India - Income Tax Act 2010 - Saarc

1.51 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 10(10A)occurs, subject to such limit 37 as the Central Government may, bynotification in the Official Gazette, specify in this behalf having regardto the limit applicable in this behalf to the employees of that Government]:Provided that where any gratuities referred to in this clause 38 arereceived by an employee from more than one employer in the sameprevious year, the aggregate amount exempt from income-tax underthis clause 39 [shall not exceed the limit so specified] :Provided further that where any such gratuity or gratuities was orwere received in any one or more earlier previous years also and thewhole or any part of the amount of such gratuity or gratuities was notincluded in the total income of the assessee of such previous year oryears, the amount exempt from income-tax under this clause 39 [shallnot exceed the limit so specified] as reduced by the amount or, as thecase may be, the aggregate amount not included in the total incomeof any such previous year or years.40[* * *]Explanation.— 41 [In this clause, and in clause (10AA)], “salary” shallhave the meaning assigned to it in clause (h) of rule 2 of Part A of theFourth Schedule ;]42[ 43 (10A) 44 (i) any payment in commutation of pension received under the CivilPensions (Commutation) Rules of the Central Government or underany similar scheme applicable 45 [to the members of the civil servicesof the Union or holders of posts connected with defence or of civilposts under the Union (such members or holders being persons notgoverned by the said Rules) or to the members of the all-India servicesor to the members of the defence services or to the members of thecivil services of a State or holders of civil posts under a State or to theemployees of a local authority] or a corporation established by aCentral, State or Provincial Act ;37. Rs. 3,50,000 has been specified as the limit in case of retirement, etc., on or after 24-9-1997vide Notification No. 10772 [F. No. 200/77/97-IT(A-I)], dated 20-1-1999. For details, seeTaxmann’s Master Guide to Income-tax Act. See also footnote No. 34, on page 1.50.38. For meaning of the expression “this clause”, see Taxmann’s Direct Taxes Manual, Vol. 3.39. Substituted for “shall not exceed *thirty-six thousand rupees” by the Direct Tax Laws(Amendment) Act, 1987, w.e.f. 1-4-1989.*Substituted for “thirty thousand rupees” by the Finance Act, 1983, w.r.e.f. 1-4-1982.40. Omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989. Original third andfourth provisos were inserted by the Finance Act, 1983, w.r.e.f. 1-4-1982.41. Substituted for “In this clause” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1989.42. Inserted by the Finance (No. 2) Act, 1965, w.r.e.f. 1-4-1962.43. See also Circular No. 286, dated 17-11-1980 and Circular No. 623, dated 6-1-1992. Fordetails, see Taxmann’s Master Guide to Income-tax Act.44. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.45. Substituted for “to the members of the Defence Services or to the employees of a StateGovernment, a local authority” by the Finance Act, 1974, w.r.e.f. 1-4-1962.