Effect of leave encashment as per budget2023

Sir,any amadment in exemption limit under saction10(10AA)(ii) - budget 2023 effect from date
SBI PENSIONERS’ ASSOCIATION ( DELHI CIRCLE)

Cir. 50/ 2023-24. Dated 25/5/2023

Dear Members,

ENCASHMENT OF EARNED LEAVE AT THE TIME OF RETIREMENT ( SUPERANNUATION OR OTHERWISE)
Rs. 25,00,000/-AS THE LIMIT EXEMPT FROM INCOME TAX
EFFECTIVE FROM 1st APRIL 2023.
NO PERSON IS BEING ADVERSELY AFFECTED BY GIVING RETROSPECTIVE EFFECT TO THIS NOTIFICATION .
( EMPLOYERS OR ASSESSES ARE FREE TO PROVIDE OR CLAIM EXEMPTION FROM THE RETROSPECTIVE DATE I.E. FOR THE PREVIOUS FINANCIAL YEARS .

We are happy to inform our members the Income Tax Exemption limit on encashment of earned leave at the time of retirement ( Superannuation or otherwise ) has been increased from Rs. 3,00,000/- to Rs. 25,00,000/- wef 01/4/2023 as per the enclosed Gazette Notification dated 24/5/2023 of Govt. Of India . The members those retired before 1/4/2023 may also claim the exemption or file return for refund of excess tax paid in the previous FYs.
The Finance Ministry, Govt of India In the Gazette notification in the Explanatory *Memorandum has certified that no person is being adversely affected by giving retrospective effect to this notification.*

*In view of the above members may file refund for previous years for the excess tax deducted at source by the employers at the time of retirement.*
Please circulate this circular for the information of other members and also post in social media groups for in the information of other colleagues.
Wishing you all a very happy good morning and lovely Thursday.
With greetings.
Thanking you,

Yours sincerely,

RAVINDER GUPTA
GENERAL SECRETARY,
SBI PENSIONERS’ ASSOCIATION, ( DELHI CIRCLE)


TEXT
THE GAZETTE OF INDIA : EXTRAORDINARY
[PART II—SEC. 3(ii)]
MINISTRY OF FINANCE (Department of Revenue) (CENTRAL BOARD OF DIRECT TAXES) NOTIFICATION
New Delhi, the 24th May, 2023 (INCOME-TAX)
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.
[Notification No. 31/2023/F. No. 200/3/2023-ITA-I] SOURABH JAIN, Under Secy.
Explanatory Memorandum : It is hereby certified that no person is being adversely affected by giving retrospective effect to this notification.
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