Retirement Benefits and Tax Liabilities

• April 10, 2020
• CA Chandan Agarwal's Office

1. Retired life begins with liquidation of retirement benefits such as Provident Fund , Gratuity , Leave Encashment , Superannuation Fund & Pension.These retirement benefits,which have been built over decades of discipline savings are meant for enjoying post retired life without any financial worries.

2. A person on the verge of retirement, need to consider managing retirement benefits. Retirement proceeds are by default tax-efficient in nature. Income Tax Act has different provisions for calculation of taxability & exemptions for Government & Non Government employees.

3. Government & Non Government Employee : Government & Non Government employees are treated differently in the eyes of Income Tax Act. In most of the cases , retirement benefits are exempted for Government employees.

Read more on: https://taxguru.in/income-tax/retirement-benefits-tax-liabilities.html