Leave encashment exemption limit at the time of retirement lic employee a.ym 24-25
Is maximum limit 3lkh or 25lkh
Menu
Leave encashment exemption limit for lic employee
Replies (1)
-
The exemption limit for leave encashment under Section 10(10AA) of the Income Tax Act is now ₹25,00,000 at retirement for non-government employees.
-
Amounts exceeding this cap are taxable as salary income in the year of retirement.
-
The ₹3 lakh limit was applicable prior to April 2023 and only applies to employees who retired before April 1, 2023. (AY 2023-24)
- The ₹25 lakh exemption limit is applicable, for LIC employees retiring in AY 2024–25.
- This increase was announced in Budget 2023 and formally notified by the Central Board of Direct Taxes through Notification No. 31/2023.
Recent Topic
- Startup exit in Sept 2025: Can I still save LTCG t
- Need advice
- GST registration
- Tax Refund timeline
- Is Form 10E applicable for Notice Pay received in
- INCOME RECEIVED FROM COMPANY FOR ELECTRIC POLLS
- ITR Processing By CPC Now Super Fast - Much apprec
- Abroad Jobs
- Professional Income in 44AD
- Presumptive taxation
Related Topics
CAclubindia
