INCOME TAX

INSTRUCTION NO

144/CBDT, Dated: January 29, 1970

Section(s) Referred: 10(16)

Statute: Income - Tax Act, 1961

Allowance under the Scheme is not intended for the education of the retired scientists

I am directed to invite attention to the Board's instruction No.3 of 1969 on the above subject according to which the annual allowance granted to the retired research scientists under the C.S.I.R. Scheme was treated as exempt from tax in the hands of the recipients u/s.10(16) of the I.T. Act, 1961, as scholarships granted to meet the cost of education.

2. The matter has been reconsidered, and the Board are advised that as the allowance under the Scheme is not intended for the education of the retired scientists themselves, but for completion of a particular project in which they have been engaged, the case is not covered by section 10(16) of the I.T.Act, 1961.

3. The Board's Instruction No.3 of 1969 mentioned above is accordingly withdrawn with effect from 1st January, 1970.