New Delhi, July 12 -- A retired Bharat Sanchar Nigam Ltd (BSNL) employee has secured complete tax relief on a Rs.39.96 lakh voluntary retirement payout after the Chennai bench of the Income Tax Appellate Tribunal (ITAT) held that the compensation received under the BSNL Voluntary Retirement Scheme (VRS)-2019 qualifies for exemption under Section 10(10B) of the Income-tax Act.

The ruling came in the case of Hemalatha Govindarajulu, who had initially paid tax on a substantial portion of the ex gratia compensation she received after opting for the BSNL VRS-2019 scheme. While filing her income tax returns for assessment years 2020-21 and 2021-22, she claimed only the Rs.5 lakh exemption available under Section 10(10C), treating the remaining...