India - Income Tax Act 2010 - Saarc

S. 10(10AA) I.T. ACT, 1961 1.52(ii) any payment in commutation of pension received under anyscheme of any other employer, to the extent it does not exceed—(a) in a case where the employee receives any gratuity, the commutedvalue of one-third of the pension which he is normallyentitled to receive, and(b) in any other case, the commuted value of one-half of suchpension,such commuted value being determined having regard to the age ofthe recipient, the state of his health, the rate of interest and officiallyrecognised tables of mortality ;46[* * *]47[(iii) any payment in commutation of pension received from a fundunder clause (23AAB) ;]48[ 49 (10AA) (i) any payment received by an employee of the Central Governmentor a State Government as the cash equivalent of the leave salary inrespect of the period of earned leave at his credit at the time of his50retirement 51 [whether] on superannuation or otherwise ;(ii) any payment of the nature referred to in sub-clause (i) receivedby an employee, other than an employee of the Central Governmentor a State Government, in respect of so much of the period of earnedleave at his credit at the time of his retirement 51 [whether] onsuperannuation 50 or otherwise as does not exceed 52 [ten] months,calculated on the basis of the average salary drawn by the employeeduring the period of ten months immediately preceding his retirement51 [whether] on superannuation or otherwise, 53 [subject to suchlimit as the Central Government may, by notification in the OfficialGazette, specify in this behalf having regard to the limit 54 applicablein this behalf to the employees of that Government] :Provided that where any such payments are received by an employeefrom more than one employer in the same previous year, the aggregateamount exempt from income-tax under this sub-clause 55 [shallnot exceed the limit so specified] :46. Proviso omitted by the Direct Tax Laws (Amendment) Act, 1987, w.e.f. 1-4-1989.47. Inserted by the Finance (No. 2) Act, 1996, w.e.f. 1-4-1997.48. Inserted by the Finance Act, 1982, w.r.e.f. 1-4-1978.49. For relevant case laws, see Taxmann’s Master Guide to Income-tax Act.50. For the meaning of the terms “retirement” and “or otherwise” see Taxmann’s Direct TaxesManual, Vol. 3.51. Inserted by the Taxation Laws (Amendment) Act, 1984, w.r.e.f. 1-4-1978.52. Substituted for “eight” by the Finance Act, 1999, w.r.e.f. 1-4-1998. Earlier “eight” wassubstituted for “six” by the Direct Tax Laws (Amendment) Act, 1987, w.r.e.f. 1-7-1986.53. Substituted for “or thirty thousand rupees, whichever is less” by the Direct Tax Laws(Amendment) Act, 1987, w.r.e.f. 1-7-1986.54. Specified exemption limit applicable in relation to employees who retire, whether onsuperannuation or otherwise, after 1-4-1998 : Rs. 3,00,000 - Notification No. SO 588(E),dated 31-5-2002. For details, see Taxmann’s Master Guide to Income-tax Act.55. Substituted for “shall not exceed thirty thousand rupees” by the Direct Tax Laws(Amendment) Act, 1987, w.r.e.f. 1-7-1986.