Retired PSU bank employee claimed Rs 9.29 lakh leave encashment as tax-free, but taxman restricted exemption to Rs 3 lakh; ITAT applies Rs 25 lakh limit retrospectively, cancels Rs 6.29 lakh addition
On September 22, 2026, the ITAT Jaipur ruled in the retired bank employee’s favour. (Image for representative purpose only) Leave encashment is tax-free up to a limit for non-government employees. While the limit was earlier Rs 3 lakh, it was revised to Rs 25 lakh in 2023. There is no such upper limit for government…
