India - Income Tax Act 2010 - Saarc

S. 10(10CC) I.T. ACT, 1961 1.56in the case of a public sector company referred to in sub-clause (i), ascheme of voluntary separation, to the extent such amount does notexceed five lakh rupees] :Provided that the schemes of the said companies or authorities 83 [orsocieties or Universities or the Institutes referred to in sub-clauses(vii) and (viii)], as the case may be, governing the payment of suchamount are framed in accordance with such guidelines (includinginter alia criteria of economic viability) as may be 84 prescribed85[***] :Provided further that where exemption has been allowed to anemployee under this clause for any assessment year, no exemptionthereunder shall be allowed to him in relation to any other assessmentyear :]86[Provided also that where any relief has been allowed to an assesseeunder section 89 for any assessment year in respect of any amountreceived or receivable on his voluntary retirement or termination ofservice or voluntary separation, no exemption under this clause shallbe allowed to him in relation to such, or any other, assessment year;]87[(10CC) in the case of an employee, being an individual deriving income in thenature of a perquisite, not provided for by way of monetary payment,within the meaning of clause (2) of section 17, the tax on such incomeactually paid by his employer, at the option of the employer, on behalfof such employee, notwithstanding anything contained in section200 88 of the Companies Act, 1956 (1 of 1956);]83. Inserted by the Finance Act, 1994, w.e.f. 1-4-1995.84. Rule 2BA prescribes requirements for a Scheme of Voluntary Retirement, which are asfollows :(1) It applies to an employee who has completed ten years of service or completed 40 yearsof age. This condition is not applicable in case of amount received by an employee of apublic sector company under scheme of voluntary separation framed by the saidcompany. (2) It applies to all employees (by whatever name called), including workers andexecutives of the company/authority/co-operative society excepting directors of thecompany/co-operative society. (3) The scheme of voluntary retirement/separation hasbeen drawn to result in overall reduction in the existing strength of the employees. (4) Thevacancy caused by voluntary retirement/separation is not to be filled up, nor, the retiringemployee is to be employed in another company or concern belonging to the samemanagement. (5) The amount receivable on account of voluntary retirement/separationof the employees, does not exceed the amount equivalent to three months’ salary for eachcompleted year of service or salary at the time of retirement multiplied by the balancemonths of service left before the date of his retirement on superannuation.85. Words “and such schemes in relation to companies referred to in sub-clause (ii) or cooperativesocieties referred to in sub-clause (v) are approved by the Chief Commissioneror, as the case may be, Director-General in this behalf” omitted by the Finance Act, 2000,w.e.f. 1-4-2001. Earlier the quoted words were amended by the Finance Act, 1994, w.e.f.1-4-1995.86. Inserted by the Finance (No. 2) Act, 2009, w.e.f. 1-4-2010.87. Inserted by the Finance Act, 2002, w.e.f. 1-4-2003.88. For text of section 200 of the Companies Act, 1956, see Appendix.