Income tax on leave encashment

314 views 2 replies

A Company is under insolvency process. During this management asked to their employees to submit leave encashement request (as management requested, employees taken their leave encashments).

Due to this their income tax slab are changed and their tax deducted as per the applicable rates.

Is any possibilities in this case to get tax exemptions ? 

 

  

Replies (2)
Leave Encashment is Taxable as Salary Income and an exemption is provided upto Rs. 3,00,000/- based on the computation provided under Section 10(10AA)(ii)
I have a query on leave encashment
our employees have donated earned leave to PM/CM relief fund. The employer became facilitator to convert the Earned leave of employees to money and deposited in the respective account of relief funds of PM / CM.
My question is, whether the perquisites tax on EL encashment need to be calculated even if the employee had directly donated to the relief fund through employer, as a facilitator.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
24 June 2026
Senior Account (VA Client Operations)

Karbon Business

Bengaluru

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details