Dear Friends,
Pls help me on tax perspective.. I have switched the job ( 7 years of service of Ist Job).
I have received Leave enashment & Gratuity. Please let me know whether it is taxable or exempt on resignation & joining new company...
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Gratuity & leave encahement- taxability
Replies (7)
If you are carrying forward that amount in new company then its not taxable and if you are withdrawing amount then exempt upto specified limits.
leave encashment received is taxable as salary and it is included in your taxable income. no tax benefit on joining new co.
gratuity actually received is exempt by reducing least of the below:
1. avg. last 10 months salary *no of yrs of service/2
2.Rs.20 lacs
3. Gratuity actually received
gratuity actually received is exempt by reducing least of the below:
1. avg. last 10 months salary *no of yrs of service/2
2.Rs.20 lacs
3. Gratuity actually received
Mr. giridhar then leave encashment is exempt in which scenario?
only when it is received on retirement it is exempt
There is some provision that if we receive during service then same is not exempt. However when we switch job & join new company, whether we can take exemption. If so, then how much.
no it is not exempt. only if recd on retirement then it is exempt
As said above only gratuity exemption you can claim leave encashment is fully taxable.
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