Taxability of superannuation fund

Hi Friends,

My query is regarding taxability of superannuation (SA) fund. I resigned from my job in July 2010 and received my SA fund. Employer has deducted the tax on it and supplied me a separate form 16 which shows SA amount and tax deducted on it (Got 2 form 16s - one for SA and one regular form16 showing my earnings from Apr 2010 to July 2010 i.e. till the time I was employed with them).

My query is while filing the returns do I have to add the SA amount as INCOME in FY2010-11 or is there some provision to show it separately in ITR?

Employer has deducted tax at a lower rate on SA (I think around 22 or 23%) than my highest slab (i.e. 30%). If I add SA to my income, my tax liability may go higher than what my employer deducted. In such case, will I have to pay the additional tax arising due to addition of SA to income?

Regards,

Ravi

Replies (1)

Income from superannuation fund is called pension.

Pension is treated as Income from Salary. So while filing your ITR, you have to show pension under the head Income from Salary. Tax will be calculated accordingly.

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