Taxman capped LIC retiree's leave pay exemption at Rs 3L; ITAT allows Rs 9.04L
Steadysingle sourceOne outlet reported this, in 2 reports over 2 days - no second voice in this corpus.
Fri, 16 October 2026Wed, 21 October 2026
What it is about
Who published it, and when
original reportfirst to report
Times of India
16 Oct, 04:33over 5 days21 Oct, 05:33
How it spread - 2 original reports
Fri, 16 October 2026
1 report- Times of India04:33first to report
A woman retired from Life Insurance Corporation of India (LIC) on June 30, 2020 after more than 30 years of service. She received Rs 9.04 lakh as leave encashment, in addition to her other retirement benefits. While filing her income tax return (ITR), she claimed a tax exemption on the entire leave encashment amount.
Wed, 21 October 2026
1 report- Times of India05:33
Under income tax law, SBI staff are treated as non-government employees and, therefore, can claim leave encashment exemption subject to the applicable limit. A retired SBI employee from Jaipur, was unaware of this distinction. When he retired in 2020 he received Rs 9.29 lakh as leave encashment and did not pay tax on the amount.