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Leave encashment tax: Rs 25 lakh exemption rules, four-limit formula and new Act Section 19

Leave Encashment Tax in India (2026): ₹25 Lakh Exemption, Rules & Section 19 (New Act)

20/10/2026 by Rohan Mehta

Leave encashment at retirement can be tax-free up to Rs 25 lakh for private employees and fully tax-free for government employees. Four-limit formula, Section 19 mapping, FAQs.

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Categories Income Tax Tags 25 lakh exemption, leave encashment, leave encashment tax, Retirement benefits, Salary income tax, section 10(10AA), Section 19 Leave a comment

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