Taxman caps PSU bank retiree’s leave exemption at Rs 3 lakh; but ITAT grants relief of Rs 9.29 lakh

Under income tax law, SBI staff are treated as non-government employees and, therefore, can claim leave encashment exemption subject to the applicable limit.

A retired SBI employee from Jaipur, was unaware of this distinction.

When he retired in 2020 he received Rs 9.29 lakh as leave encashment and did not pay tax on the amount.

This detailed Markets briefing is published on the UCO Bank SC/ST and OBC Employee's Council website so members can read the complete update without leaving the council portal.

Key focus areas include regulatory direction, banking operations, credit conditions, customer service, compliance readiness, and market developments connected with "Taxman caps PSU bank retiree’s leave exemption at Rs 3 lakh; but ITAT grants relief of Rs 9.29 lakh".

For council members and office bearers, the practical takeaway is to track how this update may affect branch workflows, zone-level coordination, employee representation, and member support requirements.

The council news desk recommends reviewing related circulars, service rules, and grievance channels where the development has service or welfare implications for SC, ST, and OBC employees.

Source attribution: Times of India – Business.

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