Income Tax Act, 2025
Section 10: Subs. by Act 27 of 1999, s. 6 for “eight months” (w.e.f. 11989).
10. Subs. by Act 27 of 1999, s. 6 for “eight months” (w.e.f. 11989).
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the period of ten months immediately preceding his retirement 1[whether on superannuation] or
otherwise, 2[subject to such limit as the Central Government may, by notification in the Official
Gazette, specify in this behalf having regard to the limit applicable in this behalf to the employees of
that Government]:
Provided that where any such payments are received by an employee from more than one
employer in the same previous year, the aggregate amount exempt from income-tax under this subclause 3[shall not exceed the limit so specified]:
Provided further that where any such payment or payments was or were received in any one or
more earlier previous years also and the whole or any part of the amount of such payment or
payments was or were not included in the total income of the assessee of such previous year or years,
the amount exempt from income-tax under this sub-clause 3[shall not exceed the limit so specified],
as reduced by the amount or, as the case may be, the aggregate amount not included in the total
income of any such previous year or years.
4* * * * *
Explanation.—For the purposes of sub-clause (ii),—
5*** the entitlement to earned leave of an employee shall not exceed thirty days for every year of
actual service rendered by him as an employee of the employer from whose service he has retired;
6* * * * *
7[(10B) any compensation received by a workman under the Industrial Disputes Act, 1947 (14 of
1947), or under any other Act or Rules, orders or notifications issued thereunder or under any
standing orders or under any award, contract of service or otherwise, 8[at the time of his
retrenchment:
Provided that the amount exempt under this clause shall not exceed—
(i) an amount calculated in accordance with the provisions of clause (b) of section 25F of the
Industrial Disputes Act, 1947 (14 of 1947); or
9[(ii) such amount, not being less than fifty thousand rupees, as the Central Government may,
by notification in the Official Gazette, specify in this behalf,]
whichever is less:
Provided further that the preceding proviso shall not apply in respect of any compensation
received by a workman in accordance with any scheme which the Central Government may, having
regard to the need for extending special protection to the workmen in the undertaking to which such
scheme applies and other relevant circumstances, approve in this behalf.]
any compensation received by a workman under the Industrial Disputes Act, 1947 (14 of
1947), or under any other Act or Rules, orders or notifications issued thereunder or under any
standing orders or under any award, contract of service or otherwise, 8[at the time of his
retrenchment:
Provided that the amount exempt under this clause shall not exceed—
an amount calculated in accordance with the provisions of clause
of section 25F of the
Industrial Disputes Act, 1947 (14 of 1947); or
9[
such amount, not being less than fifty thousand rupees, as the Central Government may,
by notification in the Official Gazette, specify in this behalf,]
whichever is less:
Provided further that the preceding proviso shall not apply in respect of any compensation
received by a workman in accordance with any scheme which the Central Government may, having
regard to the need for extending special protection to the workmen in the undertaking to which such
scheme applies and other relevant circumstances, approve in this behalf.]