Respected sir
my client In f y 2022-23 exemption leave encashment was of 3lakh he was retired from sbi now for same exemtpion of Rs 25 lakh now through updated income tax return we can claim exemtpion from 3 lakh to 25 lakh and income tax refund
please confrim
The short answer is no, you cannot file an Updated Income Tax Return (ITR-U) to increase the leave encashment exemption and claim a refund for your client.
You cannot use an ITR-U to increase your client's leave encashment exemption from Rs. 3 lakh to Rs. 25 lakh. Section 139(8A) strictly prohibits using an Updated Return to decrease tax liability or claim a refund. Additionally, the standard CBDT notification limits the Rs. 25 lakh exemption to retirements occurring on or after April 1, 2023.
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