CBDT issues new clarification on BSNL-MTNL VRS-2019 compensation: Will it affect retirees' income tax benefits

The Economic Times · Neelanjit Das · 2026-11-05 03:09 UTC

The CBDT issued a notification clarifying that ex-gratia compensation for BSNL and MTNL VRS-2019 is not retrenchment compensation. This compensation is governed by Section 10(10C) of the Income-tax Act, allowing tax exemptions under certain conditions. Employees must review their tax claims to ensure compliance with this clarification. Compensation exceeding five lakh rupees will remain taxable as salary income.

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