Case Law Details
Contributions to a superannuation fund, not being in the nature of initial or ordinary annual contribution is an allowable deduction
Facts
• During the assessment year 2004-05, the taxpayer claimed a deduction for payments to the superannuation scheme in excess of the prescribed limits.
• The superannuation fund of the taxpayer, duly approved was a „defined benefit scheme? and the taxpayer made ordinary annual contribution equal to 27% of salary, less the amount of its contribution to provident fund.
• As a consequence of falling interest rates, the Life Insurance Corporation of India had revised annuity rates of pension to be provided by them to the retiring members which resulted in larger payout from the fund.
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Dear Sirs,
Can the company pay more than 27% for PF+Pension fund and restrict claim of tax benefit to 27%? or it is prohibited from exceeding 27% as a cap imposed by incometax act