The CBDT vide Notification No. 31/2023 dated May 24, 2023 has increased the limit for leave encashment exemption under section 10(10AA) of the Income Tax Act, 1961 (“the IT Act”) from Rs. 3 lakh to Rs. 25 lakh. While presenting Union Budget 2023, the Hon’ble Finance Minister proposed increasing the limit of Rs. 3 lakh fixed in 2002.
The Notification can be accessed at: https://egazette.nic.in/WriteReadData/2023/246047.pdf