Section.16(1) - Standard deduction admissibility to pensioner - Reference applications not to be filed unless tax effect is beyond specified limit.

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....) to (v) of section 16 by a standard deduction "in respect of expenditure incidental to employment" to be allowed in the computation of taxable salary. The Board's Circular No.138 of 1974 dated 7-6-1974 (explanatory Notes on Finance Act, 1974) clarified that in the case of a pensioner since no salary can be said to be derived from employment, no deduction will be admissible in computing the taxabl....

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....TA No. 2510(Bom)78-79 dated 14-2-1979] has supported the Department's case and has referred the matter to the High Court at the instance of the assessee. 3. The Board have considered the matter with a view to check the proliferation of litigation. It is found that the cost of litigation involved in each case is disproportionately higher compared to the revenue effect. Therefore, it has been decid....