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Leave Encashment: Before the presentation of the Union Budget 2023, people from different regions were sitting with various expectations from it. After it was introduced on February 1 last day, people are now seeing advantages and disadvantages in it according to their own. This time, people working in both government and private sector have been given tax exemption by the Modi government. Leave Encashment Tax has been increased this time by almost 8 times. With this, people are going to get tax relief on the huge amount they get at the time of retirement. Apart from this, people earning up to Rs 7 lakh annually will not have to pay tax.
What is Leave Encashment Tax?
People working in both private and government sectors are given a hefty amount at the time of retirement. People who save their holidays while working, get money in return at the time of retirement. In simple words, this is called leave encashment. According to Budget 2023, exemption has been given on the money received as leave encashment tax. It has been increased by about 8 times as compared to the last time. There is no need to pay a single rupee tax on the amount up to Rs 25 lakh.
This is how the middle class will get benefit from leave encashment tax
People doing private jobs can now take more amount at the time of retirement by saving leave. Before Budget 2023, exemption was given only up to Rs 3 lakh. For example, according to leave encashment tax, people who get Rs 20 lakh at the time of retirement get a rebate of up to Rs 3 lakh. Tax will have to be paid on the remaining Rs 17 lakh as per the slab. Apart from this, even the middle class people will not need to pay tax till 7.
Budget 2023 is special for all classes
Budget 2023 has been presented keeping all sections in mind. According to this, the cost of bike, smartphone, cloth, LED TV, and electric vehicle will be less. Apart from this, more money will have to be spent for silver, gold, foreign electric fireplace, umbrella, cigarette and liquor. This will give a boost to manufactured goods in India. An initiative is being taken to gradually reduce the dependence on foreign goods. With the promotion of electric vehicles, the problems of pollution in the country will be reduced.
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