calculation of leave entitlment

Leave Encashment

Leave encashment while in service is taxable. Encashment of sick leave is taxable.

Leave encashment received at the time of retirement is fully exempt in the case of Government Servants. In the case of non-Govt. Employees, leave encashment is exempt to the extent of the least of the following four amounts: -

• Rs. 3,00,000/-
• Ten months' average salary; 
• Cash equivalent of the leave due at the time of retirement;
• Leave encashment actually received at the time of retirement.

Here the average salary means the average of the salary drawn during the last ten months before retirement.

Originally posted by : RAHUL BANSAL
	Leave Encashment Leave encashment while in service is taxable. Encashment of sick leave is taxable. Leave encashment received at the time of retirement is fully exempt in the case of Government Servants. In the case of non-Govt. Employees, leave encashment is exempt to the extent of the least of the following four amounts: - Rs. 3,00,000/- Ten months' average salary;  Cash equivalent of the leave due at the time of retirement; Leave encashment actually received at the time of retirement. Here the average salary means the average of the salary drawn during the last ten months before retirement.

We don't expect such a ridiculous answer by a CA student. Is this place for making fun of others. The management of this site must make note of such a stupid comment posted above. 

Well, Kavita.. As far as I know under PCC scheme, the trainee is allowed leave for 1/6th of the actual period served. 

For example, total days of training (3 1/2 years) = 1277

total leave taken = 185

total period served (1277-185) = 1092

therefore, leave  allowed = 1092 / 6   ---> 182

therefore, leave is in limit

As per my interpretation of the rules of the Institute, Sundays and allowed holidays form a part of the training period actually served. Only actual leaves taken are considered as leave.