#Central Government employees

ITAT Bangalore holds that BSNL VRS employees absorbed from the Department of Telecommunications qualify as Central Government employees, entitling them to full tax exemption on leave encashment and ex gratia payments under Sections 10(10AA) and 10(10B) of the Income Tax Act. The ruling clarifies eligibility for tax benefits, impacting thousands of former DoT employees transitioned to BSNL.

Supreme Court holds that employees of Heavy Water Plant under DAE are excluded from Payment of Gratuity Act, 1972 as they are governed by CCS Pension Rules, reinforcing statutory exclusions.