Hello,
Govt had notified increase in Leave Encashment Limit for Non Govt Employees to 25 Lakh wef 01.04.23. A person (private employeee) retired on 28.02.23( where in he felled under bracket of 30 % tax) and is now getting Leave Encashment as arrears in June 2023( now after retirement he falls under 20 % bracket of Income tax).
As Leave encashement is part of Salary as per Section 15 , which is based on due or paid basis , whichever is earlier, so TDS to be deducted from Leave encashment will be 30 % bracket or 20 % bracket?
Please help
CAclubindia
