Leave encashment

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 August 2011 Actual Leave Encashment Rs 256761/-

No of Years of Service 14 years

Average Salary of Last 10 Month Rs 25000/- per month

Company gives 30 leaves per year

Please give taxability of leave encashment on Resignation

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 August 2011
Retirement is the first condition for getting an exempt leave salary benefit.

Entitlement is for 30 days leave and company considers the same No of leaves for encashment. Amount is 256761/.

But Salary of 10 months is 250000/ hence
6761/ will be only taxable leave salary.

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