The Coimbatore Consumer Cause has appealed to the Union Finance Minister to extend Income Tax exemption to all employees who get encashment of accumulated leave at the time of retirement.
In a memorandum to the Finance Minister, secretary of the organisation K. Kathirmathiyon said that according to the existing rules, encashment of accumulated leave at the time of retirement is fully exempted from Income Tax for Central and State government employees.
However, this does not apply to employees of private sector, banks, insurance companies, public sector undertaking, etc.
For these employees, the encashment of accumulated leave at the time of retirement is different and tax exemption is limited only for ₹ 3 lakh. Even the ₹ 3 lakh limit was fixed in 1998. For the last two decades or so, the limit was not revised for the private sector and PU employees. The government should revise the limit. There should be no discrimination between government and private sector employees for I-T exemption as all are salaried employees.
Mr. Kathirmathiyon appealed to the Finance Minister to treat the government and non-government employees on a par for the exemption or increase the limit to ₹ 12.50 lakh.
Source: Read Full Article