Super annuation fund

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SUNIL GIDWANI (Querist)
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08 August 2015 HI SIR,

I HAVE RECEIVED RS.500000 AS SUPERANNUATION SCHEME FUND AS I RETIRE FROM CO-OP DAIRY, AND
I HAVE RECEIVED A SEPERATE FORM16 FOR THIS SUPER ANNUATION SCHEME IN WHICH
RS.250000 IS WRITTEN AS EMPLOYERS FOR
FY 2014-2015 CONTRIBUTION AND TDS IS DEDUCTED.

AND A SEPERATE FORM 16 IS RECEIVED FOR MY SALARY DURING THE YEAR FY 2014-2015 AND TDS IS DEDUCTED.

WHAT IS TAXABILITY OF SUPER ANNUATION SCHEME
HOW CAN I FILE THE RETURN AND DONT KNOW ABOUT THIS PLS REPLY AS EARLY AS POSSIBLE

SUNIL GIDWANI

SUNIL GIDWANI (Querist)
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15 August 2015 Pls reply on above matter

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Sure! Here’s a clear explanation regarding **superannuation fund taxability** and how to handle it in your income tax return:

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### 1. **What is Superannuation Fund?**

* It’s a retirement benefit scheme where the employer contributes a fixed amount on your behalf.
* Contributions by the employer to the superannuation fund up to Rs. 1,50,000 per year are **exempt from tax** in your hands during the contribution period.
* The amount accumulated (including interest) is payable to you on retirement or resignation.

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### 2. **Taxability of Superannuation Fund on Retirement:**

* When you receive the **superannuation fund on retirement**, the amount is **exempt from tax up to Rs. 5,00,000** as per Section 10(13) of the Income Tax Act.
* Amount **exceeding Rs. 5,00,000** is taxable as **“Income from Other Sources”** in the year of receipt.

Since you received Rs. 5,00,000, which is exactly Rs. 5 lakhs, **this amount is fully exempt** from tax.

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### 3. **TDS on Superannuation Fund:**

* You mentioned TDS was deducted on Rs. 2,50,000 (employer’s contribution) shown separately in Form 16.
* Ideally, **TDS should not be deducted on exempt portion** (up to Rs. 5 lakh).
* Sometimes, TDS is deducted by mistake or as per company policy.
* You can **claim refund of excess TDS** when filing your Income Tax Return.

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### 4. **How to File Your Income Tax Return?**

* Declare your **salary income** as usual as per Form 16.
* Declare the **superannuation fund received** under exempt income (Section 10(13)) as **exempt**.
* Claim the **TDS deducted on superannuation** while filing your return.
* If TDS is higher than your total tax liability, you can claim the refund.

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### 5. **Practical Steps:**

* Use ITR-1 or ITR-2 (depending on other income sources) to file your return.
* In the exempt income section, mention the superannuation amount received.
* Enter total TDS deducted (from both salary and superannuation).
* Pay balance tax if any or claim refund.

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### Summary Table:

| Particulars | Amount (Rs.) | Tax Treatment |
| --------------------------------- | -------------- | -------------------------------------------------- |
| Employer’s Contribution (Form 16) | 2,50,000 | Exempt up to Rs. 1,50,000/year (during employment) |
| Superannuation Fund Received | 5,00,000 | Exempt up to Rs. 5,00,000 on retirement |
| TDS Deducted | As per Form 16 | Can claim refund if deducted wrongly |

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If you want, I can help you draft the return or prepare a calculation sheet for your tax filing. Just let me know!

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