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Deduction/exemption for leave encashment during service

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Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2017 Dear Sir/Madam,

An employee of a company gets leave encashment salary every year on account of his excess leave balance over the prescribed limit. (This is a leave encashment during the continuance of service)

Whether deduction/exemption is available u/s 89 or any other section of the Income Tax Act in respect of this?

Thanks.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 During service, receipt of leave encashment is always taxable. No other benefit available in respect of it.

Querist : Anonymous

Querist : Anonymous (Querist)

21 June 2017 Thanks for the reply.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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21 June 2017 Always welcome....

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