Superannuation taxability

SUPERANNUATION PAYOUT RECEIVED 35% OF THE CORPUS is taxable
Replies (2)
Quick Summary
In India, when you receive a superannuation fund payout, 35% of the total amount is considered taxable income. This portion is taxed under 'Income from other sources' at your applicable income tax slab rate. The remaining 65% of the corpus is generally tax-free. This rule applies to superannuation funds that are not specifically exempt, such as the Employees' Provident Fund (EPF).

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). 

Please confirm  is it other income or Pension income.

 

Best Regards

Ashish

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