The ITAT allowed the appellant's claim for exemption under ...

Retirement Leave Encashment Exemption Under Section 10(10AA) Allowed Within Revised Rs. 25 Lakh Limit

March 21, 2025

Case Laws     Income Tax     AT

The ITAT allowed the appellant's claim for exemption under section 10(10AA) for earned leave encashment received upon retirement. Relying on the Jaipur Bench decision in Govind Chhatwani, the Tribunal noted that CBDT had revised the exemption limit from Rs. 3,00,000 to Rs. 25,00,000 through Notification No. 31/2023 dated 24-05-2023. Since the appellant's leave encashment amount fell below this revised threshold, the Tribunal directed the Assessing Officer to allow the claimed deduction within the prescribed limit. The appeal was accordingly allowed in the appellant's favor.

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