Quick Summary
The tax exemption on leave encashment of non-government salaried employees (in respect of the period of earned leave at his credit at the time of his retirement, whether on superannuation or otherwise) was earlier upto a limit of Rs.3 lakh only under section 10(10AA)(ii) of the Income-tax Act,1961(the Act). In pursuance to the proposal in the Budget Speech, 2023, by the Honble FM, the Central Government has notified the increased limit for tax exemption on leave encashment on retirement or ot
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
2 Years PLAN
3499
(Excl. of GST ₹629)
BEST VALUE
3 Years PLAN
4999
(Excl. of GST ₹899)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 07941056694
FAQ :
The new tax exemption limit for leave encashment for non-government salaried employees has been raised to £25 lakh.
This increased tax exemption benefits non-government salaried employees in respect of leave encashment upon retirement, whether through superannuation or otherwise.
This new limit came into effect from 1st April 2023.
The previous tax exemption limit for leave encashment for non-government salaried employees was £3 lakh.
If an employee receives leave encashment payments from more than one employer in the same previous year, the aggregate amount exempt from income tax shall not exceed the limit of £25 lakh.
The notification is deemed to have come into force from 1st April 2023, and it is certified that no person is being adversely affected by giving retrospective effect.
CAclubindia
