banner_ad

Leave Encashment

This query is : Resolved 
Avatar

Querist : Anonymous

Profile Image
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
Profile Image

CA Prashant Gupta

Profile Image

CA Prashant Gupta (Expert)
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
Profile Image

CMA Ramesh Krishnan

Profile Image

CMA Ramesh Krishnan (Expert)
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


CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details