Superannuation proceeds in case of resignation

I have resined from a company and so I am getting superannuation proceeds from the same of approx 3 lakhs. I am only 35 years old. I have been advised by one person that I have to pay tax as per my tax slab.

Another person has advised me that I can save tax if I invest the proceeds of superannuation in a pension fund. 

Please can you inform me what to do?
Asked 12 months ago in Income Tax from Kolkata, West Bengal
Dear Sir, 

Superannuation is exempt upto a limit if received at the time of Retirement, Death, Physical incapacity. But in your case it will be taxable as you are receiving it upon resigning. Hence it will be taxable.

Yes, you can save taxes if you invest the proceeds in a pension fund but that also has a cap based on your Salary Structure etc. Plus the interest paid or the benefits derived from a Pension Fund is not upto the mark.

So it is advisable to consider the tax impact and then decide if you want to go for NPS or invest it elsewhere.

Trust this clarifies your query.

Feel free to get back/ call for any further clarifications.

Thanking You.

Regards,
CA Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
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Dear Sir,

It will be subject to tax if you take it as income as per your slab rate but you if you invest it is superannuation pension fund scheme than the amount you will receive will be at the time of retirement age will be taxed and currently it will be tax free in your hand.
Vishrut Rajesh Shah
CA, Ahmedabad
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No you need to pay tax as per our view.
Shyam Sunder Modani
CA, Hyderabad
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