Treatment regarging leve encashment u/s 10(10aa ii)

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This query is : Resolved

ATANU BANERJEE (Querist)

11 January 2017 Hello everyone,

I wanna know can an non govt. employee get exemption of leave encashment while resigning his job after serving 4 years and 5 months in an organization. If yes then how can I calculate his average salary for last10 months as he left on first week of September,2016. Please send the details of the calculation.

Thanks in advance.

CA Suresh Jain

CA Suresh Jain (Expert)

12 January 2017 Yes, Section 10 (10AA) (ii) is meant for non Govt employees. You take the Basic salary and DA for the month of NOv'15 to Aug'16 and divide by 10 to arrive at average monthly salary, divide the same by 26 and multiply with number of leaves encashed to find the the exempted amount

ATANU BANERJEE

ATANU BANERJEE (Querist)

12 January 2017 It is fine, but why it is divided by 26

CA Suresh Jain

CA Suresh Jain (Expert)

12 January 2017 For calculations of all employees benefits entitlements Salary is to be divided by 26 (i.e. working days excluding Sudays)

ATANU BANERJEE

ATANU BANERJEE (Querist)

12 January 2017 Thanks a lot for giving your valuable time.

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