Leave encashment is taxable or not

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Querist : Anonymous

Querist : Anonymous (Querist)

24 July 2010 Leave encashment is taxable or not ?

when any person resign the private company than it's leave encashment is taxable or not ?

Pls give me any case law.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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24 July 2010 leave salary is exempt at the time of retirment to govt employees u/s 10(10AA).
for other employee at the time of retirment least of below is exempt:
1 months of earned leave x Avg Salary
2 10 x Avg salary
3 Rs 300000/-
4 leave salary received.

for months of earned leave: take 30 days for every completed year and subtract leave taken. No convert rest in months
Avg Salary: immediatley preceeding 10 month salary avg. it includes basic+DA if term of employement provided+ fixed % of commission

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2010 if in private company ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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07 August 2010 For Govt employees exempted, for private company only i provided the provision

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