maintained with LIC by my ex-company. If there is any wrong calculation in the commutation amount, who is responsible to get it corrected - my company or LIC?
Please reply.
From United States, Hayward
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Please reply.
From United States, Hayward
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Dear,
If the amount is calculated incorrectly, the employer is considered a defaulter in that case. Usually, the company pays 15% of the basic wage towards the superannuation fund and deposits it with agencies like LIC.
I have attached a document with more information on this matter.
Regards,
Vipin
From India, New Delhi
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32If the amount is calculated incorrectly, the employer is considered a defaulter in that case. Usually, the company pays 15% of the basic wage towards the superannuation fund and deposits it with agencies like LIC.
I have attached a document with more information on this matter.
Regards,
Vipin
From India, New Delhi
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Thanks a lot, Vipin, for your reply. I couldn't find the answer to my situation in the document. I received a letter from LIC detailing the money paid. There is an amount mentioned as "Amount Payable to Nominee". Is this the total amount credited to my superannuation account until my resignation date?
My commutative amount was calculated as 50% of the "Amount Payable to Nominee". So, finally, what I received from my company is a check for the amount after deducting a 30% tax on the commutative amount.
For example:
Amount payable to the nominee = Rs 10,000
Commutation amount = 50% of 10,000 = Rs 5,000
Amount I received after tax = 3,500 (5,000 - (5,000 * 30%))
My concern is with the amount mentioned under "Amount Payable to the nominee"; if it is the total amount in my account, what is mentioned in the letter is not correct, which will, in turn, affect my commutation amount.
I have been discussing this with my HR to get clarification, but it has not been resolved yet. Please provide clarity on this matter for me.
From United States, Hayward
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My commutative amount was calculated as 50% of the "Amount Payable to Nominee". So, finally, what I received from my company is a check for the amount after deducting a 30% tax on the commutative amount.
For example:
Amount payable to the nominee = Rs 10,000
Commutation amount = 50% of 10,000 = Rs 5,000
Amount I received after tax = 3,500 (5,000 - (5,000 * 30%))
My concern is with the amount mentioned under "Amount Payable to the nominee"; if it is the total amount in my account, what is mentioned in the letter is not correct, which will, in turn, affect my commutation amount.
I have been discussing this with my HR to get clarification, but it has not been resolved yet. Please provide clarity on this matter for me.
From United States, Hayward
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