Retirement leave encashment exemption: enhanced notified ceiling applies to eligible non-government employees' pending claims under statutory conditions.

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....Section 10(10AA)(ii) exempts retirement leave encashment received by non-government employees only within the earned-leave, average-salary, notified-limit, aggregation and prior-exemption restrictions. Notification No. 31/2023 raises the notified ceiling to Rs. 25,00,000, is deemed effective from 1 April 2023, and certifies that retrospective effect causes no adverse impact. Tribunal decisions apply the enhanced ceiling to eligible pending claims concerning earlier retirement receipts as a beneficial rationalisation of the existing exemption. Employment with a public-sector undertaking or bank does not confer Central or State Government employee status; relief remains under Section 10(10AA)(ii). The available exemption remains capped by the actual eligible receipt and statutory computation conditions.....