Section 10(10C) in The Income- Tax Act, 1995

Central Government Act

(10C) 1[ any amount received by an employee of-

(i) a public sector company; or

(ii) any other company; or

(iii) an authority established under a Central, State or Provincial Act; or

(iv) a local authority; 2[ or]

(v) 3[ a co- operative society,- or

(vi) a University established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a University under section 3 of the University Grants Commission Act, 1956 4 (3 of 1956 ); or

(vii) an Indian Institute of Technology within the meaning of clause (g) of section 3 of the Institutes of Technology Act, 1961 5 (59 of 1961 ); or

(viii) such institute of management as the Central Government may, by notification in the Official Gazette, specify 6 in this behalf,] at the time of his voluntary retirement in accordance with any scheme or schemes of voluntary retirement, to the extent such amount does not exceed five lakh rupees: Provided that the schemes of the said companies or authorities 7 [ or societies or Universities or the Institutes referred to in sub- clauses (vii) and (viii)], as the case may be, governing the payment of such amount are framed in accordance with such guidelines (including inter alia criteria of

1. Substituted by the Finance Act, 1993, w. e. f. 1- 4- 1993. Prior to the substitution, clause (10C), as inserted by the Finance Act, 1987, w. e. f. 1- 4- 1987, read as under:" (10C) any payment received by an employee of a public sector company at the time of his voluntary retirement in accordance with any scheme which the Central Government may, having regard to the economic viability of such company and other relevant circumstances, approve in this behalf;" The following clause (10C) was substituted by the Finance Act, 1992, w. e. f. 1- 4- 1993 but it has been substituted again, as above, without coming into operation:" (10C) any amount received by an employee of a public sector company or of any other company at the time of his voluntary retirement in accordance with any scheme or schemes of voluntary retirement: Provided that the schemes of the said companies governing the payment of such amount are framed in accordance with such guidelines as may be prescribed for the public sector companies or for other companies and such guidelines may, inter alia, include criteria of economic viability and such schemes in relation to companies (other than public sector companies) are approved by the Chief Commissioner or, as the case may be, Director- General in this behalf;"

2. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995.

3. Ibid.

6. The Indian Institutes of Management at Ahmedabad, Bangalore, Calcutta and Lucknow have been notified.

7. Inserted by the Finance Act, 1994, w. e. f. 1- 4- 1995.

economic viability) as may be prescribed' and such schemes in relation to companies, referred to in sub- clause (ii) 2[ or co- operative societies referred to in sub- clause (v)] are approved by the Chief Commissioner or, as the case may be, Director- General in this behalf: Provided further that where exemption has been allowed to an employee under this clause for any assessment year, no exemption thereunder shall be allowed to him in relation to any other assessment year;]