After retiring from the State Bank of India, Chhaju found himself facing a tax exemption cap of Rs 3 lakh on his leave encashment totaling Rs 9.53 lakh. Determined to secure his rightful benefits,. Gupta, a former employee of the State Bank of India, found himself facing an income tax notice concerning Rs 9.29 lakh in leave encashment. Unfamiliar with tax exemption limits at his.