What is superannuation benefit in India and how it is taxed?

Does your employer offer you superannuation benefit? Whether you know how it works and what are the tax benefits? Many employees not aware or never bothered. Because the contribution is not from their own pocket. Let us discuss more about this benefit.


Below are the features of this benefit.

  • There are two types of superannuation benefits. One is called defined benefit-Under this, the benefits at retirement or pension are already known to an employee and it is fixed. Therefore, the risk of generating such defined benefit is purely on an employer (usually based on a formula linked to salary, years of service). The second one is called defined contribution-Under this, the contributions by employers is only known and fixed. However, the end benefits of retirement are not guaranteed. In such type of benefits, the risk is with an employee as he doesn’t know how much he will get at retirement.
  • The contribution to this benefit is purely by an employer. So nothing will be payable from your own pocket.
  • Usually an employer buys the product from insurance companies like LIC’s New Group Superannuation Cash Accumulation Plan and continues to contribute there.
  • The company pays 15% of your Basic+DA. This 15% is not fixed, but a maximum limit is 15%. Therefore, based on company rules, it may change from category of employees. However, there must be same contribution for a category of employer. For example, if a manager level category offered 15% superannuation, then all managers are eligible for 15% superannuation benefit. No single manager will be allowed to receive less than or more than that mark.
  • This contribution is invested by the managing company as per the guidelines set in the policy.
  • Once you attain a retirement age then you have two options. One is to withdraw 1/3 of such accumulated amount and 2/3 must be converted as a pension. The second option is to buy the pension product fully without commuting anything. Any such commutation is tax-free for an employee.
  • The returns of the funds may differ as each employer has the option to select the superannuation providing insurance company like LIC or ICICI. In LIC, this superannuation plan is an endowment type of product where returns will be not that much attractive. However, ICICI offers both ULIP and Endowment superannuation plans.
  • If an employee resigns, then he has an option to transfer his amount to the new employer (provided both trusts are approved). If the new employer does not have superannuation scheme, then he can withdraw the amount in the account (which is taxed accordingly) or retain the amount in the fund till the retirement age.
  • Once the superannuation trust is formed, then employer can’t stop contribution in the middle. The employer can stop the contribution only when the trust is wound up.

Type of annuity options available

It purely depends on the annuity provider. However, the common pension options are as below.

  • Payable for life.
  • Payable for life guaranteed for 5 yrs.
  • Payable for life guaranteed for 10 yrs.
  • Payable for life guaranteed for 15 yrs.
  • Payable for life with a return of capital.
  • Payable jointly on the life of husband and wife

What tax benefits of superannuation?

For taxation purposes, there are two types of superannuation. One is approved superannuation and another is not approved. This approval will be from IT Dept. The approved fund means a fund, which is approved and continues to be approved by the Commissioner in accordance with the rules set out in Part B of the Fourth Schedule of the IT Act. You can ask your employer about the status of superannuation.


  • Employer’s contribution to an approved superannuation fund is allowed as expenditure deduction for business under Section 36 (1) (iv), subject to limits set out in Rule 87 and 88 of the Income-tax Rules, 1962.
  • Income received by the trustees on behalf of an approved superannuation fund is exempt under Section 10 (25) (III). Usually, companies form a trust to avail tax benefits on the contributions made to the superannuation benefit.


  • Employee contribution (In case employee voluntarily opted, which is only possible in case of defined contribution, but not in the case of defined benefit) for an approved superannuation fund is eligible for deduction under Section 80C, subject to the limits set in Section 80CCE.
  • Any commutation of the annuity is exempt from tax.
  • Benefits payable on death or injury are exempt from tax.
  • The employer’s contribution in excess of Rs 100,000 is treated as a perquisite in the hands of the employee under.
  • Pension or Annuity will be treated as salary income and taxed accordingly.

Note-This whole information is generic purpose. Some features may depend on the insurance company your employer opted for superannuation.

535 thoughts on “What is superannuation benefit in India and how it is taxed?”

  1. I resigned from my current organisation serving 4.8 year .while company contributed 15% of my basic as a part of ctc .they said that they are inventing in some mutual fund .
    Will I get this amount and also can I continue for this superannuation scheme post this my current company .

  2. Srikanth Kumbashi Upadhyaya

    Hello Sir,
    I have taken early retirement at 57. I have superannuation from the company, where they have provided an option to withdraw 1/3rd which is taxable and remaining 2/3rd to be investing in annuity ( with LIC).

    Are there options to avoid tax on 1/3rd withdrawl amount.
    Can i opt for 100% annuity to avoid tax
    Can i retain tge amount in tge superannuation fund till i reach 60 and then withdraw 1/3rd which i believe is tax exempt .

    Can i request you to please advise
    Many thanks and regards


  3. I have resigned from my company. There is superannuation fund parked in form of mutual as unit with birla sunlife. Based on current nav the fund value is around 35 lacs.
    Can i withdraw fund and invest in some annuity pension plan to avoid TDS ?

  4. I have resigned and not looking to work as of Mar 2023. I recieved SA and wanted to know how will this get taxed and how and under whcih head should it be filled during Tax filing ?

  5. Whether I can change / reduce / stop my Superannuation contribution amount from upcoming financial year after 3 years of service in the same organization?
    Whether there will be any impact due to reduced contribution (to LIC)from 4th year onwards?

  6. Satish Prasad Thapliyal

    Dear sir ,

    I hv worked in a company where superannuation applicable and my company was contributed 15% to LIC.

    After my retirement now I m getting a monthly pension from LIC. Please confirm if this will b part of salary or other income. If in salary I can get standard deduction so need your confirmation.

    Thanks and regards

    Satish Prasad Thapliyal

  7. Hi Mr Basu,
    I have left the company & there is SA fund of around 15 lakhs without taxation.

    Can I move complete 15 Lakhs to SBI NPS directly as I am not taking it out for my personal use.


  8. Hi Mr. Basu,

    Thank you for a wonderful article on Superannuation.

    I had a question, I have resigned from my current job and new employer does not have a superannuation fund. Can i transfer my superannuation fund to NPS?


  9. Dear Sir,

    Myself Amit Dave, found you from google search regarding the Super Annuation fund related posts.

    Sir, i had worked in indian corporate for 16 years and company has deducted my super annuation @ 15% of my basic salary and credited same to LIC.

    I had resigned from company 2 years back in Jun-2020 and 3 months back company has given full withdrawal option of my Super Annuation fund and i choose the same option. But they are deducting flat 31.2% tax and rest amount will be credited to my account. The Superannuation amount is more than ? 26,24,518/- (more than 26 lacs)

    As per indian tax system of old tax regime and new tax regime can company deduct flat 31.2% tax? Sir, as per my current year income i have calculated the tax deduction as per new tax regime the deductible tax amount will be ? 5,45,850/- but company will deduct my tax of ? 8,18,850/- which is flat 31.2% of my eligible super annuation fund as mentioned above ?26,24,518/-. As per my understanding and knowledge if company deduct flat 31.2% tax than as per my current financial year income i should file tax return in next year Jul-2023 and have to claim excess tax deduction as refund for ? 2,73,000/-. Is it really fair with me which company is doing?

    As per my knowledge and current income tax slabs (2022-23) of indian government, flat 30% tax is applicable above ? 10,00,000/- under old tax regime and flat 30% tax is applicable above ? 15,00,000/- under new tax regime.

    Sir, i request to guide me if i am right or wrong. If i am right can i fight with company for tax deduction? Can company deduct flat 31.2%tax?

    I am really grateful to you if you can guide me by today on above issue, so i can communicate to company accordingly.

    Thanking You.

    Amit Dave

    1. Dear Amit,
      I am not sure why they deducted the tax on the whole amount as only 40% is taxable not 100%. Also, not sure why they considered the highest tax bracket. However, if your tax liability is less than what they actually deducted, then you can file ITR and claim a refund.

  10. At what income tax rate is 1/3rd amount of super annuation is taxed by a company when employee resigns before attaining retirement age ? Also , due to personal reasons employee is not pursuing any other job .

  11. Dear sir, I have resigned from services of company at age 53 and due to personal reasons have not taken up any Job. Now at age 56 I am claiming my super annuation. 2/3rd amount is going for an annuity from LIC. The balance 1/3rd company is deducting 30% tax. Is this correct ? At what rate should company deduct tax on this 1/3rd component when the employee resigned before company retirement age of 60. Resignation was due to various reasons and also employee did not pursue any other job. What should be the tax rate on this 1/3rd amount ?

  12. Hello Sir, my employer has marked superanuation which is only paid if i serve for 5 years with company. they are contrubuting around 3 lakhs per year. But i have also NPS and EPF contributions amounting to 6.5 lakhs.total retiral contribution is 9 lakh. Due to new tax rule employer can contribute 7.5lakhs maximum as tax free towards retirals post that remaining has to be taxed on employee . Now total retirals exceeds 7.5lakh and hence employer is adding 2 lakhs as my income and taxing. But Sir, the superannuation is not paid untill 5 years. I leave compnay that will be lost. but i am paying tax on 2 lakhs every year for this kind of locked superannuation. is tbis correct way to charge employees? I feel employer is cheating in name of superannuation so that he gets tax benefits instead of calling it as retention bonus. Please help sir.



  14. Hello sir, I have joined company on sept 2017, I am going to leave the organisation in dec2022 i.e after 4years.. earlier they have mentioned that superannuation period is 5years but as per new rule of Superannuation period reduced to 3years . Can I get my superannuation ammount.. please reply

  15. Sir I have completed 2 years of service in organisation and resigned to join new company. Now my old employer is saying that superannuation can be withdrawn only if I was served 3 minimum years. Nearly 50k was contributed so far, it’s a waste now. My question is can I transfer it to NPS or other scheme.

  16. sir my age is 35.
    i am working in a company where i have served for 9 years.
    My Superannuation amount is showing 6 lakhs.
    I want to resign and start a my own small business for which i need money after resignation.
    So can i withdraw all amount from Superannuation fund upon resignation.
    Will it be taxable?

