Payment from an approved Superannuation Fund - (New) Schedule II / Section 10(13)

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....contributions to an employee on his leaving the service in connection with which the fund is established otherwise than by retirement at or after a specified age or on his becoming incapacitated prior to such retirement, to the extent to which such payment does not exceed the contributions made prior to the commencement of this Act and any interest thereon; or • (e) by way of transfer to the account of the employee under a pension scheme referred to in section 124 and notified by the Central Government in this behalf. Taxation in the Employee's Hands • Employee's Contribution :- Deduction is available under section 123 from gross total income, subject to the overall Rs. 1,50,000 limit. ....

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..... 7,50,000/-). The initial contribution of the employer to a superannuation fund for the past services of an employee shall not exceed the total of 27% of the salary of the employee for each year of past service, as reduced by the contributions of the employer to a provident fund (recognised or unrecognised), if any, for the same employee for each such year. [ under Section 29(1) & Rule 306 ] • Income earned by trustees on behalf of the approved fund is exempt under Schedule -VII Table (Sl. No. 23). Under Income Tax Act, 1961 [ Upto 31.03.2026 ] Section 10(13) - Payment from an approved Superannuation Fund Any payment from an approved superannuation fund shall be exempt provided ....

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....ate limit are not taxable. Contributions beyond this limit attract tax as a perquisite. Lump-sum employer contributions to group superannuation schemes where individual benefits are not separately identifiable are not taxable as perquisites. • Interest accrued on the superannuation fund balance is exempt unless attributable to excess employer contributions above Rs. 7,50,000, in which case it is taxable as a perquisite. Taxation in the Employer's Hands • Employer contributions to an approved superannuation fund are allowed as a business expenditure under Section 36(1)(iv), subject to limits. (i.e. 7,50,000) • Income earned by trustees on behalf of the approved fund is exempt under Sec....