Leave encashment at the time of retirement
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 April 2014
whether leave encashment at the time of retirement of PSU is exempt from tax or not?
Nikhil Kaushik
(Expert)
18 April 2014
complete exemption under section 10AA(1) of the Income-tax Act, 1961 is provided only to central govt or statement employees.
PSU employees are not covered therein but under 10AA(2) wherein you need to compute the exemption as per the provisions provided therein subject to maximum of Rs 3 lakhs
PSU employees are not covered therein but under 10AA(2) wherein you need to compute the exemption as per the provisions provided therein subject to maximum of Rs 3 lakhs
Rupesh Jain
(Expert)
19 April 2014
UNDER CENTRAL GOVT EMPLOYEE AND STATE GOVT EMPLOYEE
LEAVE ENCASHMENT WILL EXEMPT U/.S 10
BUT FOR IN YOUR CASE YOU HAVE TO COMPUTE THE EXEMPTION
1. AMOUNT OF LEAVE 30 DAYS FOR EVERY YEAR OF SERVICE ON THE BASIS OF LAST SALARY FOR SUPERANNUATION
2. 10 MONTH AVERAGE SALLRY
3. RS.10,00,000/-
4. ACTUAL AMOUNT RECD.
WHICH EVER IS LESS WILL EXEMPT
LEAVE ENCASHMENT WILL EXEMPT U/.S 10
BUT FOR IN YOUR CASE YOU HAVE TO COMPUTE THE EXEMPTION
1. AMOUNT OF LEAVE 30 DAYS FOR EVERY YEAR OF SERVICE ON THE BASIS OF LAST SALARY FOR SUPERANNUATION
2. 10 MONTH AVERAGE SALLRY
3. RS.10,00,000/-
4. ACTUAL AMOUNT RECD.
WHICH EVER IS LESS WILL EXEMPT
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