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Exemption for Leave Encashment

08 April 2021

Does a bank employee is eligible for exemption for leave encashment at the time of retirement?
if not, how much limit. please clear

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5 Replies

ajeet singh (1392 Points)
Replied 08 April 2021

20 lkh

CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 09 April 2021

Leave cash encashment received by Central Govt bank employees are fully exempt.

300000 rupees upto exempt

CMA Poornima Madhava (CMA) (13097 Points)
Replied 09 April 2021

Originally posted by : Vijay Sain
	Does a bank employee is eligible for exemption for leave encashment at the time of retirement?if not, how much limit. please clear

Since, bank employees are not government employees, leave salary up to Rs.3 lacs is exempt, at the time of retirement/leaving job. Refer section 10(10AA) for more details.