Leave encashment refund
Rahul Singh (7 Points)
01 August 2016Rahul Singh (7 Points)
01 August 2016
Udgam Koomar
(Tax Technologist)
(1949 Points)
Replied 02 August 2016
The entire LE cannot be tax free I think, there is some rule in private sector if you belong to it. Plz give details of how many years you worked, how much leave encashment you have done and company rules regarding LE.
Rahul Singh
(7 Points)
Replied 02 August 2016
Originally posted by : Udgam Koomar | ||
The entire LE cannot be tax free I think, there is some rule in private sector if you belong to it. Plz give details of how many years you worked, how much leave encashment you have done and company rules regarding LE. |
Thanks for your reply! I have done all those checks. However, the LE amount was 90,000 and upto 300,000 is exempted. The problem i am facing is, how to get this exemption while filing the return? As per my form 16, LE is included in salary and hence TDS is done.
Dinesh Mertiya
(PROFESSIONAL)
(761 Points)
Replied 02 August 2016
If It is exempt then show it in your ITR as exempt income .
income from salary will be considered after deducting (excluding) exempt income i.e. leave encashment
Dinesh Mertiya
(PROFESSIONAL)
(761 Points)
Replied 02 August 2016
Income from salary will be shown excluding Leave Encashment, TDS will be refunded(if any)
Rahul Singh
(7 Points)
Replied 03 August 2016
Thanks! So if my income from salary is X, then I can show it as X-90,000? But how do i give a proof that 90,000 is LE?
Dinesh Mertiya
(PROFESSIONAL)
(761 Points)
Replied 03 August 2016
What does it mean.......
any amount is given by department(any) with supporting/writing letter,
otherwise how did you know
any supporting document, is having mention about leave encashment, is a proof
Rahul Singh
(7 Points)
Replied 03 August 2016
The story is, I left organization in last sept and got 90k as leave encashement (which is mentioned in my payslip). However, while leaving i did not submit a declaration saying that "I have never received LE previously in my professional carrier". Because of this,they deducted the TDS on it and when they gave me form-16, then entire amount is shown as Income - and deduction u/s-10 is 0. Now while filing the return i dont see an option to declare anything under section-10 for exemption. so, is there a way around?
Dinesh Mertiya
(PROFESSIONAL)
(761 Points)
Replied 03 August 2016
Line D20 in ITR-1 for exempt income
"Exempt Income only for Reporting Purpose (If agricultural income is more than Rs. 5000/- use ITR-2 or 2A)"
Lakshmanan
(Engineer)
(26 Points)
Replied 01 August 2018
Lakshmanan
(Engineer)
(26 Points)
Replied 01 August 2018
Lakshmanan
(Engineer)
(26 Points)
Replied 01 August 2018