  17. Rupesh Sagar Betha

    Dear Sir,
    I am working for a company for the last 10 years. The said company has SA fund facility which is maintaining with LIC. Recently, they changed the firm name and they asked every employee whether to continue with SA or to withdraw. So, I opted to withdraw the said fund. Shockingly, what they said is 31.2% tax will be deducted and left amount will be credited to my account. My question is
    1) can I claim the 31.2% tax while filing income tax
    Kindly, explain I am very much confused with this

  18. My employer had taken LIC PGS annuities for their employees. I sought retirement in 1999 and withdrew 1/3 of the amount and quarterly pensionary amount is being paid for the last 21 yrs. Now I wish to withdraw the balance 2/3 amount because of adverse medical conditions of both me and my wife. Is it possible. Kindly advice. Thanks.

  19. K. Govindarajan

    Sir ,

    I am 63 yr old. My Superannuation from earlier Company i would like to withdraw . The S A fund is LIC and all details available and earlier Company facilitating all required.

    I am not keen on either withdrawing 1/3 or investing 2/3 or entire 100 % in Annuity with LIC . I am also having NPS Tier 1 wherein am regularly investing and the account is active . I would like to shift the Superannuation amount from LIC to my NPS .

    Pl advice . Is it allowed to transfer the entire money from the SA of LIC to my NPS Account . This will help earning higher rate of return in NPS . Look forward to your advise.

    Please suggest .

  20. Dear Sir,
    I have worked for approximately 10 years in company A (LIC POLICY), which was contributing 15% of my basic. In the new company B (TRUST), the contribution is limited to ?100 as per CTC. What do you suggest? Should I withdraw money from policy linked in Company A & invest in NPS / PPF or ask new company B to enroll my name under Voluntary Pension Scheme. My main aim is to save for my retirement. An additional question is, if I invest to Superannuation, will it be coming under additional deduction apart from 80C? In the long-term, what do you suggest? I can spare upto 15% of basic (Obviously apart from NPS & PF). Thank you

  21. 1. If my new organization does not have superannuation in the structure and i dont withdraw my existing superannuation, then will i be eligible to get interest on the exiting corpus?

    2. What if i join another organization in future which has superannuation in their structure. Will i be able to transfer my previous corpus to the new organization superannuation scheme

  22. Hello Sir,

    My current organization where I have been employed since last 4 years have SAS scheme underwhich 1 part of the SAS is being deducted from my salary and two parts are being added by the employer. I have no idea where they are investing or who is the annuity provider. We however get excel based statements every years stating opening and closing balance including all three parts. Now my question is, similar to someone asked about whether there is a rule that you need to serve 5 years before you get eligible for making the claims or since it is being deducted from my salary and was shown as CTC at the time of the joining I could be able to claim before completing 5 years while leaving for other organisation?

  23. My Name is Krishna and i was working in a Company for about 20+ years where SAF was managed by LIC. I then moved to another company about 5 years ago which also had their SAF managed by LIC. Unfortunately i did not transfer the money from my first employer to the 2nd.

    A year ago i quit the 2nd company and therefore no contributions into the SAF from my 2nd employer. Currently there are 2 policies now with LIC ( 1st employer and 2nd employer)

    Recently, I had requested my 1st employer to transfer the SAF policy to the 2nd employer so that i can combine both the policies. However i was informed by my 2nd employer that as per SAF trust fund rules, only employees on the payroll can be enrolled and since i am not an employee anymore SAF transfer is not permissible.
    I was advised to withdraw the money directly from my 1st employer.

    My Question is :
    1) Is it true that as per SAF rules we cant transfer the SAF if you are not an employee with the organisation
    2) Is it worth withdrawing the money and what are the tax implications

  24. Dear Basavaraj,
    Thanks for sharing your knowledge. Request your response on some queries:
    My employer is contributing towards superannuation fund. I am 48 now and I plan to retire 6 months before I turn 50.
    1. Will I be able to withdraw 1/3rd of the superannuation fund when I retire or will I have to wait till I reach retirement age i.e., 58?
    2. If I can withdraw earlier, is it taxable?
    3. Will I be able to convert the balance to annuity to receive pension immediately after retirement or will I have to wait till I reach retirement age?
    4. I have a personal pension plan with a private insurer which is supposed to start paying me pension once I turn 50. Can I club the 2 funds?

    Thanks in advance for your response.

  25. My father was a Tamilnadu goverment teacher… He took superannuation for 15 years during retirement at 58. Now he will turn 73 in a year. Can he claim his Superannuation again? If so for how many years?

  26. Dear Sir,

    I had to quit my job (forced retirement) at the age of 57.

    I am not re-employable.

    I recieved 25% of my superannuation fund…and the rest will be paid as annuity.

    Is there any way to seek exemption for the amount received. I don’t have any source of income or pension. But because of settlement amounts my income is above taxable limits in PY 2020-21

  27. Dear Sir, I am 60 years old and wish to withdraw 100% of my Superannuation Fund accimulation. Will 1/3rd of the amount withdrawn be treated as tax free and balance 2/3rd added to taxable income? Or will the entire 100% added to taxable income and charged to tax. Please help.

  28. Hi Basavraj,
    Thank you for the blog.
    I have one question related to the Superannuation Lumpsump withdrawal . I received the superannuation amount from my employer . Since i had terminated my employment the only income is the superannuation withdrawal. My question is how do I show this in ITR? Will it go under the head salaries or it will go as other source. Will it attract the standard deduction in ITR.
    Thank you

  29. Aniruddha Kundu

    Dear Basavaraj,
    Thanks for taking your time to help. I was subscribed to Superannuation though company and have moved out of the country now. My status is changed to NRI.
    1) Is it possible for me to withdraw the amount accrued so far? What are the tax implications in case I go for the withdrawal?
    2) Is it possible for me to move the amount to NPS?

  30. I have resigned from my current job where we had superannuation scheme with LIC. Thereafter I have withdrawn 1/3rd of the supeannuation amount and getting the remaining 2/3rd as monthly pension. I am 43 years old. Is the 1/3rd commuted amount that I received tax free?

  31. hello sir, i am in the scheme of superannuation from my company from 10 years, my superannuation was a part of my CTC. now employer want to stop contributing to superannuation. i have few following questions
    1. can employer stop contributing to superannuation, which is part of my CTC.
    2. if employer stops contributing, whether the superannuation trust account is freezed.
    3. how to get superannuation contribution, since employer stopped contributing and i am still in service at same organization.
    4. if trust account is freezed due to no transaction, how can i get my 1/3 amount or annuity after 10 years meaqns after my retirement.

  32. Hi,

    I would like to clarify a query regarding Super annuation withdrawal.

    I have been employed with a private company for more than 5 years, and recently resigned my job. My employer had given an option to withdraw the Super annuation amount (1/3) or transfer the amount to the new employer.

    I do not have any plans to employ immediately, and would like to with draw 1/3rd of the SA amount, and go with a monthly annuity option “Life + Return of corpus (ROC)” so that my nominee would also get the benefit after my life. My current age is 35 years. Would I have to wait until 58 years to get the monthly annuity pension amount or would I get the annuity pension amount immediately?


  33. What is the tenure period in India for employee need to complete in a organization for withdrawal of Superannuation from the organization.

      1. But i want to know, suppose a person joined a organization in 2016 and after 38 month he resign & join other organization in that case can employee withdraw his superannuation or any other option is there.

  34. Dear Basavaraj,

    I am UK citizen working in Chennai. 10% of my BS+DA is amounts to SA. I would like to return to UK in future. Will I able to withdraw my SA? Thanks in advance.


  35. Hi Sir,

    I appreciate the fact that not only is the post lucid, you take time out to reply to each query.

    My query is that you mentioned in your blog that the amount of superannuation is fixed for a grade

    However, there must be same contribution for a category of employer. For example, if a manager level category offered 15% superannuation,
    then all managers are eligible for 15% superannuation benefit. No single manager will be allowed to receive less than or more than that mark.

    I had the option of taking a management allowance of 15% of Basic or contributing that amount to Superannuation. Currently the amount being contributed if more than the Rs. 1 Lac taxable limit. So can I advise the management to contribute Rs. 8333 (Rs.100000/12) or the same is not possible due to the above point

  36. I have resigned from my employer and my new employer does not offer superannuation and i have been for the past 15 years contributing to SA from my CTC

    Now my employer is giving me 3 options for my SA finds

    1)withdraw 1/3 and pay tax on it and invest 2/3 in an annuity
    2)Withdraw 100% and put in annuity and pay no tax
    3)transfer to NPS

    1)Can someone please guide me if i the Option#2 i choose is correct as i need the funds also
    2)Can You also guide me if i chose option#2 above and also chose Payable for life guaranteed for 5 yrs– does this mean that i shall get back 100% via annuity and in 5 years time with no taxes –or am i misunderstanding something here?

  37. I used to work for a corporate in Bangalore and was subscribed to their superannuation scheme.
    I left the company and now want to transfer the proceeds to NPS.
    But they are only giving me the option of buying annuity policy.
    What shall I do?

  38. Dear Basu,

    Your new blog portal looks awesome.

    I have one question on superannuation. I have ca. 4.5L in supperannuation fund maintained by my employer in a trust. As i have moved abroad, my employer has asked me to withdraw. Could you guide me on how much tax i need to pay on this withdrawal.

    Thank you in advance for your help.

  39. Dear Sir,
    I have resigned with my employer in 2014 after serving for 10+ yrs. Post my resignation I kept enquiring on the process of claiming superannuation with the employer as it was only Employer contribution and no contribution from my end but they kept delaying in giving any response and now even after providing the Trustees signed employer contribution statement during my employment tenure they are denying my Superannuation eligibility. Please guide me as HR is upfrontly denying it by mentioning it as not part of your CTC but in my offer letter it was mentioned in Notes section that SA will be calculated based on s Basic salary and no explicit mention of this as any Salary component. wI have provided them Trustees signed Employer contribution statement as well as all offer & appraisal letters. Please guide me in such situation for next set of action I can take against the employer as it is not my contribution but just employer contribution

  40. If I have 36lac in Superannuation in total at the time of retirement how much I will get as a pension under ” payable for for life with return of capital?

