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2003 (2) TMI 46 - HC - Income TaxClaim for exemption - In this case the petitioner-appellants were subjected to voluntary retirement pursuant to a Voluntary Retirement Scheme (Scheme) by the employer respondent. The scheme appears at page 21 of the paper book (annexure B to the writ petition). The respondent authority had been deducting tax at source under the provisions of section 192 of the Income-tax Act, 1961. This seems to have been clarified by the employer through annexure C at page 24 of the paper book. This has since been challenged by the employees' association, the petitioners/appellants, as not chargeable to tax in view of clause (10C) of section 10 of the Income-tax Act. – Held that, It is a deferred payment of the benefit receivable under the voluntary retirement scheme. Therefore, it would not be payment of salary outside the scope of section 10(10C). The characteristic cannot be changed because of stretching over the period of payment of dues under the scheme.
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