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Leave encashment

(Guest)

I have one doubt in leave encashment.

Duration of service:16 years.

Suppose At the time of retirement R had unaviled leave of 300 days and he received 50000. He has entitled to 40 days leave for each year of completed service.

So while calculating cash for unavailed leave , we will do like this.

years*30days-leave taken. leave taken=(years*entitled to leave)-unavailed leave.

(16*30)-[(16*40)-300]=140 days,i believe this.

and then we will do avg. salary*credit leave/30.

BUT MY QUESTION IS THAT , THAT SUPPOSE IN THE ABOVE EXAMPLE IF HE HAD UNAVAILED LEAVE OF 50 DAYS OUT OF TOTAL 16*40=640 DAYS , THEN WHAT WILL BE THE DAYS FOR CREDIT LEAVE?

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A.Balaji (AUDIT) (27 Points)
Replied 29 June 2011

Originally posted by : Pujit
	I have one doubt in leave encashment. Duration of service:16 years. Suppose At the time of retirement R had unaviled leave of 300 days and he received Rs.50000. He has entitled to 40 days leave for each year of completed service. So while calculating cash for unavailed leave , we will do like this. (1630)-[(1640)-300]=140 days,i believe this. and then we will do avg. salarycredit leave/30. BUT MY QUESTION IS THAT , THAT SUPPOSE IN THE ABOVE EXAMPLE IF HE HAD UNAVAILED LEAVE OF 50 DAYS OUT OF TOTAL 1640=640 DAYS , THEN WHAT WILL BE THE DAYS FOR CREDIT LEAVE?

Message :
S.10(10AA)contemplates 4 conditions for exemption.

1.cash equivalent of the leave - 30 days for each completed year of servive on the basis of average of 10 mnths salary.

2. 300000

3. amt actually recd

4.10 months salary( on the basis of avg 10 months salary)

1.hence,regardless of the leave entitlement as per employer's rules,we consider only 30 days for each completed year which works out to 16 months-leave taken(in months) * avg salary for last 10 months. If you had worked out the leave taken as (16*40)-x=300,then leave taken comes to 11 months approx, so 16-11=5 *10 months avg salary. accordingls other conditions have to be computed to arrive at the exempted leave encashment.

Thanks

(Guest)

i cannot understand,plz explain me only the provi of unavailed leave and calculation of days in the above example.

A.Balaji (AUDIT) (27 Points)
Replied 29 June 2011

ya got you.then, as 16*40 = 640 -50 = 590/30=19.67 is more than 16.i.e.,total leave taken is more than eligible leave , the resulting amount will be nil ..no need to multiply with the average salary.since R has exceeded the eligible leave,he is denied any exemption.

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