I retired last year and got 4 lakh plus as 34 days leave encashment. My organization has considered only basic+DA (No DA actually is part of salary) to calculate exemption amount and have given me exemption to the extent of around 2.8 lakh only. As a variable pay component was also part of my salary (Paid every 6 months), I am wondering as to why that should also not be part of this calculation for exemption (Basic + DA + Commision). I was not a sales person but all employees above a certain level had this variable pay linked to company and individual performance.
can i claim more exemption based on this revised calculation of Basic+DA+Variable pay?
CAclubindia
