An employee left the company in the month of march and the company paid him leave encashment in the month of april. Is leave salary taxable on receipt or accrual basis?
Vikas Agarwal (CA Finalist) (33 Points)
10 July 2012An employee left the company in the month of march and the company paid him leave encashment in the month of april. Is leave salary taxable on receipt or accrual basis?
Nitesh ujjwal
(ARTICLE ASSISTANT)
(41 Points)
Replied 11 July 2012
As the salary includes any payment received by an employee in respect of any period of leave not availed of by him and salary is taxable on the due basis.
that's why leave salary shall also be taxed on due basis.
"Live Course on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
CAclubindia
