I seek advise on 2 points I am very confused about:
(i) Under Section 10(13) - Any payment from an apprroved SA Fund, made on retirement is fully exempt from Income Tax.
I have been receiving monthly annuity payments from an approved SA Fund, maintained with LIC, post my retirement. These amounts have been shown as Income and I have been paying tax on these amounts. Question: Are these receipts from an approved Superannuation Fund Tax exempt? Have I been wrong in treating these amounts as Income and paying tax on them?
(ii) Under Section 115BBDA, Dividends in excess of Rs 10 lacs, declared, distributed, or paid by a Domestic Company, are subject to Income Tax. Does this mean, if I have dividends in any Financial Year, of say Rs 14 lacs from Mutual Funds, the full amount will not be exempt under Section 10, and I will need to pay Tax on the excess amount of Rs 4 lacs?
Your advise on these points would be highly appreciated.
CAclubindia
