a person took pension plan during service person of Bajaj Allianz and got it matured after seven years continued investment after retirement. will the difference amount of premium and matured amount be taxable or not??
if exempt under which section n if taxable under which section?
pl somebody elaborate?
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pension plan maturity
Replies (3)
pl sb offer any comment
pl guide somebody
When pension plans mature, irrespective of whether they are unit-linked or not, only 1/3rd of the maturity amount is given to the investor as a lump sum. This lump sum amount is tax-free.
The balance 2/3rd is converted to an annuity and one starts to get regular pension from this corpus post maturity. The pension thus received, is treated as income and is taxed as per your applicable tax slab.
For more details refer: what-is-a-pension-plan-pension-plan-
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