Sir

Sub;   Request for directions - Retrospective Effect for Leave Encashment Exemption - Amend Notification No. 31/2023

 To

Hon  Prime Minister of India,

Hon Finance Minister of India, and

 Respected CBDT Chairman

Sir / Madam,

* Hon Government Representatives,*

On behalf of retirees wef 01.01.2016, May I  request your good offices for kind directions on retrospective effect from 01.01.2016 for Notification No. 31/2023 Dt. 24.05.2023 which brought into force from 01.04.2023 in on enhanced leave encashment notification specified amount under Section 10(10AA) of Income Tax Act, 1961.

Previous notifications 26.3.1996, 27.11.1998 and 31.05.2002  had retrospective effect, benefiting assesses to on exemption of leave encashment amount for tax purposes.

The earlier notification of  31.5.2002 had retrospective effect wef 01.04.1998 enhanced to ₹ 3.00 lakhs 

 This present CBDT notification 31/2023  change will benefit many employees in PSBs, PSUs, and private sectors who've been awaiting this amendment for the last 21 years eventhough salary revisions took place and CBDT appears has not ensured revision of the same as warranted as per laid down guidelines in the Relevant Act.

The sudden jump from ₹3 lakhs to ₹25 lakhs after 21 years, effective from 01.04.2023, is unfair to those who retired before this date and taxing them heavily . Let's align this with past practices of Retrospective effect as done earlier as warranted and present ITAT decisions after issue of said notification too a quasi judiciary felt the need for its retrospective consideration as prayed by petetioners as request is found natural justice too.

Additionally, the specified amount is linked with the maximum amount  receivable by its employees as cash equivalent (leave salary  highest paid employee of Central Government   Cabinet Secretary) which was ₹2.50 lakhs as on 1.1.2016 (7th pay commission commencement day) as per available information and their Salary x 10 months arrives at the present leave encashment specified amount of ₹25.00 lakhs, which should be brought into force from 01.01.2016. as  salary was drawn from 01.01.2016 but not from 01.04.2023 ( salary would have been more than ₹2.50 lakhs )

We urge upon you all to consider this logical calculation for retrospective effect and give directions beneficial to assessees as prayed.

With regards 

B Venkata Papaiah 

Pensioner