Provisions of sec.10(10A)(i) of the Income Tax Act.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s allowed to retire prematurely and is permitted to be absorbed in a service or post in or under a corporation or company wholly or substantially owned or controlled by the Government or in or under a body controlled or financed by the Government is exempt from income-tax in view of the provisions of sec.10(10A)(i) of the I.T.Act. Claim of the exemption of such amount is made on the basis of the d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... undertaking. Such a person would be deemed to have retired from service from the date of absorption and would be eligible to receive retirement benefits in accordance with the orders of the government. A new rule 37A inserted by CCS (Pension) rules 1973 w.e.f.21-4-73 provides that where a government servant referred to in rule 37 elects the alternative of receiving the death-cum-retirement gratui....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n with the Ministry of Law. The Board have been advised that only the lump sum amount not exceeding the commuted value of one-third of pension admissible to a government servant in accordance with the provisions of the Civil Pensions (Commutation) Rules under clause(1)(a) of rule 37 A would be excludible from the total income u/s.10(10A) of the I.T.Act. 4.The terminal benefit under rule 37A(1)(....