Hi
Can you please guide me and give theinformation for the Qs below
1.What is superannuation?
2.What is eligibility to be entitled for superannuation?
3.If the person works for 4.5 yrs and resigns, he is entitled to receive the benefit?
4.And what is base of calculating superannuation?
Regards
RC
From India, Pune
6Can you please guide me and give theinformation for the Qs below
1.What is superannuation?
2.What is eligibility to be entitled for superannuation?
3.If the person works for 4.5 yrs and resigns, he is entitled to receive the benefit?
4.And what is base of calculating superannuation?
Regards
RC
From India, Pune
Hai Reshma, Pls check any alternate term for superannuation so said some one will help u out.the word is new for me.If u get it Pls keep me posted. Regards. Mukesh
From India, Madras
From India, Madras
Hi,
Superannuation is a salary component.
It means
An investment vehicle which operates primarily to provide benefits for retirement. Superannuation savings are usually made through trust funds and if these funds meet prescribed government standards they are eligible for tax concessions. ins simpler words its setting aside funds during working life for use as retirement income.
Could refer to the below link for more details.
http://www.taxmann.com/TaxmannDit/Di...r=2007&chp=302
Hope this helps you .. Frankly speaking have not gone throught the link but the site has a lot of information bout taxes..
Regards,
Kanupriya
From India, Ahmadabad
Superannuation is a salary component.
It means
An investment vehicle which operates primarily to provide benefits for retirement. Superannuation savings are usually made through trust funds and if these funds meet prescribed government standards they are eligible for tax concessions. ins simpler words its setting aside funds during working life for use as retirement income.
Could refer to the below link for more details.
http://www.taxmann.com/TaxmannDit/Di...r=2007&chp=302
Hope this helps you .. Frankly speaking have not gone throught the link but the site has a lot of information bout taxes..
Regards,
Kanupriya
From India, Ahmadabad
Hi Kanupriya
The link is fantastic but it will be useful to me in some other work concern
For superannuation is topic mentioned in it is too exhaustive
Really difficult to take the exact info needed
Please help me you can be specific to the Qs I asked
Regards
RC
From India, Pune
The link is fantastic but it will be useful to me in some other work concern
For superannuation is topic mentioned in it is too exhaustive
Really difficult to take the exact info needed
Please help me you can be specific to the Qs I asked
Regards
RC
From India, Pune
Below information may help you.
The employer contributes a certain fixed percentage of salary of each member. Such Contributions are accumulated by LIC and the accumulated amount is utilized to provide various benefits as mentioned below.
BENEFITS:
1) ON RETIREMENT:
On Retirement of a member, the corpus (contributions plus interest) is utilized to provide the pension as per his choice.
2) ON DEATH:
The Pension is payable on the life of the beneficiary. Corpus is utilized towards the payment of pension of the type the beneficiary may opt and the benefit so received is tax free. A lump sum payable by way of death besides the pension, if the employer has taken Group Insurance Scheme in conjunction with the Group Superannuation Scheme.
3) ON WITHDRAWAL:
*
He can get the equitable interest transferred to the Superannuation Scheme of the new employer or opt for immediate or deferred pension.
PENSION OPTIONS PROVIDED BY LIC:
1.
Life Pension ceasing at death.
2.
Life Pension with Return of Capital and Group Pension Terminal Bonus on death.
3.
Life Pension guaranteed for 5,10,15 or 20 years and life thereafter.
4.
Joint Life Pension payable on the last survivor of the employee and spouse.
5. Joint Life Pension payable to the last survivor of the employee and spouse with return of capital on the death of the last survivor. If desired , 1/3rd of the pension can be commuted at vesting.
ELIGIBILITY CONDITION:
It is not obligatory or statutory on the part of the employer to provide for pension to all employees. It is entirely upto him to decide to which class/ classes of employees he desires to extends the scheme. The eligibility conditions may be defined on the basis of designation or salary. (However, after the categories are specified, employer cannot discriminate between the employees and thus extends the scheme uniformly).
CONTRIBUTION:
The maximum annual contribution that an employer can make to the Pension Fund and Provident Fund is restricted by the Income Tax Provisions to 27% of the annual salary (basic plus D.A.) The annual contributions are treated as deductible business expenses.
WHO PAYS CONTRIBUTION?
Mostly the employer contributes, but is so desired, both the employer and the employees may contribute, in which case the scheme is called a Contributory Pension Fund Scheme.
