Central Government, having regard to the maximum amount receivable by its employees as cash equivalent of leave salary u/s 10(10AA)(ii) - S. O. 1015(E) - Income Tax Act, 1961
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Cash equivalent of leave salary: government fixes an upper limit for retiring employees under the income tax exemption provision. The Central Government, exercising power under the income-tax exemption sub-clause for leave encashment, prescribes a monetary ceiling as the limit on the cash equivalent of earned leave salary that may be treated as exempt for employees who retire after the operative date, whether by superannuation or otherwise; this notification fixes the cap applicable for exemption calculation at retirement.
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Provisions expressly mentioned in the judgment/order text.
Cash equivalent of leave salary: government fixes an upper limit for retiring employees under the income tax exemption provision.
The Central Government, exercising power under the income-tax exemption sub-clause for leave encashment, prescribes a monetary ceiling as the limit on the cash equivalent of earned leave salary that may be treated as exempt for employees who retire after the operative date, whether by superannuation or otherwise; this notification fixes the cap applicable for exemption calculation at retirement.
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