Sir,
I resigned from a private sector company after serving for nearly 1.5 years and my last date was 31/3/2012. My leave encashment amount was Rs 35,578 but the previous employer -RMC Readymix (India) added it to the 'Gross Income' and did not provide me 'Leave Encashment Exemption' and hence I paid income tax on it (They deducted TDS). These figures are mentioned in the Full and Final Settlement Letter(copy not given to me but my signature taken on their copy to release the final settlement) but are not mentioned on the Form 16 which I received on 5/7/2012.Only the Gross Amount is shown.
My question: Can I claim the income tax exemption on leave encashment while filing the IT returns now ? If yes, can I deduct the leave encashment amount from my 'Gross Income' and recalculate my tax liability ? Please provide useful details.
Thank you very much for your time and awaiting your valuable responses.
Arun
CAclubindia
