Leave Encashment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 February 2010
Pls tell me that leave encashment is totally expamt in which case, or exampt upto a specified limit for which catogory of employees.
2) give an exmaple of computatiion of specifie limit
2) give an exmaple of computatiion of specifie limit
05 February 2010
leave salary is exempt at the time of retirment to govt employees u/s 10(10AA).
for other employee at the time of retirment least of below is exempt:
1 months of earned leave x Avg Salary
2 10 x Avg salary
3 Rs 300000/-
4 leave salary received.
for months of earned leave: take 30 days for every completed year and subtract leave taken. No convert rest in months
Avg Salary: immediatley preceeding 10 month salary avg. it includes basic+DA if term of employement provided+ fixed % of commission
example: Mr. A retires 16 March 2009. he worked 32 year 3 month. he taken 120 day leave. Salary is basic 5000 and no other. he got leave salary of rs. 200000
leaves 30 x 32 =960 days - 120 days = 840
avg salary 5000*10/10 = 5000.
months 852/30 = 28
so least of below
28 x 5000 = 140000
10 x 5000 = 50000
300000
200000
for other employee at the time of retirment least of below is exempt:
1 months of earned leave x Avg Salary
2 10 x Avg salary
3 Rs 300000/-
4 leave salary received.
for months of earned leave: take 30 days for every completed year and subtract leave taken. No convert rest in months
Avg Salary: immediatley preceeding 10 month salary avg. it includes basic+DA if term of employement provided+ fixed % of commission
example: Mr. A retires 16 March 2009. he worked 32 year 3 month. he taken 120 day leave. Salary is basic 5000 and no other. he got leave salary of rs. 200000
leaves 30 x 32 =960 days - 120 days = 840
avg salary 5000*10/10 = 5000.
months 852/30 = 28
so least of below
28 x 5000 = 140000
10 x 5000 = 50000
300000
200000
05 February 2010
agree with Mr.Prashant
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
- House Property Reporting in ITR
- Supply through E-commerce Operators
- TDS Claim year
- Sales amount in Gstr1
- TDS Challan Code
- Relief u/s Section 89
- Rent lease agreement
- Taxation on LTCG for property sold after 24JUL2024
- Merchant Export Accounting
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- 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
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
