Leave encashment exempton under Sec 10(10AA) for bank employees

[JAYANTL AASHER]

Can bank employees be treated on par with Government employees for the purposes of claiming full exemption under section10(10AA) in respect of encashment of leave salary?

AI Summary

Bank employees not entitled to full leave encashment tax exemption under Section 10(10AA) like government staff. A query was raised regarding whether bank employees can claim full exemption under Section 10(10AA) of the Income Tax Act for leave encashment, similar to government employees. The response clarified that both the Delhi High Court and the Supreme Court have ruled that Public Sector Undertaking (PSU) bank employees cannot be equated with government employees for this purpose. The relevant case cited was Kamal Kumar Kalia & Others vs. Union of India, decided by the Delhi High Court.