Tax on Superannuation commutation prior to retirement age

[Guest]

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?

[DR.MARIAPPAN GOVINDARAJAN]

If the scheme gives exemption to commutation then no tax will be liable. Please got clarified about the exemption to the scheme.

AI Summary

Tax treatment of superannuation commutation depends on whether the pension scheme grants exemption; verify scheme terms before commuting. Tax treatment of a commuted superannuation benefit before retirement depends on the Superannuation Fund's exemption provisions; if the approved fund expressly grants exemption for commutation, the commuted portion is not taxable, so the member must verify and document whether the fund's rules or approval conditions confer such an exemption.