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
- Refund Annexure-B
- House Property Reporting in ITR
- TDS Claim year
- Liable to deduct tds and 44ADA
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Refund of 20%pre-deposit paid for stay application
- TDS Challan Code
- Rent lease agreement
- Entries in AIS regarding sale of units and shares
- SGST balance is there in credit ledger how to adjust for cgst
- 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
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
