Taxability on Leave Encashment
This query is : Resolved
Sandeep Nair
(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
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
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.
CA SANJAY MUKHERJEE
(Expert)
01 April 2010
Agree with expert Sivadas.
CA Ashok Kumar Sahu
(Expert)
01 April 2010
agree with expert
Sandeep Nair
(Querist)
01 April 2010
Dear Experts,
Thanx A Lot for your replies.
Regards
Sandeep Nair
Thanx A Lot for your replies.
Regards
Sandeep Nair
CMA Ramesh Krishnan
(Expert)
01 April 2010
agreed
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