Leave encashment
This query is : Resolved
10 September 2010
Dear Sir,
Leave encashment is taxable for Income and if yes then what is the criteria.
Leave encashment is taxable for Income and if yes then what is the criteria.
10 September 2010
Leave Encashment
Leave encashment while in service is taxable. Encashment of sick leave is taxable.
Leave encashment received at the time of retirement is fully exempt in the case of Government Servants. [U/S 10(10AA)(i)] In the case of non-Govt. Employees,[U/S 10(10AA)(ii)] leave encashment is exempt to the extent of the least of the following four amounts: -
* Rs. 3,00,000/-
* Ten months' average salary;
* Cash equivalent of the leave due at the time of retirement;
* Leave encashment actually received at the time of retirement.
Here the average salary means the average of the salary drawn during the last ten months before retirement.
YOU CAN ALSO CHECK FOLLOWING LINK----
https://www.indiataxes.com/Information/incometax/contents/salaries/taxationofsalaries/sal_leave_sal.htm
Leave encashment while in service is taxable. Encashment of sick leave is taxable.
Leave encashment received at the time of retirement is fully exempt in the case of Government Servants. [U/S 10(10AA)(i)] In the case of non-Govt. Employees,[U/S 10(10AA)(ii)] leave encashment is exempt to the extent of the least of the following four amounts: -
* Rs. 3,00,000/-
* Ten months' average salary;
* Cash equivalent of the leave due at the time of retirement;
* Leave encashment actually received at the time of retirement.
Here the average salary means the average of the salary drawn during the last ten months before retirement.
YOU CAN ALSO CHECK FOLLOWING LINK----
https://www.indiataxes.com/Information/incometax/contents/salaries/taxationofsalaries/sal_leave_sal.htm
10 September 2010
DEAR,
Leave encashment while in service is taxable. Encashment of sick leave is taxable.
Leave encashment received at the time of retirement is fully exempt in the case of Government Servants. In the case of non-Govt. Employees, leave encashment is exempt to the extent of the least of the following four amounts: -
• Rs. 3,00,000/-
• Ten months' average salary;
• Cash equivalent of the leave due at the time of retirement;
• Leave encashment actually received at the time of retirement.
Here the average salary means the average of the salary drawn during the last ten months before retirement.
FOR MORE INFO:- https://www.incometaxindia.gov.in/general/computation.asp
Leave encashment while in service is taxable. Encashment of sick leave is taxable.
Leave encashment received at the time of retirement is fully exempt in the case of Government Servants. In the case of non-Govt. Employees, leave encashment is exempt to the extent of the least of the following four amounts: -
• Rs. 3,00,000/-
• Ten months' average salary;
• Cash equivalent of the leave due at the time of retirement;
• Leave encashment actually received at the time of retirement.
Here the average salary means the average of the salary drawn during the last ten months before retirement.
FOR MORE INFO:- https://www.incometaxindia.gov.in/general/computation.asp
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