9911796707
TMI BlogProvisions of sec.10(10A)(i) of the Income Tax Act.X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 decision of the ITAT Bombay benc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 gratuity and a lumpsum amount in lieu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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)(b) even though it is calculated with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udible in the total income subject to relief u/s.89(1) of the I.T.Act, 1961 read with Rule 21 A of the I.T.Rules, 1962. This position has also been clarified by the Government of India, vide its O.M.No.44(1)-EV/71 dated 13-4-73. 6. The above position may be brought to the notice of the officers working in your charge. In cases where the entire amount of commuted pension has been exempted u/s.10( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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