Question and Clarifications - Leave encashment and LTA rules and regulations

General Discussions
1

Dear Experts,

Kindly give us an overview of Leave encashment and LTA rules and regulations. Please clarify.

Regards,
Antony A

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4

The leave encashment for employees is exempt up to a certain limit. This limit was Rs.3 lakh earlier and with 2023 budget, it increased to Rs.25 lakh

Taxation rules are a bit complex and recommend to refer https://cleartax.in/s/leave-encashment-tax

For LTA, this 5 minutes video explainer is useful. https://www.youtube.com/watch?v=oLMqozUJNgE

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5

Thank you very much!

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