Exemption of leave encashment bu BSNL BEFORE IT BECOME PSU

Summary of Key Points

• Eligibility: Employees absorbed from the DoT are considered to hold a "special class" status for pensionary and retirement benefits under Rule 37A.

• Exemption: The entire amount of leave encashment corresponding to their service (including the period under the government) is generally eligible for full exemption.

• Action for Retirees: If you or a colleague have faced tax deductions on this amount, you may be entitled to claim a refund by filing a rectification application (Form 154) with the Assessing Officer, referencing the favorable court judgments that classify these employees as government retirees for the purpose of Section 10(10AA).