The ITAT ruled that an ONGC retiree is eligible for an enhanced leave encashment exemption of ₹25 lakh, despite retiring before the 2023 notification.
ITAT Rules on Leave Encashment for ONGC Retiree
The Income Tax Appellate Tribunal (ITAT) has ruled that an ONGC retiree is entitled to the enhanced leave encashment exemption of ₹25 lakh, regardless of retiring prior to the 2023 notification that established this threshold.
This decision underscores the ITAT's position on extending benefits retroactively in specific circumstances, emphasizing that the rights of employees should be preserved even after legislative changes.
Legal practitioners representing clients in employment and tax matters should take heed of this ruling, as it could pave the way for similar claims by other employees who may feel impacted by retrospective changes to leave encashment policies.