https://www.taxtmi.com/caselaws?id=7928 Retirement gratuity received under a statutory staff gratuity scheme can qualify for tax exemption where the scheme is similar in substance to the Central Government's Revised Liberalised Pension Rules. The decisive test is whether both schemes share the same essential object and effect: providing a lump-sum terminal benefit to permanent employees on cessation of service as a reward for faithful service. Minor differences in computation or qualifying conditions do not negate similarity when the basic purpose remains the same. On that basis, the gratuity paid under the Life Insurance Corporation staff regulations was held exempt from tax. en-us Sat, 27 Dec 1969 00:00:00 +0530 Tue, 24 Mar 2009 17:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7928 Retirement gratuity received under a statutory staff gratuity scheme can qualify for tax exemption where the scheme is similar in substance to the Central Government's Revised Liberalised Pension Rules. The decisive test is whether both schemes share the same essential object and effect: providing a lump-sum terminal benefit to permanent employees on cessation of service as a reward for faithful service. Minor differences in computation or qualifying conditions do not negate similarity when the basic purpose remains the same. On that basis, the gratuity paid under the Life Insurance Corporation staff regulations was held exempt from tax. Case-Laws Income Tax Sat, 27 Dec 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7928