Super annuation fund

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SUNIL GIDWANI (Querist)

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)

15 August 2015 Pls reply on above matter

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

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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