Tax treatment of posthumous leave pay: exempt when payment is a family benefit, not income from employment. The cash equivalent of leave salary paid to the legal heirs on the death of a Government servant is a posthumous family benefit and not remuneration from an employer to an employee; the deceased had no right to the amount and it is a financial benefit payable only because of death, and therefore the payment is not liable to income-tax.
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Provisions expressly mentioned in the judgment/order text.
Tax treatment of posthumous leave pay: exempt when payment is a family benefit, not income from employment.
The cash equivalent of leave salary paid to the legal heirs on the death of a Government servant is a posthumous family benefit and not remuneration from an employer to an employee; the deceased had no right to the amount and it is a financial benefit payable only because of death, and therefore the payment is not liable to income-tax.
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