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calculation of leave entitlment

Kavita (Article Student) (27 Points)

31 January 2010

Can you tell me whether extra days worked during articleship can adjust against total leave taken? Please explain me leave calculation with example and suggest me circular in this regard. I am talking about leave entitlement and not abt leave encashment

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2 Replies

Rahul Bansal (Finalist) (35929 Points)
Replied 31 January 2010

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.

Jinendra Daga (Chartered Accountant) (65 Points)
Replied 18 February 2010

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.