Tax exemption limit on leave encashment increased to Rs 25 lakh for non-government salaried employees

………………………….

Tax exemption limit on leave encashment increased to Rs 25 lakh for non-government salaried employees

Notification No. 31/2023/F. No. 200/3/2023-ITA-I

Notification date – 24^th May ,2023

Applicable date- 1^st April, 2023

The existing limit of tax exemption on leave encashment for non-government salaried employees stands revised from Rs. 3 Lakh to Rs. 25 lakh with effect from April 1, 2023.

Also where a non-government employee receives such payments from multiple employers in the same previous year, the aggregate amount exempt from income tax under section 10(10AA)(ii) of the Income Tax Act shall not exceed Rs. 25 lakh.

Notification link- https://incometaxindia.gov.in/communications/notification/notification-31-2023.pdf

Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article.

To stay updated Subscribe to our newsletter today

Explore other Legal updates on the 1-Comply and follow us on LinkedIn to stay updated