1999 (4) TMI 28

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....t scheme. The facts relevant for the purposes of this appeal may be briefly noted : (i) The appellant was employed with the Tata Iron and Steel Co. (hereinafter referred to as "TISCO") at Jamshedpur. He took voluntary retirement on July 25, 1992 under a voluntary retirement scheme. The appellant's request for voluntary retirement was accepted by TISCO on July 23, 1992, to be effective from the afternoon of July 25, 1992. The appellant received Rs. 3,14,336.70 as retiral benefits under the scheme, but after deduction of Rs. 84,000 as income-tax. (ii) The appellant claimed that the amounts payable to him under the voluntary retirement scheme were exempt from income-tax and, hence, the amount of Rs. 84,000 was not liable to be deducte....

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.... of clause (g) of section 3 of the Institutes of Technology Act, 1961 (59 of 1961 or (viii) such institute of management as the Central Government may, by notification in the Official Gazette, specify in this behalf, at the time of his voluntary retirement, in accordance with any scheme or schemes of voluntary retirement, to the extent such amount does not exceed five lakhs rupees : Provided that the schemes of the said companies or authorities or societies or universities or the institutes referred to in sub-clauses (vii) and (viii), as the case may be, governing the payment of such amount are framed in accordance with such guidelines (including, inter alia, criteria of economic viability) as may be prescribed and such schemes in ....

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....der : "4. The Board have received a number of queries with reference to these guidelines. These are clarified I as under : Question 1 : As rule 2BA regarding guidelines for the purposes of section 10(10C) has come into force with effect from the 18th day of August, 1992, whether the payments made under the schemes of voluntary retirement between 1st April, 1992, and 18th August, 1992, will get the benefit of income-tax exemption ? Answer : The provisions of section 10(10C) of the Income-tax Act have been amended through the Finance Act, 1992, with effect from 1st April, 1993. Accordingly, the amended provisions will apply in relation to the assessment year 1993-94 and subsequent years. Though the rule containing the guidelines for ....