New Delhi, July 21 -- A retired PSU employee got relief from the Income Tax Appellate Tribunal (ITAT), Pune, after tax authorities denied his leave encashment exemption solely because it was not reflected in his Form 16.

Explaining the ruling on X, TaxBuddy founder Sujit Bangar mentioned that the ITAT held the exemption under Section 10(10AA) and it does not depend on whether the employer reflects it in Form 16.

The case involved Bharat Harisingh Shengar, an employee of Maharashtra State Power Generation Company Ltd, who retired on 31 January 2020. Upon retirement, he received Rs.8.49 lakh as leave encashment.

According to Bangar, the employee claimed exemption for the leave encashment under Section 10(10AA) while filing his income tax...