Non-taxable leave encashment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 February 2015
Hi
Can anybody please let me know how leave encashment is treated when an employee resigns from the organization and how much amount is exempt in case leave encashment is during the tenure of the employment.
Thanks in advance ! !
Can anybody please let me know how leave encashment is treated when an employee resigns from the organization and how much amount is exempt in case leave encashment is during the tenure of the employment.
Thanks in advance ! !
05 February 2015
Leave encasement during service is taxable.
The terminal leave encashment is exempt under Sec. 10(10AA) subject to the conditions thereunder. Sec. 10(10AA)(ii) read with Explanation prescribes the manner of working number of days for which leave encashment has to be calculated. Sec. 10(10AA)(ii), which applies for persons other than Government servants.
See the link.
https://taxguru.in/income-tax/leave-salary-encashment-exemption-calculation-download-calculator.html
The terminal leave encashment is exempt under Sec. 10(10AA) subject to the conditions thereunder. Sec. 10(10AA)(ii) read with Explanation prescribes the manner of working number of days for which leave encashment has to be calculated. Sec. 10(10AA)(ii), which applies for persons other than Government servants.
See the link.
https://taxguru.in/income-tax/leave-salary-encashment-exemption-calculation-download-calculator.html
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