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Exemption regarding leave encashment and gratuity received

Tax queries 1071 views 3 replies

suppose mr. x resigned the company1 and encashed the leave encashment and gratuity and also the balance in reconized provident fund after serving the company for a period of 2.5 years and received leave encashment 23554 and gratuity 17377 and pf bal Employer contribution to PF 16771 and Interest on Employer contribution to PF 1816. After resigning company1 joined company2 and total other income from both company is about 4 lacs. so what can be the maximum exemption to be claimed in respect of leave encashment , gratuity and provident fund amount. plzz reply. . .

 

Replies (3)

company1 is a public company

Hi He can only claim exemption for leave encashment. Since he had not served 5 years of services, Employers contributions to PF n interest on the same is taxable under income from other sources and full amount of gratuity received is also taxable under income from salaries. Thanks

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