BSNL VRS Compensation Fully Exempt Due to Retrenchment Character of Scheme: ITAT Pune

Meghmala Sudhir Pathak Vs ITO (ITAT Pune) The Income Tax Appellate Tribunal (ITAT), Pune, decided a batch of appeals concerning assessment years 2020–21 and 2021–22 arising from intimation orders under Section 143(1)(a) of the Income-tax Act. The common issue across these appeals was whether compensation received by employees of Bharat Sanchar Nigam Limited (BSNL) under the Voluntary Retirement Scheme (VRS), 2019 constituted retrenchment compensation and a capital receipt exempt under Section 10(10B), or whether it was taxable subject to the limited exemption under Section 10(10C). The ass...