  41. Dear Basavraj
    I am confused about this scheme. I have Rs.24 Lakhs in the superannuation fund and have to claim the same. I will receive 1/3 and balance will be annuity. I will like to have balance 2/3rd back (if possible after certain period). Out of following will any option help? –
    1) Payable for life.
    2) Payable for life guaranteed for 5 yrs.
    3) Payable for life guaranteed for 10 yrs.
    4) Payable for life guaranteed for 15 yrs.
    5) Payable for life with a return of capital.
    6) Payable jointly on the life of husband and wife


  42. In superannuation LIC scheme in my account total accrued amount till date is 12 Lakhs and I have another five years for my retirement and by the time of retirement in my account 18 Lakhs amount will be deposited. Kindly let me know how much pension amount I will get after my retirement.

  43. Dear Sir, I have taken Voluntary Retirement on medical grounds.Now i want to withdraw 1/3rd amount.Is there any tax exemptionunder this.LIC people are confused on this. If so can i get details under which rule..??

  44. The employer’s contribution in excess of Rs 100,000 is treated as a perquisite in the hands of the employee under. true, accordingly I have paid income tax for past 25 years on employer contribution to pension fund of company. but now in my case due to resignation, company is not paying employer contribution. any ruling on this?

  45. Dear Sir,

    Can the employer forfeit superannuation ? If yes, under what conditions ? I have encountered employer taking signatures from employees that superannuation will be forfeited in case of termination of employment

    Thank you in advance

  46. Can we invest the superannuation 2/3 of funds in PMVVY( Pradhan Mantri Vaya Vandana Yojana pension plans

  47. Rajesh Chowdary

    Dear Basavaraj,
    My question is regarding the annuity plan to choose at the time of retirement, you already mentioned 2/3 of the money needs to be put down in annuity.

    If I choose ‘payable for life and guaranteed for 5 years’ so all my 2/3 corpus amount will paid as pension amount in installments? Or only interest will be given as pension amount?? What will happ


  48. Chandrashekar KV

    Am 52 yrs and resigning from the services of public listed organization and the amt in Superannuation is showing 4 lac Rs.
    Is entire amount eligible for withdrawal on separation.

  49. Can I withdraw my 100% superannuation fund corpus, upon attaining the age of 60 years, and pay marginal income tax on it (which in present case is approx. 31.2%) and retain the balance 68.8% with me and do whatever I want to do with this.

  50. Hello sir,
    Iam working in a private company which had this superannuation and an amount equal to 12% of my basic salary was being invested in the superannuation on a monthly basis in LIC group fund.
    Now the company created a spin-off company and I was made the employee of the new company created.
    We did not have to resign and we were moved to this new company with out service continuity in tact.
    Now the new company does not have the superannuation scheme and they have given us three options to choose from.
    First option: take 1/3rd of the accumulated amount and leave the rest for pension.
    Second option: leave the entire amount accumulated for pension
    Third option: transfer the entire amount to NPS

    My question is which option would you suggest me to opt for and why.

    Also if I opt for the first option, then can the remaining amount be transferred to NPS.

    Also if I leave the entire amount for pension as mentioned in option two, then what amount of pension will I get monthly if the accumulated amount is 799601rupees.

    Also apart from the above three options is there any other better option that you would like to suggest me.

    Your reply would be most appreciated.

    Warm regards

    1. Dear Ramesh,
      “which option would you suggest me to opt for and why”-IT DEPENDS ON YOU of which option best suitable your need. But I feel moving to NPS a better option as it has equity exposure and have probability to earn more than other two options.
      “if I opt for the first option, then can the remaining amount be transferred to NPS”-NO. It will remain with LIC.
      ” if I leave the entire amount for pension as mentioned in option two, then what amount of pension will I get monthly if the accumulated amount is 799601rupees.”-It again depends on which annuity option you choose.

  51. Hi Sir,

    I was working with a MNC company for 4 years 8 months and then resigned. After that I am not working since 2016. Recently I got a mail from my employer regarding superannuation. Their superannuation scheme is with ICICI. They have mentioned either I take a transfer to current employer or withdraw. My doubt is as I am not working now and in future also I won’t be working, can I withdraw full amount ? And what will be the tax applicable ?

  52. Dear Sir,
    I receive a small amount every quarter from LIC on non-commuted value of my fund.
    Under which section is it tax exempt? I think it is Sec 10 but do not remember the subsection. Please help me.

  53. Hi Basava,
    First of all, Thank you so much for supporting us through this forum!

    I am subscriber to LIC super annuation plan through my employer and I am changing the company this month. My new employer is not offering this, so I am exiting the plan.

    Need your guidance to choose the right option as I understand from your earlier posts that there is no way we can get lump-sum. I am 40 years old, Should I go for 5, 10, or 15 years pension? is this paid monthly? and also is this pension taxable?

    Appreciate your help.

  54. i have resign the company after completing the 4 year and 9 , i am eligible for superannuation fund because not the minimum time limit has revised from 5 year to 3 year

  55. I resigned from my former Co. In 2012 at the age of 55. Now I wish to claim my superannuation. (I am 61). What is the best way collecting full. I do not mind paying tax. I propose to invest in equity or MF.

  56. Hi
    i have worked for 7 years in one pvt organization and left one year and half years ago. Can you suggest if i can withdraw completely or i can move this superannuation to NPS?

  57. I resigned from my company and my 2/3rd SAF is getting credited to my savings account as annuity. I resigned about 3 years back at the age of 41 and only income at present is the annuity, interest income, LIC Maturity proceeds and stock dividends (STT was paid on all my stocks when years ago bought). LIC doesn’t seem to have deducted any 2% TDS and I got the full amount expected.

    My question is when I file ITR-1 then should go in the “Income from Salary/pension”, the online ITR-1 doesn’t allow zero amount in this field and if I fill say the annuity here then I don’t have the details to fill in TDS schedule 1 of the tax deductor etc. I tried leaving TDS-1 blank but got the query from tax department that my “income from other sources” doesn’t match with 26AS.

    Being in foreign country I don’t have access to 26AS. I will try calling my babk, the TDS CPC site I have tried registering but was never successful earlier I will try again.

    Only question is what should go in “income from Salary/pension” field in ITR-1 and second question is whether annuity is taxable in my case.

      1. Thanks. So if I read correctly then 2/3rd annuity may not be taxable. It’s always complicated to read the legal language, so was hoping for your expert advice.

        Apart from that fact of annuity taxable or not, please guide what should go in ‘Income from Salary/pension’ in my case as ITR-1 doesn’t seem to allow zero in this field.

          1. Thanks a lot, Mr. Basavraj. Is this annuity recorded under the ‘Income from Salary/pension’ category while filling ITR-1? I wasn’t sure if it should be ‘Income from other Sources’. Appreciate all your guidance. Thanks.

  58. Dear sir,
    Which is the best annuity option from 6 given in above artical for investing remaining 2/3 SA balance.
    I have resigned and need to fill Form A – intimation of leaving service to LIC were I have to select type of pension option opted.


  59. I am 75 years old and getting annuity regularly beside1/3rd of total amount received.Now I want the remaining 2/3 rd amount paid. Please let me know the process. thanks

  60. Hi,
    I work with an MNC. My company has a Superannuation fund with the LIC of India. I have completed 10 years with the company and have now resigned for personal reasons. I have been requesting my HR to share a statement of my superannuation fund but have not received any statement from them. All I get is my account balance every year, that too upon follow up.
    Can you please help with clarifying the stated law on this, whether an employee is entitled to receive the superannuation statement annually from the employer. Also, what action can be taken if the employer does not share the statement with employees.

    Many thanks in advance.

      1. No, it is just the amount that they share with me. I have been asking for the statement which will probably have other details, but have not received any. Please let me know if there is a way to access my statement.

        Thanks for your prompt response.

    1. i was worked with a IT company for 8 years from 2009-2017.

      company started SA policy with lic in year july 2012. till i worked 5 contributons annually deducted from CTC.

      in Letter with company below note mentioned.

      “”Superannuation is calculated @ 15 % of Basic Salary and has a vesting period of 5 years””

      what should we do.

  61. Hello

    I was employed with an IT Company from 2004 to 2011 and accumulated SuperAnnuation of 120000 as of now. Post that Im employed outside India. I dont have any Income in India in last 6 years.

    Kindly let me know if I withdraw(instead of taking annuity) this fund now, will it be Taxable in any manner considering I dont have any income in India in last 6 years.

    Ankur Jain

      1. Hi, I don’t think he is aware of the policy doc. It will be always with employers. He needs to contact his employer and submit the withdrawal application and has to pay whatever tax is taxable as his contributions must have earned interest

  62. I am working in a MNC and my company has a superannuation scheme but not a part of CTC. I am now leaving the company whether I am eligible to get the accumulated fund which is @15% of basic+DA. I worked for 5.5 yrs with this company. Please help.

      1. Thanks for your help. Can u pls tell me in my earlier companies I had superannuation facility but I have not checked that whether they have submitted or not. How to check where it is deposited and what is the amount.

  63. Hi
    Some query
    – I have been working great with PsU from last 12 years and my employer has been contributing in DCS since 2009 effective 2007. What about the interest of so far accumulated amount.
    – what if I resign now, will I get benefits of same.
    – if I am required to serve for 15 years minimum then should I wait for any VRS or ERS. Else will I get the benefit even in case of resignation.

  64. I have served a company for 10 months , there was a deduction (as per CTC calculation) of Rs. 5250 / month under the title of superannuation. It was 15% of my basic salary.
    No after my resignation , am I eligible to demand that deducted fund from organization ?
    Please help to understand.

      1. Thanks a ton for quick response… Can you please guide me or let me know how can I understand the policy conditions ?

          1. Sir…if employer says that I have not completed 3 yrs in the organization and left before that and hence I am not eligible for any superannuation withdrawal , is the employer correct ?
            I mean to ask, if I am leaving a organization in 10 months , am I going to loose the Rs 50k which was part of my CTC ?
            Please let me know , also as suggested by you I will try to obtain the details of the policy from the employer.
            Just wanted to know the basics of superannuation rules in India so bothering you….

              1. Good Morning!
                Okay I can understand, just need to understand …. is it possible for any kind of product that if I don’t serve the organization for certain period , I will loose all the money,
                I mean to ask, is it possible that I will loose the money deducted during my 10 months tenure with the organization ?

