Relief for retiring employees sought

Consumer organisation Coimbatore Consumer Cause has urged Union Finance Minister Nirmala Sitharaman to extend the Income Tax exemption for leave encashment at the time of retirement to all employees in public sector units, banks, insurance companies, and private sector firms.

Secretary of Coimbatore Consumer Cause K. Kathirmathiyon said, in a press release, that as per the existing rules, leave encashment for leave accumulated at the time of retirement was fully exempted from Income Tax. However, this was only for State and Central Government employees. In respect of employees in non-government organisations, the tax exemption was limited to ₹3 lakh for leave encashment at the time of retirement.

“It is a discrimination since income is an income whether (for) government employees or others,” he said. The government had the intention to give some relief to retiring employees. But it should be equal and there should not be any discrimination. Even if the government was not prepared to treat non-government employees and government employees on a par for tax, at least the exemption limit should be increased. “We request the government to look into the issue and provide reasonable relief to the retiring employees employed in non-government organisations,” he said.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Apr 3, 2020 1:51:37 AM |

Next Story