Section 10(10AA) of the Income Tax Act provides tax exemption ...

Tax Tribunal Dismisses Local Authority Appeal; Enforces Rs. 3 Lakh Leave Encashment Exemption for Non-Gov Employees.

November 23, 2024

Case Laws Income Tax AT

Section 10(10AA) of the Income Tax Act provides tax exemption for leave encashment upon retirement for Central/State government employees and employees other than Central/State government employees, subject to different limits. Section 10CC includes all individual employees deriving income other than by way of monies, irrespective of the category of employers. Leave encashment, retirement benefits, and perquisites received by employees are governed by Sections 10(10AA), 10C, and 10CC respectively. Local authorities like municipal corporations, panchayats, and cantonment boards are distinct from State and Central governments under the Income Tax Act and the Constitution. The assessee, being a local authority, is liable to deduct tax on leave encashment payments to its employees, subject to the exemption limit of Rs. 3 lakhs prescribed by Section 10(10AA) for non-Central/State government employees. The Revenue Authorities shall recompute the quantum of tax deductible accordingly. The appeals of the assessee are dismissed by the Appellate Tribunal.

View Source

← Previous Next →

Section 10(10AA) of the Income Tax Act provides tax exemption ...

Tax Tribunal Dismisses Local Authority Appeal; Enforces Rs. 3 Lakh Leave Encashment Exemption for Non-Gov Employees.

November 23, 2024

Case Laws Income Tax AT

You may also like:

The High Court considered the issue of Leave Encashment exemption u/s 10AA and the retrospective review of income limit for taxing earned leave salary. The petitioners,...

Contravention of Sections 8(1) and 9(1)(f)(i) of the Foreign Exchange Regulation Act, 1973 - receiving foreign exchange payments in 1996-97 through fake export documents...

The Income Tax Appellate Tribunal allowed the assessee's appeal against the reopening of assessment u/s 148A of the Income Tax Act. The Assessing Officer had alleged...

Addition of fixed deposits and interest thereon in wife's name was deleted as the Revenue could not controvert that the deposits belonged to the assessee's wife from her...

ITAT allowed the assessee's appeal challenging leave encashment deduction under section 10(10AA). The tribunal found that the CIT(A)'s rejection based on non-submission...

The ITAT allowed the appellant's claim for exemption under section 10(10AA) for earned leave encashment received upon retirement. Relying on the Jaipur Bench decision in...

Penalty imposed for import of chemicals using fake duty exemption licenses. Appellant claimed exemption under DEPB but used fake licenses and TRAs. Statement of witness...

Imported material diverted to unit other than permitted unit, resulting in contravention of import-export policy provisions. Goods held liable for confiscation u/s 111...

The case involved a violation of the FEMA Act due to accepting and placing bets on cricket matches for clients. The appellant was linked to the raided premises where...

The AT found evidence of hawala transactions through a recovered notebook containing daily business accounts, despite the appellant's retraction. The tribunal...

The Indian Finance Minister's upcoming FY2025-26 Budget presentation focuses on critical fiscal metrics and consolidation targets. The government aims to reduce fiscal...

Disallowance of making charges - If the making charges rate as determined by the Revenue at Rs.3/- per gram has to be considered, the aforesaid karigar’s net profit...

Levy of service tax - tolerance of act of cancellation of coal blocks - the Government employee has tolerated the non-sanction of leave during his service as per an...

The assessee, a sole proprietor running a petrol pump allotted by BPCL, deposited unexplained cash in the current bank account. The AO invoked Section 69A and made an...

The appellate tribunal examined the penalty imposed on the company and individual for contravention of Section 6(3)(a) of FEMA and Regulations 5, 6, and 13 of the...

Quick Updates: