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of <h1>Government fixes maximum tax-exempt leave encashment at Rs.3,00,000 under Section 10(10AA) for retirees from 1 April 1998</h1> A government notification under section 10(10AA) of the Income Tax Act specifies that for employees retiring on or after 1 April 1998, the maximum exempt amount of leave encashment (cash equivalent of earned leave at retirement) is fixed at Rs. 3,00,000. The limit applies to the category of employees covered by that sub-clause and is effective as set out in the notification dated 31 May 2002.
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