Calculation of Leave Encashment

Suman Khurana (ACS) (209 Points)

10 August 2009  



Please solve this:

An emloyee worked in Pvt. ltd. company for 1 year 10 months and 6 days. His salary was Rs. 20,000 per month. He was entitled to 30 days leave per year. On the date of resignation, his unavailed leaves were 44 days. Leave encashment received was rs. 33900.


How much leave encashment is taxable?