Retired before April 2023? ITAT allows LIC employee to claim tax exemption on ₹9.04 lakh leave encashment

A retired Life Insurance Corporation (LIC) employee has been granted relief by the Income Tax Appellate Tribunal (ITAT) Jaipur, allowing her to claim tax exemption on ₹9.04 lakh in leave encashment. The employee retired before April 2023 and the ITAT ruled that the enhanced ₹25 lakh limit introduced in 2023 can benefit employees who retired earlier, contrary to the tax department's restriction of exemption to ₹3 lakh.