NOIP Circular No 12

NATIONAL ORGANISATION OF INSURANCE PENSIONERS

Regn No.PN 4769 (Regd under Indian T U Act, 1926)

(Affiliated to Bharateeya Mazdoor Sangh)

BMS Office, Vishwakarma Bhavan, 185, Shaniwar Peth, Pune 411030.

 President: T.C. Gunesh Kumar Working President: Vilas V. Purkar General Secretary: Ashok J. Joshi

 Mob No: 9880683639 Mob No: 9922166599 Mob No: 9561084182 & 9945104570

Date: 29-03-2023

Circular No 12/2023

To,

The Chairperson,

Central Board of Direct Taxes (CBDT)

North Block, NEW DELHI

Dear Sir,

Sub: Tax exemption for Leave Encashment

You are aware that in the Central Budget presented by H'ble FM on 01/02/2023, the limit of

leave encashment on retirement, stands enhanced to Rs 25 Lakhs. The said limit can be given

effect to for implementation only after the same is notified by the CBDT. We hope you are in

the process of issuing the same. We may bring to your kind notice that on the previous occasion

when the limit was raised to Rs.3 Lakhs in 2002, the Notification provided retrospective

applicability from 1998. The present enhancement to Rs.25 Lakhs has come about after a long

gap of time, during which period many employees who retired were compelled to avail the limit

of Rs.3 Lakhs only; while the Central and State Govt employees were allowed to avail the

benefit of tax-free leave encashment by virtue of applicable rules. In order to give similar

benefit to the employees of other sectors and to maintain equity, we request you to notify the

enhancement of limit to Rs 25 Lakhs with retrospective effect from 01-01-2006 and oblige.

We await the favourable orders from your end at an early date.

With thanks and regards,

Yours Sincerely,

 General Secretary