Answers On Topic: leave encashment
I retired from SBI on 30.11.21 Can I claim exemption now upto 2500000 by filing revised ITR
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I retired from Bank on Jan 31, 2021. As per then IT rules, tax was paid on leave encashment over and above 3 lakhs for the amount being 20 lakhs. I tried for full exemption but in online form it was not accepted stating that I am not a government employee. In 2023, the exemption limit was enhanced to 25 lakhs from 3 lakhs. I felt cheated. As I observe, a person retired in FY 2020-21 like me, claiming such exemption through ITAT, succeeded in getting exemption. I also want to avail this exemption. How it will be done.
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Leave encashment benefits received by the salaried class at retirement, whose limit has been hiked from ₹3 lakh to ₹25 lakh in the Budget, will be tax-free in their hands under the new income tax regime even if they switch to it in the year of retirement, Revenue Secretary Sanjay Malhotra told. IS THIS FACILITIES ARE AVAILABLE ON ACCURAL BASIS OR PAYMENT BASIS, SUPPOSE A PERSON HAS BEEN RETAIRED FROM PSU SERVICE ON 31.10.2022 BUT HIS FINAL SETTLEMENT IS NOT YET DONE TILL TO DAY i.e. GRATUITY , LEAVE ENCASHMENT IS NOT YET PAID, MY QUESTION IS CAN HE AVAIL…
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WHETHER LIMIT OF Rs. 3 LAC MAXIMUM IS APPLICABLE ON PRIVATE EMPLOYEES OR ALLOWABLE LIMIT CAN BE EQUAL TO GOVERNMENT EMPLOYEE. SINCE CBDT HAVE NOT NOTIFIED ANY LIMIT LATER THAN YEAR 2002, WHAT SHOULD BE PRESENT POSSITION.
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In the case of non-government employees, the exemption under section 10(10AA)(ii) is to be determined with reference to the leave to their credit at the time of retirement on superannuation, or otherwise, subject to a maximum of cash equivalent of leave salary of ten months' leave calculated on the basis of average salary drawn during the 10 months immediately preceding his retirement. The entitlement of earned leave cannot exceed 30 days for every year of actual service rendered. This exemption is to be further limited to the maximum amount specified by the Government of India. The maximum limit of exemption…
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Leave encashment on retirement