Tax treatment of medical leave encashed


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Querist : Anonymous

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Querist : Anonymous (Querist)
19 September 2011 What is the tax treatment for medical leave encashed at the time of taking VRS?

19 September 2011 If I am not wrong then the amount received on account of medical leave encashment is 100% taxable...

VISHRUT (Expert)
19 September 2011 It is correct.. Agreed with expert.

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Querist : Anonymous

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Querist : Anonymous (Querist)
19 September 2011 But as per Sec 10(10AA), least of following is exempted:
1) amount of leave encashment received
2) 10 months avg salary
3) Rs 3 lacs

Please clarify the issue?

19 September 2011 Section 10(10AA) squarely applies to medical leave encashment also.

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Querist : Anonymous

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Querist : Anonymous (Querist)
20 September 2011 please clarify that sec 10(10AA) will apply?

Will medical leave encashment be fully exempt or exempt till Rs 3 lacs?


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