Master in Accounts & high court Advocate
9572 Points
Joined December 2011
That's correct. According to Indian tax laws, when a superannuation fund payout is received, 35%of the corpus (amount received) is taxable as income. This is considered as "Income from other sources" and is subject to tax at the receipient's slab rate.
Here's a breakdown:
65% of the corpus is tax-free
35% of the corpus is taxable
It's important to note that this taxability rule applies to superannuation funds that are not exempt from tax, like the Employees' Provident Fund (EPF).