Leave Encashment

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Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2011 Can Any say whether the Leave Encashment is taxable or not for 2010-2011

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 April 2011 Leave Encashment

Leave encashment is the encashment of unused leave of an employee. The employee surrenders the leave at the time of retirement and is paid for the same. Taxability of leave encashment received at the time of retirement is as follows

* In case of government employees, it is fully exempt from tax.
* In case of non-government employees, the least of the following is exempt
o Rs. 3,00,000/-
o 10 months average salary
o Leave encashment actually received
o Cash equivalent to the leaves surrendered

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2011 i was working in private company as a jr.accountant while i was calculating it for 2010-2011 our emoloyes have leave encashment for 2009-2010 which we have paid in feb-2011 should i considered this in income tax for 2010-2011

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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14 April 2011 Yes you should consider the leave encashment in Income Tax for the Ay 2011-12

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2011 thank u sir,i was very happy to be her in ca club

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