Earn leave and un earn leave at the of retirement

Dear expert, pls reply above querry

Leave encashment received by Central or State Government employee at the time of  retirement or resignation is fully exempt

Dear sir, thanks for reply... At the time of retirement govt. service  UN EARN LEAVE u said exempted... but govt. department Tds deducted balance amount only paid. why deducted TDS ?

Under the Income Tax Act section 10(10AA), Leave Encashment is exempt to a certain extent.

• In case of a Central Government or State Government employee – any amount received as leave encashment is exempt from tax

• In case of a Non-Government employee – The least of the following is exempt from the total leave encashment received –
  • 10 months average salary. Where average salary means the salary of 10 months immediately preceding the retirement or resignation. Salary means basic salary and DA, excludes all allowances and perquisites.
  • Leave encashment actually received
  • Amount equal to salary for the period of leave earned (leave earned not to exceed 30 days for every year of actual service)
  • Rs 3,00,000 – Maximum amount specified by Government

So, you may claim refund.