The Central Board of Direct Taxes (CBDT) has extended the limit of Leave Encashment for the Non Government employees from Rs. 3,00,000/- to Rs. 25,00,000/- retrospectively with effect from 01st April 2023.
The Official 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.
To download the Notification and Press release, click here
