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Allowability of leave encashment paid to employee

This query is : Resolved 

30 December 2021 Hi experts

If leave encashment in current FY is paid by a company out of Provision created in the previous financial year, then will the payment of leave encashment to the employee be allowed or disallowed under Income Tax Act in the hands of the company


30 December 2021 It will be allowed in the hands of the company in the year of payment.


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