New Delhi, July 21 -- The Pune bench of the Income Tax Appellate Tribunal (ITAT) has ruled that a Rs.65.21 lakh amount received by a former Pfizer Healthcare India employee under a voluntary retirement scheme (VRS) is a non-taxable capital receipt, even though the taxpayer had initially reported it incorrectly in his income tax return (ITR).

In its June 8, 2026 order in the case of Prakash Sukhdeo Sonawane vs Income Tax Officer, the tribunal held that the payment arose from a voluntary retirement scheme following the closure of Pfizer's Aurangabad manufacturing unit and was not received in connection with termination of employment.

The employee had received Rs.65.21 lakh during FY2018-19 under the Pfizer Healthcare India Private Limited...