income tax quiery plz unswer

x, a non-govt employee, receives Rs. 2,50,000 as leave salary at the time of retirement on February 20, 2009. On the basis of the following information, determine the amount of taxable leave salary : Basic pay : Rs. 15,000 per month since 2002; duration of service : 26 years; leave at the credit of X at the time of retirement : 25 months; entitlement of leave salary : 60 days salary for every year of service  and leave availed while in service : 27 months.

what should be the answer: is it 250000 as (no leave balance) as per me

or would it differ

Replies (5)
Originally posted by :Lakshmikant
"

u made right calculation exemption is available for Rs. 2,50,000.

 

"


 

your answer is correct bcoz as per provision of act maximum leave entitles is 30days for each compleated year of service, hence in this case maximum leave entitled would be 26 months while leave availed is 27 months, hence leave balancewill be 0 days & hence 250000 is entierly taxable. you may refer singhania book for the same problem
Originally posted by :Roshan
"


Originally posted by :Lakshmikant


"

u made right calculation exemption is available for Rs. 2,50,000.


"



"

 

roshan, i wrote that taxable amt is Rs. 250000 , not the exemption amt

this is for just correction

Regards,

Lakshmikant

Yes the leave will be fully taxable and answer is correct.

u made right calculation entire amount Rs. 2,50,000 is taxable

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