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10. 2026 (4) TMI 918 - ITAT AHMEDABAD
Madan Lal Grover v. ITO
A.Y.: 2020-21
DATE: 10.4.2026
Section: 10(10AA)
The revised notification enhancing the ceiling of exemption under section 10(10AA)(ii) to Rs. 25 lakhs operates only from 01.04.2023, and the benefit of the enhanced limit does not apply to employees who had retired earlier.
FACTS
The Assessee retired from the services of RBI (Samadhan) Unit handling HRO operations for RBI Region in F.Y. 2019-20 (on 31.05.2019) and, upon retirement, received Rs. 15,90,734/- as "Leave Encashment" benefit in terms of section 10(10AA) of the Act.
The assessee filed his return of income on 07.12.2020 (Later Revised on 08.01.2021), claiming the entire amount of Leave Encashment of ₹15,90,734/- u/s 10(10AA)(ii) of the Act. In an intimation dated 8.12.2021, generated upon processing the return of income u/s 143(1)(a) of Act, the amount of leave encashment was restricted to ₹3,00,000, considering that the assessee did not fall within the category of Central/State Govt. Employees u/s 10(10AA)(ii) of A
