Interest on leave encashment

Gayatri Ramasubramani (Articled assisstant) (93 Points)

29 July 2013  

Dear Members,

Please can anyone tell me about the treatment of Interest on Leave encashed ?  The assessee is a retired government employee and the Leave encashment is received by him during retirement. But he is also in receipt of Interest on Leave encashment which does not exceed Rs. 5,000/-. Please help me in resolving this issue.

 

Thanks & Regards,

Gayatri.R