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.
Salaried employees and pensioners get Rs 75,000 off taxable salary in the new regime and Rs 50,000 in the old regime for FY 2026-27 — automatically, with no proof. Who can claim, zero-tax math, worked examples.
Gratuity up to ₹20 lakh is tax-free over your whole career. This guide covers the 15/26 formula, covered vs not-covered rules, the lifetime limit, and what changed under the Code on Social Security, 2020.