TAXABILITY OF LEAVE ENCASHMENT RECEIVED DURING SERVICE
This query is : Resolved
14 July 2024
I AM A CENTRAL GOVT EMPLOYEE AND RECEIVED LEAVE ENCASHMENT WHILE IN SERVICE. MY OFFICE DEDUCTED 30% INCOME TAX ON THE AMOUNT PAID TO ME AS LEAVE ENCASHMENT. CAN I CLAIM DEDUCTION UNDER SEC. 89 FOR THE INCOME TAX DEDUCTED. KINDLY CLARIFY.
URGENT CLARIFICATION PLEASE
URGENT CLARIFICATION PLEASE
15 July 2024
Yes, you can get rebate u/s. 89(1) IT act by filing form 10 E before filing relevant return.
15 July 2024
pl inform under which heading i should apply for rebate under Sec. 89 (1) - is it under Salary arrears received? Annexure I. pl reply
15 July 2024
Yes, it is taxable under head Salary.
15 July 2024
PL ALSO INFORM HOW TO SHOW THE LEAVE ENCASHMENT RECEIVED IN FORM 10 E
15 July 2024
Refer: 2. Annexure I (Arrears) - Salary / Family Pension received in arrears in the link.....
https://www.incometax.gov.in/iec/foportal/help/statutory-forms/popular-form/form10e-um
For tax calculator on arrears ....
Refer:: https://cleartaxindia.com/how-to-file-10e-in-the-new-income-tax-portal-with-auto-calculate-income-tax-arrears-relief-calculator-u-s-891-with-form-10e-from-the-f-y-2000-01-to-f-y-2023-24/
https://www.incometax.gov.in/iec/foportal/help/statutory-forms/popular-form/form10e-um
For tax calculator on arrears ....
Refer:: https://cleartaxindia.com/how-to-file-10e-in-the-new-income-tax-portal-with-auto-calculate-income-tax-arrears-relief-calculator-u-s-891-with-form-10e-from-the-f-y-2000-01-to-f-y-2023-24/
17 July 2024
SIR, PL HELP WHETHER MY CALCULATION IS CORRECT WITH REGARD TO LEAVE ENCASHMENT DEDUCTION UNDER SEC89 of income tax act
SALARY RECD AY 2024-25 Rs.18,54,432
LEAVE SALARY RECD Rs. 40,281
TOTAL SALARY Rs.18,94,713
TAX PAID Rs.2,79,150 (INCLUDING Rs..12,567 as tax on leave encashment)
salary recd previous year (ay 2022-23) Rs.17,39,478
As per 10E calculation in income tax website, it shows no relief under Sec. 89.
Pl help
SALARY RECD AY 2024-25 Rs.18,54,432
LEAVE SALARY RECD Rs. 40,281
TOTAL SALARY Rs.18,94,713
TAX PAID Rs.2,79,150 (INCLUDING Rs..12,567 as tax on leave encashment)
salary recd previous year (ay 2022-23) Rs.17,39,478
As per 10E calculation in income tax website, it shows no relief under Sec. 89.
Pl help
17 July 2024
Yes, the tax rate (Slab) being same in both the years, there won't be any change in tax over leave encashment amount, so better pay it in current year itself. No need to file Form 10E
17 July 2024
THANKS FOR YOUR KIND CLARIFICATION. GOT FULLY CLARIFIED. IF POSSIBLE, GIVE ME ONE MORE CLARIFICATION PL.
I HAVE SHORT TERM CAPITAL GAIN OF RS. 30000 THIS YEAR AND ALSO HAVE CARRIED FORWARD LONG TERM CAPITAL LOSS OF RS. 200000/- ON SALE OF HOUSE PROPERTY LAST YEAR. CAN THIS STCG BE ADJUSTABLE AGAINST LONG TERM CAPITAL LOSS. PL INFORM
I HAVE SHORT TERM CAPITAL GAIN OF RS. 30000 THIS YEAR AND ALSO HAVE CARRIED FORWARD LONG TERM CAPITAL LOSS OF RS. 200000/- ON SALE OF HOUSE PROPERTY LAST YEAR. CAN THIS STCG BE ADJUSTABLE AGAINST LONG TERM CAPITAL LOSS. PL INFORM
17 July 2024
No. LTCG can only be adjusted against LTCG. So, if there is any LTCG in this year, it will get adjusted, otherwise it will be carried forward.
17 July 2024
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25 August 2024
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