Section 10(10a) iii, clause 23aab
This query is : Resolved
Bhavesh Kothari
(Querist)
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
CA PARAS BAFNA
(Expert)
09 November 2011
The entire fund can not be commuted as the funds are following the guidelines issued in this regard.
.
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).
.
.
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).
.
Message likes :
2 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Additional trade name
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Number of years as per AS amortisation of Goodwill
- Whether output tax is taken credit by purchaser
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