  65. Please help me with the situation
    I have worked for a psu for 12 years and my employer has been contributing the defined contribution since 2009. Now the query is
    1. Whether the fund already available in the fund as shown to me attract any kind of interest and how is this payable
    2. If I resign then what will happen to this amount accumulated so far.?
    3. If I am going to get the fund only upon any kind of retirement (vrs or Ers) or resignation will also fetch me the fund?
    4. If I am going to get the fund even J case of resignation the whether I will start earning the pension from the current team date itself or should I wait yo attain the retirement age.




      1. sorry typographical error i am not going to resign now in some case if if resign what is the procedure of pension at what age it starts my service is totally now 25 years in one organisation

        they credit two months basic salary annually to the lic group superannuation scheme
        for executive employees

        please give clarifications

        1. Bhaskar – If the superannuation fund rules are clear then the answer would be clear to you.

          1. Since your age is 51 and if you resign and want to withdraw the amount completely, it is fully taxable. Then you can decide whether to invest in Bank or otherwise.
          2. If you opt for Annuity, irrespective of your age of retirement, 1/3 is allowed for withdrawal (sometimes it is taxed based on company) and 2/3 into annuity.
          3. If you resign and want the amount to be transferred to a new company, then it is good and you can continue till you retire
          4. If you dont resign and want to continue, based on your company retirement age (58/60/65), you can continue to contribute and at the retirement age, 1/3 will be allowed to be withdrawn (taxabale sometimes) and 2/3 goes to annuity which fetches you pension – which is again based on your option will be for certain period (10/15/20 years) or life long or returnable after death
          5. Whether you complete 25 years or more in any single organization does not make any difference but at the time of resign or retirement your option – to withdraw or to invest in annuity makes a difference to you
          6. Remember – withdrawal of entire money is always taxable and annuity does not attract immediate tax but your pension is taxable

  67. I’m working in a CPSE for last 3 yrs. My employer contributes 8% of my salary in SAF and deducts 2% of my salary towards SAF contribution. Now if I resign and want my entire SAF in cash, will I get the entire SAF amount after tax deduction? Can my employer reject it since I’ve resigned?

  68. Shanmuga Sundaram Padmanathan

    Hello Sir, I have a very strange question regarding Superannuation. I worked for a private company who provided me the superannuation benefits. I left the company back in 2006 after serving for more than 8 years. When i got separated from my company, i only received a letter from the company’s fund office with the master policy number, date of joining, date of leaving and LIC id. Until now, i didn’t bothered to followup on my pension to my bank account. The bank account which i had given to my employer, for receiving my pension, is also not being operated for a very long time. Hence, i really don’t know if i am receiving the pension to that account or not. Now (after almost 11 years), i want to know the status of my pension. When i approached LIC with the master policy number and other details, they are not able to help me find the status of my pension fund (whether it is active or not). LIC replied to me saying they need ‘Annuity Number’ or the ‘Unit name’ from where i received the pension. I absolutely don’t have an idea about how to find or get this Annuity number or Unit name. Could you please help me in this regard. FYI –
    The company, which i worked is no longer existing (taken over by another company in 2007).

      1. Basava – Permit me to help Mr Shanmuga.

        Mr Shanmuga, based on your master policy ID and LIC Id, it is sufficient to track the current status of the superannuation fund from LIC with which it was maintained. Since you didnt give the place, I just assume it could be a bigger city like Chennai and LIC Pension&Group Policies is the Unit, the superannuation is maintained. You can establish the authenticity of your policy with LIC with the master policy number. The Zonal Office of concerning P&G unit should have all details. Please followup. Alternately, I am sure you must be having LIC website login, so that log an immediate grievance with them with all details.

        The status of master policy should help you to track superannuation fund status maintained by your earlier company. Probably, the current company must have taken over the fund too which should help you to start in that direction. Lodging a complaint on LIC will result immediate results as they are monitored by IRDA as a next authority. I am sure in a short span of 3 to 6 months, you will come to know of your policy details.

        An advice to all readers – superannuation claim is becoming worst as in the above case. Every person should have some time to think of their financial issues like above. Mr Shanmuga didnt bother to check what is the status of his pension receipts, which is I presume as negligence. Please avoid such negligence.

  69. keerthi ram puvvada


    From ICICI annuity policy every 3 month 16,887 /- suppose to come. But they deducted 30% tax of 16,887/. If they keep deducting same what is the use of pension ?

      1. Yes Bhavesh, you are correct and at the same time, Keerthi, please note that your pension income is 16887*4 per year and it is just below 250000/- (lowest slab and if senior citizen it is 300000) and hence, they are not supposed to deduct. Hope you have submitted the PAN number to ICICI and if they do not agree to stop deduction, please submit either 15G or 15H based on age. Inform them that TDS is not applicable in this case and any other income of you has nothing to do with ICICI. If you are submitting IT return, well and good and if not, and this is the only source of income, then there is no need to worry. Please speak to ICICI and inform them that it is not exceeding taxable amount and to accept 15G/15H, they need. You need to submit the same every year in April and for this year, you can do so now also.

  70. Hi – please help me with a query, we are about to hire a person on VP level, in her current organisation the Superannuation comes under Earning Allowance – how is this possible, what’s the math and calculation. Base this where should we adjust this component on her CTC.
    Her CTC structure

    Earnings & Allowances (INR)

    Basic Salary: 66,012.56
    HRA : 33,066.28
    Transport Allowance: 22,832.42
    Asset Allowance: 2,500.00
    Meal Allowance: 1,000.00
    Special Allowance: 38,013.48
    Super Annuation Allowance: 8,581.63
    *T & E Non-Tax: 6,296.59
    T & E Non-Tax: 788.00
    Medical Allowance: 1,250.00

    Deductions (INR)

    Income Tax : 31,392.00
    D. Ins Premium: 6,949.00
    Provident Fund: 7,922.00
    VPF: 9,242.00
    Prof Tax: 200.00

    (*) denotes back pay adjustment

    1. Is the Superannuation calculated 15% on basic? but then also it is wrong?
    2. Also, what is T & E allowance?

    I am reaching out to you as I see your response rate is super awesome and no one is able to help me here – feeling helpless.

    Thanks in anticipation
    Medha Pandey

        1. Medha- first of all di you have an IT approved superannuation fund? If not, you can’t think of the solution for above. If you say yes, I can answer all your queries

          1. Basavaraj- Thanks. T&E is Travel and Entertainment Allow. Generally paid to salesforce. Superannuation is always part of CTC. So it is salary allow. 15% subject to max allowed.

            1. But Raman don’t you think in this case Superannuation is more than 15%. I can share the payslip for you to study and help me with the solution. Thanks.

              1. Yes, it is more than 15% and it should not exceed the same and also during the year, it should be less than 1 lac to get benefits under the scheme for employer. What I suggest you is since the basic is high, this problem is arising and since you may not reduce basic for various reasons, the superannuation amount contribution should be restricted to exact 15% or less than 1 lac. The difference amount should be paid under special allowance. The employer needs to formulate a policy decision on such contributions so that all employees falling under such high basic category will be suitably covered.

                  1. Medha – I have come across the following:
                    Taxability of Employer’s Contribution to approved superannuation Fund

                    As per Section 17(2) The amount of any contribution to an approved superannuation fund by the employer in respect of the assessee, to the extent it exceeds one lakh rupees is chargeable as perquisites

                    The Limit being enhanced to Rs.1.50 lacs wef AY 2017-18 to bring parity with section 80C.

                    So your problem of if superannuation contribution exceeds 15% should solve….. please check the amendments from Budget

  71. Hi, please help me with the situation.
    My SA accumulated amount is 6 Lakhs. I have resigned and need to withdraw the SA. We were with LIC SA policy.
    I understood that 1/3 rd of 6 L will be paid to me now (taxable) and the remaining 2/3rd i.e with 4 Lakhs LIC will purchase Annuity and pay the pension to me immediately.

    For 4L, what would be the pension amount for Monthly, Qly, Hly, Aly ? Is the age a factor to calculate? Please consider 45 yrs.
    There are 2 options.
    1. “Life pension cessing, at death of member., No purchase price shall be paid on death to beneficiary, No guaranteed payments.”
    2. “Life pension cessing, at death of member with return of capital (Purchase price) to beneficiary along with group Pension terminal bonus declared by LIC ”

    I have opted for 2 as recommended.

    Any other suggestions for the above scenario would be highly appreciated.!

    Thanks in advance

    1. Reddy-The pension amount depends on your age and the option you choose. Check with LIC officials for the same. They offer all yearly, half yearly, quarterly or monthly pension payout option. Selecting options is based on your requirement. Hence, it is hard for me to suggest anything.

      1. Mr Basavaraj, My question in the case of annuity taken while resignation/retirement.

        No annuity certificate or agreement is issued by LIC to employee and on insistence, provides a letter that reads that the employer had purchased an annuity (2/3 amount) and monthly annuity will be paid from so and so date.

        Question here is how the employer continue to hold this amount and in the absence of any document/agreement or annuity certificate, is it possible for the employee’s family to get back that amount? What will happen if employer (an MNC from EU) closes his business and can we imagine employee’s family plight is visible.

        So, is it valid to an employer to hold the annuity certificate?

  72. Hi,

    For commutation of 1/3rd pension under Lic superannuation fund will the original pension will be restored after 15 years?
    for an example if my pension is Rs.10000/- per month and I commute 1/3 rd and get a lump sum amount and receive Rs.6667/- .After 15 years will my original pension be Rs.10000/- as a restoration ?

  73. Dear Sir,

    We are creating a Pension Trust for our employees and we have submitted our Trust deed and other papers to Income Tax department for approval (approval is not yet received). Can we start with opening bank account of the trust and investing in it under Group Superannuation Scheme.

    Do we need to get our trust registered with registrar Societies also.

    Please advise.

  74. What will be the taxability of Interest earned in LIC superannuation fund in the hands of employee, at the time of retirement? Can you please guide the section? or will it get covered in “any payment” portion of Section 10(13).

  75. If an employee is transferred from one legal entity to another legal entity of the same group, can he withdraw his Superannuation fund subject to tax deduction, if he has not opted for Superannuation in his new company.
    (both these entities are independent legal entities of the same group)

  76. Hi Basu,

    In my current company, I have a superannuation scheme, probably with LIC, but they havent specified the exact scheme.
    I have resigned from this company and the next company does not have an SA facility.
    Can I withdraw the entire amount (taxable at my slab) from the SA scheme? Or I have to go for commuting partly and the rest for annuity?
    Apologies if the question sounds stupid, but neither the company documentation, nor online search has given me a satisfactory answer?

