Section 10(10AA) | Enhanced ₹25 Lakh Leave Encashment Exemption Applies Retrospectively to Pre-Notification Retirees : ITAT Jaipur
ITAT Jaipur ruled the 2023 notification raising the Section 10(10AA) leave encashment limit to ₹25 lakh applies retrospectively to non-government employees retiring before its issuance, treating it as a remedial statutory discharge. The assessee retiring in AY 2020-21 secured full exemption on ₹13.81 lakh encashment. The decision benefits retirees whose payouts exceeded the old ₹3 lakh cap but fall within the revised limit.