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The Economic Times

Neelanjit Das

Senior citizen mistakenly paid tax on tax-free VRS compensation; wins complete relief from ITAT Chennai on this ground

ITAT Chennai ITAT VRS Chennai BSNL the Income Tax Appellate Tribunal Tribunal Income Tax Tax Exemption FAA

Ms Hemalatha Govindarajulu from Raja Annamalai Puram, Chennai who worked in BSNL for quite some time had accepted BSNL's Voluntary Retirement Scheme (VRS)-2019. For this reason, she received ex-gratia compensation of about Rs 39.96 lakh (5+5.94+5+24.02).

However, while filing her income tax returns (ITRs), she claimed only the Rs 5 lakh tax exemption under Section 10(10C) and offered the balance amounts of Rs 5.94 lakh and Rs 24.02 lakh to tax for AY 2020-21 and AY 2021-22, respectively.

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