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?

[Manoranjan Behera]

Hi

It has been held by Delhi High court and Supreme Court too, that PSU Bank employees cannot be treated at par with Government employees.

Delhi high court: Kamal Kumar Kalia & Others Vs Union of India = 2019 (11) TMI 1143 - DELHI HIGH COURT.

AI Summary

Leave encashment exemption: PSU bank employees not treated on par with government employees for full relief under Sec 10(10AA). Leave encashment exemption under Section 10(10AA) addresses tax-free treatment of leave encashment; public sector bank employees are not treated on par with government employees for entitlement to full exemption under this provision.