    Also, I read that I can transfer the Superannuation to NPS. I currently don’t have an NPS account, but am thinking of creating one, and transferring the SA to NPS. My line of thought is to keep contributing to NPS occasionaly (keeping the mandatory contributions in mind), and reap whatever small benefits I might get on retirement. Do you think that’s a good idea?

    I am currently 35, & the accumulated SA amount is about 50k.

    Thanks for your blog, which is very educating, and keep up the good work!

    1. Hi,

      Superannuation scheme works like this –
      Withdrawal – entire amount is taxable
      Commute – will be possible only when you retire. If not Pension annuity portion 2/3 is taxable and 1/3 is commutable but this commutation is also subject to tax as per company rules as they themselves are not very clear
      So, it is better to withdraw the amount and pay tax and also invest this amount as it is in NPS which may help you.

      This is based on experience and I am still struggling to get answers properly from all the experts for my questions on superannuation wtihdrawal

        1. When the amount is withdrawn, it is taxed and available for use or investment. So the withdrawn money after tax can be invested in NPS.

            1. Yes, nps is much better than superannuation as the rules are very clear and no ambiguity in closure. Employer intervention is not there in nps. You can find your accumulation at all times

                1. Hi Basavaraj – NPS is more liquid in all the pension schemes announced so far. This is based on my personal experience when I withdrew NPS after reaching 60 years. They inform a year in advance which forms to be filled and keep the person ready for payment. 1/3 is commutation which is not taxable and 2/3 should be deposited in any annuity viz., LIC, SBI, ICICI and the pension will be ready in the next month. Pension drawn on annuity is always taxable as in other schemes.

  77. Ramanjaneyulu E B (Raman)


    I have worked in an MNC for 10 years and as per their suggestion I have accepted the mutual separation from the company. As on the date of separation (30.06.2017), I have completed 60 years of age and Company had 65 years as the retirement age.

    I had opted for Superannuation scheme of the Company that was tied up with LIC by them. For almost 8 years, I had contributed the amount on behalf of the employer towards the scheme. While I resigned, the Company has provided me the papers for claim which says I should opt for 1/3 or 1/2 of commutation and remaining comes as annuity. I had opted for 1/3 commutation as I have also received Gratuity from them for 10 years.

    Now my question is – the company has deducted tax on 1/3 commutation whereas I feel that it is not taxable. Please clarify is this commutation is taxable? If not, how do I claim the refund from IT?

    Second question is IT section 10 (13) says that Superannuation is allowed tax free on retirement/death/VRS or after certain age. If so, what is this certain age? Since I have crossed 60 years, am I eligible for the same?

      1. Hi Bavesh, thanks for the reply. In Income Tax Rule 89 it is so defined about the age, here is LIC’s guideines https://www.licindia.in/Group-Schemes/Group-Scheme/Superannuation-Cash-Accumulation and there it says – In case of exit of a member due to death or resignation or retirement (including early retirement, ill health retirement and normal retirement), if so, in my case, I have resigned and then I am not being extended the commutation tax benefit?
        Of course, I do agree, unless I invest the remaining 2/3 in an annuity, the tax benefits are not available.

          1. Thanks Mr Basavaraj for the clarification.

            As conveyed by you, the commutation should be tax free, since the company has already deducted the IT, how do I claim the same under ITR1 (online) for refund? May I have to submit any proof to the IT?

  78. Hi,

    In my previous company there was 2 types of superannuation one which is compulsory and the is not mandatory.
    However I had opted in for this optional superannuation and now my new company has no such option.
    When I contacted my previous company they said you can withdraw it.
    Does it mean it will be taxed? It’s not been 5 years.
    And from where should I withdraw this? I’m new to his



    Sir i choose Payable for life guaranteed for 5 yrs. and my date of visting is 22/07/2017 and first inst due date is 22/10-2017 could I change my annuity in Payable for life with a return of capital .Sir it is posibale


    Sir i choose Payable for life guaranteed for 5 yrs. and my date of visting is 22/07/2017 and first inst due date is 22/10-2017 could I change my annuity in Payable for life with a return of capital.

  81. “Regarding tax treatment of SF fund money”

    I was working with company ABC from 2005-08.
    An amount X got accumulated in my SF fund.
    Both myself and company ABC forgot to settle that amount X at the time of separation on 2008.
    Last year 20016, company contacted me and asked to withdraw the balance amount X, said that its lying idle & since 2008 and did not even earn interest.
    They deducted TDS @ average of previous 3 yrs ITR tax rate i.e. avg of 2005 to 08.

    I got the balance amount i.e. Y= X – TDS (@avg of 2005-08 tax rate which came to ~20%) into my bank account in FY2016-17.
    Now I have to file my IT return for FY2016-17.

    My Question if would the amount I received i.e. Y would be taxed @ my current tax slab ( do I need to pay the diff tax amt) OR there is some other way to treat this amount, if yes please advice.

    Request advice as soon as possible as I need to file my return before 31st Jul’17, and I hav’t got this answered / confirmed.

    Please advice.

      1. Sure Thanks.
        Also if you could throw some light on interest not being paid for 8 years i.e. from 2008, is there some regulation. I think there was some as regards PF, 3 yrs after the last instalment if neither withdrawn nor transferred. Whats the case in SF.

          1. Sure Thanks.
            On the rule of no tax post 5 years completion -as stated in replies below, Is it that its applicable on 5 years of continuous contribution or total time of 5+ yrs irrespective of contribution continuity.


              1. Sure Thanks,

                But In that scenario, should my case (as explained in 1st comment same trail above) become Zero Tax. As I Contributed from 2006 to 2008(then stopped contribution), but withdrew/settled my SF only in 20016.
                Please advice.

  82. Rajesh B Sharma

    Dear Sir,

    I need you help , I had worked with L&T from March 1998 to Nov,2012 (14.7 Years). As per L&T either I should have completed 15 years of service or at the time of resignation age is 45,

    so they are not giving my superannuation money.

    I need your help in getting my Superannuation amount. What are the options available for me to get my Superannuation due amount.


  83. Hi Sir,
    I have one question to ask. After working in a company for 6+ years, I joined a new company. My previous company had transferred my superannuation amount to my account after deducting minimal tax. Is that superannuation amount is taxable for my case? In two of your previous replies at one place you said it is taxable and another place you said it is not taxable as person completed 5 yrs in the same company. Can you please help me with this..as while filling ITR this year when I enter superannuation amount in another income, it calculates tax and shows me the balance tax to be paid.

    Thanks much in advance.,

      1. Hi Mr Basavaraj

        Can you give reference of any act where it is defined that superannuation amount is tax free if you withdraw (resignation) after 5 years of completion in company.

  84. Hello.
    I was employed from 1988 till 2016 with a private limited company. On retirement (due to age), I got a Superannuation payout on which TDS of 10% was dedcuted. I did not opt for any annuity plan and took a lumpsum amount. Will such amount received be exempt for me? If yes, please convey, under which section or clause of Income tax?

    Thank you.

      1. So in what circumstances 1/3 or 2/3 or any other amount are exempt?

        (Appreciate your super quick response)

        1. Further, I read in one of your “reply section” that the SAF withdrawn after 5 years of employment will exempt for the employee. Will that be applicable in my case?

  85. Hi,

    Is it possible for the Company to close the Superannuation Trust. If yes, what is the procedure and what could be the financial implications. All the employees of the Company are requesting for closure of the Superannuation account.

    Please advice.

  86. Priya Malhotra


    I moved out from my employer and withdrawan my superannuation amount since I moved out of India.Company has transferred in my account after deducting TDS.

    My query is: On filing return, my superannuation income will be added to my head salary and tax will further deducted as per tax slab or in any way can it be exempted.

          1. Priya Malhotra

            So does that mean as i started my superannuation in Apr 2010 and withdrawal happened in Mar 2017, Will it count for 5 years and tax free and if yes, I should not include this is my income under TDS1 for filing ITR?
            TDS1 deduction already done by my company for this amount with separate form 16 apart from Regular salary Form 16.

              1. Priya Malhotra

                Thank you once again for the detailed reply.I really appreciate it.

                However a last query which i am not clear is:

                1. If i add the superannuation income in ITR1 form under “Income from salary”, it shows me to pay more tax as per tax slab.
                (10 % is already deducted under TDS separately).
                If I show this income, it asks me to pay more tax and if its tax free, that means i am eligible to get back even 10 % TDS deducted on the superannuation amount?

                Please help me understand, how to fit in that in ITR form to showcase its a withdrawal after 5 years.

  87. Rudragouda Desai

    Hi Basavaraj,

    I am about to join a new company and it has provided Super Annuation Fund as one of the component under monthly salary break up details. So is this component is mandatory and will deducted on monthly basis or can I opt out from the plan and take the amount as part of my take home salary?
    Thank you in advance.


    My employer is asking me to move my SA amount to LIC and has asked me to choose one of the below options in the form. I am 46 years now. How would I know how much annuity will I receive for each of this option? Is there a rate or annuity table that I can compute? Even if the exact amount cannot be told, we should know the variation of annuity between these options. I know difference between 5/10/15 years. If i choose 5 year I got Rs.x/month and 1.5x/month in 10 years option, and 2x/month in 15 years option and so on. That is all I am asking.

    Payable for life.
    Payable for life guaranteed for 5 yrs.
    Payable for life guaranteed for 10 yrs.
    Payable for life guaranteed for 15 yrs.
    Payable for life with a return of capital.
    Payable jointly on the life of husband and wife



  89. Hi,

    I am currently working in IT company and paying monthly amount towards superannuation fund since April 2008. I am planning leave IT field and start own business.

    is it possible to get that full money back? If yes How?
    My age is 41 years. Thanks in advance..

    1. Mahesh-If an employee resigns, then he has an option to transfer his amount to the new employer (provided both trusts are approved). If the new employer does not have superannuation scheme, then he can withdraw the amount in the account (which is taxed accordingly) or retain the amount in the fund till the retirement age.

