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