9911796707
TMI Blog2024 (6) TMI 1230X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 25 lakhs for exemption from payment of earned leave income. The employer has also deducted the admissible tax above Rs. 3 lakhs from the petitioners. At this distant point of time, this Court, considering the limitation on the power of the Court as well as the doctrine of separation of powers, cannot issue a mandamus to the respondent Authorities to revise the upper limit of the encashment of earned leave for granting exemption from payment of the income tax with retrospective effect. Issuance of notification, as provided in the provision, is in the realm of the powers of the Executive. The Court, though, has sympathy with the petitioners, but considering the limitation on powers of the Court, this Court is unable to issue a writ of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income limit for the purposes of exemption on encashment of earned leave salary under Section 10 (10AA) (ii) of the Income Tax Act. 3. Section (10AA) (ii) of the Income Tax Act on reproduction reads as under: (10AA) (i) (ii) any payment of the nature referred to in sub-clause (i) received by an employee, other than an employee of the Central Government or a State Government, in respect of so much of the period of earned leave at his credit at the time of his retirement whether on superannuation or otherwise as does not exceed ten months, calculated on the basis of the average salary drawn by the employee during the period of ten months immediately preceding his retirement whether on superannuation or otherwise, subject to such limit as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ashment of earned leave up to 300 days. The last notification was issued on 31.05.2002, and the Government did not thereafter issue a notification despite there having been three pay revisions. The latest notification is only in 2023, wherein the upper limit has been fixed as Rs. 25 lakhs, taking the highest salary of the cabinet secretary, i.e., Rs. 2.5 lakhs per month. 5. The Government should have revised the upper limit, which was fixed under the notification of 2002 as Rs. 3 lakhs taking into consideration the three pay revisions. However, the Government has not done so. The petitioners all stood retired before the latest notification, which has been issued fixing the upper limit as Rs. 25 lakhs for exemption from payment of earned lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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