The Allahabad High Court is hearing a petition filed by one of its sitting judges, Justice Sandeep Jain, challenging the denial of income tax exemption on statutory judicial allowances after opting for the new tax regime. A division bench has sought the State government’s response and listed the matter for further hearing on July 28.
The petition is being heard by a bench of Justice Saumitra Dayal Singh and Justice Swarupama Chaturvedi. During the proceedings, the bench directed the State government to apprise the court of the petition before the next date of hearing.
Challenge To Tax Treatment Of Judicial Allowances
Justice Jain has questioned the non-availability of tax exemption on benefits provided under Section 22D of the High Court Judges (Salaries and Conditions of Service) Act, 1954, after choosing to be taxed under the new income tax regime.
Section 22D grants income tax exemption on the value of a High Court judge’s official residence, conveyance facilities, sumptuary allowance and leave travel concession.
According to the petition, while filing his Income Tax Return (ITR-2) for the financial year 2025-26, the income tax portal did not allow him to claim exemption of Rs 9.85 lakh towards these statutory judicial allowances. The portal allegedly indicated that such exemptions were available only to taxpayers who had opted for the old tax regime.
Representations To CBDT And Finance Minister
Following the issue, Justice Jain submitted representations to the Central Board of Direct Taxes (CBDT) as well as Union Finance Minister Nirmala Sitharaman.
The petition states that the response received referred to a CBDT Office Memorandum dated September 12, 2025.
According to the memorandum, taxpayers who opt for the new tax regime are not entitled to claim such exemptions because the regime already offers more liberal tax slabs, lower tax rates and higher rebates. It further states that allowing these exemptions in addition to those benefits would amount to granting a double benefit.
The matter will next be taken up by the Allahabad High Court on July 28.
