Contribution to approved superannuation fund - Whether pension benefits can be provided to employees under rule 89 of Income-tax Rules in the form of "annuity certain" also

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..... o Circular No. 403 Dated 12/5/1984 1. An assessee is entitled under section 36(1)(iv) of a deduction of any sum paid as an employer by way of contribution towards an approved superannuation fund subject to such limits as may be prescribed by the Board or such conditions as the Board may think fit to specify. 2. As per rule 89 of the Income-tax Rules, 1962, the trustees may either enter into a .....

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..... rom the LIC at the time of retirement or death of each employee or on his becoming incapacitated prior to retirement and rule 90 lays down the condition that only one-third of such annuity can be commuted having regard to the age of the recipient, the state of his health, the rate of interest and officially recognised tables of mortality. Rule 3(b) of Part B of the Fourth Schedule also clarifies t .....

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..... f funds where rules provide for pension benefits in the form of "annuity certain", the trustees should be advised to make suitable amendments in the rules within a reasonable time, say, three months. The Commissioners of Income-tax may also consider the withdrawal of approval in cases where such necessary amendments are not effected in the rules. Circular : No. 403 [F. No. 216/7/84-IT(A-II)], dat .....

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