NEW DELHI: The government has increased the tax exemption limit on leave encashment for non-government salaried employees at the time of retirement to Rs 25 lakh. So far, tax exemption on leave encashment for non-government employees was Rs 3 lakh, which was fixed in 2002 when the highest basic pay in the government was Rs 30,000 per month.
The move is expected to benefit a host of employees, from the private sector to public sector companies as well as entities such as AIIMS.
The move was announced by the finance minister Nirmala Sitharaman in the Union Budget in February and will benefit everyone who retired from April 1, 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,” an official statement said.
The move is expected to benefit a host of employees, from the private sector to public sector companies as well as entities such as AIIMS.
The move was announced by the finance minister Nirmala Sitharaman in the Union Budget in February and will benefit everyone who retired from April 1, 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,” an official statement said.
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2023-05-26 01:51:58
