Leave Encashment
This query is : Resolved
Prakash Khandelia
(Querist)
27 March 2009
In case of change in jobs in a year whether leave encashment received from previous employer if received below Rs 300000 is taxed or not U/s 10(10AA).Secondly whether this limit is based on cumulative basis or not.
27 March 2009
The first calculation will be propotionatly and in second one maximum exemption limit will reduce to (Rs 300000- Exemption granted earlier).
Manmohan ACA, CS
(Expert)
27 March 2009
It shall be exempted u/s 10(10AA) minimum of following
a) Actual amount received as leave salary
b) Rs. 300000/-
c) 10 * Average salary p.m.
d) To the maximum of 30 days (normally taken as 1 month) average salary for every completed year of service, subject to deduction for actual leave availed during the tenure of service.
Earlier deduction claimed for leave encashment:
While claiming the statutory amount (i.e. Rs.300000) any deduction claimed earlier as leave encashment shall be reduced from Rs.300000
a) Actual amount received as leave salary
b) Rs. 300000/-
c) 10 * Average salary p.m.
d) To the maximum of 30 days (normally taken as 1 month) average salary for every completed year of service, subject to deduction for actual leave availed during the tenure of service.
Earlier deduction claimed for leave encashment:
While claiming the statutory amount (i.e. Rs.300000) any deduction claimed earlier as leave encashment shall be reduced from Rs.300000
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 Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
