ITAT allows full tax claim on Rs 9.29 lakh leave encashment
In short
The ITAT allowed a retired SBI employee to claim full tax exemption on Rs 9.29 lakh of leave encashment. The order used the Rs 25 lakh exemption limit under Section 10(10AA), not the earlier Rs 3 lakh cap.
What the reporting says
The ITAT allowed the full claim on Rs 9.29 lakh leave encashment for a retired SBI employee, according to a Taxscan summary. The order applied the Rs 25 lakh leave encashment exemption limit under Section 10(10AA), overriding the earlier Rs 3 lakh ceiling. The decision supports the taxpayer’s retirement benefit claim under the updated limit.
Why it matters
The ITAT allowed a retired SBI employee’s full leave encashment claim of Rs 9.29 lakh under Section 10(10AA). The order applied the Rs 25 lakh exemption limit rather than the earlier Rs 3 lakh ceiling. This is relevant for retirement benefits and the tax treatment of leave encashment.