Superannuation fund is an employee welfare scheme which is usually applicable in case of very senior employees. When the employee ceases to be the employee, employee’s contribution, employer’s contribution and the interest thereon is paid to the employee and in case of death of the employee to the legal heirs of the employee.The tax treatment in case of an Approved Superannuation Fund is as below:Employee’s contribution to the superannuation fund is eligible for rebate under Sec 80C of the Act.Employer’s contribution to the superannuation is exempt from tax.Interest on the accumulated balance in the superannuation fund is exempt from tax.The amount paid to the employee in lieu of or in commutation of an annuity on his retirement on or after the specified age or on his becoming in capacitated prior to such retirement is exempt from tax.The amount paid by way of refund of contribution to the legal heirs on the death of the beneficiary is also exempt from tax.   _{Your Comment}