Calucation of leave encashment
This query is : Resolved
07 September 2011
Mr. x has resign from y ltd. at time of resign Rs 89811 as leave encashment for 38 days leave. his 10 month average salary is 40531 and total period of service is 14 year. what is taxable amount of leave encashment. leave unavail is 38
plz reply with calculation
plz reply with calculation
07 September 2011
Leave Salary Section 10(10AA)
In case of a non-government employee exemption is calculated as below:
1.Actual amount received ..Rs 89,811 or
2.Avg. Salary of last 10 months x balance leave calculated on 30 days
i.e 40531 x 10 x 38/30 = Rs 5,13,392
3. Avg Salary x 10 months
i.e 40531 x 10 = Rs 4,05,310
4. Rs 3,00,000
Whichever is lower of the above four
In case of a non-government employee exemption is calculated as below:
1.Actual amount received ..Rs 89,811 or
2.Avg. Salary of last 10 months x balance leave calculated on 30 days
i.e 40531 x 10 x 38/30 = Rs 5,13,392
3. Avg Salary x 10 months
i.e 40531 x 10 = Rs 4,05,310
4. Rs 3,00,000
Whichever is lower of the above four
07 September 2011
Computation of Taxable Leave & Encashment
In the hand of Mr. (For P.Y
Income Received as Leave Salary 89,811 Less:- Exemption U/s 10(10AA)
Actual Amount Received 89,811
Maximum Exemption 300,000
10 Month Average Salary 405310
CashEquivalent
You did not delcare avail and unavail leave leave during the job
In the hand of Mr. (For P.Y
Income Received as Leave Salary 89,811 Less:- Exemption U/s 10(10AA)
Actual Amount Received 89,811
Maximum Exemption 300,000
10 Month Average Salary 405310
CashEquivalent
You did not delcare avail and unavail leave leave during the job
Message likes :
1 times
08 September 2011
leave salary as per section 10(10aa)
my calculation is also with both the experts..
my calculation is also with both the experts..
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- Tds on commission charges
- TDS on Complimentary "Desi Ghee and Gold Coin" Provided to KBC Contestants
- Applicability of GST on Salary Reimbursement Component
- New GST registration for new place of business.
- Consolidated financials
- Need Professional Opinion AY 2012-13 Old Demand
- Withdrawal in cash from partners capital account by partner
- Regarding Applicability of Tax Audit u/s 44AB
- FAST-DS Scheme - Foreign Assets
- Salary from Qatar in Dollars in India
- CHECK RELATED
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
Quick Links
ARTICLESHIP
01 September 2026
Articles
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Foundation
View Details
Featured
12 September 2026
Assistant Manager - Finance & Compliance
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
View Details
ARTICLESHIP
15 September 2026
Freelance Taxation Content Writer Intern
Interactive Media Pvt Ltd.
New Delhi
CA Inter
View Details
CCI
Pro
CAclubindia
