Finance Act, 1997
|
Amendment of section 115 (exemptions and reliefs in respect of tax under section 114) of Income Tax Act, 1967 . |
12.— Section 115 of the Income Tax Act, 1967 , is hereby amended in subsection (1A) (inserted by the Finance Act, 1993 )— | |
(a) by the insertion in paragraph (a) of the following after subparagraph (iii): | ||
“(iv) a benefit paid in pursuance of any statutory scheme (within the meaning of Chapter II of Part I of the Finance Act, 1972 ), other than a payment representing normal retirement benefits, which is made in consideration or in consequence of, or otherwise in connection with, the termination of the holding of an office or employment in circumstances— | ||
(I) of redundancy or abolition of office, or | ||
(II) for the purposes of facilitating improvements in the organisation of the employing company, organisation, Department or other body by which greater efficiency or economy can be effected, | ||
and for the purposes of this subparagraph, ‘normal retirement benefits’ means recognised superannuation benefits customarily payable to an individual on retirement at normal retirement date under the relevant statutory scheme, notwithstanding that, in relation to the termination of an office or employment in the circumstances described in this subparagraph, such benefits may be paid earlier than the designated retirement date or may be calculated by reference to a period greater than the individual's actual period of service in the office or employment, and includes benefits described as short service gratuities which are calculated on a basis approved by the Minister for Finance.”, | ||
and | ||
(b) by the insertion, in paragraph (b), of the following after subparagraph (ii): | ||
“(iii) Subparagraph (iv) of paragraph (a) shall apply and have effect in relation to any statutory scheme established or amended after the passing of the Finance Act, 1997.”. |