Only State and Central government employees are entitled for tax exemption for leave encashment on retirement/superannuation.
The definition of “Government Employee” is not specifically given in I T Act-1961. But the Act has incorporated the PSU employees, Government undertaking employee, Local Authorities employees etc in various other Sections / clauses of the Income Tax Act-1961 wherein benefit is meant to be conferred to them. The same is not there in Section 10(10AA).
So PSU bank employee would need to cross check before working out tax.
This is my opinion unless some rule has changed in this context recently.
11th April 2015 From India, Pune
As already stated by you, the said amount is surely taxable after some partial exemption as provided under the Act
The main concern here is regarding the assessment year in which this income is to be taxed for the purpose of TDS deduction.
Kindly suggest in light of the rule that salary income is taxable on the basis of due or received whichever is earlier.
13th April 2015 From India, Delhi
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13th April 2015 From India, Bangalore
The concerned person is not a government servant-so no tax exemption beyond a limit.
The tax will fall due in the year in which he retired that is F/Y 15-16 and no relief under Sec 89(1) is admissible in this specific case.
However I advice poster to cross check all this info with his tax consultant.
13th April 2015 From India, Pune
3rd January 2019 From India, Rajahmundry