Leave encashment exemption limit

The tax exemption limit for leave encashment for non-government employees has been increased to ₹25,00,000 under Section 10(10AA). Income Tax India
✔ The notification took effect from 1 April 2023. Income Tax India
✔ There are ITAT rulings allowing use of the ₹25 lakh limit retrospectively to earlier retirements in similar factual situations. The Economic Times
✔ If you retired in 2022, you may be able to claim the higher exemption for that year, but you might need to approach the AO/AIT appeal or rectification process.