8 times increase in leave encashment exemption limit; details here

8 times increase in leave encashment exemption limit Budget 2023 {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(2)"},{"transform":"scale(1.5)"},{"transform":"scale(1)"}]}

It is the amount of corpus received for the leaves not taken by you, as an employee, which can also be said as paid leave. Leave Encashment {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(2)"},{"transform":"scale(1.5)"},{"transform":"scale(1)"}]}

Leave encashment received, or withdrawn during the time of employment is fully taxable in the hands of employees, whether you are a government employee or non-government. Taxation of leave encashment policy {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(2)"},{"transform":"scale(1.5)"},{"transform":"scale(1)"}]}

Leave encashment received at the time of retirement in the case of the government employee is fully exempt in the hands of the employee. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(2)"},{"transform":"scale(1.5)"},{"transform":"scale(1)"}]}

Leave encashment money received by the non-government employee at the retirement. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(2)"},{"transform":"scale(1.5)"},{"transform":"scale(1)"}]}

The maximum exemption limit of 25 lakhs is increased from 3 lakhs in the 2023 budget. Changed in the budget for 2023 {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(2)"},{"transform":"scale(1.5)"},{"transform":"scale(1)"}]}

Leave encashment policy is exempted only when you do not withdraw the corpus in the middle of the employment and utilise it for the purpose of retirement planning. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(2)"},{"transform":"scale(1.5)"},{"transform":"scale(1)"}]}

Click here to know more about encashment exemption limit Check here for more personal finance related stories. {"selector":".custom-animation","duration":"4s","easing":"ease-out","keyframes":[{"transform":"scale(2)"},{"transform":"scale(1.5)"},{"transform":"scale(1)"}]}