https://www.taxtmi.com/caselaws?id=762075 Section 10(10AA) distinguishes leave encashment received by Central or State Government employees from that received by other employees, and the exemption for non-government employees remains subject to the statutory monetary cap. A local authority is treated separately from the Central and State Governments, so leave encashment paid by such an employer cannot be treated as fully exempt merely on that basis. The broader exemption scheme under sections 10(10C) and 10(10CC) also reflects this class-based distinction. Accordingly, leave encashment paid by a local authority to its employees attracts tax deduction at source, with exemption limited to the amount available under the provision for non-government employees. en-us Thu, 21 Nov 2024 00:00:00 +0530 Wed, 18 Dec 2024 13:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762075 Section 10(10AA) distinguishes leave encashment received by Central or State Government employees from that received by other employees, and the exemption for non-government employees remains subject to the statutory monetary cap. A local authority is treated separately from the Central and State Governments, so leave encashment paid by such an employer cannot be treated as fully exempt merely on that basis. The broader exemption scheme under sections 10(10C) and 10(10CC) also reflects this class-based distinction. Accordingly, leave encashment paid by a local authority to its employees attracts tax deduction at source, with exemption limited to the amount available under the provision for non-government employees. Case-Laws Income Tax Thu, 21 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762075