Browsing: exemption

[ad_1] In a significant move aimed at providing relief to non-government employees, the Central Board of Direct Taxes (CBDT) has recently notified an increase in the tax exemption limit for leave encashment from Rs 3 lakh to Rs 25 lakh. The historical increase in the exemption threshold comes after a period of 21 years and is in accordance with the Budget Speech of the Hon’ble Finance Minister. This decision comes as a welcome relief for employees, allowing them to enjoy increased tax benefits and greater financial flexibility. Let us delve into the details of the notification and the possibility of…

[ad_1] Leave Encashment Exemption under Old and New Tax Regimes: The Finance Ministry has notified a new rule for non-government employees that makes leave encashment up to Rs 25 lakh exempt from taxation. The exemption limit has been raised from Rs 3 lakh to Rs 25 lakh. Interestingly, the exemption will apply to taxpayers in both Old and New Tax Regimes. While various deductions and exemptions are already available under the Old Tax Regime, the new leave encashment limit will provide some relief to private sector employees opting for the New Tax Regime, which does not provide many options for…

[ad_1] TCS on Foreign Education from July 1: There has been no change in the TCS rate for remittances for the purpose of foreign education/study abroad. According to a clarification issued by the Finance Ministry on May 18, the old TCS rate will continue to apply to remittances for study abroad from July 1. Following are the details of the TCS rate and exemption limit. TCS rates on remittances for education from July 1: 1. If the amount being remitted out is a loan obtained from any financial institution as defined in Section 80E of the Income Tax Act: The…