Tax exemption limit on leave encashment raised to ₹25 lakh

The government has increased the limit on tax exemption on leave encashment on the retirement of non-government salaried employees from ₹3 lakh to ₹25 lakh. It was last fixed in 2002, Finance Minister Nirmala Sitharaman said on Wednesday. She announced an income tax rebate for citizens earning up to ₹7 lakh under the new tax regime.