Exemption in Gratuity and Leave encashment.
This query is : Resolved
Chitra Nair
(Querist)
04 February 2009
Is the exemption in gratuity and leave encashment available for the lifetime of the assessee or each Assessment year?
What about the employee who resigns and claims Rs. 350000 exemption in gratuity and Rs.300000 in leave encashment?
If the exemption is lifetime, then what should the employer do since it is difficult for him to keep a track of the exemptions claimed by the resigning employee in his earlier jobs?
What about the employee who resigns and claims Rs. 350000 exemption in gratuity and Rs.300000 in leave encashment?
If the exemption is lifetime, then what should the employer do since it is difficult for him to keep a track of the exemptions claimed by the resigning employee in his earlier jobs?
CA. B.SRINIVASULU
(Expert)
04 February 2009
The leave encashment made at the time of employment is taxable.
The leave encashment made at the time of retirement or at the time of termiantion of emplolyment is exempt subjects to the limit laid down. The limit is life time limit.
Similarly gratutity is also a life time limit.
Get the declaration from the employee that earlier he has not claimed any amount.
The leave encashment made at the time of retirement or at the time of termiantion of emplolyment is exempt subjects to the limit laid down. The limit is life time limit.
Similarly gratutity is also a life time limit.
Get the declaration from the employee that earlier he has not claimed any amount.
Message likes :
1 times
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
- GST on reimbursement of expenses
- Query on effect of registration of property
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Visiting card purchase
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Equity Share Sale and Purchase
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Whether output tax is taken credit by purchaser
- Wrong CMPo8 file
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
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
CAclubindia
