Section 10(10a) iii, clause 23aab
This query is : Resolved
09 November 2011
As stated by insurance companies in their product brochures, tax benefit on contribution to pension plans is that upto one third can be commuted from the accumulated pension fund tax free and the balance can be availed as annuity. However, Section 10(10A) iii, clause 23AAB states that such income does not form part of total income.Could not find any clause which states only an amount upto one third of the fund can be commuted as tax free. Request clarification if the entire fund can be commuted as tax free
09 November 2011
The entire fund can not be commuted as the funds are following the guidelines issued in this regard.
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By the virtue of Section 10(23AAB) the income of such FUNDS set up under a pension scheme approved by the Controller of Insurance or IRDA...... is exempt.
SO THIS CLAUSE IS FOR FUND'S INCOME AND NOT FOR THE AMOUNT RECEIVED BY US.
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You may find the desired clause of 1/3 rd commutation in Section 10(10A) (ii)(a).
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By the virtue of Section 10(23AAB) the income of such FUNDS set up under a pension scheme approved by the Controller of Insurance or IRDA...... is exempt.
SO THIS CLAUSE IS FOR FUND'S INCOME AND NOT FOR THE AMOUNT RECEIVED BY US.
.
You may find the desired clause of 1/3 rd commutation in Section 10(10A) (ii)(a).
.
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