New Delhi, Oct. 15 -- A retired Life Insurance Corporation of India (LIC) employee has won relief from the Income Tax Appellate Tribunal (ITAT), Jaipur, in Renu Moongia vs ITO (assessment year 2021-22), after the tax department restricted the exemption on her Rs.9.04 lakh leave encashment to Rs.3 lakh.

In its order pronounced on 28 September 2026, the tribunal directed the assessing officer to allow exemption on the entire amount, relying on earlier tribunal decisions that applied the enhanced Rs.25 lakh exemption limit introduced in 2023.

Moongia retired on 30 June 2020 after serving LIC for more than 30 years. She received Rs.9,04,669 as leave encashment along with other retirement benefits and claimed exemption on the entire amount u...