Income Tax Relief: Leave encashment limit extended for Non-Govt Employees; Know the new limit:

CBDT has extended Leave encashment limit for Non-Government Employees to Rs. 25,00,000 (twenty-five lakhs rupees only).

Leave encashment limit extended for Non-Govt Employees

CA Pratibha Goyal

May 25, 2023

Last update on May 25, 2023

Income Tax Relief: Leave encashment limit extended for Non-Govt Employees; Know the new limit The Central Board of Direct Taxes (CBDT) has extended the Leave encashment limit for Non-Government Employees to Rs. 25,00,000 (twenty-five lakhs rupees only). Earlier this limit was Rs. 300,000. The Notification reads as follows: In exercise of the powers conferred by sub-clause (ii) of clause (10AA) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government, having regard to the maximum amount receivable by its employees as cash equivalent of leave salary in respect of the period of earned leave at their credit at the time of their retirement, whether superannuation or otherwise, hereby specifies the amount of Rs. 25,00,000 (twenty-five lakhs rupees only) as the limit in relation to employees mentioned in that sub-clause who retire, whether on superannuation or otherwise. 2. This notification shall be deemed to have come into force with effect from the 1st day of April, 2023. For Official Notification Download PDF Given Below:

About Author

CA Pratibha Goyal

Co Founder

CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.