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ITAT Jaipur Grants Tax Relief to Retired LIC Employee After 1,277-Day Delay
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What Happened?
A retired LIC employee received Rs 9.04 lakh as leave encashment but faced a tax notice limiting her exemption to Rs 3 lakh. The ITAT Jaipur granted her relief despite a significant delay in her appeal.
Key points
- The retired employee received Rs 9.04 lakh in leave encashment after over 30 years at LIC.
- The Income Tax Department initially allowed only Rs 3 lakh as tax exemption.
- She appealed to the ITAT Jaipur after a delay of 1,277 days due to her tax consultant's negligence.
- The tribunal accepted her explanation and granted relief, citing the consultant's responsibility.
- The exemption limit for non-government employees was raised to Rs 25 lakh in Budget 2023.
Key insights
- The ruling may encourage other retirees to seek rightful tax exemptions.
- It underscores the need for taxpayers to ensure their consultants are diligent.
- The case could lead to increased awareness of the revised exemption limits.
Why it matters
This case highlights the importance of understanding tax exemptions for retirement benefits.
Tags
Entities
Life Insurance Corporation of India· OrganizationIncome Tax Appellate Tribunal· OrganizationJaipur· City
Source
Times of India
