Leave encashment taxable limit raised to 25.00 lakhs wef 1/4/2023
Contents News/Article Date: 20th May 2023
Relating to which Act: sub-clause (ii) of clause (10AA) of section 10 of the Income-tax Act, 1961 (43 of 1961),
Penalty under the Act: a) a sum equal to 2% of value of transaction in respect of which such failure has taken place, if such transaction had effect of, directly or indirectly, transferring right of management or control in relation to the Indian concern; b) a sum of Rs. 5,000 in any other case.
Applicable to which State: Whole of India
Type: Ministry of Finance, Department of revenue, Central Board of Direct Taxes, Notification No. 2276 E issued by Under Secretary
Pertains to: Taxable employees eligible for leave encashment in any organisation
Relevance of this news: Karma Global is in the business of Payroll, Outsourcing and Regulatory Compliances from its inception in 2004 and since then, has brought in a lot of efficiencies and technological upgradations with experts on its roll, to ease the hassles of Payroll Processing, Temp Staffing On-boarding Management, Regulatory and Payroll compliances by providing customized solutions to all its elite clients.
Now Karma Global is also fully into labour compliances for nearly 18 years and is helping both establishments and workers for fulfilment of obligations as per the laws of the land. It has over 200 staff, both direct and indirect on its rolls and operates on pan India basis. Recently, it has diversified into foreign shores as well, into countries like US, UK, UAE, Canada, Philippines, and South East Asia for handling payroll, outsourcing, recruitment and governance.
And in the current instance: The Central Government, having regard to the maximum amount receivable by its employees as cash equivalent of leave salary in respect of the period of earned leave at their credit at the time of their retirement, whether superannuation or otherwise, hereby specifies the amount of Rs. 25,00,000 (twenty-five lakhs rupees only) as the limit in relation to employees mentioned in that sub-clause who retire, whether on superannuation or otherwise.
Subject: Leave encashment taxable limit raised to 25.00 lakhs wef 1/4/2023
Attached is the notification