Leave encashment of Mr XYZ on retirement of government employee
This query is : Resolved
Quick Summary
22 November 2021
One of my client retired on 15-06-2018. He got leave encashment amounting to Rs.11,00,000. His basic salary + DA is Rs.3860.00 per day / Rs.1,17,417.00 per month. Please let me know his eligibility which is exempt from Taxable income. Kind Regards
22 November 2021
Leave encashment received by Central or State Government employee at the time of retirement or resignation is fully exempt.
Leave encashment received by Non-Government employee is exempt based on the computation provided under Section 10(10AA)(ii) and balance amount if any is taxable as ‘income from salary’ (Maximum amount deductible is Rs. 3 lakhs)
Leave encashment received by Non-Government employee is exempt based on the computation provided under Section 10(10AA)(ii) and balance amount if any is taxable as ‘income from salary’ (Maximum amount deductible is Rs. 3 lakhs)
22 November 2021
Dear Rambhia ji... Thanks for reply... Kind Regards
22 November 2021
You are welcome...
23 November 2021
SIR :: Please once again :: Client is a retired government employee. Please let me know is 11,00,000 of leave encashment is fully exempt.. Regards
23 November 2021
Yes fully exempt u/s. 10(10AA)(i) of IT act....
For your satisfaction, read ... the sub section...
Section - 10, Income-tax Act, 1961.... Incomes not included in total income.
10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included— ......
(10AA) (i) any payment received by an employee of the Central Government or a State Government as the cash equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement whether on superannuation or otherwise; ....
For your satisfaction, read ... the sub section...
Section - 10, Income-tax Act, 1961.... Incomes not included in total income.
10. In computing the total income of a previous year of any person, any income falling within any of the following clauses shall not be included— ......
(10AA) (i) any payment received by an employee of the Central Government or a State Government as the cash equivalent of the leave salary in respect of the period of earned leave at his credit at the time of his retirement whether on superannuation or otherwise; ....
23 November 2021
Once again....Thank you...
23 November 2021
My Pleasure ............
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- TDS Deducted AY-2013-14 Not Reflected in 26as
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- ADVANCE PAYMENT OF ADVOCATE
- NRI starting business in India
- Demand Outstanding AY 2013-14 TDS Deducted not shown in 26as
- Invertaded duty struture
- CREDIT NOTES WITHOUT GST
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
