New Delhi, Aug. 28 -- In a notable tax ruling, the Chennai bench of the Income Tax Appellate Tribunal (ITAT) has granted complete tax relief to a former Bharat Sanchar Nigam Limited (BSNL) employee who opted for the company's VRS-2019 Scheme. The woman employee had initially paid tax on her ex gratia compensation after claiming only the Rs.5 lakh deduction available under Section 10(10C) for Assessment Years 2020-21 and 2021-22.

After coming across favourable judicial precedents, she challenged the earlier tax treatment and sought full exemption. The tribunal ruled in her favour, following the reasoning adopted in a similar case by the ITAT Chandigarh involving a former employee and the Income Tax Officer.

The Chennai ITAT noted that BS...