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2014 (8) TMI 3 - HC - Income TaxDeduction u/s 10(10C) – VRS benefits not exceeds the limit prescribed - Employer deducted TDS - Rule 2-BA of the Income Tax Rules – Held that:- The manpower in its establishments has become economically unviable and accordingly evolved VRS, with the participation of the representatives of the workmen - to discourage introduction of indiscriminate schemes, which ultimately may serve the cross purposes, the Government introduced Rule 2BA in the Rules, prescribing certain Guidelines - The approach of the revenue is contrary to the relevant provisions of the Act and the Rules made thereunder - Rule 2BA of the Rules by itself does not provide for any formula for deductions - It only stipulates the conditions on satisfaction of which, the VRS would qualify for the benefit u/s 10(10C) - once the scheme is approved, the occasion to effect deduction of tax at source would arise, if only the benefit of a particular employee exceeds ₹ 5,00,000 - for none of the assessees herein, the benefit under VRS exceeded ₹ 5,00,000 – the deduction (TDS) was not proper - Decided in favour of Assessee.
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