Exemption of leave encashment of bsbl

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This query is : Resolved

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This discussion clarifies the tax exemption status of leave encashment for BSNL employees who were previously central government employees. While BSNL may have allowed full exemption in Form 16, the CPC (Central Processing Centre) might not. It's confirmed that employees can revise their Income Tax Return (ITR) to claim full exemption for leave credited during their central government service, even if their current employment is classified as PSU.

C.B JOSHI

C.B JOSHI (Querist)
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29 January 2021 EMPLOYEE OF BSNL WERE CENTAL GOVTTT EMPLOYEE ABSORBRD IN BSNL NOW LEAVE CREDITED DURING CENTRAL GOVTT SERVICE IS FULLY EXEMPTED FROM TAX? BSNL HAS ALLOWED FULL EXEMPTION OF THE SAME IN FORM 16 THE CLAIM FOR FULL EXEMPTION IS ELIGIBLE?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 January 2021 Claim for full exemption is not eligible.

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CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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29 January 2021 Yes you are eligible for full exemption

C.B JOSHI

C.B JOSHI (Querist)
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29 January 2021 CPC NOT ALLOWED FULL EXEMPTION OF LEAVE ENCASHMENT ON RETIREMENT OF BSNL AS THE NATURE OF EMPLOYEMENT SHOWN IN ITR IS PSU CAN I CHANGE EMPLOYEMENT AS CENTRAL GOVTT AS THE CLAIM FOR LEAVE IS CREDITED DURING SERVICE AS GOVTT EMLYOEE OF DEPP OF TELECOM CAN I REVISE NATURE OF EMPLOYEMENT TO CLAIM FULL EXEMPTION OF LEAVE ENCASHMENT

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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30 January 2021 Yes you can revise the return.

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