Pension Contribution to be refunded to legal heir of the employee
expired on or before 31/07/2018.
Form 10E & Annex-1 if uploaded on the basis of deceased employee's
earnings, Income tax rebate will be given.
** Nodal Officer must update employee master and set flag as 'Death'
a) What will happen in case of death of executives before and after retirement:
The decision regarding the employees deceased before 31.07.2018 was taken in the 2nd meeting of Board of Trustees held on 25.01.2019 wherein it was decided that their contribution would be refunded to either the nominee as per gratuity form or to their legal heirs. Now in reference to the executives who have died on or after 31.07.2018, it will be guided by 4.7 of the scheme. Payments of Contribution to the deceased executives will pass through Trust.
b) What will be the process for application of legal heir of deceased executives.
Any income which has accrued up to the death of the person is taxable in the hands of deceased person only. Hence legal heir needs to submit Form 10E on behalf of the deceased employees in order to claim relief under section 89(1) of the Act. Legal heir will submit Income Tax Return as representative assesse of the deceased employees.
c) Whether payment of contribution from approved superannuation fund to legal heir of the deceased is taxable
The payment made to the legal heir after the death of the employee would be exempt under section 10(13) of the Income Tax Act.
2. The retired executives who have not submitted 10E,Annexures and profile option may be contacted for necessary submission. Effort is on to put advertisement in the newspaper.
3. Now software for refund is ready, hence refund to the executives directly will be processed shortly. It will be intimated formally.
4. On-roll employees are not to submit option forms now. Only retired executives and who is going to retire shortly shall submit option forms. Kindly note no option form will be accepted by nodal officers for on-roll executives.
5. On-roll employees can submit 10E now, if not submitted and Subsidiary is requested to process at the earliest.