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₹3 Lakh Leave Encashment Exempt Despite Job Change in Same Year
Case Law Details
- Case Name
- Pudhureddiyur Raju Kalaimani Vs ITO (ITAT Chennai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2017-18
- Courts
- All ITAT, ITAT Chennai
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Pudhureddiyur Raju Kalaimani Vs ITO (ITAT Chennai)
Resignation Equals Retirement: Leave Encashment of ₹3 Lakh Exempt u/s 10(10AA), Chennai ITAT Rules
Chennai ITAT ‘B’ Bench allowed the assessee’s appeal for AY 2017-18 and held that leave encashment of ₹3,00,000 received on resignation is eligible for exemption u/s 10(10AA). Tribunal observed that the expression “retirement whether on superannuation or otherwise” used in section 10(10AA) is of wide amplitude and squarely covers cases of resignation, relying on binding precedents of Madras HC in CIT v. R.J. Shahney and Bombay HC ...
Author Info
I am 35 years old and I received leave encashment amount of Rs 1 lac on resignation from Employer “A” during the financial year 2025-26. I have joined another job at employer “B”
Will I have to pay income tax on Rs1 lac amount, or it will be exempted as I received on resignation as leave encashment amount