SC: Repeated Anticipatory Bail Pleas Abuse Process and Reduce Litigation to a Gamble  ||  Supreme Court: State Officers Cannot Back Litigants Through Affidavits Against the Law  ||  Supreme Court: Accused Deserves Parity With Discharged Co-Accused if Evidence is Not Stronger  ||  SC Allows Euthanasia of Rabid Stray Dogs if Necessary and Protects Officials Acting in Good Faith  ||  Kerala High Court: University Syndicate Cannot Sue Chancellor as Both Form Same Legal Body  ||  Kerala High Court: Unsigned FIS is Admissible if Informant Confirms its Contents in Court  ||  J&K&L High Court: Purchaser’s Structure on Migrant Land Alone Cannot Block Sale Deed Registration  ||  Supreme Court: Bail Remains the Rule and Jail the Exception, Even under the UAPA Law  ||  Supreme Court: Principle of Res Judicata Also Applies Between Stages of the Same Case  ||  Supreme Court: Govt Servant Has No Right to Old Rule Promotion Just Due to Earlier Vacancies    

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