Superannuation Fund Payments Tax Exemption: Conditions Include Death, Retirement, Incapacitation, and Section 80CCD Transfers
Payments from an approved superannuation fund are exempt from tax under certain conditions, such as on the death of a beneficiary, retirement, or incapacitation of an employee. Refunds of contributions are exempt if they do not exceed pre-Act contributions plus interest. Transfers to pension schemes under Section 80CCD are also exempt. Employee contributions are deductible under Section 80C, while employer contributions are tax-exempt up to Rs. 1,50,000 annually per employee. Interest on accumulated balances is tax-exempt. Approved funds must comply with the Income Tax Act's Fourth Schedule. Voluntary retirement annuities are not covered under these exemptions.