New Delhi, Aug. 27 -- A Rs.65.21 lakh payment received by a former Pfizer Healthcare India employee under a voluntary retirement scheme (VRS) is not taxable, the Pune Bench of the Income Tax Appellate Tribunal (ITAT) has ruled.

In its order dated June 8, 2026, in Prakash Sukhdeo Sonawane vs Income Tax Officer, Ward-1(1), Aurangabad, ITA No. 2180/PUN/2025 for assessment year (AY) 2019-20, the tribunal held that the payment received under Pfizer's voluntary retirement scheme was a capital receipt and not chargeable to tax.

The tribunal also held that Section 56(2)(xi) of the Income-tax Act, 1961, did not apply because, under the scheme, the employee had voluntarily retired/resigned and his employment had not been terminated by the company...