Salary & Perquisites Hacks
easy
low risk
At retirement
1 min read
Updated 2025-10-30
Leave Encashment Windfall
₹25 lakh tax-free leave encashment at retirement
Potential Savings
₹6.5 lakhs tax saved
Time Required
At retirement
Complexity
easy
Legal Status
fully legal
Applicable to:
Salaried
What is This Hack?
Non-government employees get ₹25 lakh (increased from ₹3 lakh) tax-free leave encashment at retirement from FY 2024-25
Key Benefits
- Potential savings: ₹6.5 lakhs tax saved
- Implementation time: At retirement
- Legal status: fully legal
- Risk level: low
Related Topics
leave encashment
retirement
exemption
budget 2023
Related Calculators
Salary & Perquisites Calculator
Comprehensive salary breakdown with perquisites and exempt allowances (conveyance, education)
Gratuity Calculator
Calculate gratuity payable after 5 years service with tax exemption limits (₹20L private, ₹25L govt)
Income Tax Calculator
Compare old vs new tax regime and calculate your income tax liability