This discussion clarifies the taxability of Earned Leave (EL) encashment upon retirement for Public Sector Undertaking (PSU) employees. While EL encashment is fully exempt for state and central government employees, it is taxable for PSU employees. However, there is an exemption of up to £3 Lakhs for PSUs.
17 August 2021
sir, is EL encashment recd on retirement taxable or not for PSU. is there any latest G.O. for this. as per my understanding i beleive it is only for state and central govt fully exempt and not for PSU. is it correct. pl clarify