NEW DELHI: The government has increased the holiday redemption tax exemption limit for non-government employees to Rs.25 lakh at the time of their retirement. Previously, the holiday pay tax exemption for non-government employees was 3 lakh rupees, which was set in 2002 when the top basic salary in the government was 30,000 rupees per month.
The move is expected to benefit a wide range of employees, from the private sector to public sector companies and companies like AIIMS.
The move was announced by the finance minister Nirmala Sitharaman included in the Union budget in February and will benefit all those who have left the budget April 1. 2023.
“The total amount exempt from income tax under Section 10(10AA)(ii) of the Act shall not exceed the limit of Rs 25 lakh where a non-government employee receives such payments from more than one employer in the same company.” “, says an official statement called.
The move is expected to benefit a wide range of employees, from the private sector to public sector companies and companies like AIIMS.
The move was announced by the finance minister Nirmala Sitharaman included in the Union budget in February and will benefit all those who have left the budget April 1. 2023.
“The total amount exempt from income tax under Section 10(10AA)(ii) of the Act shall not exceed the limit of Rs 25 lakh where a non-government employee receives such payments from more than one employer in the same company.” “, says an official statement called.