  90. Hi ,
    I have a query.
    My father was super annuation policy holder, he chosed the option where you can withdraw 1/3 amount of retirement and 2/3 will continue till death in the form of half yearly pension.
    And after that nominee will get that commuted balance.
    My mom is nominee , for some reason we claim for commuted amount 1year late.
    Means we took twice that half yearly pension.
    But now we got commuted amount they deducted that money which we took as a pension
    Is that correct process?
    Commuted amount: 280000
    Received amount: 263000
    Half yearly pension: 10350


    I would like to know what will be the pension amount from LIC after commuting 1/3 of my Superannuation Fund. Total Accumulation of superannuation fund as per statement till 2016-17 is Rs.29,81,391.07 and will be retiring from service on 17/09/2017.
    Approx. Accumulated balance will be Rs. 34,27,000.

  92. Hi,

    Quick question.

    I worked in India for a year, my company contributed 12.5% and I contributed 12.5% to a provident (super) fund.

    Now that contract has ended and have left India, is it possible to get that money back?


      1. Okay thanks, do you have any contacts in the Gurgaon area for financial services that can assist with this?

  93. Saurabh Gupta


    I have a query regarding Superannuation fund:

    Consider superannuation amount: Rs. 7100/month.

    1. My company has provided me 3 options:

    a.) Continue with 15% contribution to superannuation fund.

    b.) Opt out of superannuation and take 100% amount with salary.

    c.) Divide the amount in superannuation & Cash both in ratio of 1 to 14%.

    In financial year 2016-17, I opted for ratio of 1/14 i.e. (1% superannuation and 14% Cash). And invested cash amount into Mutual funds.

    Pls. explain what will be best scenario to opt. for considering tax implications and returns generated.

      1. But I have to pay 30? tax, if I opt for cash payout. is it vaiable to withdraw as cash in terms of tax and returns. pls. explain.

  94. Hi Basavraj,

    What would be the simulated amount that a person can get for each of these options – say per each Rs. 1,000 put in LIC? This will help me make a decision.

    Payable for life.
    Payable for life guaranteed for 5 yrs.
    Payable for life guaranteed for 10 yrs.
    Payable for life guaranteed for 15 yrs.
    Payable for life with a return of capital.
    Payable jointly on the life of husband and wife


      1. My employer is asking me to move my SA amount to LIC and has asked me to choose one of the below options in the form. I am 40 years now. How would I know how much annuity will I receive for each of this option? Is there a rate or annuity table that I can compute? Even if the exact amount cannot be told, we should know the variation of annuity between these options – say Rs.x/month in 10 years option, and 1.5x/month in 15 years option and so on. That is all I am asking.

        Payable for life.
        Payable for life guaranteed for 5 yrs.
        Payable for life guaranteed for 10 yrs.
        Payable for life guaranteed for 15 yrs.
        Payable for life with a return of capital.
        Payable jointly on the life of husband and wife

  95. Venkatesh Noupada

    I have received SA balance details from my previous organization asking to choose one option among below three:

    1. You have the following encashment options to choose from –

    (a). transfer these funds to your existing employer if they offer superannuation scheme and for this purpose, you can contact your existing employer for the process details.- (My current employer is not having this option- so ruled out)


    (b). opt for regular annuity which will make you eligible to receive life-long regular pension, starting immediately.


    (c) withdraw 1/3rd amount in cash (taxable) upfront while remaining as annuity, eligible to receive life-long regular pension (pension amount proportionately lower than “b” above), starting immediately.

    Suggest the good option; I am at 43yrs age.


    Presently I am contributing Rs.one lakh in superannuation fund per year which is a non-taxable contribution. Is thare any change of contribution limit from 1.0 to 1.5 lakh for tax rebate for financila year 2017-18. Please confirm.

  97. HI,

    I had a superannuation scheme locked for 5 yrs period with my company. I have now resigned from there, but my previous company is not willing to relieve me for other reasons. I have already finished 5 yrs with them.
    Is there any way i can withdraw my super annuation without my previous company intervention?

    It’s a group policy apparently.
    Any help would be highly appreciated

    Thanks in advance

  98. akhilesh chaturwadi

    dear sir,

    i have resigned from my previous co.( Banking Industries) in January 2017, and i have received of my PF, Gratuity and EPS. when i asked the Superannuation fund from HR team, they will reply that, I have not completed 10 years in co. so i am not eligible the same. are they correct ??????

    Kindly Suggest.

  99. Hello, I used to work in a company earlier and they had me enrolled in a superannuation scheme where only I used to contribute and there was no contribution from my employer. I left this company 4 years back and now wish to withdraw the amount without paying TDS? Is there any such option where I can transfer this amount to some pension scheme and avoid TDS?

  100. sir, my son sashank is working in UAE on deputation from an Hyd based company and visa is given for 2 years, previously he was working in India for 3 years.

    Now can he open a PPF acccount or it is not legel., earlier he has not opened any account.
    Please clarify,

  101. sir, i am 60 years completed by 31st,July’2016 and same day i had resigned from an automotive company ., also prior to that i had worked in various pvt companies for 38 years., and with drawn my PF., no accumulation, because i never new this rule previously that accumulation of PF is helpful., rather with drawn PF and invested on buying lands etc.,
    in my last company i had completed 4.5 years by the time of resignation on 31st,july,2016.
    now my accumulated PF is 17.00 lakhs ( 8.50 employers + 8.50 lakhs employees).

    1) some body told me the TDS to be paid 30% if i with draw my PF now because not completed 5 years in my last employment or since crossed 60 years it will not be., please clarify ??

    2) I tried to join some small company to get added another 6 more months of PF till completion of 5 years, but unfortunately i am getting jobs because i am Mechanical and experienced ., but they say i could be taken as consultant and PF may not be offered because i crossed 60 years., is there any rule not to offer PF after crossing 60 years ??

    Request to give me advise clearly please., so as to understand and to follow seriously.
    Thanks and Regards,


    1. Dear Basavaraj,
      i am 60 years completed by 31st,July’2016 and same day i had resigned from an automotive company after completing 4.5 years of my service ( less than 5 years ) ., also prior to that i had worked in various pvt companies for 38 years., and with drawn my PF., no accumulation, because i never new this rule of less than 5 years of service will attract tax.

      Now my accumulated PF is 17.00 lakhs ( 8.50 employer + 8.50 lakhs employee).

      1) some body told me the TDS would be 25 to 30% if i with draw my PF now because not completed 5 years in my last employment though i am 60 years old ., please clarify ??

      2) if i rejoin another company and work for 6 more months so as to complete 5 years of my service , will it be help full., to reduce income tax ?? i am not sure.

      Request to give me advise clearly please., so as to understand and to follow seriously.
      Thanks and Regards,


  102. I have had an enquiry from a Indian citizen who now resides in Australia. Is it possible for him to transfer the benefits of his Superannuation plan that he has in India to Australia??

  103. Sir,
    I have chosen the superannuation option given by my company in August 2014. Monthly contribution is around 5000. I will retire in year 2039. How much pension I will get. The superannuation policy is LIC superannuation

  104. Dear Author,

    i have a small query. in case an employee is getting a benefit of superannuation contribution say Rs.2.5 lakh p.a. now the limit is only Rs.1.5 lacs (PF is also included) in order to exhaust the limit of Rs.2.5 lacs can he not avail a benefit of both NPS and Superannuation by this way :

    he can request his employer to restrict superannuation contribution only to the extent of Rs1.5 lacs and balance Rs.1.00 lac towards NPS?

    if that be the case, would employee can take advantage of deduction u/s 80CCD subject of maximum of 10% of his salary as permissible as he will be better of rather than singly claiming benefit to the extent of Rs1.5lacs as permissible under perks rule?

  105. Dear Basu

    Which is the best option in place of FD in the current scenario for short term investment say 6 months to 1 year.
    Please specify the scheme also.

  106. Sir, i have crossed age of 60 by 31st,July,2016.,and i had resigned from my active service from the last worked company and got the SA form ( Rs 9.00 Lakhs) asking for my options for 1/3 or 1/2 commutation. so i request you to advise me on the above please:
    A) can i have the option of 100% commutation., if i take as Monthly pension, will it be taxable.
    B) If i opt for 2/3 as commutation to pension and balance 1/3 will it be taxable.
    C) in either case if it is taxable, can i postpone to receive till 1st,April,2017 to avoid any tax in this year till 31st,March’2017.


      1. Sir,
        Being my SA is linked with LIC and my last worked company sent a declaration to me for signing and to give bank details etc., if i submit this paper now this will come in this financial year.

        so what i was asking is whether , i can postpone to send the declaration till 1st,April,2017 to avoid any tax in this year till 31st,March’2017.
        Ravi SV

          1. Dear Sir,

            I have gone thru this post and plan to resign from company. Before resigning wanted to know will it beneficial to do it in new financial year based on tax treatment.
            a) If I withdraw now the 1/3 amount that I get, will be added to my gross taxable income.
            b)If withdrawal ( meaning I resign on 31 March 2017) is done in new financial year April 2017, will it help to save tax on 1/3 amount that I get assuming my gross taxable income is less in new financial year.
            c) Is Gratuity taxable.

            PS. My superannuation is around 6 lakhs.


              1. Thank you sir for prompt response. If needed can i get in touch with you for professional advice on corporate taxation ?


  107. Dear Basavara
    I have a fort folio of large cap, mid cap equity and debt funds including ElSS.I also have started investmements in PPF and NPS. My idea of investing in FD and arbitrage is to balance the risks involved in MF. Do you think these are not advisable ? If yes, which other investment you suggest

  108. Dear Basavaraj

    In today’s scenario is investing in Arbitrage fund better than Bank FD ? What’s your opinion on this

    1. Seema-It may or may not based on why you are investing either in FD or Arbitrage Fund. Never invest in Arbitrage Fund only for the sake of tax benefits after a year or so. They may give you less return than FDs. Have a proper plan and idea of why you are investing and when you need money.

  109. Dear Basavaraj
    Greetings of the day. We have taken home loan in joint ownership for a flat which is our second property. Flat is under joint ownership.However EMI goes from my husbands salary and I have made only little contributions. Can I also claim tax benefit for home loan interest paid along with my husband.

      1. Dear Basavaraj

        We have equal share in property and also have joint loan. However as mentioned earlier, EMI amount goes from my husbands salary. We have paid @ 135000 principle amount and @350000 interest amount. kindly advice how much each one of us can show in income tax benefit.

