The fun of private job people, now they will get more money in exchange for leave
The government has given a big gift to those working in the private sector. The government has increased the money given to the employees in lieu of leave. Now the employees will not have to pay any tax on the leave encashment received up to 25 lakhs. Earlier this limit was 3 lakhs, which has now been increased. Due to this, the employees working in the private sector have become happy.
This decision has been implemented as per the proposal of Budget 2023. Which has come into force from 1 April 2023. Let us tell you, every company gives three types of holidays to its employees. This includes medical, casual and paid or earned leave. Employees can encash the company’s paid leave at the time of leaving the job.
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What are paid leaves?
Paid leave and earned leave are the ones that the employees get in lieu of their leave. Employees can cash it. Such holidays can be encashed by employees on leaving the job or on retirement. However, every company has its own rule regarding cash leave. That is, how many holidays they will encash depends on the company itself.
Employees will get benefit like this
The limit for taking money in lieu of holidays has been increased from 3 lakh to 25 lakh. Due to this, the employees working in the private sector will now get more money instead of leave. According to the new rule, the employee can encash his leave. Employees do not have to pay tax on encashment of leave up to Rs 3 lakh. Which has now been increased to 25 lakhs. If someone takes money up to 25 lakhs in exchange for holidays, then he will not need to pay tax for this.