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Taxability on Leave Encashment

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(Querist)
31 March 2010 Hi,
Is Leave Encashment taxable while an employee resigns from a company? What is the meaning of "Retirement" with respect of Leave Encashment?

Regards
Sandeep Nair
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sivadas chettoor

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sivadas chettoor (Expert)
01 April 2010 The employee may retire from the organisation in so many ways. The word retirement is not defined under the Act. The common dictionary meaning is "removal or withdrawal from service, office, or business". Therefore , according to me a resignation is also equivalent to retirement.My view is supported by the decision CIT V Shahney decided by the Hon' Madras High Court-159 ITR 160 and Hon' Bombay High Court in 229 ITR 394.
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CA SANJAY MUKHERJEE

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CA SANJAY MUKHERJEE (Expert)
01 April 2010 Agree with expert Sivadas.
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CA Ashok Kumar Sahu

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CA Ashok Kumar Sahu (Expert)
01 April 2010 agree with expert
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Sandeep Nair

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Sandeep Nair (Querist)
01 April 2010 Dear Experts,
Thanx A Lot for your replies.

Regards
Sandeep Nair
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
01 April 2010 agreed
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