  110. Dear Basavaraj

    I have read about two types of NPS in TOI swatantra column. one where we can get additional exemption of tax upto 50000 and one where some percentage of basic is invested in NPS. Can you elaborate on this.


    Seema Shenoy

  111. Dear Mr. Basavaraj

    Is there any way to check annual statement of super annuation ? if I have the ID for the same. what are the benefits of super annuation. my company says we cannot switch from LIC to ICICI , even though I have read in internet it can be switched.
    Also as per my knowledge its a group policy ?? can you please share some views on it

  112. Dear basavraj,

    1) If I resign one month before retirement than I will be taxed on 1/3rd withdrawal only otherwise taxed on salary +
    1/3rd withdrawal on retirement. (it will help reducing tax slab)
    2) If I got terminated from job than I have to wait for retirement age to gain all benefits? What if company closed or
    merged in between.
    3) Whom to contact after retirement or incase of death after retirement. Company Or LIC


  113. Hello Basavraj,

    This post has been very helpful. My father who were working for reliance passed away recently and there are some 13k amount in his superannuation deposit against the company. The Company HR is saying it cannot be withdrawn as a whole in one go and that there is some 7.33% interest which we will get if we withdraw it yearly. Is there any option where my mother (The annuitant) can withdraw the entire value of 13k or it is mandatory for it to be a monthly income thing. we want to withdraw it in one go.

  114. Hi Basavaraj,
    I have contributed for super annuation in my last company and they have thi smaount with the LIC. Now my new employer does not have the super annuation scheme.Now if I want to withdraw how far it is possible.

  115. In case I continue my superannuation fund with LIC after my employer stops the fund.
    After few years I would like to withdraw the same . In that case the employer will not be available, then whom to approach and who will certify the form to be submitted for withdrawal of 1/3 of superannuation fund. Can I approach directly to the LIC.
    Please guide me.

  116. My Father died last month . He has made me the nominee (My mother had earlier died ).He receives an annuity payment from LIC annuity every December every year based on his Superannuation of his company.

    The Company where he worked ?(he left in 1990) has merged into another company and despite best efforts not able to find the address of the Trustees of the Old company (which has changed) and despite repeated inquires the new company employees have been rude and say they ahve no knowledge about it .
    LIC states that I need to contact the Trustees with a written request and proof of contingency.
    What to do ?
    The Annuiity is based on return to corpus of corpus to the Nominee.

  117. In case I continue my superannuation fund with LIC after my employer stops the fund. After few years I would like to withdraw the same . In that case the employer will not be available, then whom to approach and who will certify the form to be submitted for withdrawal of 1/3 of superannuation fund.
    Please guide me.

  118. What rate of interest will I get from superannuation fund accumulated every year. As PF/EPF gives 8.8% how much superannuation fund gives.

  119. I am a member of superannuation fund from LIC. My company has decided not to continue with the superannuation fund and has stopped. Since I am 44 years of age and I dont withdraw my 1/3 fund and keep the total 100% in LIC. I want to know whether I will get the interest accumulated every year. From where I will get the statement every year.
    secondly Is there any risk in the fund if the company is closed and I keep for long time. Whom to approach at that time.
    Please let me know the rules.

  120. I am 46 years of age. I am a member of superannuation fund from LIC. My company has decided not to continue with the superannuation fund and has stopped. What are the withdrawal rules for me. Is there any age bar or can i withdraw the same.
    Please let me know the rules.


  121. I am working in a company from 10.75 years. My company has given the option to stop superannuation scheme. Its from LIC. Normally how much percentage does the money grow in LIC ? Will it be wise to withdraw the money and instead invest in mutual fund with greater returns ? As of now I don’t know how much is accumulated in my account. But a monthly deduction of 1250 is happening.

    Kindly reply.

  122. Sir,
    You have mentioned that on resigning employee has option to ” retain the amount in the fund till the retirement age.”
    Will this amount earn yearly interest till the retirement age ?


  123. My retiremnt is October 2017. Regarding withdrawl of superannuation amount what are applicble taxes. 1 If I draw 1/3 amount on the day retirement what is tax ratio
    2.If I draw total amount what is the tax amount
    3.Total amount is Rs 12.00 Lacs
    4.Any better other option is there, please advise.

  124. Dear Sir

    Can I eligible to get the amount deposited in Superannuation if I left the company before 5 year.

    Company is not providing me details of the Superannuation after repeated reminders.

    Can I stop the Superannuation after 1 year. what is the disadvantage ??

    Sandeep Kumar

  125. Hello Basu,

    Could you please provide some information on transferring the Superannuation fund to the new employers account. What are the forms as an employee I have to fill, am I need to contact LIC (my both the employer has LIC as the service provider), Am I need to go to previous employer for any no objection, etc. Could you please provide insights on the above questions.

  126. Dear Mr.Basavaraj,
    I left my employment in 2014 at the age of 59 yrs, where my SA fund is managed by company trust with deposit in LiC.I have now after 61 yrs of age opted to withdraw and received 1/3 commutation amount and getting annuity.
    However full tax had been deducted from both the amounts.Please inform whether both are taxable when withdrawn after retirement age also ?

  127. The superannuation contribution is being done by me. Suppose i want to discontinue with the superannuation contributions but I still am continuing with my job with the same employer, would my superannuation fund balance become taxable?

  128. I resigned from my earlier company . Is it possible that I can transfer the Superannuation fund amount with my earlier employer to my NPS account . IS there a tax liability ? Kindly clarify .

      1. I recently read thearticle in The economic times Wealth september 5-11 issue on NPS. the article is written by Narendra nathan and there is a statement by Sumit Shukla CEO, HDFC pension funds that the govt has allowed one time shifting of superannuation funds into NPS in the previous budget.
        kindly clarify


  129. I left the company in 2004 and applied for my superannuation full withdrawal in 2015. I was paid my superannuation amount which was there in 2004 with only 60 days of interest on it for rest of the 11 years period no interest was paid to me on my superannuation amount.
    want to know am I eligible for the interest for complete 11 years period ? if yes, at what rate?

  130. Is it possible that only employee contribute in Superannuation and employer does not?
    Superannuation is deducted from my salary by employer.

      1. Since my employer doesnt contribute, would it be a good decision to stop superannuation and contribute that amount in voluntary PPF or NPS?

        Please suggest.

  131. Is the employer provided Super Annuation Fund a good option in terms of monthly annuity payout (post retirement) ROI?

  132. I worked for 4 organizations in last 8 years, left each organization befor 5 yrs completion period for superaanuations. So I did not got any amount. even I was not knowing that super anuation amt can be xffered. Shall I check back with old employers for case of xffer now after so many years? Or it is forfeited and nothing can be done now?

  133. Can we switch from super annuation to NPS? Is there a way to track super annuation contrinution status update on line, if i have super annuation number. Can contribution be stopped ?

    1. Shanti-As of now you can’t switch. Check with insurance company which provides the superannuation plan, they may offer you online access. Stopping of contribution will be the decision of your employer.

  134. Dear Sir,

    I had the basic questions on superannuation –

    1. My new employer wishes to start contribution after 6 months of joining my new company. Is there any rule when the contribution needs to start?
    2. Rate is 15% of basic pay or any rate upto the employer?
    3. There is no contribution from myself. Will it form a part of my CTC mandatorily or can be on top of it also?

    look forward to early reply. Thanks in advance.


  135. Dear Sir,
    I resigned from a company for this year 2016 . How I can withdraw my superannuation amount Rs 454000.00 please guide me in this regards my DOB 19.03.1972. worked in this organisation 19 years.

  136. Dear Sir,
    I left an organization in March 2013 [ where superannuation trust was managed by ICICI prudential] to join another org. [ here LIC is superannuation managing trust]. i am told that since Feb 2013, no new superannuation account can be created. Is this correct? [ I do not believe there can be any such govt rule.]
    if indeed there is such rule, then
    My query is:
    1) Can I get my superannuation transferred from ICICI Prudential managed trust to LIC managed trust?
    2) If answer is ‘yes’ for above, then I presume I will get an equivalent LIC superannuation account ID. Can I then start contributing to LIC managed account ID.
    Kindly advise,

  137. Dear Mr Tonagatti,

    I resigned from my previous organisation and received Rs Rs.604911 as my super annuation amount. A TDS of Rs 1,36,138 was applied on source and I received Rs 4,68,773. I resigned last year in July 2015 and joined a new organisation and no when I am trying to file my returns for 2016-17 , I am told that i need to pay a further tax of Rs 2,19,800.

    I had no idea that there is double taxation on Super annuation amount. Can you kindly enlighten me please and also remedies if any ( in a legal way) to avoid this additional tax. I have already invested the amount in a mutual fund. Shall be grateful for the same.

  138. Dear sir,

    I resigned from a company and joined another this 15-16 FY. The superannuation amount had been transferred to ICICI prudlife from previous company. Can I claim that amount for any tax benefit as I invested that in a pension plan ?

  139. hey

    i have income from superannuation fund of rs 1400000 which i have got after retirement from which about 165000 has been deducted as tds does whole of my income is taxable nd if exemption is avaliable then under which section


    I am retired and my super annuation amount is funded with LIC am getting monthly around Rs 9000/- @ 7.25% annuity please let us know whether it is taxable


  141. Dear si
    The given suggestions are very valuable and thanks for that.

    Now need your valuable feedback for the below points.

    I am resigned fm a multinational company in 2014 at the age og 49 and I have received my superannuation fm LIC under 1/3 option with annuity Monthly.

    A) The receive lumpsum superannuation is taxable ?

    B) The monthly receiving amount fm LIC is under taxable ?

    C) Upto what age I will get this annuity from LIC?

    D) Any lumpsum I will once again fm LIC after 58 years or my death.

    Hope you will provide your valuable inputs.

    thanks and regards

      1. Tks sir for your quick reply. I understand fm my colleague’s the superannuation lumpsump amount is IT expempted sec 10(13) and monthly annuity is exempeted sec 10 (10a). Kindly confirm is it correct.

        Also need your inputs about PF and Graduity is under taxable.

        Monthly pension is fm PF is taxable.

        Hope you will provide your inputs.

        tks and rgds / JK

  142. Dear Mr. Basu,
    I am 37 years old and joined a new company last year.

    My previous employer had Superannuation fund and new employer does not have – I withdrew in Sep-2015 from previous employer.

