New Delhi:
In line with the Budget announcement, the finance ministry on Thursday hiked the tax exemption restrict for go away encashment upon retirement for personal sector salaried workers to Rs 25 lakh.
So far, the tax exemption on go away encashment for non-government workers was Rs 3 lakh which was fastened in 2002, when the best primary pay within the authorities was Rs 30,000 monthly.
The Central Board of Direct Taxes (CBDT), in a press release, mentioned the mixture quantity exempt from earnings tax underneath part 10(10AA)(ii) shall not exceed the restrict of Rs 25 lakh, the place any such funds are acquired by a non-government worker from a couple of employer.
The elevated restrict for tax exemption on go away encashment on retirement or in any other case of non-government salaried workers to Rs 25 lakh with impact from April 1, 2023.
“In pursuance to the proposal within the Budget speech, 2023,… the central authorities has notified the elevated restrict for tax exemption on go away encashment on retirement or in any other case of non-government salaried workers to Rs 25 lakh w.e.f. 01.04.2023,” the CBDT mentioned.
In 2023-24 Budget, finance minister Nirmala Sitharaman had elevated the tax exemption on go away encashment on retirement of non-government salaried workers to Rs 25 lakh, from Rs 3 lakh.
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