Employees of Nationalized Bank & PSU are not Government Employees for availing exemptions under section 10 or (10AA) of Income tax Act 1961

Here is an order of the Delhi High court wherein it has been held that Employees of Nationalized Bank & PSU are not Government Employees for availing exemptions under section 10 or (10AA) of Income tax Act 1961

The case details and short overview is as under:

Kamal Kumar Kalia v. UOI (2020) 268 Taxman 398 /187 DTR 433/ 313 CTR 779(Delhi) (HC)

The case was pertaining to deduction Under Section 10(10AA) of the Income Tax Act which is related to the taxation and exemption of the Leave salary of the Government employee.

The petitioners in this case, who were the employees of the Public Sector Undertaking and Nationalised Banks, filed writ contending that they were discriminated against Central Government and State Government employees.

The Central Government and State Government employees are granted complete exemption in respect of the cash equivalent of the leave salary