Part DCA - Safe Harbour Rules for income referred to in clause (i) of sub-section (1) of section 9 chargeable to tax under the head (From Rule 10TI to Rule 10TIC)
Employee interest in gratuity fund assignments may be treated as income if the charge is not cancelled promptly. If an employee assigns or creates a charge on his beneficial interest in an approved gratuity fund, the Assessing Officer must issue notice requiring cancellation of the assignment or charge within two months. Failing cancellation within that period, the consideration received for the assignment or charge is deemed to be income of the employee in the previous year in which the Assessing Officer became aware of the transaction, and it is assessed accordingly.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Employee interest in gratuity fund assignments may be treated as income if the charge is not cancelled promptly.
If an employee assigns or creates a charge on his beneficial interest in an approved gratuity fund, the Assessing Officer must issue notice requiring cancellation of the assignment or charge within two months. Failing cancellation within that period, the consideration received for the assignment or charge is deemed to be income of the employee in the previous year in which the Assessing Officer became aware of the transaction, and it is assessed accordingly.
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