23 January 2020
AN ASSESSEE WHO WAS RETIRED FROM TAMILNADU STATE GOVT SERVICE RECEIVED 347500 AS ENCASHMENT OF UNEARNED LEAVE ON PRIVATE AFFAIRS AT THE TIME OF RETIREMENT. IS IT TAXABLE OR EXEMPT U/S 10(10AA)
23 January 2020
As per Section 10(10AA) of the Income Tax Act, 1961, Leave encashment received at the time of retirement for a Government(Central as well as State) employee is fully exempt in the hands of the recipient.
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