Perquisite valuation for super annuation

The taxability of contribution to and from superannuation fund is goverend by sec 10(13).

Tax treatment will be as follows:

1.Employer's contribution

 Approved superannuation fund-Exempt to the extent of Rs. 1 lakh in a year (sec 10(13) )

Uapproved superannuation fund-Exempt for the time being (will be chargeable later)

2.Employee's contribution

Approved superannuation fund-deduction is available u/s 80C

Unapproved superannuation fund-deduction is not available

3.Payment of annuity

Approved superannuation fund-chargeable to tax (sec 10(13))

Unapproved superannuation fund-chrageable to tax

4.Lumpsum payment in lieu of annuity

Approved superannutaion fund-exempt on  death of beneficiary,on reaching the superannuation age or on incapacitation prior to retirement age

Unapproved superannuation fund-chageable to tax

NOTES:

1.Employers contribution to an approved superannuation fund by the employer exceeding Rs. 1 lakh in a year is chargeable to tax as perquisite in the hands of the employee under sec 17(2)(vii)

2.Lumpsum amount received from superannuation fund on resignation before reaching the specified age of retirement is not eligible for exemption under sec 10(13)