21 April 2009
Leave encashment is normally made at the time of Retirement or Leaving of the service from present employer or incase of death. Indeed the credit of leave can be carried forward to next year if the employee wishes so. However while making encashment one must remember the Max limit of amount that can be exempt under the IT Act. The max amount that can be claimed as exempt gets reduced by the earlier exemption availed by the assesee. Please elaborate the question regarding the "leave encashment to a concern".
CAclubindia
