Latest News

PSU executives seek PM’s intervention in revising tax exemption limit of leave encashment

NCOA, a body of PSU executives, has urged PM Modi to enhance the limit of tax exemption of leave encashment of retirement from Rs 3 lakh to Rs 25 lakh

PSU Watch Bureau

New Delhi: National Confederation of Officers' Association (NCOA), the apex body of executives of PSUs, has urged Prime Minister Narendra Modi to enhance the limit of tax exemption of leave encashment of retirement from the existing Rs 3 lakh to Rs 25 lakh. The leave encashment for Central and state government employees are non-taxable without any limit.

However, the same is taxable beyond Rs 3 lakh for non-government employees, including Public Sector Undertakings (PSUs) and banks under Section 10(10AA){ii) of Income Tax Act, 1961.

The limit of Rs 3 lakh was last revised in 2002, when the basic pay of the senior-most bureaucrat, ie, the Cabinet Secretary, was capped at Rs 30,000 per month. "This shows that it was arrived at 10 times of monthly basic pay of the Cabinet Secretary. Taking the same logic, NCOA has requested to revise the limit to Rs 25 lakh, as the basic pay of the Cabinet Secretary has been capped at Rs 2.5 lakh per month," said the NCOA in a statement on Friday. Accordingly, the NCOA has sought the intervention of the PM for issuance of a fresh Gazette Notification under clause (ii) of Section 10(10AA) of the Act, for enhancing the limit to Rs 25 lakh, to render justice to all non-government employees, it said.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

Sensex, Nifty soar after BJP-led Mahayuti's 'Maha' win in Maharashtra

Power Minister flags off NTPC’s Green Hydrogen busses at Leh

IIFCL in talks with ADB, Korean Exim Bank to raise $600 million

Govt notifies telecom cyber security rules; sets timelines for telcos to report security incidents

Govt invites job applications for PNGRB's Member post