Leave encashment

This query is : Resolved

Share Report Follow Query Ask a Query

MANGESH SHANTARAM MOHITE

MANGESH SHANTARAM MOHITE (Querist)
Follow

18 February 2012 Respected sir,

i just watn to ask you about whether leave encashment is taxable.

its urgent,

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

19 February 2012 (A)Leave salary received by any employee during the period of service.

Leave salary received by any employee during the period of service is fully Taxable. however relief under section 89 read with rule 21A can be claimed (Circular no 431 Dated September 12,1985)
(B)Leave Salary to At the time of Retirement /superannuation or otherwise.

(i) Leave salary to Central/State Government employee
Leave salary given to Central/State Government employees at the time of retirement /superannuation in respect of period of earned leave at his credit ,is fully exempted.{section 10(10AA)(i)}
(ii)Leave salary given to other employee (non Central/State Government employee is exempted as per detail below.{section 10(10AA)(ii)}
Least of following will be exempted.

1. Leave encashment Actually received.
2. Last 10 Month average salary .
3. Maximum amount fixed by the Government from time to time presently Rs.3 Lac
4. Cash equivalent of salary in respect of the period of earned leave to the credit of the employee only at the time of retirement whether on superannuation or otherwise calculated maximum by 30 days maximum for every year of actual service rendered to employer from whose he has retired.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Sasidhar B

suresh kotte

ASHOK B GONDKAR

Tanishka Khandelwal

Pawan Haryani

Subscribe Now

Leave encashment

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA