Discover all on SRS Tax Relief 2024: How Much is SRS Tax Relief? How it Works and Who Can Claim it? Besides CPF there is an optional scheme named ‘Supplementary Retirement Scheme’ that encourages citizens to put aside some amount from their income for future retirement. We have shared some crucial information on SRS Tax Relief that must be known by the SRS member.
SRS Tax Relief 2024
It’s never too late to start retirement planning, open the SRS account as soon as possible. To be a part of the SRS applicants must have a passport and the SRS Declaration Form in case of immigrants. The money invested in the SRS not only provides tax savings but also options to boost the savings amount.
Here are some of the diverse financial goals and purposes that can fulfilled by individuals owing an SRS account.
- Offerings made to the SRS account are eligible for tax relief and inspire employees to save money while enjoying the tax benefits. It also helps in reducing the taxable income.
- While an SRS account is designed for special retirement savings earlier withdrawals without reaching the retirement age are subject to penalties and taxation.
- Beneficiaries can contribute up to a certain limit as there are specific contribution limits set by the SRS. For Singaporeans, the annual contribution limit is restricted to $15300. On the contrary, the nonresidents have to make more contributions of $35700.
We can conclude that SRS provides access to the fund at a certain age has various restrictions and also offers specific tax benefits.
| Important Links |
How Much is SRS Tax Relief?
The amount of personal income is claimable for the year 2024, from the Year of Assessment 2023 is capped at $80000. The balance can be checked anytime by creating a login to Digibank. The contributors can withdraw the fund anytime in the form of cash or utilize the fund by investing it in several investment instruments.
Invest in the SRS fund for better use to earn higher returns than the usual ones. We recommend taking advice from the financial expert or ringing a call for any queries on the hotline number available on the SRS website.
How SRS Tax Relief Works?
The biggest advantage of being part of SRS is at the time of retirement, only 50% of the fund is taxable and the rest 50% is tax-free. SRS allows the member to contribute and provides funding in the form of cash or purchasing shares. The fund withdrawal completely depends on the individual’s choice. They draw out the fund in a lump sum or bifurcate it to receive over 10 years.
Members who withdraw the amount before reaching retirement age will be panelized by 5% for extracting the funds. Circumstances may occur when the member faces critical illness or has demised before reaching the age of 62. In such cases, the member will not be able to receive the full advantage of the benefit and can request SRS for early withdrawal. In terms of severe illness candidates can submit medical evidence to receive the tax exemption of $400000.
| Important Links |
Who can Claim It?
Eligible candidates who have made contributions to SRS during the working days can claim their funds after reaching the age criteria. Have an eye on some eligibility criteria before heading toward the main topic.
- The applicant must be Singaporean or must hold permanent Residency in the state.
- The contributor must be 18 years old or above.
- To be eligible citizens must be employed to manage the funds.
Note: Mentally ill individuals do not have any place in the scheme.
Only the tax residents for the Year of Assessment 2023 are allowed tax relief in 2024. Individuals with suspended accounts and who have already claimed their amount prior are not allowed to claim the tax relief. To get the maximum benefit member is advised to withdraw the fund at the age of 62 as there will be no penalty charge for the withdrawal. The authorities are working to raise the retirement age from 62 to 65 by the end of this year. This will impact the members who are looking for early benefits through the SRS.
Thanks for giving your quality time in viewing our article till the end. Before leaving our site visit our Home Page for more such updates on foreign affairs.