#Retrenchment compensation

The ITAT Agra held that ex gratia payments received under BSNLs Voluntary Retirement Scheme 2019 qualify for full exemption under section 10 10B of the Income Tax Act even if the exemption is claimed for the first time in appeal. The ruling benefits BSNL employees who opted for VRS 2019 clarifying that the fresh claim doctrine allows retrospective exemption claims.

ITAT Surat bench rules BSNL VRS 2019 compensation as exempt under Section 10(10B) of the Income-tax Act, 1961, treating it as retrenchment compensation. The ruling allows appeals and directs refund of TDS deducted on such payments.

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.