LEAVE ENCASHMENT
This query is : Resolved
Ramaswami Thondikulam
(Querist)
18 August 2010
Whether Leave Encashment is taxable when it is paid at the time of Resignation or termination from employment.
If an employee encashes leave during the tenure of his employment, whether that is taxable ?
If it is exempt, under which section it is so.
If an employee encashes leave during the tenure of his employment, whether that is taxable ?
If it is exempt, under which section it is so.
Aditya Maheshwari
(Expert)
18 August 2010
It is fully taxable.
PANKAJ KHURANA
(Expert)
18 August 2010
For Govt employee:
Leave encashment during continuity of employment : It is chargeable to tax. However, relief can be taken under section 89
Leave encashment at the time of retirement/ Leaving job : It is fully exempt from tax under section 10(10AA)(i)
For Non Government employee:
Leave encashment during continuity of employment : It is chargeable to tax. However, relief can be taken under section 89
Leave encashment at the time of retirement/ Leaving job : It is fully or partly exempt from tax in some cases under section 10(10AA)(ii)
Leave encashment during continuity of employment : It is chargeable to tax. However, relief can be taken under section 89
Leave encashment at the time of retirement/ Leaving job : It is fully exempt from tax under section 10(10AA)(i)
For Non Government employee:
Leave encashment during continuity of employment : It is chargeable to tax. However, relief can be taken under section 89
Leave encashment at the time of retirement/ Leaving job : It is fully or partly exempt from tax in some cases under section 10(10AA)(ii)
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