What is Superannuation Fund & How it Works? Income Tax with Superannuation Fund

What is Superannuation Fund & How it Works? Income Tax with Superannuation Fund | Superannuation Fund in India in Hindi
In this video by FinCalC TV we will see what is superannuation fund in salary, how superannuation fund works in India, contribution limits in superannuation fund, income tax benefits and pension amount after retirement with the help of superannuation fund.

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CHAPTERS:
00:00 Superannuation fund intro
00:25 What is Superannuation Fund in Salary?
01:13 Is Superannuation Fund mandatory?
01:51 Meaning of Superannuation in Hindi
02:39 How Superannuation Fund Works?
02:55 Example in Salary Payslip
04:04 Withdrawal from Superannuation Fund
04:40 Transfer funds on Job Switch or change
05:35 Income Tax Benefits on Superannuation Fund
06:35 Is Interest Tax Free?
06:46 Maximum contribution in Superannuation Fund

Income Tax Calculation on Salary Video:

What is Superannuation Fund in Salary?
Superannuation Fund is a type of pension fund which helps the employee to save for his or her retirement.
The employer / company helps in contributing the amount in the fund from their side to save for your future. This helps to secure your retirement age apart from provident fund, PPF and other pension funds.
The fund amount is part of your CTC (Cost to company)

Is Superannuation Fund mandatory?
Superannuation Fund is not mandatory and you have the option to take the fund amount to be credited as in hand salary every month.

Meaning of Superannuation in Hindi
The word superannuate means "to retire". And before retirement we need to have sufficient amount as balance in our account for retirement purpose and to meet our expenses while we enjoy free time.
That's the reason the scheme Superannuation Fund is used.

How Superannuation Fund Works?
In your salary, up to 15% of Basic pay + DA (Dearness allowance) is considered to be contributed in Superannuation Fund by your company.
The same is being contributed every month.
You can see the example on salary payslip with this contribution in the video.

Withdrawal from Superannuation Fund
After retirement, you have the option to withdraw 1/3 portion of the amount accumulated (Tax Free) and buy annuity with 2/3 portion of the remaining amount.
This annuity pla will help you to get pension every month.
If you withdraw the amount while switching or changing jobs, than the amount will be taxable.

Transfer funds on Job Switch or change
You can also get the funds transferred from one employer to another while you change jobs for better pay.

Income Tax Benefits on Superannuation Fund
You get maximum of Rs. 1.5 Lacs as deduction under section 80C that can be used to save your income tax with Old Tax regime.
This deduction is not allowed with new tax regime.

Is Interest Tax Free?
The interest you earn in Superannuation Fund is tax free post retirement.

Maximum contribution in Superannuation Fund
The limit of contribution in Superannuation Fund is maximum Rs. 1.5 Lacs in FY based on Budget 2020.
Amount exceeding this limit will be treated as perquisite in the hands of employee and willbe taxable.

#superannuation #pension #retirement #fincalc

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DISCLAIMER:
Examples and demo used are for Illustration purpose only and might not cover every detail of examples shown. It is advised to seek professional help before taking any financial decisions. The owner of this channel shall not be liable in any way.

[fincalc]

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[DIBYARANJAN]

How much is the intrest rate provided in superannuation fund per year?

[prajapatiak]

what if anyone resigns before his retirement date

[taal]

Superannuation fund kitna interest/return milta hai ?

[maheshkhadke]

I resigned from service. Can I save tax by transferring eligible amount of superannuation fund to NPS? Please advise.

[joydeepmukherjee]

Bhai please clarify 2 points.
1. Is lic paying yearly interest on accumulated amount year on year.
2. What is the rate of interest

[kishorekulkarni]

The superannuation monthly pension (interest on 2/3 amount, in my case it is with LIC)we get after retirement is taxable or non taxable? Under which head this pension amount can be shown? If non taxable, Under which section of income tax it is non taxable?

[vinodyadav-clcy]

Pension kisme jayda banegi VRS ya superannuation?

[shaileshvaidya]

At the time of retirement, how the eligible pension amount is worked ou

[arunpasumurty]

is superannuaiton tax exempted over and above 1.5 80C, employer is contributing on behalf of employee

[suvashchandraswain]

Thanks, your explanation is excellent, but please slowly explain so that listener can understand easily

[gopalbhuradia]

Jankari ke liye Aap ka Dhanyawad, Me ye Janna Chahta hu ki meri Age 56 year 8 Month Hai, Me Ab Company se Apni Taraf se Seva Sampat Kar Raha hu, Jo ki Meri Retirement 60 Age Par hai, Toh Mera Sawaal hai Ki Meri Pension Kab Se Start Hogi, Pl. Margdarshan Kare, Dhanyawad

[vinodyadav-clcy]

Children ki pension maa ko hi mil sakti hai?

[mahathavenramasamy]

Employee is in service but 58 yrs completed he can able to claim super annutation pf

[khmdcontest]

सर नमस्कार कृपया बताएं कि अनमैरिड ( single, Bachelor) person की रिटायरमेंट होने पर मंथली पेंशन कैसे अप्लाई करते हैं ? मेरे केस में क्युकी मैं शादी शुदा नहीं हूं तो भाई को नोमानी बनाया था परन्तु मेरी मंथली पेंशन rejecated करदी गईं हैं, ( status: claim rejecated Brother is not Eligibale in Family List) ये कारण देकर रिजेक्ट हुआ है सो कृपया गाइड करें आप की बहुत कृपा होगी

[jitendrarathod]

Is 2/3 Pention received monthly from superannuation fund taxable?

[laughlaugh]

Any about the interest amount? I have it with LIC

[praveenreddy]

will the withdrawal be taxable even in case of lay off (termination)

[HimalayaGarg]

Can one withdraw if decide to retire at age 40?

[rajendrasachania]

May I withdraw 100% fund from my superannuation account at the time of retire