Lakshmisha. B. S (assisstant) (92 Points)
12 April 2013Sir,
A bank employee reires on 31-03-2013 he is eligible to receive Leave Encashment benefit in the month of April 2013 as per rules wether this Rs. 396000 is to included in the salary of F. Y 2012-13 or 2013-14 in which year he received the payment.
Thanks with regards
Lakshmisha
Khushbu Jaiswal
(CA Finalist)
(528 Points)
Replied 12 April 2013
In my opinion it will be taxable in the year in which it receives i.e. F.Y.2013-14
other advice are welcome
CA Achyut Shendye
(CA)
(38 Points)
Replied 12 April 2013
Income is taxable under the head "Salaries" on Accrual or receipt basis whichever is earlier. In my opinion in this case Leave Encashment benefit accrues to employee after his retirement in F.Y.13-14 and also he has received the same in same year. So it will taxable in F.Y.13-14
Ravi Dasija
(CA)
(215 Points)
Replied 12 April 2013
Completely agreed with Mr. Shendye and Khushbu it will be taxable in the FY 13-14
Prasad Prabhakarrao Neware
(Accounts Officer)
(34 Points)
Replied 12 April 2013
It is taxable under the head of Income from salary in the A.Y. 2014-2015.
CAclubindia
