CBDT notifies Rs. 25,00,000 for leave encashment exemption under Section 10(10AA)

 

 

Notification No. 31/2023/F. No. 200/3/2023-ITA-I, dated 24.05.2023

CBDT, vide Notification No. 31/2023 dated 24.05.2023, notifies Rs. 25,00,000 as exemption limit under Section 10(10AA) with regard to leave encashment received by non-government employees on retirement; The notification is issued in exercise of the powers under Section 10(10AA)(ii) and comes into effect from 01.04.2023; Prior to this Notification, the exemption limit was Rs. 3,00,000 and the Finance Minister in her Budget Speech this year had made an announcement to increase the limit to Rs. 25,00,000.

CBDT Notification No. 31/2023/F. No. 200/3/2023-ITA-I, dated 24.05.2023

S.O. 2276(E). – 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.

 

The copy of the  order is as under:

 

notification-31-2023