Allahabad HC judge challenges denial of exemption under new tax regime

Justice Sandeep Jain of the Allahabad High Court has challenged the denial of exemptions under Section 22D of the High Court Judges (Salaries and Conditions of Service) Act, 1954, after opting for the new tax regime.

Section 22D exempts from income tax the value of a high court judge’s official residence, conveyance facilities, sumptuary allowance, and leave travel concession.

The income tax portal did not permit Justice Jain to claim an exemption of ₹9.85 lakh towards statutory judicial allowances when filing ITR-2 for 2025-26 under the new tax regime.

The CBDT Office Memorandum dated September 12, 2025, states that exemptions are not available under the new tax regime because it already provides liberal tax slabs and lower rates, which would amount to double benefit.

The petition argues that statutory exemptions under the Act override the Income Tax Act and that executive instructions cannot curtail benefits conferred by Parliament.