Leave encashment calculation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 September 2015 Dear expert
an employee has worked in pvt ltd company one year ten month nine days, his salary is 22000 PM, and at the date of resignation his non availed leave is 39, and received rs 32994, the calculation is below under...

(1)rs. 300000
(2)actual amount received 32994
(3)10*22000 = 220000
(4) 22000*39/30=28600

32994-28600= 4394 is taxable.
plz tell me whether the above calculation is correct or not. and also tell me should i deduct the TDS on this 4394 also. if yes how much percent and which section....

plz solve

Amol S Joglekar

Amol S Joglekar (Expert)
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06 September 2015 32,994 is exempt in the hands of employee.
as 10 (10AA)

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2015 Dear joglekar sir
my fourth is incorrect it will be ...
22000*10*39/30=286000, hence the 32,994 will be exempt in the hand of employee. plz tell me is this correct calculation now..

and also tell me should it deduct TDS on leave encashment if any amount is taxable..

Amol S Joglekar

Amol S Joglekar (Expert)
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07 September 2015 The employer is entitled to consider the exemption of leave encashment. TDS, if any, be deducted after granting the legitimte exemption for leave encashment.

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