Tax on Superannuation commutation prior to retirement age

[suresh sahu]

I resigned at the age of 57 i.e. a year ahead of my retirement age in the company. The company has an approved Superannuation Fund tied with LIC. If I opt for 1/3rd commutation and balance for pension, will my commuted amount be taxed?

AI Summary

Tax Implications of Early Retirement: Commuting Superannuation and Pension Options Explained. Check Exemption Details for Tax-Free Benefits. An individual resigned at 57, a year before their official retirement age, and inquired about the tax implications of commuting one-third of their superannuation fund while opting for the remainder as a pension. The company's superannuation fund is associated with LIC. The response advised that if the scheme provides an exemption for commutation, the commuted amount would not be taxed, and recommended confirming the exemption details specific to the scheme.