Union Budget 2023 has proposed to hike the tax exemption limit on leave encashment at the time of retirement for non-government, salaried employees from Rs 3 lakh to Rs 25 lakh.

Salary is taxable on a ‘due’ or ‘receipt’ basis, whichever is earlier. As you have retired in February 2024, the leave encashment became due to you in February 2024 itself. While section ...

Yes, the leave encashment is taxable as per the law. If an employee receives sleave encashment during his/her job, the amount forms part of 'income from salary'. However, one can claim some tax ...

So far, the 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.

ITR forms notified for AY 2023-24 presently allow the limit of Rs. 3 lakhs for leave encashment exemption. Representational image/Pixabay In a significant move aimed at providing relief to non ...

Leave Encashment Exemption under Old and New Tax Regimes: The Finance Ministry has notified a new rule for non-government employees that makes leave encashment up to Rs 25 lakh exempt from taxation.

Leave encashment is taxable as income from salary at the time of retirement or switching of jobs. However, employees can claim exemption for the same under Section 10 of the Income Tax Act.

The earlier 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 ...