J&K&L HC: Repeated Arrests U/S 107 Crpc After UAPA Bail Can be Fresh PSA Detention Grounds  ||  Del HC: Arrest Memo Listing Only Reasons Cannot Substitute Person-Specific Grounds of Arrest  ||  SC: Hostile Witness Testimony Can Support Acquittal as Well, Not Only Conviction  ||  SC: Appointing Candidates on Contract Against Advertised Regular Posts is Patently Illegal  ||  SC: Compensation For Industrial Land Cannot be Based on Residential Plot Sale Deeds  ||  SC: Public Service Vehicles Without Trackers, Panic Buttons Can't Get Fitness Certificates  ||  SC: Fixed Shares Paid to Association of Persons Members are Taxable as Income, Regardless of Profit  ||  Supreme Court: Wife Pursuing Her Career Cannot be Deemed Cruelty For Hurting Her Husband  ||  Supreme Court: Appeals Must Include Certified Copies of Orders, as E-Filing Alone is Insufficient  ||  Supreme Court: Children Have a Fundamental Right to Receive Education in Their Mother Tongue    

Increase in limit for tax exemption on leave encashment for non-government salaried employees notified- (Press Information Bureau) (25 May 2023)

MANU/PIBU/1755/2023

Direct Taxation

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 hon'ble FM, the Central Government has notified the increased limit for tax exemption on leave encashment on retirement or otherwise of non-government salaried employees to Rs. 25 lakh w.e.f. 01.04.2023.

The aggregate amount exempt from income-tax under section 10(10AA)(ii) of the Act shall not exceed the limit of Rs. 25 lakh where any such payments are received by a non-government employee from more than one employer in the same previous year.

Further, the amount exempt from income-tax under section 10(10AA)(ii) of the Act shall not exceed the limit of Rs. 25 lakh as reduced by the tax exemption already allowed in the total income of the employee under section 10(10AA)(ii) of any previous year or years.

Tags : INCREASED LIMIT   TAX   EXEMPTION  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved