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Sunday, 8 November 2026 IST

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What CBDT’s new VRS clarification means

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…

What CBDT’s new VRS clarification means
What CBDT’s new VRS clarification means — image via Economic Times — Credit: Economic Times

Attributed summary

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.

Read the original report — Economic Times

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