Corporate Law : This article explains the revised ₹25 lakh exemption limit under Section 10(10AA). The key takeaway is that while the benefit is...
Income Tax : Taxpayers who applied the old ₹3 lakh limit can still correct the mistake by revising their return. Revision before the deadline...
Income Tax : Section 119(2)(b) applications enable retirees to claim leave encashment exemption up to ₹25 lakh, condoning delays in filing re...
Income Tax : Analyses how multiple ITAT rulings extend the enhanced ₹25-lakh exemption to earlier years, treating CBDT’s notification as a ...
Income Tax : Learn about the tax treatment of key retirement benefits in India, including gratuity, pension, leave encashment, provident fund, ...
Income Tax : The Tribunal addressed denial of leave encashment exemption restricted to ₹3 lakh. It held that the revised CBDT limit of ₹25 ...
Income Tax : The Kerala High Court held that employees originally from the DoT and later absorbed into the PSU must be treated as retiring from...
Income Tax : The Tribunal held that CPC wrongly applied the outdated ₹3 lakh ceiling despite Notification No. 31/2023 enhancing the limit to ...
Income Tax : ITAT Jaipur allows full leave encashment of ₹12.13 lakh under Section 10(10AA), citing CBDT Notification No. 31/2023 and judicia...
Income Tax : Tribunal holds that leave encashment is fully exempt as the updated CBDT limit of ₹25 lakh applies. The rectification restrictin...
Chander Shekher Saini Vs ITO (ITAT Chandigarh) Facts: The assessee, Shri Chander Shekher Saini, is a retired employee who served initially with the Punjab State Electricity Board (PSEB) and, pursuant to restructuring, with Punjab State Power Corporation Limited (PSPCL), a company wholly owned by the Government of Punjab. It is not in dispute that the […]
Learn about the tax treatment of key retirement benefits in India, including gratuity, pension, leave encashment, provident fund, NPS, voluntary retirement, and retrenchment compensation under the Income-tax Act.
The ITAT Mumbai deleted the penalty imposed on Bharatkumar Jaishinh Soni, ruling that his claim for full leave encashment exemption was a bona fide legal interpretation, not a deliberate misreporting of income. The Tribunal held that an arguable claim, where all facts are disclosed, does not warrant the severe 200% penalty under Section 270A(9).
Despite a significant delay, the ITAT Pune condoned the delay in filing the appeal, citing a justice-oriented approach and the assessee’s later knowledge of the ₹25 Lakh leave encashment exemption notification. The case was sent back to the CIT(A) for fresh adjudication to apply the enhanced limit and related case law, highlighting the precedence of justice in appeal delays.
Tribunal held that the enhanced leave encashment limit of ₹25 lakh, notified by CBDT on 24 May 2023, applies retrospectively to non-government employees. The assessment order was set aside, granting full exemption benefit to the retired SBI officer.
ITAT Pune ruled that employee leave encashment from government and non-government departments must be examined separately for tax exemption under Section 10(10AA).
Understand the taxability of leave encashment, gratuity, and voluntary retirement benefits, with exemptions and limits under the Income Tax Act, 1961.
Understand leave encashment rules under Section 10(10AA). Does resignation qualify for exemption? Learn the tax implications and key case law precedents.
Kerala High Court decision on R. Jayakumar vs Union of India regarding retrospective tax exemption on earned leave salary.
Explore the meaning of leave encashment, types of leaves, tax calculations, and exemption rules. Learn how to maximize benefits at retirement. Practical example included.
