Question ID :
44867
Taxability of superannuation amount withdrawal on voluntary retirement
Employee opted for voluntary retirement and commuted 1/3 of superannuation amount from the approved fund with LIC. LIC made TDS on such withdrawal. Does section 10(13) cover cases of voluntary retirement? Or exemption is available only after specified age for such retirement.?
Posted by
SHUBHA HEGDE
on
May 31, 2025
Filed Under
DIRECT TAXES
Section 10(13) exemption for commuted value from an approved superannuation fund is not available in cases of voluntary retirement before the specified age. The exemption is linked to retirement at or after the specified age (or death/incapacity), not merely to the act of retirement or voluntary retirement. Therefore, the amount withdrawn on voluntary retirement before the specified age is fully taxable, and the TDS by LIC is as per law.
Posted by
CA NIKHIL JAIN on
Jun 01, 2025
Answer ID :
85888
Section 10(13) exemption for commuted value from an approved superannuation fund is not available in cases of voluntary retirement before the specified age.
Posted by
HARIOM ARORA on
Jun 02, 2025