With the demographics of our workforce heavily skewed towards younger people, awareness about pension benefits in India still has miles to go. Employers nevertheless have not let this deter them from designing employee benefits in order to differentiate themselves, while at the same time making the most of their compensation budgets. Superannuation benefits, while not mandatory, are one such instrument companies have begun to leverage to that end. Employer contributions are tax-deductible and superannuation investment earnings too are not taxed. Although the benefits are taxed as income in the hands of employees, one-third of the benefits can be claimed as a tax-free lumpsum. ...Read
