11 June 2011
In case you are a Non-Govt employee, in my view, it is going to be taxable income as maximum benefit allowable to you of Rs.3.50lac must have been exhausted by you at that time. .
12 June 2011
Syndicate Bank employees are not defined as Government employees. The amount as such received by you will be treated as taxable. However, provisions of claiming relief U/s 89 are available and for that you have to get services of a CA.