    Total SA corpus Rs. 399339; TDS Rs.59352 (TDS was about 15%)
    In 26AS, the same is shown as “Employee Superannuation Fund”

    1. Where do I show the Superannuation fund while filing returns?

    2. If I input Superannuation income under “salaries head”, it is showing “payable tax of about Rs.69000” – TDS on Superannuation was basis average of last 3 years basic average etc. and I thought there is no more tax to be paid.

    Thanks for your suggestion in advance.


          1. Sir,
            I withdrew 100%

            Total Corpus was 399339
            TDS 59352

            Also, can you clarify whether there is any relevance/applicability of exemption u/s 89(1)


              1. OK Mr Basu.

                Now, what is requierd.

                Please suggest about what I have to do now:

                1. Do I have to show the superannuation amount under “salary” and pay the balance tax

                2. Is there any exemption etc. through which I can show superannuation amount and have to pay lesser tax/no more tax



                  1. Mr Basu,
                    I am not aware of the insurer.

                    My ex-employer paid off full corpus of Superannuation after deducting tax (TDS as per 3 year average logic..)

                    Please suggest my course of action now while filing ITR


                  2. Mr Basu,
                    The employer gave off 100% of the SA after deducting TDS.

                    Now what I should do?

                    1. Are there any possible exemptions


                    2. Should I show the SA in “income” and pay balance tax as per my tax slab
                    If yes, in ITR, should I show in “Salary income” or “Income from other sources”
                    *I thought that TDS on SA suffices tax part & did not pay the advance tax for the SA amount and now when I input the SA of 3.3 Lacs, tax payable is at about Rs. 70000 (including interest)

                    Thank you

            1. Jothilingam Vasudevan

              Dear Sunil,
              Can you please advise on how you withdrew 100%?
              The claim form only mentions withdrawal can be done on 1/2 or 1/3.


    1. dear Sunil,
      I am also going through the same situation which you have described. After going through the IT Act clauses, I am convinced that the employer will deduct TDS on SA benefits on the basis of last 3 years basic average ((Total salary income / Total tax paid)*100). This generally will be lower than the actual tax slab of the individual. So, you have to recalculate the tax liability on the SA benefit and pay the difference of tax. For example, your average income tax rate could be say 25.6% for the last 3 years. Employer will deduct TDS on SA at 25.6%. If your individual tax bracket for this year is 30.9%, you have to remit additional income tax on your SA directly (30.9 – 25.6 = 5.3%). Hope this helps.

      1. Ankit Agarwal

        Hi Srinidihi,

        I agree with the calculations you have provided. The employer generally deducts the TDS on Superannuation fund based on average income tax rate. But how do we enter the details of Superannuation fund while tax returns filing to ensure that only the differential tax rate is applied on the Superannuation fund?


      2. Dear Srinidhi,
        Thanks for the advice.

        I thought that the TDS on SA suffices the tax part and did not look in to it.
        No I saw that in 26AS and if I include the SA amount under salary income, I have to pay hefty amount along penalty/interest..

        Can you tell me what all did you explore for with respect to exemptions/deductions etc for SA


  143. Jitendra Shah

    Dear Sir

    I have recently changed the organization in which no provision for Superannuation scheme. My earlier contribution of superannuation in previous organization is still not withdrawn. I have completed 4 years & 8 months contribution in the scheme. Now if I withdraw it , I will get only 60% amount back. Is there any provision in superannuation scheme so that I can avoid deduction by continuing the scheme.

    Jitendra Shah

  144. I have a super annuation fund, with a company which I have just resigned.What is the best option available for me with the fund.

  145. I working for a MNC, and my organization rolled out an option to withdraw SA fund to the employees. and it says, whatever is accumulated will be given back to employees, if they willing to do.
    So, I opted to withdraw, and my accumulated SA is is around 3.23 lakhs and I have received the amount after the TDS. is 2.83 lakhs. (323384 – 39833(TDS) = 283551 (recd SA amount)
    Now I tried to file tax return filing, following are details.
    income from salary(after deduction of HRA+…) :1280000
    Other income(SA withdrawl) : 323384 (shown in form 16)
    Gross total income : 1603384
    Less: 80 C : 149000 + 80 D : 22225 + 80 G : 500 = 172000
    Taxable income : 1603384 – 172000 = 1431384
    Tax paid : 262139

    My query is at the time of SA withdrawl TDS is deducted.

    I want to know how much is the tax for SA withdrawl?

    When it appears on the on the other income column, payable tax is showing 262139(incl. cess….etc)

    If other income is zero, my taxable income is only : 1108000, payable tax is lesser, say it is around 165000 only.

    Then if you show other income of SA fund, the additional tax should be the same as TDS for SA, 39833

    So tax should be 165000 + 39833 = 205000 plus cess +…+… and final amount should be 220000(approx.), but how it shows payable tax is 262139.

    Pls. let me know.

    while filing income tax return which form I have to use in online method.

  146. Dear Basavraj

    I am working in company at pune and our company has approved superannuation trust. due to changes in options for withdrawal and amount was with company’s superannuation trust we have withdrawn our from superannuation scheme, Revived the amount after i-tax deduction. revived form- 16 for Superannuation and another form 16 for salary. now many employees revived income tax return as they have not declared superannuation form 16 now pl. guide is it legal to get refund for this and other employees are willing to follow the procedure what is the correct procedure. pl Guide…

  147. Hi,
    I have LIC superannuation policy from my previous employer.
    My current employer doesn’t have superannuation option.
    Will i continue to get interest on this LIC policy even without making any contribution ?
    and do I have to inform LIC that I want to continue this policy ?

  148. Saurabh Gupta

    Dear Mr. Basu,

    My employer has given option for switching 1-15% of superannuation contribution to NPS. So based on comparative tax benefits and returns what should I do? My yearly superannuation is approx. Rs.70000.

      1. Saurabh Gupta

        Pls. elaborate.

        Right now i can see on perspective of returns. As compared to Superannuation NPS is giving attractive returns.

        Pls. give some details for your views on NPS.

          1. Saurabh Gupta

            yes taxation is horrible and we have to face it. But still what will you suggest as per your exp.

            Have these options:

            1. Avail 15% of Basic salary as Cash with salary & close superannuation account.
            2. Continue with 15% of basic salary as deposit in superannuation.
            3. Start contributing any % from (1-15) in NPS, & rest % contribution will go in superannuation.
            4. Opt for full 15% in NPS & close superannuation account.

              1. Saurabh Gupta

                Own retirement corpus! But how. Still have to invest it some where.
                Are you suggesting for Mutul funds or else… Pls give some details

  149. Dear Mr. Basu

    I successfully transfered my superannuaiton savings from two previous employer to my last employer SA scheme and have already completed age of 58 which was retirement age in last employment. But I am presently working as consultant and dont need pension right now hopefullly for next 4 years. My queries are:

    Q1. Is it permissible that I commute 1/3rd of my saving now but dont buy the annuity till say 31.03.2019 ?
    Q2. If commuting and buying of annuity has to be necessarily done at one go, Can I delay both till 31.03.2019 ?
    Q3. During this time too, my accumulated corpus with LIC shall keep increasing may be at mariginal rate of around 7% pa ?? Is it correct?

    Q4. One of the option for annuity is vague in wordings – Can u plz elaborate what do they mean when they say:-

    Life pension guaranteed for 15 years & life thereafter (why they are writing life thereafter if this option is limited term pension option only ??



    1. GDM 1) Yes, but check the feature of that particular superannuation product with insruance company.
      2) Discuss with insurance company. Because I don’t know the features of the product.
      3) Unable to understand your question.
      4) can you provide the link of where they have written so?

  150. Hi,
    I have a superannuation fund through my employer and get its statement through our service provider CQUEL.

    But is there a way I can view the amount details and statements on the LIC India portal like we can view our PF and Pension statements? If yes, can you share the link

  151. Hi,

    1. I have served my current employer for 8 years. I am planning to Quit now. Can I withdraw 100% of super Annuation money after resigning.

    2. If i Opt to invest 100% money to avail pension, how much pension amount can be expected per lakh for one year.

  152. Appreciate your initiative to share the knowledge
    I have 20 years of Service in India and now moving abroad for ever
    Could you suggest for supperannuation, how to deal with the same.
    Thanks in advance

  153. Dear Sir,
    I am working in an MNC for last 4 years, now i have resigned and serving my notice period , when i asked my HR about superannuation withdraw , he told me that only 1/3 amount i will get , rest wold be given to my family if something happen to me. please suggest how can i withdraw 100% of this amount . my company is having superannuation policy with LIC .

  154. Sir, I have worked in an IT MNC since September 1999. I am planning to quit my job soon and will not be joining any other firm as I plan to go into my own business. Can I with draw my super annuation benefit fully at the time of exit from the company?

  155. I am 66 years old and I just retired in April 2016. My superannuation corpus with LIC is around Rs.20 lacs of which I have opted to commute 1/3rd which comes to Rs.6,50,000. Pl let me know if this amount is taxable.

      1. I guess it should be approved my company is a reputed public limited and all Senior Managers are covered under the Company’s Superanuation scheme. Kindly clarify. Thanks

  156. Dear Basavaraj,
    I have resigned from my current company after a period of 5Years. My employer have a provision of PF, Superannuation, and Gratuity. I will also avail earned leave encashment. I have a home loan of more than 20L and currently paying EMIs towards it, and also availing tax benefit on home loan.
    Kindly advise what should be the best option? Should I go for withdrawal of these funds or should get them transfer with new employment?


      1. Basavaraj,
        May I know the reason for your “Selection” and calculations, if possible?


  157. Mr. Purno Chndro Panda

    I am P.C. Panda working as Manager-Marketing, I want to know about the benefits of superannuation

  158. I have resigned from my organization and have a superannuation corpus built over 8 years of service year. Based on what I’ve read on this blog, I have 2 options:
    1. Withdraw this amount – Question is does this get taxed completely irrespective of years of fund? What is the tax applied?
    2. Transfer to a pension fund – Do I need to stick to LIC or can it be transferred to any other pension fund (NPS, ICICI, etc.)?

    1. I am not sure it is completely clear. Answer for 1 is assumedly YES, so next question is how is tax computed for the same (how much percentage)?