8% Relief Bonds, 2002 - Relaxation for retired employees - F. No. 4(5)-W&M/2002 - Income Tax

8% Relief Bonds, 2002 - Relaxation for retired employees Notification F. No. 4(5)-W M/2002 dated 22-4-2002 The Government of India hereby notifies that the Scheme of 8% Relief Bonds, 2002 as specified in this Ministry's Notification F. No. 4(5)/W M/2002 dated 28th February, 2002 shall be subject to further amendments as follows : Limit of investment The maximum limit of Rs. 2 lakhs per annum per investor for Investment in the Bonds shall not apply to : 1. (A) Investments made by retiring employees, including those retiring under Voluntary Retirement Schemes, of the Government, Public Sector, Banks, Local Bodies and Private Sector out of their retirement/terminal benefits which include" (a) Balance at the credit of employee in any of the Provident Funds, (b) Retirement/Superannuation gratuity, (c) Commuted value of pension, (d) Cash equivalent of leave, and (e) Savings element of Government Insurance Scheme payable to the employee on retirement. (B) Investments may be made within 3 months from the date of receipt of the retirement benefits, where the retirement benefits have been disbursed on different dates, the period of 3 months may be counted from the date of full and final settlement : Provided that the above exemption from the limit of investment will be available subject to production of a certificate from the employer that the funds being invested by the retiring employee are retirement/terminal benefits received by him/her on retirement/under Voluntary Retirement Scheme. II. Reinvestment to be made by already retired employees of the Government, Public Sector, Banks, Local Bodies and Private Sector of the maturity proceeds of the Relief Bonds initially purchased out of their retirement/terminal benefits/Voluntary Retirement Scheme Compensations. Such reinvestments should be made within 3 months from the date of issue of this Notification or date of maturity/encashment of the bond, whichever is later : Provided that the above exemption from the limit of investment will be available to employees subject to production of an affidavit to the effect that the funds initially invested by him/her in the Relief Bonds were out of the retirement/terminal benefits/Voluntary Retirement Scheme Compensations. 2. The above entitlement for retirement/terminal benefits is in addition to the annual limit of Rs. 2 lakh per investor otherwise available for investment/ reinvestment/matured bonds. 3. This takes effect from the date of issue of this Notification.