Leave encahsment on retirement limit
This query is : Resolved
16 April 2016
Leave Encashment amount of Rs. 338688 at the time of retirement.What is taxable amount?
16 April 2016
Up to 3 lacs is exempted balance amount will be taxed.
16 April 2016
Encashment of leave salary at the time of retirement
Exemption from amount received as leave salary is available under Section 10(10AA). For the
purpose of availing exemption under section 10(10AA), the employees are divided into 2 types of
categories:-
1. Govt Employees (Central Govt and State Govt employees only): Leave encashment of
accumulated leave at the time of retirement, whether on superannuation or otherwise, received
by a Govt employee, is fully exempt from tax. No tax would be levied on any amount received
as leave encashment by govt employees on retirement.
2. Other Employees: Leave encashment of accumulated leave at the time of retirement whether
on superannuation or otherwise received by any other employee (except those covered above)
is exempt from tax to a certain limit. In such a case, the least of the following shall be exempted:-
1. Leave encashment actually received
2. 10 months “average salary”
3. Cash equivalent of unavailed leave calculated on the basis of maximum 30 days leave for every year of completed service.
4. Amount specified by the Govt i.e. Rs. 3,00,000
Exemption from amount received as leave salary is available under Section 10(10AA). For the
purpose of availing exemption under section 10(10AA), the employees are divided into 2 types of
categories:-
1. Govt Employees (Central Govt and State Govt employees only): Leave encashment of
accumulated leave at the time of retirement, whether on superannuation or otherwise, received
by a Govt employee, is fully exempt from tax. No tax would be levied on any amount received
as leave encashment by govt employees on retirement.
2. Other Employees: Leave encashment of accumulated leave at the time of retirement whether
on superannuation or otherwise received by any other employee (except those covered above)
is exempt from tax to a certain limit. In such a case, the least of the following shall be exempted:-
1. Leave encashment actually received
2. 10 months “average salary”
3. Cash equivalent of unavailed leave calculated on the basis of maximum 30 days leave for every year of completed service.
4. Amount specified by the Govt i.e. Rs. 3,00,000
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
- STCG....................................................
- Supply through E-commerce Operators
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Relief u/s Section 89
- GST ON DAMAGED GOODS
- Suggestions required for income tax filing-software (FY 2025-26)
- GST Rate applicable for 0% Food Items sold by an Industrial Caterer
- Loan by Partnership Firm
- Taxation on LTCG for property sold after 24JUL2024
- TAN for Partnership
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
