Leave salary
This query is : Resolved
22 February 2009
IS leave salary taxable in case of an employee resigning from job?pls quote relevant section of income tax Act.
23 February 2009
Leave encashment on retirement is exempted u/s 10(10AA). Therefore, leave encashment of other cases is taxable under Income From Salaries.
23 February 2009
Leave salary at the time of retirement to other employees -
In the case of a non-government employee, leave salary is exempt from tax to the extent of the least of the following:
Cash equivalent of the leave salary in respect of the period of earned leave standing to the credit of employee at the time to retirement/superannuation (earned leave entitlements cannot exceed 30 days for every year of actual service rendered for the employer from whose service he has retired); or
10 months' 'average salary'; or
Rs 300,000 (applicable from April 1, 1998)
the amount of leave encashment actually received at the time of retirement.
In the case of a non-government employee, leave salary is exempt from tax to the extent of the least of the following:
Cash equivalent of the leave salary in respect of the period of earned leave standing to the credit of employee at the time to retirement/superannuation (earned leave entitlements cannot exceed 30 days for every year of actual service rendered for the employer from whose service he has retired); or
10 months' 'average salary'; or
Rs 300,000 (applicable from April 1, 1998)
the amount of leave encashment actually received at the time of retirement.
24 February 2009
Leave salary at the time of retirement to other employees -
In the case of a non-government employee, leave salary is exempt from tax to the extent of the least of the following:
Cash equivalent of the leave salary in respect of the period of earned leave standing to the credit of employee at the time to retirement/superannuation (earned leave entitlements cannot exceed 30 days for every year of actual service rendered for the employer from whose service he has retired); or
10 months' 'average salary'; or
Rs 300,000 (applicable from April 1, 1998)
the amount of leave encashment actually received at the time of retirement
In the case of a non-government employee, leave salary is exempt from tax to the extent of the least of the following:
Cash equivalent of the leave salary in respect of the period of earned leave standing to the credit of employee at the time to retirement/superannuation (earned leave entitlements cannot exceed 30 days for every year of actual service rendered for the employer from whose service he has retired); or
10 months' 'average salary'; or
Rs 300,000 (applicable from April 1, 1998)
the amount of leave encashment actually received at the time of retirement
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
- Post Office RD Interest
- Eway bill for machinery reparing
- Building and other construction workers welfare cess act 1996
- Applicable TDS for Purchase of Flat from NRI
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- ITR validation error - Balance sheet is not filled
- Bank Accounts in Balance Sheet for ITR 3
- Form 10BD Filling
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- NRI ITR2 account in 2025-26 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
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
