bank employee who retired last year, has to file his return now.
Received 6.5 laks as leave encashment
what is the exemption, amount he can avail
( some belive that full amount is exempted as they are ALSO govt. employees. )
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Bank employee leave encashment benefit limits - How much
Replies (1)
Bank employees are not considered government employees for tax purposes. Your leave encashment is exempt only up to a limit of ₹25 lakh, subject to the calculation of the lowest of the four factors listed above. If you received ₹6.5 lakh as stated in your query, and this amount is less than your 10-month average salary and the cash equivalent of your unutilized leave, the entire ₹6.5 lakh would likely be tax-exempt. However, ensure you verify your specific "average salary" and "unutilized leave" calculations to confirm eligibility.
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