Question : INCOME TAX REBATE



(a) whether the Income Tax Department has given rebate under Section 89(1) of the Income Tax Act, 1961, to persons opted VRS during 2000 and 2001;

(b) if so, the details thereof and if not, the reasons therefor;

(c) whether keeping in view the decision of Hon`ble Madras High Court in the case of Commissioner of Income Tax Vs. J. Visalakshi on 25.11.1993 vide I.T.R. Vol. 206, page No. 531 that the ex-gratia compensation received by the assessees consequent on his resignation or V.R.S. is entitled to the relief Section 89 (1) of the IT Act;

(d) if so, whether the Government have extended such relief to all such assessees;

(e) if so, the details thereof; and

(f) if not, the reasons and justification thereof?

Answer given by the minister

MINISTER OF STATE IN THE MINISTRY OF FINANCE AND COMPANY AFFAIRS (SHRI GINGEE N. RAMACHANDRAN)

(a) to (f): The matter regarding eligibility of relief under Section under Section 89(1) of the Income Tax Act, 1961, on amounts of compensation received in excess of limit prescribed under Section 10(10C) of the Act, to persons who opted for VRS is being examined in consultation with Ministry of Law.