New Delhi, May 5 -- Pune resident Amit Upadhyay (46) had a large sum of money in a superannuation fund. Contributing to it was compulsory after achieving a certain level of seniority at his previous employer, where he worked for 20 years. "The contributions were a tax-free component of my salary and interest too was not taxable, so I happily went ahead with it," he said.

When he moved on to a new job, the second employer had no provision for a superannuation fund, so Upadhyay left his investment as it was. By 2017 it contained Rs.33 lakh. Had he withdrawn it, it would have become his taxable income for the year. Being in the 30% tax bracket, he would have had to pay nearly Rs.10 lakh (30% of Rs.33 lakh) excluding cess and surcharge. If h...