TAX BENEFITS:
The provisions relating to the approved Superannuation Scheme are set out in Part 'B' of the Fourth Scheme of the Income-Tax Act, 1961 and Part XIII of the Income Tax Rules , 1962. The income tax concession will be available only if the scheme is approved by the CIT.
1.
The annual contribution is treated as a deductible business expense in term of Section 36(1) (iv) of the I.T. Act.
2.
In terms of a Notification issued by the Central Board of Direct Taxes .80% of the contribution (s) towards the past service liability are treated as deductible business expenses spread over in the subsequent years of payment.
3. The employee's contribution , in the case of the Contributions scheme qualifies for exemption under Section 80C of the Income-Tax Act.
GROUP INSURANCE SCHEME IN CONJUNCTION WITH SUPERANNUATION SCHEME:
The members of the Group Superannuation scheme can be covered under Group Insurance in conjunction with superannuation scheme so as to provide death risk cover while in service subject to certain conditions.
Gunjan
From India, Vadodara
The employer contributes a certain fixed percentage of salary of each member. Such Contributions are accumulated by LIC and the accumulated amount is utilized to provide various benefits as mentioned below.
BENEFITS:
1) ON RETIREMENT:
On Retirement of a member, the corpus (contributions plus interest) is utilized to provide the pension as per his choice.
2) ON DEATH:
The Pension is payable on the life of the beneficiary. Corpus is utilized towards the payment of pension of the type the beneficiary may opt and the benefit so received is tax free. A lump sum payable by way of death besides the pension, if the employer has taken Group Insurance Scheme in conjunction with the Group Superannuation Scheme.
3) ON WITHDRAWAL:
*
He can get the equitable interest transferred to the Superannuation Scheme of the new employer or opt for immediate or deferred pension.
PENSION OPTIONS PROVIDED BY LIC:
1.
Life Pension ceasing at death.
2.
Life Pension with Return of Capital and Group Pension Terminal Bonus on death.
3.
Life Pension guaranteed for 5,10,15 or 20 years and life thereafter.
4.
Joint Life Pension payable on the last survivor of the employee and spouse.
5. Joint Life Pension payable to the last survivor of the employee and spouse with return of capital on the death of the last survivor. If desired , 1/3rd of the pension can be commuted at vesting.
ELIGIBILITY CONDITION:
It is not obligatory or statutory on the part of the employer to provide for pension to all employees. It is entirely upto him to decide to which class/ classes of employees he desires to extends the scheme. The eligibility conditions may be defined on the basis of designation or salary. (However, after the categories are specified, employer cannot discriminate between the employees and thus extends the scheme uniformly).
CONTRIBUTION:
The maximum annual contribution that an employer can make to the Pension Fund and Provident Fund is restricted by the Income Tax Provisions to 27% of the annual salary (basic plus D.A.) The annual contributions are treated as deductible business expenses.
WHO PAYS CONTRIBUTION?
Mostly the employer contributes, but is so desired, both the employer and the employees may contribute, in which case the scheme is called a Contributory Pension Fund Scheme.
TAX BENEFITS:
The provisions relating to the approved Superannuation Scheme are set out in Part 'B' of the Fourth Scheme of the Income-Tax Act, 1961 and Part XIII of the Income Tax Rules , 1962. The income tax concession will be available only if the scheme is approved by the CIT.
1.
The annual contribution is treated as a deductible business expense in term of Section 36(1) (iv) of the I.T. Act.
2.
In terms of a Notification issued by the Central Board of Direct Taxes .80% of the contribution (s) towards the past service liability are treated as deductible business expenses spread over in the subsequent years of payment.
3. The employee's contribution , in the case of the Contributions scheme qualifies for exemption under Section 80C of the Income-Tax Act.
GROUP INSURANCE SCHEME IN CONJUNCTION WITH SUPERANNUATION SCHEME:
The members of the Group Superannuation scheme can be covered under Group Insurance in conjunction with superannuation scheme so as to provide death risk cover while in service subject to certain conditions.
Gunjan
From India, Vadodara
hi all...im a management trainee and in the phase of learning HR...so please guide me about the tax applicable in the case of superannuation...how much percent of the amount is tax ree n how much not?....im totally perplexed and unable to get a clear picture of it...plz throw some light in this regard...thnkuvidisha khanna
hi all...im a management trainee and in the phase of learning HR...so please guide me about the tax applicable in the case of superannuation...how much percent of the amount is tax free n how much not? is employee liable to pay the tax or the LIC will pay it?....im totally perplexed and unable to get a clear picture of it...plz throw some light in this regard...thnkuvidisha khanna
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