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Status of employee of rrb

N.N.RAJAN (PROFESSIONAL) (243 Points)

24 February 2017

Sir, Please let me know the status of employee of regional rural bank. Whether a govt. employee or private sector for income tax exemption purposes for gratuity and leave salary.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177741 Points)
Replied 24 February 2017

Only State and Central government employees are entitled for tax exemption for leave encashment on retirement/superannuation.

Employees of RBB bank employees come under PSU section, and hence Leave Encashment during service is fully taxable in their case, relief u/s 89(1) if applicable may be claimed for the same.